Exclusive – Sector headwinds and cashflow ‘drag’ force Patty & Bun to explore options: Patty & Bun, the better burger concept led by Joe Grossmann, has appointed advisors to explore its strategic options, which could result in a restructuring and sale of the business, Propel has learned. It is understood that the company, which was founded by Grossmann in 2012, has engaged Williams & Partners to review its options. The business currently operates seven restaurants – six in London and one in Brighton – plus three concessions, two with Swingers and one with Lane7. The company entered into a Creditors Voluntary Arrangement (CVA) in summer 2023. With the CVA in place, the company streamlined head office costs, agreed new rent deals with several of its landlords and divested itself of four non-profitable restaurants and closed its prep kitchen. Propel understands that while the business continues to operate at a high level of execution in terms of product and standards at site level, due to a combination of covid legacy debt and a constantly inconsistent trading environment, it is unable to continue to make payments into the CVA. Consequently, it is understood that Williams & Partners has been engaged to market the business and assets with a view to a sale by a subsequently appointed administrator. Grossmann told Propel: “Following on from the CVA completed in September 2023, we’ve worked hard to strengthen the business. However, the combination of the current macroeconomic environment and the cash flow ‘drag’ from the CVA is proving extremely challenging. In the circumstances, we’ve begun to explore our strategic options.” It is thought that offers for the business are being sought by midday on 24 January. The business posted turnover for the year to 27 November 2022 of £10,479,861 (2021: £8,170,058), with a pre-tax loss of £2,161,801 (2021: (£53,344). It is believed that turnover to November 2023 was more than £9m, with nine of the sites generating a profit at operating level before head office costs, while its net loss was slightly in excess of £1m.

 

Propel 500 report out now – see which 77 pub & bar companies feature on the list: Propel’s Top 500 report showcases the UK’s leading hospitality operators ranked by turnover - and is available now. Together, the Propel 500 companies generate more than £30 billion in turnover across 51,000 sites and the report spans seven key segments: pubs and bars, hotels, quick service restaurants (QSR), casual dining, cafe and bakery, experiential leisure and fine dining. There are 77 pub and bar companies operating 20,000 sites featured, and a list of these operators can be discovered now by visiting the Propel 500 page on Propel’s website. This comprehensive report provides more than 90,000 words of analysis, delving into company histories, leadership structures, site numbers, and financial performance, making it an essential resource for industry professionals. The guide is delivered in two parts: an introductory PDF, featuring deep dives into the top 25 companies and 6,500 words of insight from Propel’s expert writers, and a fully searchable Excel sheet, offering easy access to all the data. Key highlights include Mark Wingett’s exploration of mergers and acquisitions shaping the Top 500’s future, Tim Street’s view of the UK’s franchise market, and Phil Pemberton’s insights into experiential leisure as a hospitality cornerstone. Katherine Doggrell examines developments in UK hotels, while Mark Bentley, business development director at HDI, identifies emerging growth sectors, and Maria Vanifatova, founder of Meaningful Vision, analyses trends in QSRs. Propel 500 is available now for £595 plus VAT. Existing Premium Club members can purchase it for £395 plus VAT. Premium Club members will receive the report for free on Friday, 28 February at 9am. Order the Propel 500 report today by emailing: kai.kirkman@propelinfo.com. 

 

Discover how to drive commercial success through food innovation at Restaurant Marketer & Innovator, open for bookings: Discover how to drive commercial success through food innovation at the Restaurant Marketer & Innovator European Summit. Laura Mimoun, chief marketing officer at Fulham Shore, will delve into the organisational dynamics that enable food teams to drive effective menu innovation. With case studies from Franco Manca and The Real Greek, Mimoun will explore the role of data in making informed decisions, when innovation should be embraced and when to avoid the temptation. 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.

