Story of the Day:
Pre-Christmas trading provides welcome boost to bars as wider market sees more modest growth: Britain’s leading hospitality groups recorded year-on-year sales growth of 2.7% in the run-up to Christmas (week commencing 16 December 2024 versus week commencing 18 December 2023), a special weekly edition of the Hospitality Business Tracker shows. With year-on-year sales failing to meet inflation in six out of the past 11 months, operators have already found themselves balancing fine margins throughout 2024, the Tracker said. But with staffing costs among managed groups expected to rise even further in April 2025’s government Budget, this Christmas is carrying the burden to make up for strained trading in the previous year and bolster business for the year ahead. While like-for-like sales growth of 2.7% in the week commencing 16 December performance may not have been stunning, with sales beating recent inflationary benchmarks, it was a week of solid performance. However, the success has not been divided equally across the market, according to the Tracker – which is produced by CGA by NIQ in partnership with RSM UK. A confluence of Christmas parties, late-night sporting events and convenient bank holiday scheduling may have all contributed to the strongest performance seen among managed bars this year, of 20.5% growth. “This will be a welcome boost for the beleaguered sector, which has spent most of the past year in decline,” the Tracker said. “It is also a welcome reminder that although spending may be currently restrained, there is still remarkable consumer desire to make the most of special occasions. Whether this momentum continues into early 2025, typically the toughest trading period for the late-night sector, remains to be been.” Across other segments, food-led operators saw relatively stronger performance, with like-for-like growth of 3.4% in the on-the-go sector and 2.1% in restaurants. Meanwhile, pubs saw only minor growth of 0.7%.
Industry News:
Discover the power of data-driven ideation: Discover the power of data-driven ideation at the Restaurant Marketer & Innovator European Summit. Michael Sims, chief marketing officer at Six Company, reveals how Six by Nico continuously evolves its proposition every six weeks. He will share the creative process behind its latest venue, Somewhere by Nico, and discuss how data informs decision-making and shapes the business strategy to stay ahead of the curve. 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.
A one-day ticket for operators is £320 plus VAT while a two-day ticket is £575 plus VAT. Supplier tickets are £420 plus VAT for one day and £725 plus VAT for two. Propel Premium Club members receive a 20% discount. To book, email kai.kirkman@propelinfo.com.
Nicholls – the Budget destroyed what had been nascent optimism in the sector: Kate Nicholls, chief executive of UKHospitality, has said that October’s Budget destroyed what had been nascent optimism in the sector, and that businesses have already started cutting jobs and investment as well as raising prices in the face of a “tsunami of costs”. She told The Telegraph: “These decisions were taken the day after the Budget. It is such an economic shock to our sector that no business is immune from having to make some really difficult decisions.” The trade body has already warned of £3.4bn in extra costs from April. “85% of our businesses say they are cutting staff hours or headcount, 95% say they are cutting investment, and 97% say they are putting up prices”, Nicholls said. She also said the Budget destroyed what had been nascent optimism in the sector. “This was the first year that we looked ahead and could see some signs of growth and recovery – we had green shoots,” she added. “That hope and optimism has been dashed by the £3.4bn tax take that the government is imposing on our sector. I don’t think they realise yet the real-world consequences that it will have in the new year, with a knock-on impact on the government’s ability to achieve their ambitions on gross jobs and investment.”
NTIA – new rail strikes expose government’s lack of control: The Night Time Industries Association (NTIA) has said the latest rail strikes have exposed the government’s lack of control over the situation. Yesterday (Thursday, 2 January) saw Avanti West Coast services cancelled on key routes including Glasgow, North Wales, Blackpool and Edinburgh, with further strikes planned each Sunday between 12 January and 25 May. The latest industrial action compounds an already estimated £6bn in lost revenue since the strikes began, the NTIA said. “It is evident that the government has lost control of this situation and appears incapable of resolving the ongoing issues,” NTIA chief executive Michael Kill added. “These strikes are devastating businesses already on the brink, causing untold damage to consumer confidence and economic recovery. The hospitality and night-time economy, dependent on reliable rail services, faces another bleak period, with financial and reputational damage mounting. If the government cannot bring unions and operators to the table for a meaningful resolution, the UK risks deeper economic losses and further erosion of trust in its infrastructure.”
