Propel Newsletter Archive Page

Deep Blue begins strategic disposal programme as it focuses on Harry Ramsden’s, signs heads of terms on two licensing agreements: Deep Blue Restaurants – owner of the Deep Blue, Harry Ramsden’s and Fish & Chips @ 149 brands – has begun a strategic disposal programme as it focuses on the growth of Harry Ramsden’s. Deep Blue said the process has seen four of its eponymous sites sold so far. The group has also recently signed heads of terms on two licensing agreements, “which are expected to generate both substantial cash inflows and profits”. Meanwhile, the group has secured debt funding of £1.3m and shareholder debt funding of £1.5m to support its plans while in November 2024, signed a £2m loan facility agreement with a shareholder “that has secured additional funding, should this be required”. The company also said trading in the first nine months of 2024 improved on the previous year primarily to an improvement in gross profit, a reduction in energy costs and a reduction in central costs. Chief executive James Low said: “Due to recent successes with the franchising and licensing of the Harry Ramsden's brand, management is focused on developing this element of the business. This recent focus has led to a significant increase in the pipeline of opportunities, both nationally and internationally, and the view that the franchising and licensing business will become an increasingly valuable contributor to the company's performance going forward. In order to fund this key strategic objective, the company has implemented, and is at an advanced stage of executing, a disposal programme of part of its ‘bricks and mortar’ estate. The proceeds from the disposal programme will provide working capital and investment to fund the refurbishment of key Harry Ramsden's restaurants and the promotion of the Harry Ramsden's brand both nationally and internationally. Management also remains focused on the optimisation of estate profitability through the use of strategic partnerships and technology that drives efficiency and competitive advantage.” It comes as the group reported like-for-like sales increased 2.6% for the year ending 26 September 2023 despite a fall in the number of transactions. Turnover decreased 0.6% to £25,370,235 compared with £26,014,293 the year before. Pre-tax losses increased to £3,637,634 from £2,347,865 the previous year. Gross profit margin stood at 66.9% compared with 68.8% the year before. Low said: “The global events behind inflation, significant rises in energy prices, supply chain issues and a cost-of-living crisis were responsible for another challenging year in 2023. While turnover and gross profit decreased by 2% and 5% respectively, Ebitda decreased 36% due to higher operational costs with energy being the principal example. Central (administrative) expenses decreased in the period by 7.8%.” The company, which employs around 570 staff, did not receive any government grants (2022: £72,063). No dividend was paid (2022: nil).

Discover how to use the customer voice to drive strategy and business improvements at Restaurant Marketer & Innovator, open for bookings: Discover how to use the customer voice to drive strategy and business improvements at the Restaurant Marketer & Innovator European Summit. Olivia Fitzgerald, managing director at Feed It Back, talks to Tom James, managing director at Bill’s, Jonathan Arana-Morton, chief executive of The Breakfast Club, and Nicola Blackford, chief commercial officer at State of Play Hospitality, on how support teams stay connected to guest experiences and integrate feedback into boardroom decisions to drive meaningful change. Restaurant Marketer & Innovator European Summit is returning for its seventh edition, and tickets are now on sale. The event is a partnership between Propel and Think Hospitality, aiming to build a community, promote the sharing of ideas, recognise talent and define the future of eating out. Bookings are now open for the two-day conference as the centrepiece of the January event series, taking place on 21 and 22 January at One Moorgate Place in London. The conference will focus on technology, marcomms strategies, proposition, brand building, the latest market insights, digital developments and diversification of revenue streams. It is designed for customer-focused chief executives, marketers, technology and innovation teams, as well as investors wanting to better understand the latest marketing, innovation and development opportunities to build market share and grow. For the full speaker schedule, click here. The pre-Christmas early-bird prices are as follows: a one-day ticket for operators is £295 plus VAT while a two-day ticket is £550 plus VAT. Supplier tickets are £395 plus VAT for one day and £700 plus VAT for two. Propel Premium Club members receive a 20% discount. To book, email kai.kirkman@propelinfo.com.