Gusto Italian CEO – making money in casual dining has never been more difficult, you have to be brave: Matt Snell, chief executive of Gusto Italian, the Palatine and Beechbrook-backed, premium Italian restaurant and bar group, has told Propel that making money in casual dining has never been more difficult, and that the sector is facing a drop-off in volume. It comes as his 13-strong business announced record-breaking results for December, highlighting double-digit year-on-year growth across multiple key city centre locations. The company said it saw strong trading across all sites during the key days in December, reflecting the “success of its operational and customer-focused strategies”. Snell said: “These results are a testament to our incredibly hard-working teams both in our restaurants and at Gusto headquarters. Christmas is a 12-month project for us, and to see these numbers at the end of the festive period makes all the hard work worthwhile. With my casual dining CEO hat on, making money in this sector specifically has never been more difficult. It’s very difficult to make money from sites taking less than £30,000 per week, and the Budget is probably going to make that number £40,000. Labour costs are very expensive. With food costs, we’ve seen 20% inflation, and even though that has now stabilised, we’ve not seen any real deflation at all, plus energy costs haven’t returned. So, this Budget will be particularly painful from April. The other issue that the sector is facing is a significant drop off in volume driven by price. This is a real issue that’s going to be facing casual dining over the next 12 months, because everyone’s going to have to take price again in April. The way that we have dealt with it is that we have had to take price, and our city centre restaurants have had the elasticity to take that price and continue to grow. Our suburban restaurants have not, but that’s why we introduced our Platinum Club scheme, a subscription-based membership, to our neighbourhood venues, designed to drive covers and value for loyal guests. It has driven footfall in those suburban restaurants in midweek, and that’s been a huge win for us. You have to continue to be brave and try new things –you can’t stagnate.” Last summer, Propel revealed that the business had appointed advisors Tamweel to explore its strategic options. Propel understands that this process is continuing and that conversations with interested parties are ongoing. Last month, Gusto reported that its turnover for the year to 30 September 2023 was up to £26,679,000 from £24,184,000 in 2022. Its site Ebitda was down from £3.4m the previous year to £3.2m and its pre-tax loss widened from £558,000 to £3,273,000. Gusto features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 978 companies. Its turnover of £26,679,000 for the year ending 30 September 2023 is the 391st 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.

 

Beef prices continue to climb following record highs in 2024: Beef prices have continued to climb following record highs in 2024, according to the latest analysis from catering butcher Birtwistle’s. “With both the UK cattle and sheep populations at record lows, we have already begun to see the effects of lower supplies on the market,” its latest report said. “Beef prices reached record highs over the autumn and continued to climb as we moved towards Christmas, with strong demand and expectations of tighter supplies in 2025 likely adding support to the price. On the lamb side, lower supplies have kept the price elevated throughout 2024, against a backdrop of good consumer demand. The long-term contraction seen in the national cattle herd and sheep flock has significant implications for the industry now and in the future.” In December, the overall steer and heifer categories each rose by 3p on the week to average 547p/kg and 541p/kg, respectively. This followed average weekly gains of around 6p since the end of November. Sheep prices have stayed stable, with the GB deadweight new season standard quality quotation down just 1p to average 690p/kg for the week ending 14 December. The measure remained 105p above the same week a year ago. Meanwhile, the EU-spec standard pig price (SPP) increased by 0.31p to stand at 206.41p/kg during the week ended December 14, virtually regaining all the ground it lost the previous week. This was only the second upward movement for the price index since early September, although it has only lost 3p in that 14-week period. The SPP remains at its lowest level since February 2023 and is now just over 8p below the same week last year.

 

Low fares on Fridays fail to lure staff back to office: Sir Sadiq Khan’s £24m scheme to give Londoners cut-price fares on Fridays and persuade workers back into the office has made “no noticeable difference” to footfall numbers, according to Transport for London (TfL). The 13-week pilot made Friday fares off-peak all day instead of charging peak prices in the rush hour, meaning savings of between 10p and £2 per journey. City Hall hoped the trial would increase the number of workers going to the office on Fridays and provide a boost for the hospitality sector through extra spending on food and drink, reports The Times. The mayor said he was now considering other incentives, such as free coffees for passengers who clock up a certain number of points on their Oyster travel cards, in a similar way to supermarket loyalty points. Khan said that “nothing was off the table” and urged TfL to borrow ideas from other cities.