Job of the Day: COREcruitment is working with a dynamic hospitality group looking for a group sales manager to join its client’s operations. You’ll take the lead in driving sales across multiple venues, focusing on building a pipeline of business through private dining, large bookings, corporate events and venue hire, collaborating with restaurant teams to capitalise on sales opportunities and maximise spend per head, developing pre-launch sales strategies for upcoming openings. The role is based in Manchester and offers a salary up to £70,000. For more information, please contact kate@corecruitment.com.
Company News:
Creams CEO – Budget is inflationary and high street will change in 2025, but we’re able to buffer some of the impacts and looking to keep growing the estate: Everett Fieldgate, chief executive of fast-growing dessert parlour operator Creams, has told Propel he believes the Budget is inflationary and the high street will change in 2025, but said the business is able to buffer some of the impacts and is looking to keep growing its estate. Creams last week issued a ‘call to arms’, encouraging independent business owners to join its franchise community, offering a 20% discount on doing so. “It’s something I’ve thought about for a while, and the recent Budget was really the impetus,” Fieldgate said. “These last three years, the industry has seen costs rise significantly, and the Budget decisions are quite damaging, in my view, to the UK high street. You can see that playing out in two very obvious ways – wages and business rates – but the other which is less obvious is I genuinely believe the Budget is inflationary. I can see quite a lot of inflation coming through as a direct result of suppliers needing to increase prices to pay for labour. We estimate that for our stores, on average, it’s about a £35,000 a year impact per store. I think the high street will change – there are lots of businesses out there worried after seeing dramatic increases in their cost base and structure. I think the high street will go through a change in January and February, and then again in April. The nature of the open letter is saying the high street can be a lonely place for someone with a small number of stores, and it’s amazing anyone has made it this far. But at Creams we have a great system with a fantastic support network – so come and join us and we’ll tackle this together. We are able to buffer some inflationary impacts – we haven’t implemented any price increases on gelato since the first half of 2022. We have borne all of that risk for the last two years, trying to protect our stores and their margins. Growing the estate and growing it quickly facilitates our ability to do that more and then pass through the savings. We believe a strong franchise system and a strong P&L at store level is a means to growth, and I think we’re uniquely positioned to be able to play that card.” Everett said although the business has fallen short of its openings target this financial year – it has launched seven stores since April – those that have launched “have opened incredibly well, not just with the initial opening sales, but also the ongoing level that we’re seeing”. He added: “The gap is basically uncertainty. We have several new franchisees that are interested, but the message pre-Budget was can we wait until the Budget is over, and post-Budget, it has been can we wait until January so we can truly understand what it means. It’s very much a delay game – we’re talking to partners of various levels of capability and they’re all saying they need to understand the lay of the land a bit better before they commit to anything.”
KFC franchisee planning to open eight new restaurants in next four years as it reports record turnover of £76.7m: KFC franchisee Lars (GFUK) is planning to open eight new restaurants in the next four years. The group – which operates sites across Wales, Cheshire, Staffordshire, Derbyshire, Nottinghamshire and the Isle of Man – currently operates 42 restaurants. It comes as the company, which employs around 1,600 staff, reported turnover increased to a record £76,691,531 for the year ending 24 December 2023 compared with £68,704,361 the year before. Pre-tax losses rose to £2,728,768 from £2,549,119 the previous year. In February 2024, the group renegotiated its existing loans with new covenants put in place. In their report accompanying the accounts, the directors stated: “The turnover growth was driven by opening new restaurants and core growth. Trade across the company has been consistent. Yum! (KFC's parent company) is still taking the approach of adding disruptive value menus to add value for money to customers. Footfall is coming back to normal and the delivery channel is still very strong, representing 27% of revenue. Profitability has started coming back but not to the pre-covid level yet as the whole quick service restaurant industry has inflation challenges. We are planning to open eight more restaurants in the next four years that will create 400 jobs. We will accelerate the rollout of our delivery through third party providers.” The group did not receive any government grants (2022: £147,985). A dividend of £481,022 was paid (2022: £469,758).
