Propel Newsletter Archive Page

Comptoir Group reports improved performance and most successful Christmas to date, announces CEO change: Comptoir Group, the owner of the Comptoir Libanais and Shawa brands, has reported an improved performance and its most successful Christmas to date as it announced a change of chief executive. Group revenue increased 9.5% to £34.5m for the year ending 29 December 2024 compared with £31.5m the previous year. The group said the year has shown a positive increase in restaurant sales with like-for-like sales in the second half of the year up 2.9% and full year like-for-like sales up 1.9%. The company stated: “The group had its most successful Christmas trading period to date as a result of the investment in people, systems, food quality and service providing its guests with great value and a differentiated experience. Total sales for the seasonal six-week trading period ending 5 January 2025 were £4.6m, a growth of 19% for the same period last year, including like-for-like sales increasing by 8.4%. The full year adjusted Ebitda is expected to be in excess of £0.5m, rising from a loss of £0.6m for the half year. The group held an (unaudited) net cash and cash equivalents position of £5.9m (first half of 2024: £4.9m) at year-end. The group has a residual balance of £1.0m (first half of 2024 £1.3m) on its Coronavirus Business Interruption Loan of which is expected to be fully paid back by September 2026.” The group said it estimates the increase in national minimum wage and the changes to employers’ national insurance contributions to be around 10% of total labour costs, being £800,000 in FY25 and approximately £1.1m on an annualised basis. The group stated some labour cost savings can be made “through our excellent skilled teams and maintaining our high team retention rates together with the tactical use of technology”. It added: “This, alongside modest price increases and a rigorous focus on costs, means we are confident that the group will continue to deliver in 2025 despite these additional headwinds.” At year-end, the group owned and operated 22 owned restaurants, with a further six franchisee restaurants across three partners. All new openings are trading as per management’s expectations. Subsequent to the year end, the group has taken the decision not to renew the lease of Kenza Restaurant and Bar in the City of London “and will continue to monitor the financial performance and contribution of all sites in the portfolio”. The group also announced chief executive Nick Ayerst is to step down to “pursue an exciting career opportunity” but remain in place until the end of February. He will be replaced by Chaker Hanna, the former chief executive of the group, who stepped down in August 2022. The company stated: “In light of the decision to seek to reappoint Chaker Hanna as chief executive, meaning that the company’s executive team and board will now control circa 66% of the issued share capital, Ali Aneizi (independent non-executive director) and Jean-Michel Orieux (independent non-executive chairman) feel that they are no longer able to advise the board going forward or continue in their roles and will step down at the end of their three month notice periods. They have both agreed to remain in their respective roles until appropriate successors have been identified and appointed in order to facilitate a seamless and smooth transition. The company has commenced a search for their replacements and is in advanced discussions with Richard Kleiner, the company’s former chairman that stepped down in August 2022, who has, in principle, agreed to serve as chairman of the group going forward. In addition, the company is seeking to identify and appoint an independent non-executive director to replace Ali Aneizi. James Fisher, finance director and Tony Kitous, founder and creative director, will remain in their respective roles.”

Propel 500 report – 2025 could see a flurry of M&A activity, argues Propel group editor Mark Wingett: There are many companies at the higher end of the Propel 500 list that will be in a position to acquire smaller businesses facing financing challenges this year, writes Propel group editor Mark Wingett in the introduction to the Propel 500 report – which showcases the UK’s 500 leading hospitality operators ranked by turnover. This is just one article in a report that 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. Together, the Propel 500 companies generate more than £30bn 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. 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. Further analysis includes 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.

Escape Hunt and Boom Battle Bar operator reports ‘very strong’ festive performance and record sales weeks at 28 venues: XP Factory, which operates the Escape Hunt and Boom Battle Bar brands, has reported a “very strong” festive performance with record sales weeks across 28 of its venues. Boom posted a 17.4% like-for-like sales increase in the five weeks to January 2025 with a 14.3% like-for-like rise at Escape Hunt in period. The group saw like-for-like sales up 8.5% in the 14 weeks to 5 January 2025 – up from 3.9% in the first half of FY25. A total of 20 Boom sites and eight Escape Hunt sites delivered record sales weeks over the Christmas period. The company stated: “XP Factory enjoyed strong performances from both Escape Hunt and Boom Battle Bar over the crucial Christmas and new year period, boosted by excellent corporate bookings. Like-for-like sales from the Escape Hunt owner operated business grew 14.3% in the five weeks to 5 January 2025, with the division achieving its highest ever sales week in the period between Christmas and New Year. Total sales from the Escape Hunt owner operated segment in the 40 weeks to 5 January 2025 were £11m, representing 5.3% like-for-like growth year to date. Like-for-like sales from the Boom owner operated business grew 17.4% in the five weeks to 5 January 2025. This was particularly pleasing given the strong comparative performance in 2023. Sales in the Boom owner operated segment in the 40 weeks to 5 January 2025 totalled £31m, representing 5.9% like-for-like growth year to date. The group opened its newest unit in Cambridge in the first week of December, which represents the culmination of its best thinking for both brands. Performance has so far exceeded our expectations, and the customer reception has been outstanding. Although very early in its journey, the board has been delighted to see both Cambridge Boom and Cambridge Escape Hunt sales performance sitting so highly in the rankings relative to the other owner operated sites. The strong recent performances from both brands have offset the relatively softer period of trading in the summer and the group is currently on track to meet current year market expectations. The board is cognisant of the continuing macroeconomic uncertainty and associated nervousness in consumer confidence and remains focused on optimising performance in the final quarter of the financial year, whilst laying the foundations for the accelerated openings programme to come. Good progress has also been made on bringing new sites into legals which underpin the group’s accelerated growth strategy to be funded by the new bank facility as outlined in the recent interim results.” Chief executive Richard Harpham said: “The recent performance coupled with our accelerated growth strategy provide an exciting and clear path to value creation, capitalising on the growing and positive long-term trends in favour of experiential leisure.”