 

Tourist tax plan to add up to £12 per person per night to UK holidays: People holidaying in the UK could be made to pay an extra up to £12 per night in “tourist tax”, according to reports. MailOnline reports that the Treasury is exploring the move, which would see similar charges applied to staying on a UK campsite, caravan park or in a hotel as for staying at some resorts in Spain and France. The models are reported to start at £1 per person per night for a campsite and rise to £15 for an expensive hotel. The tax would be paid by foreign guests and UK holidaymakers alike. Wales is already looking at a visitor levy, which would be applied at different rates by different local authorities. Some cities are also looking at implementing their own tourist taxes, and others already operate their own version. A Treasury spokesman said: “We do not comment on tax speculation outside of fiscal events.” Meanwhile, UKHospitality has said any visitor levy introduced in Wales must benefit tourism and not just top up council coffers. The trade body was responding to the Senedd’s finance committee consultation on the draft legislation. David Chapman, executive director of UKHospitality Cymru, said: “Throughout this process, the Welsh Government has made clear to us that it wants this levy to help local authorities and businesses in areas with high tourist numbers, yet there is no reference to improving tourism in how the funds can be spent. As it stands in this draft legislation, tourism has been sidelined, and that is completely unacceptable. There must also be a displacement principle included that ensures levy funds are not simply used to fill council coffers and top up day-to-day spending.”

 

NTIA – Drumsheds staying open ‘a significant victory for public safety’ which ‘sets a positive precedent’: The Night Time Industries Association (NTIA) has said the decision to allow the Drumsheds nightclub in North London to stay open is “a significant victory for public safety” which “sets a positive precedent”. The nightclub was subject to a review meeting last week following two drug-related deaths and a stabbing at the venue, alongside complaints about poor crowd management. But Enfield Council confirmed the 15,000-capacity venue in Tottenham would be allowed to retain its licence with modified conditions. “Drumsheds’ continued operation reaffirms its vital role as a cornerstone of London’s nightlife, and the council’s balanced approach to regulation sets a positive precedent,” said NTIA chief executive Michael Kill. “The decision is a significant victory for public safety and one of London’s most iconic cultural venues - Drumsheds has consistently demonstrated a steadfast commitment to safety and welfare. Businesses within the night-time economy are dedicated to fostering safe and secure environments where people can enjoy their nights out responsibly. While venues work tirelessly and make substantial investments to ensure safety, personal accountability remains a crucial factor in protecting the well-being of all. This outcome highlights the importance of fair, evidence-based regulation that supports cultural venues while prioritising public safety. Overly restrictive measures, such as those suggested at the hearing by the Metropolitan Police, risk undermining trust and collaboration between venues, authorities and the communities they serve.”

 

Job of the day: COREcruitment is working with an independently owned business that is launching a new venue in the spring and is seeking a general manager. A COREcruitment spokesperson said: “The operation will span across four floors, featuring a bar, restaurant, outdoor space and social entertainment. Additionally, the company oversees a network of exclusive members' clubs across Europe.” The salary is up to £100,000 and the position is based in London. For more information, email stuart@corecruitment.com.  

 

Papa John’s UK paid close to £12m to form company-owned portfolio: Papa John’s UK paid close to £12m to acquire two franchisee businesses to form its company-owned portfolio, Propel has learned. In summer 2023, the international pizza delivery brand made a shift in its strategy for its UK business with the acquisition of restaurants previously operated by the M25 division of Drake Food Service International (DFSI) and the subsequent formation of a portfolio of company-owned restaurants. It subsequently added a further circa 25 sites to its company-owned estate in the UK through the acquisition of franchisee HB Pizza, bringing its total ownership to circa 115 restaurants. The move represented a shift in thinking for the pizza brand, which has traditionally let franchisees run all the restaurants in its international markets, of which, with more than 500 sites, the UK is the biggest. The company said it saw opportunities to implement “operating model enhancements” including revenue management capabilities, product and technological innovation and operational efficiencies, to improve sales and restaurant-level profitability. Propel has learned that the business acquired 89 sites from DFSI for £10.785m and followed this by paying £1.2m to acquire HB Pizza. Last February, the company closed 43 of its company-owned sites, and in May, made the decision to refranchise 60 sites. The company – PJ Corp Stores – was incorporated on 9 March 2023. Turnover from the date to 31 December 2023 for the business stood at £27,260,000, with an operating loss before exceptional items of £8,643,000. The company said: “The operating loss was affected by the closure of 43 stores and the refranchising of 60 stores post year end, which impacted the valuation of fixed assets and goodwill at 31 December 2002. Following an impairment assessment, adjustments were made to goodwill and fixed assets in the amounts of £2,776,000 and £6,219,000 respectively, which resulted in a loss after tax of £18,086,000.” The business did not rule out closing further sites. 