Black Sheep Coffee to expand across west of Scotland with franchisee development agreement: Speciality coffee shop operator Black Sheep Coffee franchisees, Suhail Rehman and Tariq Din, have signed a development agreement to significantly expand the brand’s presence in the west of Scotland, Propel has learned. The franchisees, who currently operate three locations in Byres Road, Sauchiehall Street, and George Street in Glasgow, have committed to opening a total of 14 stores within the region over the next five years. This plan includes two new store openings slated for the first half of 2025. With the continued support of HSBC, which has funded their portfolio to date, alongside plans to incorporate self-financing, Suhail Rehman and Tariq Din are set to build on their portfolio. Rehman said: “We are iexcited to further expand our partnership with Black Sheep Coffee. The success we’ve seen in our existing locations in the west of Scotland has been phenomenal, and we can’t wait to bring this innovative brand to even more neighbourhoods. We’re grateful for HSBC’s continued support and look forward to combining that with our own investment to achieve our growth vision.” Gabriel Shohet and Eirik Holth, co-founders of Black Sheep Coffee, added, “Suhail and Tariq’s dedication, drive and passion for the brand have been extraordinary. Their vision aligns perfectly with our mission to disrupt the coffee industry, and we’re proud to support them as they lead the way in the west of Scotland.” In September, Holth told Propel that Black Sheep Coffee was “doubling down on growth” by offering up its entire UK site pipeline to franchisees. The business now has more than 100 shops worldwide, with 26 pipeline locations on “attractive covid-adjusted lease terms that are ready to open”. Black Sheep Coffee features in the UK Food & Beverage Franchisor Database, the latest edition of which was sent to Premium Club members this month, featuring 50 new entries and now has a total of 330. 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.

Buzz Bingo predicts record Boxing Day as it draws in youthful crowds: Buzz Bingo, formerly Gala Bingo, is betting on a record Christmas thanks to scores of young people turning up at its venues hoping for a full house. The bingo operator, which launched its online platform in 2018, operates 82 clubs in the UK including the country’s biggest bingo club in Cricklewood, north London, which it bought this year from the Gauselmann gaming family. Buzz has forecast double-digit like-for-like growth over the festive period. Dominic Mansour, Buzz’s chief executive, believes Boxing Day “will be great for us” but he is quick to admit that the revival of the centuries-old game is a sector-wide phenomenon. He said a post-pandemic rebound in hospitality was being complemented by “the huge momentum of competitive socialising”. “We’ve definitely seen a much younger demographic,” he told The Times. “We don’t see the same frequency [of repeat visits] afterwards than with our most loyal customers but they do come back and that is great.” After the pandemic, Buzz launched Bada Bingo, inspired by Bongo’s Bingo, described as the “original bingo rave” by its creators. These high-energy events, which target customers in their 20s and 30s, run across its clubs throughout the year. Mansour and his team started to really focus on Christmas last year. While the money the group is making from Christmas trading has not yet “massively moved the dial compared to the core business we do”, Mansour said it was imperative that the group looks at different revenue streams including how to further draw in younger generations. The company has capitalised on these events heading into the festive season, putting on ten Bada Bingo events, some of which featured special appearances by the likes of East 17, the 1990s boy band. Buzz was acquired by Caledonia Investments in 2015 for £241m. Buzz is now owned by ICG, which bought a majority stake from Caledonia in 2021. This year, Buzz launched a pared-back bingo hall format for high street locations. In May it opened a 280 square-metre “boutique” bingo site in Borehamwood, Hertfordshire, which can hold 150 players.

Central London hotel operator sees turnover exceed £50m in record year as market benefits from ongoing post-covid recovery: Kas No 8, which owns and operates the Doubletree by Hilton Hotels in London’s West End, Victoria and Kensington, has reported turnover increased to a record £51,294,009 for the year ending 31 December 2023 compared with the year before. Of the 2023 figure, £46,110,950 came from accommodation (2022: £38,532,782), £4,654,797 from food and beverage (2022: £3,949,212 and £528,262 in other income (2022: £353,164). The group, which employs around 320 staff, saw pre-tax profit drop to £615,509 from £18,430,864 the previous year following a loss of £5,671,870 arising from the change in fair value of interest rate swap (2022: profit of £14,871,686). Occupancy rate increased to 84.6% from 71.5% the year before. In his report accompanying the accounts, director Alykhan Kassam stated: “The London hotel market benefited from the ongoing post-covid recovery and the group’s properties, located in prime Central London locations, remained well positioned to attract both business and leisure travellers.” No dividend was paid (2022: nil).