Boxpark in active discussions on several UK sites and actively considering international licensing, secures £12.5m of additional funds: Boxpark has said it is in active discussions on several sites across the UK and is also actively considering international licensing. The business has also secured a further investment of £12.5m from its existing principal investor, LDC, which will partly be to fund the opening of the company’s first Boxhall site, due to open this spring in Liverpool Street. “With a pipeline of sites and agreements for lease agreed, the group plans to open new sites over the next five years in London and other major UK cities,” the company said in its accounts for the year to 30 April 2024. “The group’s management is in active discussions on several sites throughout the UK and is confident of securing further sites for 2026 and beyond. The group is frequently asked to look at shorter tenures and has a specific product designed for this market opportunity.” It also said international licensing is among other channels for growth being “actively considered”. It comes as Boxpark saw its turnover decline marginally in the year due to a “tougher macroeconomic environment” and a drop in beverage sales. Turnover for the year for the four-strong business – which since the year end has opened a fifth site, in Camden – stood at £19,907,882 (2023: £20,538,150), while its pre-tax losses widened to £3,778,202 (2023: loss of £2,018,620). The company said the drop in beverage sales was partially offset by an increase in advertising and sponsorship. The prior year also included the men’s football World Cup, in November and December 2022, which gave a significant boost to sales. The company opened its fourth site during the year, and first outside of the capital, in Liverpool. The business said technological advances remain high on the agenda, having rolled out “an industry first of its kind multi-basket delivery service” at the new Liverpool site. It said: “Customers are able to order from all of the venue’s food traders in one single delivery aggregator order, reducing delivery mistiming and costs to the consumer. An upgraded bolt-on to the group’s industry leading Black Card now means that food and drinks vouchers and tokens can be distributed directly in digital form and redeemed across any of the outlets, allowing guests a seamless journey if purchasing a voucher or for corporate and private hire events across the sites. Order from table sales continue to increase and new technology allows group ordering across multiple devices and food outlets, all to be recognised in one single transaction.”
South Wales McDonald’s franchisee sees profit boost as turnover rises to record £71.4m: McDonald’s franchisee Lonetree, which operates 16 sites in south Wales, has reported turnover increased 8% to a record £71,353,561 for the year ending 31 December 2023 compared with £65,920,743 the year before. Pre-tax profit was up to £1,074,063 from £418,484 the previous year. Gross profit margin reduced to 63.55% from 63.61% in 2022 and was “in line with expectations”. In his report accompanying the accounts, franchisee Ron Mounsey stated: “As a result of the 2023 menu and marketing strategy, alongside the execution of incremental price rises, the company has seen increased sales growth as the company continues to operate against the backdrop of significant macroeconomic challenges. Overall, the financial position of the company is healthy with the balance sheet currently showing net assets of £6.52m compared with £7.51m in 2022.” A dividend of £1,841,000 was paid (2022: £3,180,000). Mounsey, a former dairy farmer, opened his first McDonald’s restaurant in Camarthen in 1998 and now employs more than 1,600 staff.
Afrikana to kick off 2025 with Nottingham launch as it targets 11 new openings this year: African restaurant concept Afrikana will kick off 2025 with a launch in Nottingham as it targets 11 new openings this year. Propel understands it will be opening in the former Rosa’s Thai site at 17 King Street in Nottingham, which closed in February 2024 due to “trading challenges”. The restaurant will be operated by new franchisee Umar Chohan, a former Domino’s and Pizza Hut franchise owner who also works as an executive officer in the civil service. “I am proud to announce that Afrikana Kitchen is expanding, and we will soon be serving our delicious food in Nottingham,” said Omair Ali, managing director at parent company City Restaurant Group (CRG). “Franchise partner Umer Chohan and team come with vast experience within the hospitality sector, so we’re super excited to kick start our journey together in Nottingham with a new look Afrikana Kitchen. 2025 has a lot on its radar and Nottingham will kick us off for a very busy year.” Ali said 2024 saw Afrikana open five new stores – taking its footprint to 16 – introduce a brand makeover and launch a new menu including brunches and Sunday roasts. He said the company is gearing up for 11 new locations in 2025 – with Holloway, Wembley, East Ham, Birmingham Star City, Walsall, Hounslow, Watford, Ipswich, Uxbridge and Milton Keynes following the Nottingham launch. Last month, Propel revealed that Afrikana is lining up its first site outside the UK, having signed with Dublin-based property consultant Robert Colleran to find a suitable premises in the Irish capital. CRG is also behind Mowchi, the four-strong bubble tea brand, and the UK business of French taco concept Tacosmash, for which it has opened two sites here.