Prezzo hires Adam Lindop as new ops director: Prezzo, the Cain International-backed Italian dining group, has hired Adam Lindop, formerly of ASK Italian and Caffe Nero, as its new operations director, Propel has learned. Lindop spent more than 15 years at ASK, including the past five years as the Azzurri Group-owned brand’s head of operations. Previously he spent just under three years as store manager for new openings for Caffe Nero. He will start his new role next month. Last November, the 96-strong Prezzo hired Mark McCulloch, formerly of Pret A Manger and YO! Sushi, as its new chief marketing officer on a fractional basis, to “lead brand growth”. McCulloch and Lindrop form part of the new management team at Prezzo, led by James Brown. Brown joined as chief executive from Scottish brewer and retailer BrewDog, where he served as chief executive of BrewDog Bars and held several senior leadership roles, in September. As part of this leadership transition, Dean Challenger, Prezzo’s former chief executive, reassumed his previous role as chief financial officer following Prezzo’s return to profitability.

Sourdough Sophia lines up a third site: Sourdough Sophia, the London micro bakery concept, has lined up its third opening in the capital, in Highgate. The business, which last summer raised a further £500,000 through crowdfunding as its eyes growing its current two-strong business to ten sites by the end of 2027, has lined up an opening in Swain’s Lane, with plans to open later this spring. Founded by Sophia Handschuh and Jesse Sutton-Jones in Crouch End, the business, which previously raised £500,000 through a crowdfunding campaign in 2023, opened its second site last year, at 117-119 Essex Road, Islington. With its most recent fundraising, which gave the business a pre-money valuation of £4m, the company plans to open three more sites by FY25, with an annual turnover projected to be £4m. It said revenue in FY24 was £1.8m from two stores and one central production unit. It plans to have ten stores and two central production units by FY27, with a projected revenue of £8m-plus, and a £20m-plus valuation. The expansion will be made up of a mixture of larger sites with indoor seating, and smaller, hatch-style kiosk sites that offer takeaway only. Adam Bowers, of onepoint2, acts for Sourdough Sophia.

McDonald’s to close three CosMc’s sites: McDonald’s plans to close three of its larger-format CosMc’s locations just months after opening them but will still open two smaller-format units of the drive-thru beverage-led concept this year. The first CosMc’s location opened in December 2023, in Bolingbrook, Illinois, and is part of a limited test run. McDonald’s then opened six in the Dallas-Fort Worth and San Antonio metro areas of Texas. The company said it made the decision to close the locations – all in Texas and converted from existing McDonald’s sites – after deciding its smaller units better enable it to “test new, unique circumstances that are reflective of our customer base”.  The company said: “Since opening CosMc’s, we have had the benefit of testing out different location sizes and setups – from revamping larger restaurant spaces to building smaller prototype locations that focus more on the drive-thru and digital experience. We learned that the smaller format stores allow us to test new, unique circumstances that are reflective of our customer base.” It said the CosMc’s test will continue for the foreseeable future. The company added: “We have just scratched the surface about what we can learn about this growing category.” McDonald’s said the expansion of CosMc’s has allowed it to increase its knowledge of the beverage space and make updates to the menu based on customer feedback. Best-selling items include the Island Pick Me Up Punch, Churro Cold Brew Frappe and Sour Energy Burst. The most popular drink customisation is the addition of Fruity Popping Boba. On the food side, Savory Hash Brown Bites have been the top seller across dayparts.

