Tasty settles insurance claim for £2.5m, outlook ‘cautious’ following ‘disappointing’ December and ‘challenging’ second half: Wildwood operator Tasty has settled an insurance claim after agreeing a final settlement of £2.5m. The case was in relation to a claim for breach of a contract for insurance for losses arising in 2020. In a statement, the company said: “The company is pleased to announce that it has agreed a full and final settlement with its insurer for the amount of £2.5m (being approximately £1.5m, net of creditor costs and legal costs) in relation to a claim for breach of a contract for insurance for losses arising in 2020. The settlement sum is payable to the company within 21 days.” It comes as the company said its outlook going into 2025 is “cautious” following a “disappointing” December and “challenging” second half. In a trading update, the company said: “As reported in the company’s interim results on 30 September 2024, H1 2024 was a period of significant change for the group, with the reshaping of the estate and wholesale changes to the group’s operating structure. The casual dining market continues to contend with several adverse factors, including a decline in consumer confidence and a discernible decline in discretionary spend, inflationary pressures on food, increases in the national minimum wage and, following the UK government’s Budget in October 2024, an increase in employers national insurance contributions from April 2025. Trading in H2 2024 continued to be challenging, and in particular, the key December period has been disappointing. In these uncertain times, the board is maintaining a cautious outlook. A further trading update will be made in mid-January 2025 for the year ended 31 December 2024.” In September, Tasty said its outlook remained “cautious” for the rest of 2024 but that it is “optimistic” about navigating its current challenges. The business, which earlier in 2024 agreed a restructuring plan and received a £750,000 loan to fund this and provide additional working capital, reported revenue of £19.1m (H1 2023: £21.7m) for the 26 weeks ended 30 June 2024. It reported adjusted Ebitda of £1.9m (H1 2023: £1.1m) and an impairment charge of £0.8m (H1 2023: £4.0m). Profit before highlighted items was £0.6m (H1 2023: loss £1.0m) and cash balance was £3.0m (H1 2023: £2.8m).

Kricket narrows losses and returns to positive Ebitda, fifth site to open in March: Indian restaurant group Kricket narrowed its losses and returned to positive Ebitda in the year to 31 December 2023. The company, which currently operates four sites across London, saw a pre-tax loss of £702,215 in 2022 reduced to £115,546 in 2023. It turned an Adjusted Ebita loss of £59,087 into a profit of £527,252, while its turnover was up from £7,307,302 to £8,216,531. Post year-end, Kricket opened its fourth site, in Canary Wharf, in the summer of 2024. Its fifth site, at 36 Charlotte Road in Shoreditch, will now open in March 2025. Its other locations are in Brixton, Soho and White City – with the latter temporarily closed. The company also operates two sites for its speakeasy concept, Soma, in Canary Wharf and Soho. Last summer, Rik Capmbell, who co-founded Kricket in 2015, told Propel the business is looking to expand organically both in the UK and internationally. He said: “We definitely have an ambition to go international. But in the meantime, I think there’s still white space for us in London, and lower hanging fruit for us to grab.” Kricket secured new funding in 2023 from existing backer White Rabbit Projects, alongside additional funds from the founders, to support its expansion plans. Kricket features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 1,039 companies. Its turnover of £8,216,531 is the 820th 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.

Remainder of Temper business acquired for £360,000: The remainder of the Temper business, the modern barbecue brand, was acquired by a new subsidiary of Wellfound, the Paradiso Burger and Cocktail Bar concept operator, last November for a total consideration of £360,000, Propel has learned. Propel revealed in November that new vehicle Elevare Hospitality had acquired the three Temper sites in Soho, the City and Covent Garden, preserving more than 100 jobs. Elevare is a subsidiary of Wellfound, the Imbiba-backed operator of the Paradiso Burger and Cocktail Bar concept in Soho and Gabriel’s Wharf. The acquisition by Elevare Hospitality followed a sale process managed by Quantuma, with Casper & Cole, the parent company of Temper, subsequently entering administration. The administrators report stated: “Post covid-19, the business performed well, with an underlying company Ebitda of £286,000. This being despite the principal business risks arising from the cost-of-living crisis, reduced footfall due to an increased numbers of home workers, VAT returning to 20% and the general uncertainty around economic stability. However, the company has since underperformed across its various trading sites by around 15%-25% leading to consistent losses across the portfolio. By October 2024, it had become apparent that the company required funding above the level available to it by its bank and neither the company nor its investors were in a position to advance the necessary funding in order to discharge historical debts. Efforts have been made to explore the release of further funds. Upon a review of the company's cash-flow it was evident there would be insufficient working capital available for the company to continue to trade in the medium term to allow a purchaser to be found. Having reviewed the company’s projected cash flow, any further trading would be loss-making even before the additional costs of the joint administrators in managing ongoing trading where considered. Of the total sale consideration of £360,000, £150,000 has been received to date, the funds are in the process of being transferred to the dedicated administration account and the remaining £210,000 will be collected as and when it falls due for payment.”