JD Wetherspoon lines up second opening with Haven: JD Wetherspoon has lined up a second opening in partnership with holiday park operator Haven, in Wales. Last January, Wetherspoon announced an exclusive partnership with Haven and followed this with the opening of its first site on a holiday park, The Five Stones at the Valley holiday park in Filey, North Yorkshire. The two companies have now submitted plans to open a new pub at Haven Presthaven, in North Wales. It would see a new pub – to be called The Boathouse – built on the current Mash and Barrel bar area on the holiday park. In November, Wetherspoon said trading at the Five Stones had been “encouraging” and that it was reviewing plans with Haven to introduce Wetherspoon to “more parks in 2025 and beyond”. Following the announcement of the partnership last January, Haven managing director Simon Palethorpe told Propel it was “just the beginning” of a partnership between the two businesses.
Knoops builds opening pipeline, secures debut site in Wales: Luxury hot chocolate shop brand Knoops has added four sites to its opening pipeline for this year, including a debut site in Wales, Propel has learned. The business, which made its Northern Ireland debut at the end of last year, will make its Wales debut with an opening at The Hayes, in the St David’s scheme in Cardiff. It has also lined up openings at the Scotch Corner Designer Village in Richmond, Yorkshire; White Lion Street in Norwich, and in Colchester. Knoops currently operates 18 regional sites in the UK, plus six in London, and at the end of last year, opened its first international site, in the City Centre Mirdif shopping mall in Dubai. The company plans to use the proceeds of the crowdfunding campaign it carried out last summer, which raised more than £2m, to expand its footprint both in the UK as well as internationally. Knoops plans to open between ten and 20 stores in the UK in 2025 and is engaging in franchise conversations in territories like Saudi Arabia, Kuwait, Egypt and Turkey.
Berenjak plans four new openings, expands in the Middle East: Berenjak, the Persian-influenced brand founded by JKS Restaurants with Kian Samyani, is planning to open four new sites over the next six months, including one in London’s Mayfair. The business currently operates seven sites after opening two further locations in the Middle East and its first site in the US late last year. The brand, which made its international debut with an opening in Dubai in late 2023, has opened sites in Doha’s Souq Waqif marketplace and in Sharjah, as well as within Soho House’s Dumbo House in New York. Writing on Instagram, Samyani said: “Behind the scenes, it’s been chaos. We’ve somehow gone from two to seven restaurants globally within the last year, not to mention the arrival of four more within the next six months! We never set out with any intention of growth, my goal was to use Patogh (Marylebone-based Persian restaurant) as a benchmark and elevate it slightly to open a restaurant that would be a vehicle for my childhood memories, but to also preserve family recipes that are so often lost through generations. Recently though, Berenjak has become a legacy to my children, and that is what continues to drive me forward. I want them to be proud of where they came from, something that I wasn’t.” Berenjak currently operates two restaurants in London – in Borough and Soho – and has been linked with an opening in Shoreditch. It has also secured a site on Duke Street in Mayfair, for an opening this spring/summer. Last spring, Berenjak opened a “little sister” site on the grounds of Soho Farmhouse in Oxfordshire.