Black and White Hospitality covers in 2025 well ahead of 2024, set to open six franchise sites this year including two in first quarter: Black and White (B&W) Hospitality, which owns and manages the franchise rights to eight Marco Pierre White branded restaurant concepts, has said covers in 2025 are so far well ahead of 2024 and told Propel it is set to open six franchise sites this year, including two in the first quarter. The group, which operates Pierre White branded concepts including Steakhouse, New York Italian and Chophouse, has seen an increase in the number of guests dining across its estate, with January up 19% and February already up 7%. B&W chairman Nick Taplin said this follows a successful December and festive period. “It was great to see December and Christmas perform so well, and the figures for January and February are very encouraging,” he said. “The new winter menu differentiates us from the majority of our competitors, and we have some very strong offers in place, such as our 50% off mains in January, which is proving popular. Looking ahead, the food team, along with Marco, have already been working on the spring and summer menus – the seasonal menus are also an attractive proposition for our franchise partners, who need a point of difference in their local and regional markets. With a number of new openings planned for 2025, despite the tough economic environment, challenging as we think it will be, we are very much looking forward to the year ahead.” In all, B&W operates 29 restaurants and last year launched its latest concept, Marco Pierre White Ale House, with the opening of The Queen’s Head in Felixstowe, Suffolk. Propel understands the group currently has six further sites in legals and anticipates two opening in the first quarter, with the rest spread over the year.

JW Lees Christmas trading up 10.3%: North west brewer and retailer JW Lees has reported six-week Christmas trading was up 10.3%, with like-for-like sales up 4.1%, non like-for-likes up 9.2% and new sites up 232%. Food was up 12.7%, with drink sales up 10.3% and accommodation sales down 2.7%. “This was owing predominantly to a slowdown in UK staycations and the closure of the port of Holyhead,” managing director William Lees-Jones said. “Since JW Lees has a number of hotels on the North Wales coast, these were disproportionately affected by the lack of traffic in and out of Holyhead over the festive season.” JW Lees has more than 49 managed pubs, inns and hotels and lets a further 87 pubs to JW Lees Pub Partners.

Azzurri Group achieves reduction in carbon emissions: Azzurri Group, the ASK Italian, Zizzi and Coco di Mama operator, achieved a reduction in total carbon emissions across its estate in 2024. The group’s third annual Sustainable Dining Report revealed a reduction both in absolute terms and an even greater intensity reduction of 7% (tCO2e/ £1m turnover), as it strives to become a net zero business by 2040. The group said its restaurants are continuously monitored and incentivised on energy efficiency, which helped reduce the amount of electricity used in 2024. It also looks at ways to reduce related emissions by constantly reviewing its food offering and partnering with like-minded businesses, such as regenerative flour producer Wildfarmed. The group has also opened three more sites – Zizzi Bridgend, Ask Italian Merry Hill and Zizzi Chatham – with a SKA-Gold certification – a third-party assessment promoting environmental best practices within building fitouts. It also made fast progress on its goal of donating half a million meals by 2030, having already redistributed more than 250,000 since 2022. Azzurri chief executive Steve Holmes said: “I am proud to see our teams embedding ESG into their day-to-day operations. This approach has meant sustainability is now woven into our decision making and the way we operate. Ultimately, this has strengthened our business, making us more resilient and more adept at building better food businesses.”

 

The Club Company acquires Nottingham site: The Club Company, which owns and operates 17 country clubs across the UK, has acquired The Nottinghamshire Golf & Country Club. Former owner Alan Hardy bought the club, then called Cotgrave Place, in 2010 and has transformed it into the only 36-hole golf club in the county. The 340-acre complex also includes a bistro, wedding venue and a 30-bedroom boutique hotel, reports Insider Media. “This has been an amazing journey during which we have transformed this club into something truly spectacular,” Hardy said. “We have taken this place from an incredibly difficult position, creating a wonderfully bright future as we have done that. Leaving a legacy here has been my driving force and I have loved every single moment.” In October, Epiris, the private equity firm that bought The Club Company in 2018, appointed DC Advisory to find a buyer for the business. It has more than 40,000 members, with the majority of its venues either owned outright or on a long leasehold basis.