The Gym Group to accelerate opening rate in 2025 as ‘positive trading momentum continues’: The Gym Group has said it expects to accelerate its opening rate in 2025 as it reported “positive trading momentum has continued” through the second half of the year, driving strong like-for-like revenue growth and profits ahead of guidance. Revenue for the year ended 31 December 2024 increased 11% to £226.3m (2023: £204.0m), with like-for-like revenue growing 7% year on year. Average members grew 4% to 906,000 (2023: 872,000), and average revenue per member per month was up 7% to £20.81 (2023: £19.50). The group closed the year with 891,000 members compared with 850,000 the year before, an increase of 5%. The company opened 12 new sites in the year, at the top end of the projected range of ten to 12, taking the total to 245. Net debt as at 31 December 2024 was £61.3m, compared with £66.4m the year before. The company stated: “As a result of the strong delivery of like-for-like growth and new site performance, group adjusted Ebitda less normalised rent for FY24 is expected to be slightly above the top end of the current market forecast range of £43.5m-£45.5m. We expect to accelerate new site openings to 14-16 sites in 2025 and remain on track to deliver the target of around 50 sites over three years funded from free cashflow, in line with our Next Chapter growth plan. We also continue to reinvest in our existing estate and our major technology platforms. The changes to employers’ national insurance in the autumn Budget will result in additional costs in FY25 of circa £1.3m. Taking this as well as the momentum in the business into account, we now expect that FY25 group adjusted Ebitda less normalised rent will be at the top end of the current market forecast range of £47.2m-£49.7m.” Chief executive Will Orr said: “We have delivered strong progress and momentum in our Next Chapter growth plan, that will result in FY24 profits ahead of the top end of previous guidance. There is plenty more still to come as we execute our plan and we look to 2025 with confidence. We are well prepared for our key member recruitment period in the current quarter and beyond, with our strengthening new site pipeline and our flexible, high value, low cost offer making gym membership more accessible for all.”

West End businesses warn of job losses from rates rise: Hospitality businesses and retailers in the West End tourist district of London have warned the government that new business rates reforms will drive up property bills by £44.5m a year and lead to closures and jobs losses. The New West End Company said the 20% increase in rates bills, announced in the October Budget, will add to increasing operating costs for businesses, which are already concerned about the rise in employers’ national insurance contributions and the minimum wage next year, estimated to add up to £5bn a year to the industry’s costs. Dee Corsi, chief executive of the New West End Company, told The Times: “Already faced with a rapidly rising tax bill, it is hard to see how increasing the business rates burden won’t tip the scales towards job losses and store closures.” Chancellor Rachel Reeves pledged in her budget to introduce two permanently lower tax rates for retail, hospitality and leisure properties with rateable values below £500,000 from 2026-27. The new lower tax rates will capture the majority of large distribution warehouses, “including those used by online giants”, the Treasury’s discussion paper stated. The New West End Company, which represents 600 retailers, hotels and restaurants in the areas of Bond Street, Oxford Street, Regent Street and Mayfair, said, however, that more than two thirds (67%) of New West End companies would end up paying millions more each year. Corsi said the government “insists it is targeting online giants but it is flagship high streets, like the West End, that will bear the brunt of the new business rates bill, actively disincentivising bricks and mortar investments in the long term”.

Pho to launch bone-broth billboard dispenser pop-up: Pho, the Vietnamese restaurant group led by Pat Marrinan and backed by TriSpan, is to launch a broth-dispensing billboard pop-up in central London later today (14 January). Running for two days, the bone-broth-dispensing billboard will be installed outside London’s Victoria train station. Guests will be handed a branded Pho cup which will have the health benefits of bone broth included on and will move along the length of the billboard. They can choose from beef or chicken bone broth to fill up their cup with. Once the hot broth has been poured into the cup, guests will also be handed a discount voucher to redeem in any Pho restaurant throughout the month of January.

C&C Group announces board changes: C&C Group has announced John Gibney has stepped down as a non-executive director. The company stated: “John has worked closely with Andrew Andrea, chief financial and transformation officer, to deliver substantial improvement in the group’s risk and internal control processes. As such, he now feels this is an appropriate time for him to step down and the new leadership team to continue this work.” Gibney will be succeeded by non-executive director Feargal O’Rourke as chair of the audit committee. During a 37 year career with PwC, latterly serving as managing partner in Ireland until his retirement from the professional services firm in October 2023, O’Rourke advised Irish and international companies on a broad range of financial issues including investment, financing and business structuring. In addition, Mark Chilton, company secretary and group general counsel, has notified the board that he will retire on 31 August 2025. Gillian Kyle, currently deputy company secretary, will take on the role of company secretary with effect from the close of the 2025 annual general meeting. As previously announced, Ralph Findlay will return to the position of non-executive chair as of 1 March 2025 following a short period of transition after Roger White joins the business as chief executive on Monday (20 January). Findlay will also resume the role of chair of the nomination committee at that time.