Heartstone Inns sees FY turnover top £10m, December lfls up 12%, secures ninth site: Heartstone Inns, the managed pub operator, has told Propel its full-year turnover has topped £10m for the first time as it secures its ninth site, the 31-bedroom Sidcot Arms in Somerset. The James Birch-led business said like-for-likes sales in the year to the end of December were up 5% on the previous year, which came on top of an 11% increase the year before. At the same time, like-for-like sales across December and the festive season were up 12%, and up 30% against pre-covid trading. It comes as the business completed the acquisition of the Sidcot Arms in Winscombe from Whitbread. The 31-bedroom, former Premier Inn and Brewers Fayre site takes Heartstone’s bedroom stock to circa 75 rooms. The company is currently drawing up plans for a refurbishment of the site. Birch told Propel the business was at different stages of planning and development in regards to adding further rooms across its existing estate and would be “keeping an eye on” further acquisition opportunities as this year progressed. He said: “We are delighted with the performance of the business and the purchase of the Sidcot Arms. We are focused on enhancing and growing our room stock after seeing an uptick in staycations post-covid. We have the backing to make further improvements to our existing sites and to further grow the estate when the right opportunities become available.” Neil Morgan and Noel Moffitt at Christie & Co acted on the Sidcot Arms deal.
Midlands better burger business set to make its international debut early this year, in UAE: Midlands better burger business Phat Buns is set to make its international debut early this year, in the UAE. Founded in 2019, Phat Buns is owned by Hussein Sacranie and Ahtesham Moosa, who have since grown it to 14 sites. The business has a current pipeline to reach 20 sites in the UK, including openings in Wolverhampton and Liverpool. “Phat Buns is going international!” said Sacranie. “I’m beyond thrilled to announce that Phat Buns UK is officially opening in the UAE in early 2025. What started as a dream just five years ago is now becoming a reality. Taking Phat Buns international is a milestone we couldn’t be more proud of. To make this happen, we’re building our network in the region and are looking to connect with industry experts and suppliers who can help us bring Phat Buns to life in the UAE. Here’s to the next chapter of Phat Buns our first step onto the global stage – the UAE is just the beginning.” Sacranie and Moosa also operate sister brand Doorstep Desserts, which has three branches in Leicester and one in Nottingham.
Lane7 to make Ireland debut later this month: Boutique bowling company Lane7 will make its debut in Ireland later this month with an opening in Dublin. The company, which made its international debut last year with an opening at The Playce, on Potsdamer Platz in Berlin, will open a 14,500 square-foot site at Dundrum Town Centre on Friday, 31 January. The company said the new site will offer bowling, pool, two types of shuffleboard, darts, beer pong, retro gaming stations and arcades, plus a “killer cocktail/drinks menu and unbeatable vibes”. Last autumn, the business said it was seeking to grow its European portfolio by “some ten venues over the next two years”, while also having a pipeline of nine new venues in the UK on track to open in 2025. Lane7 has openings lined up in Cambridge, Reading, Lincoln, Milton Keynes, and two in its home city of Newcastle. Propel revealed last month that Lane7 had secured a second site for its Gutterball concept, in Lincoln, having launched the concept in North Shields at the end of 2019. Also last month, the Tim Wilks-led business introduced “Playground”, the first immersive, real-life gaming experience from its new partnership with international multimedia studio business Moment Factory, in its Birmingham Bullring site. Lane7 currently operates 17 entertainment venues in the UK through its eponymous brand, Gutterball, and two Level X format venues. Will Biggart, of Torridon, acts for Lane7.
Clean Kitchen Club’s remaining site shuttered: The remaining site of Clean Kitchen Club, the plant-based, fast-food concept, in London’s Battersea has closed. Propel revealed in November that the site in Battersea Power Station was being marketed. The business was founded in 2020 by YouTuber Mikey Pearce and Verity Bowditch, from TV show Made in Chelsea, as a healthier alternative to fast food. The business attracted investment from BrewDog co-founder James Watt and Steve Easterbrook, the ex-chief executive of McDonald’s, PizzaExpress and Wagamama. It previously ran sites in Wembley, Soho and Notting Hill, while a site in Camden has been “temporarily closed” for the past year. Bowditch announced she had stepped back from running the brand last spring after meat was added to its menu, while Propel revealed last summer that one company attached to the business – Champons – had been placed into liquidation. In November, Watt said that his investment in Clean Kitchen Club was “the single largest sum that I have ever lost on a single investment” – saying he lost “every single penny” of the £150,000 he invested in 2020.