 

Burger Boi launches in Derby for its first new opening of 2025: Midlands premium smashed burger brand Burger Boi has launched in Derby for its first new opening of 2025. Having been behind Burger Boi’s first launch of 2024 when he opened his debut store, in Castle Bromwich, franchisee Gavin Dhandwar has also kicked off 2025’s pipeline for the brand by opening at 1 Curzon Street in Derby. “Burger Boi is thrilled to kick off 2025 with a bang as we open our first location of 2025,” said sales director Asa Simpson. “We’re starting as we mean to go on, with plans to double our estate this year. A huge shoutout to one of our incredible franchisees, Gavin, who’s behind this opening – their second location in just a year since launching their first site. It’s always inspiring to see such growth and commitment within the Burger Boi franchise network. Next up, Burger Boi Coseley, set for launch early February!” The Derby restaurant is a 16th site for Burger Boi, which was founded in 2020 by Surj Bassi. Bassi told Propel last month that Burger Boi was aiming to hit the 30-35 store mark in 2025, with sites in Reading, Luton, Milton Keynes, Slough, Walsall and Nottingham in legals. The brand also last month hired Garth Almendro, former UK operations director at Hero Brands-owned German Doner Kebab, to head up its operations. He was Burger Boi’s second hire from Hero Brands in 2024, having also brought in its former development director, Chris Palmer, to perform a similar role.

 

McDonald’s franchisee reports 125% increase in turnover after switching from Central London to south coast: McDonald’s franchisee Luma Restaurants has reported a 125% increase in turnover after switching from Central London to the south coast. As previously reported, in 2023, founder Jose Calaza Pernas moved his business from its previous location in the capital to instead take on a portfolio of ten stores in and around Southampton – which increased to 11 after he opened a 65-seater restaurant at Whiteley shopping centre in Fareham in May 2024. Although it is not clear how many restaurants it was operating immediately before the switch, in 2019, Luma Restaurants had a portfolio of five London McDonald’s. “During the year, the company has relocated from its previous base in central London to operate ten restaurants on the south coast in and around Southampton,” Pernas said in his accounts for the year to 31 December 2023. “This has resulted in an increase in turnover for the year of 124.90% and gross profit of 112.55%. In common with many other businesses and industries, the director believes the trading environment in which the company operates will continue to be challenging but remains optimistic regarding future trading and is committed to increasing both future turnover and profitability.” The company’s turnover increased from £17,463,159 in 2022 to £39,276,265. Its pre-tax profit grew from £727,086 to £2,739,590, despite a £13m increase in costs and a £6m increase in administrative expenses. The company made a £2,352,989 gain on disposal of intangible assets. Dividends of £400,000 were paid (2022: £250,000).

 

Lancashire family bakery business Oddie’s closes after 120 years with loss of more than 100 jobs: Lancashire family bakery business Oddie’s, which operates 13 sites across the county, has closed after 120 years, with the loss of more than 100 jobs. Oddie’s, a fourth-generation family business that was started in 1905 by William Henry Oddie, said in November it was seeking a buyer to save it from closure. The business, which had branches spread across Burnley, Colne and Nelson, has now taken the decision to close after a potential sale “fell through after extensive negotiations”. In a statement, the family said the covid pandemic and “economic slowdown” had “a profound impact on the business’ ability to operate at levels we were accustomed to”. They also said rocketing energy prices had “depleted much of the companies reserves”, which in turn “has put a heavy strain on the company’s finances, and ultimately, the cost to reinvest and recover”. The statement added: “We do thank all the loyal Oddie's customers over the last 120 years and place on record our thanks to staff who have worked for the business. The business is supporting staff in finding suitable alternative employment and continues in discussions with parties who have interest in the business.”

