Azzurri Group reports growth in sales and profit as it transitions from pure-play restaurant operator into hospitality investment platform: Azzurri Group, the ASK Italian, Zizzi, Coco di Mama and Boojum operator has reported growth in both its sales and profit as it transitions from pure-play restaurant operator into hospitality investment platform. The circa 230-strong company, which opened the UK debut site for Dave’s Hot Chicken earlier this month, said it saw a “significant step change in profitability alongside an enormous level of positive change, resilience and innovation across its portfolio” in the year to 30 June 2024, as it reported an 18% increase in revenue to £303.1m. The Steve Holmes-led business said it built on last year’s positive momentum, with ASK, Boojum, Coco di Mama and Zizzi all growing their like-for-like sales, gross margins and adjusted Ebitda despite dampened consumer confidence and economic uncertainty. Adjusted Ebitda for the year stood at £32.1m, an increase of 124% over the prior year, whilst adjusted Ebitda margin was 10.6%. It reported gross profit growth from £21.3m to £41.9m. The business, which invested £21.1m during the year (2023: £22.2m), acquired Boojum during the year, with three openings in the UK since acquisition. It also continued the development of its core estate with two new Zizzi openings (Chatham and Bridgend), and one new ASK Italian (Merry Hill) opened during the year. It carried out 26 site transformations and signed up nearly one million members to its Zillionaire’s loyalty program. On the site transformations, it said: “This is a record number in the post-covid period. The returns generated from both our new sites and our refurbishment programmes, in our opinion, are market leading and we continue to believe that the record level of investment will benefit our businesses in the long term.” It said it also carried out the successful incubation of the “first data orchestration business for hospitality sector”, Openr, which enables changes to products, menus, venues, pricing, promotions and digital assets in all sites, in real-time, from one place and with minimal effort. It said Christmas trading is encouraging and that it was “cautiously optimistic” of ongoing recovery in hospitality in 2025. Holmes said: “We’ve had a successful year, with the group continuing to grow both sales and profits. It has also been a transformational year for the business strategically, as we moved a pure-play restaurant operator into the UK’s leading hospitality investment platform. Our platform enables leading brands to accelerate their growth plans with additional competitive advantages delivered by Azzurri’s centralised expertise. We are delighted that Boojum and Dave’s Hot Chicken have joined the group, and they provide exciting opportunities for the future. We are cautiously optimistic of an ongoing recovery in hospitality in 2025. We have strong businesses that will continue to thrive and look forward to another year of positive development.” Holmes told Propel that the impact of the budget would be “in the single-digit millions” for the business. He said: “You obviously can't hide away from the fact that the budget has imposed a significantly larger amount of cost on hospitality businesses in the UK than anyone thought. For us, it is in the single-digit millions, so significant, but not crazy in that respect. That means that we've got to work harder. The good news for us is we’ve got a very sophisticated and developed technology capability, and we carved off Openr last year as well. We’re using quite a lot of AI tools to drive efficiency within the restaurants, around labour deployment. I feel pretty confident that we’ve got strategies in place to mitigate those costs. With those things in play, we hoped we would continue to drive the business forward. The reality is now they’re going to be mitigating some of that cost, but we’re still feel confident that we can mitigate them, and therefore, from an investment perspective, we’re still expecting to invest as much next year as we did last year.” Azzuri Group features in the Premium Club Turnover & Profits Blue Book, the latest edition of which was sent exclusively to Premium Club members last Friday (13 December), featuring 1,039 companies. Its turnover of £303.1m in the year ending 30 June 2024 is the 39th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

 

Stonegate – 2024 has been a milestone year for us, invested £100m to elevate estate: Stonegate Group, the UK’s largest pub company, has said that 2024 has been a “milestone year” which saw the business invest more than £100m to enhance its circa 4,500-strong estate. From major refurbishments to new concept launches, the business said the investment highlights its continued commitment to “investing in the future of the Great British Pub and delivering welcoming, inclusive spaces for guests, positioning every site for success”. As part of its overall investment activity, the company invested more than £17m in its Pub Partners estate to support publicans in creating “thriving local pubs” in 2024. There were also significant refurbishments across its managed estate, including the £840,00 development of a brand-new Slug & Lettuce Glasgow, which opened in October. In Chester, Be At One opened its 41st location following a near £600,000 revamp of the former Havana bar. Meanwhile, Off the Wall in Chester underwent a £700,000 refurbishment, enhancing its Social Pub and Kitchen offering. The company also launched new concepts, including Rita’s Beerhall and Ballroom in Leeds, transforming a former Walkabout site with a £1m investment. Additionally, Stonegate introduced Heritage Pubs and Pubsmiths within its managed estate, aligning 80 premium food-led pubs with the needs of their surrounding community. Stonegate said it also invested significantly in its Craft Union Pub Company. This year marked a milestone with the opening of the 600th Craft Union pub, The Fleece & Flagon in Witney, Oxfordshire, following a £220,000 transformation of the former Chequers Inn. It said: “With a focus on supporting local charities and causes, the Craft Union estate has now grown to around 650 pubs across the UK. Ending the year on a high, the final Craft Union investment was at the Anchor in Battersea, receiving a six-figure refurbishment, including a new darts area, a revamped bar and upgraded outdoor facilities, reflecting the continued growth and success of this thriving format.” David McDowall, chief executive of Stonegate, said: “2024 has been a milestone year for us. We’ve invested heavily across our estate, from supporting our Pub Partners to ensuring every site is set up for long-term success. I’m really proud of what we’ve achieved this year, and it’s been awesome to see the positive impact of our teams’ hard work on these investments. I’m looking forward to building on this momentum in 2025 as we continue to invest in the future of the Great British Pub.”