The Stable hires Adam Blezard as new FD: Sourdough South, operator of the Three Joes and The Stable pizza brands, has hired Adam Blezard, formerly of Camm & Hooper, VQ restaurants and Gaucho, as the new finance director of the latter business, Propel has learned. Blezard joins The Stable after three years as finance director of luxury boutique hotel group Guesthouse Hotels. Previously, he was finance director at the Imbiba-backed Camm & Hooper, and he also spent five years with VQ as its finance director. He was previously head of finance at Aurora Media and financial controller at Gaucho. Last September, Propel reported that Sourdough South saw its losses widen in the year before closing most of its Three Joes estate. This came six months after the company confirmed the closure of half of its then six-strong Three Joes business, followed by a fourth closure – its site in Lincoln in June – leaving it with just sites in Winchester and Sheffield. The business currently operates nine sites under The Stable brand, with a further opening lined up in Padstow, Cornwall, for later this year.
Rosa’s Thai to open in Reading next month: Rosa’s Thai, the TriSpan-backed business, will open its long-awaited site in Reading next month. The circa 40-strong group will open a 72-cover, 3,728 square-foot site in the city’s Jackson’s Corner development. Founder Saiphin Moore said: “When I first saw the Jackson’s Corner site, I was immediately taken with the history of the building. It reminded me of when we opened our first restaurant and kept the sign to honour the previous owners. To have the opportunity to open a Rosa’s Thai in such a historic Reading landmark is truly an honour. We are excited to bring our authentic Thai flavours and warm hospitality to this vibrant community and become a part of its ongoing story.” Last month, the business reported sales in the year to 31 March 2024 of £46,774,935 (2023: £35,580,690), with adjusted Ebitda of £4,657,234 (2023: £3,159,192). It posted a pre-tax loss of £167,187, against a profit of £374,462 the previous year. It also has an opening lined up for this year in the ex-TM Lewin site at 16 Promenade in Cheltenham. In November, Propel revealed that Gavin Adair was stepping down as chief executive of Rosa’s Thai after seven and a half years in the role. He will be succeeded as chief executive by Sarah Hills, who was most recently chief operating officer at Côte Brasserie.
Canadian pancake brand Fluffy Fluffy set to open ‘at least’ ten new stores in 2025, confirms opening date for north east debut: Canadian pancake brand Fluffy Fluffy has said it is set to open ‘at least’ ten new stores in 2025. First up, the business will make its north east debut – as previously revealed by Propel – for which it has now confirmed the opening date. It will open at 99-103 Grainger Street in Newcastle on Saturday, 18 January. This will be followed by launches in Windsor and in the Bayswater area of west London – which will be its third site in the capital following its arrival in Wandsworth and Walthamstow. “After a successful launch in Walthamstow, we’re excited to announce Bayswater, London!” said the brand’s strategic advisor, Bilal Saleem. “2025 is shaping up to be an exciting year with at least ten store openings. Next up Newcastle, swiftly followed by Windsor and Bayswater.”Fluffy Fluffy currently has 12 UK locations and previously said it was aiming for 25 by the end of 2025, as it works towards an eventual estate here of 100-plus.
Elle R Leisure secures approval for new Albert’s restaurant site: North west hospitality company Elle R Leisure has secured approval to open a site under its Albert’s restaurant concept in Rochdale. The former home of Nutters restaurant is to reopen as the fifth Albert’s restaurant in the north west. Chef Andrew Nutter’s restaurant at Wolstenholme Hall closed in 2021 as a result of the covid-19 pandemic, with the site remaining empty since. Elle R Leisure, which currently operates four other Albert’s sites in the region – across Manchester and Wigan – has outlined its vision for the 1800’s building off Edenfield Road. The Manchester Evening News reports that the company wants it to become much more than a restaurant, with plans for a bar, function rooms, a private dining space and a “winter garden”. The new restaurant would offer 180 covers, the private dining room 40 people, and the function rooms 80 and 150. In November, the business added a 4.5-acre country house hotel and wedding venue in Lancashire to its portfolio, with Ferrari’s Country House Hotel & Restaurant in Preston bought off a guide price of £2.25m. Founded in 1991, Elle R Leisure operates eight sites in total across the region, including Dukes 92 in Castlefield.