 

Resident Hotels opens first Scottish location, Sleeperz sites to rebrand under franchise, property revaluation hits profit: Resident Hotels – which operates six hotels as well as four sites under the Sleeperz and Cityroomz budget brands – has opened its first Scottish location. It has opened the 164-room The Resident Edinburgh in a former office block in Drumsheugh Gardens – joining its four London hotels and one in Liverpool. The company is also preparing for the Sleeperz and Cityroomz brands it acquired in 2022 to rebrand under a franchise agreement. Director Sir John McTaggart said: “In September 2024, the Sleeperz subsidiaries entered into a long-term franchise agreement with another hotel group to rebrand the Sleeperz hotels. The process to rebrand should be completed during 2025. As a result, it is expected that in future financial periods, it will incur the costs of the franchise fee and costs associated with the rebranding, which will be offset by expected savings in other areas of expenditure. It is expected that the intangible fixed asset relating to the Sleeperz brand, which has a net book value of £1,180,000, will be fully impaired in future financial periods.” It comes as the company said high consumer demand had boosted its financial performance in the year to 31 December 2023, but a property revaluation had hit its profit. Its turnover grew from £25,7091,000 in 2022 to £32,152,000 but a pre-tax profit of £1,867,000 turned into a loss of £4,927,000. McTaggart said the primary driver of this was a £7,738,000 loss on revaluation of the group’s freehold and leasehold properties. “Excluding the revaluation loss, the group’s operating profit increased by £1,453,000,” he said. “This is predominantly due to continued high consumer demand, resulting in high occupancy for the group’s hotels. The improved financial performance is further attributable to it being the first full year of trade from the four hotels held by Sleeperz Hotels and its subsidiaries, which were acquired part way through the previous financial year.” As previously reported, the group refinanced a £9.50m bank loan and £1.18m Coronavirus Business Interruption Loan Scheme loan and took out a new bank £11m loan during the year, with all remaining amounts due to be repaid in June 2028. Dividends of £2,640,000 were paid (2022: nil). 

 

Le Cordon Bleu trained duo to launch debut venture tomorrow, in London’s Hackney: Le Cordon Bleu trained duo Melanie Clarke and McKenzie Amaral will launch their debut venture tomorrow, in London’s Hackney. Their seasonal café, Leigh, will open on Tuesday (14 January) within creative work and event space One and a Half in Ardleigh Road in De Beauvoir Town. Sharing the downstairs area of the co-working space with a florist, there will also be a small seating area. Leigh will serve up fresh daily changing toasted sandwiches, soup and treats, prepared in-house, alongside Formative Coffee. 

 

Former operations manager at Michelin-starred Sorrel in Dorking reopens historic West Sussex pub: Angus Davies, former operations manager at Michelin-starred restaurant Sorrel in Dorking, has reopened an historic West Sussex pub. Davies, who has also worked at Chez Bruce and Lorne in London, has relaunched the 14th century The Swan Inn in Fittleworth following a two-year refurbishment project. The grade II-listed pub, originally established in 1536, has been restored to its former glory by Davies, fresh from his first solo venture as landlord at the Michelin Bib Gourmand-awarded The Hollist Arms in nearby Petworth. The pub now has a 46-cover dining room, a barn restored for breakfast and private dining and 12 ensuite bedrooms, two of which are housed in a converted stable block. The menu included dishes such as suet crust South Downs venison and bacon pie; wild mushroom, celeriac and ricotta cannelloni; and a whole shoulder of South Downs lamb. “We’re excited the doors to The Swan Inn are open once again,” Davies said. “The restoration has been an incredible journey.”

 

New Italian restaurant set to open in London’s Knightsbridge next month: A new Italian restaurant is set to open in London’s Knightsbridge next month. Launching opposite Harrods in Brompton Road, Alba will have a menu focused on the south coast of Italy. Dishes served from the open kitchen will change through the seasons but include risotto con gamberi and lemon alongside Sicilian carpoaccio gambero rossi di Mazara. There will also be a seafood display. Wine will also be a big focus and sourced predominantly from France and Italy, while the venue will have its own wine cellar. There will also be a range of cocktails.