Mark Fox to step down as CEO of Roadchef: Mark Fox is stepping down as chief executive of motorway services operator Roadchef after seven years in the role, with Tim Gittins, formerly of Moto Hospitality, set to succeed him. Fox joined Roadchef in 2018, succeeding Simon Turl, who moved into a new role as chairman. Fox joined the business with experience in senior roles in the UK and international hospitality industries, including KFC, Pizza Hut UK and Starbucks, and was previously chief executive of Bill’s Restaurants. Gittins spent more than 16 years at Moto, including two years as its chief operating officer and 14 months as its strategy director before leaving the business at the start of 2021. Fox said: “As 2024 draws to a close, I’d like to thank every single one of our 3,000-plus employees for all of their hard work and commitment over the 24 hours of every one of the 365 days. It’s been one of the tougher years for most businesses in the UK, but the positivity and dedication of the Roadchef team has kept us on track and we’ve achieved a ton of big wins, like planning permission for two new service areas that we need to get on and build, as well as joining forces with Get Link/Channel Ports to bring some fabulous new offers to the Folkestone MSA on the M20 in January ‘25. We’ve also opened several new Leon restaurants, McDonald’s drive thrus and refurbished a ton of Costas and WHSmiths. It’s a bittersweet year end for me as I move to part-time working from January, prior to my successor joining, to allow me to step down at the end of Q1 to focus on family, friends and health. I look forward to welcoming Tim Gittins into the business and doing everything I can to support him as he takes the baton and leads the business on to new heights.”

Albion & East sells Hackney site to Urban Pubs & Bars, to focus on larger-format sites: Albion & East, the Imbiba-backed London bar group led by Sarah Weir, has sold its site in Hackney to Urban Pubs & Bars, Propel has learned. The now four-strong business has sold Martello Hall in Mare Street for an undisclosed sum. Weir, founder and managing director of Albion & East, said: “We are delighted that Martello Hall has a wonderful new home with Urban Pubs & Bars. This was our first ‘Hall’ and we learnt so much from it. However, as we have evolved over the last few years, we have moved from our pub-inspired origins into a large-format central London bar and restaurant operator. As such, the time is perfect for Martello Hall to move onto its next chapter with Urban as we continue to roll out The Halls in London, with several new sites in the pipeline for 2025.” Urban Pubs & Bars, the London pub operator founded by Malc Heap and Nick Pring and backed by Davidson Kempner and Global Mutual, currently operates 52 pubs across the capital. Last month, it reopened the Clapton Hart in London’s Hackney – one of 11 former Antic Pubs sites it acquired in August.

David Lloyd adds desks and spas in response to a rise in demand for different ways of working: David Lloyd Leisure has increased the workspaces in its upmarket clubs in response to a rise in demand for different ways of working. The health and wellness group, which has 133 clubs, has set up dedicated workspaces in Brighton, Port Solent in Portsmouth and Raynes Park in southwest London, with more due to be rolled out. Between 50 and 100 people use them each day, reports The Times. Russell Barnes, chief executive of David Lloyd Leisure, said: “Just because people are not in the office does not mean they are not working. Some of our members fit in an early swim or a late game of padel around working in one of our dedicated spaces. It’s being smart about planning your day and making sure you make time for your health and wellbeing while not dropping productivity at work.” The working and community spaces “enhance the sense of community many members appreciate”. David Lloyd has 103 clubs in the UK and Ireland and 30 across mainland Europe, including David Lloyd Clubs, Harbour Clubs and David Lloyd Meridian Spa and Fitness in Germany. They offer gyms, pools, racquet sports, group exercise classes, children’s activities, crèches and luxury spa facilities. The group was founded in 1982 by the tennis player David Lloyd and has been owned by TDR Capital, the private equity firm, since 2013, when it was valued at £750 million. In 2023 it was reported that TDR was considering selling the chain, but this did not progress. It now has about 750,000 members and is investing £500m in the UK over the next three to four years as it takes its clubs further upmarket. As part of the plan, it is opening 15 sites and adding spa retreats at 50 clubs and new padel courts at 60 clubs. In 2023 revenues were £630m, up from £557m the year before, reflecting higher membership numbers and greater yield per member. Operating profit was £47m versus £90m in 2022, owing to higher costs and impairments.