Highland Coast Hotels narrows losses as turnover rises, adds two sites to portfolio: Highland Coast Hotels, which operates eight sites, has reported turnover increased to £6,699,725 for the year ending 31 December 2023 compared with £5,455,363 the previous year. Pre-tax losses narrowed to £960,074 from £1,174,845 the year before. Since the year end, the company has added Lochardil House in Inverness and The Haven in Plockton to its portfolio. In their report accompanying the accounts, the directors stated: “The hospitality sector has continued to face significant challenges during 2023 on a number of fronts, including the cost-of-living crisis, elevated inflation and staff shortages. In addition, Highland Coast Hotels has delivered significant refurbishments in Plockton and Tongue, bringing these hotels into line with the rest of the portfolio. The sectoral challenges and planned refurbishment disruption across the business has contributed to a company Ebitda loss before one offs and exceptional items of £183,000 in 2023 compared with a loss of £211,000 in 2022. A view of performance for existing hotels and recently acquired hotels gives an insight into the underlying performance of the business and the stable platform established. The original hotels in Brora, Dornoch and Kylesku (including Newton Lodge) delivered revenue of £4,074,000 and site Ebitda of £803,000 in 2022. The same four hotels delivered revenue of £4,747,000, and site Ebitda of £863,000 in 2023 reflecting a full year of trading post refurbishment. The Plockton Inn and The Tongue Hotel were acquired in April and May 2022 respectively. Both hotels faced a disrupted first half to 2023 with major refurbishments delivered. These hotels generated revenue of £1,381,000 and a loss at site Ebitda level of £29,000 in 2022 compared with revenue and loss at site Ebitda level of £1,953,000 and £70,000 respectively in 2023. The lack of staff accommodation in Plockton exacerbated losses during the year, a challenge that has been remedied by The Haven acquisition, which brings additional staff and guest rooms. The business received government grants of £77,895 (2022: £89,559). No dividend was paid (2022: nil). The group, which employs around 150 staff, was founded in 2019 to invest in and develop hotels in the region and in 2021 received investment from Kings Park Capital to support its growth.
Former Pret and Costa operations chief set to open new ‘coffee bakery’ in Stevenage: Former Pret A Manger and Costa Coffee operations chief Richard Zivkovic is set to open a new ‘coffee bakery’ in Stevenage, Hertfordshire. Richard and wife Linda will open Helg, which is Norwegian for ‘weekend’, in the former Boots store in Stevenage’s High Street later this month. Offering flat whites, buns, pastries, focaccias, frappes, baguettes, fresh teas, milkshakes and chai, it will also offer pizzas in the evenings once established. Richard started out as an operations director with Be At One Cocktail Bars in 2008, where he was accountable for 11 bars, before spending three years as head of operations for Pret in London and The City, where he was responsible for 85 stores. He then spent a year as Costa’s operations director in London, accountable for 160 stores, and then three years as chief operating officer at healthy fast-food brand Abokado. Between 2019 and 2022, Richard was chief operating officer at London health food business Island Poke, and he then held the same role for a year at Eggfree Cake Box. In the summer of 2023, Richard spent three months as interim chief operating officer at luxury hot chocolate shop brand Knoops and has since worked as interim chief growth officer at tech-enabled mystery dining business Tipps. Linda, meanwhile, spent 26 years as a senior operations manager with Pret and was most recently a district manager with Starbucks.
Historical theme park operator Puy du Fou set to submit planning permission for debut UK site: Historical theme park operator Puy du Fou is preparing to submit planning permission for its debut UK site. The award-winning business was created in western France in 1977 and has grown to become France’s second most visited theme park, also opening a location in Spain. It is seeking to develop a number of sites across the world, and in February 2024, instructed Savills as it looks to secure its first site here. Seeking a site of up to 400 acres in central England, preferably within a 40-mile radius of Oxford, the company said in October 2024 that its plans for a £600m UK park are now focusing on a site just off the M40’s junction 10, near the village of Bucknell. A company spokesman has now told the Oxford Mail that it is still “some months away from submitting a planning application” and this is planned for summer 2025. The historical live show and immersive experience would feature shows based on the UK’s “extensive and interesting history”.
