Black Sheep Coffee – our aim is to have 250 shops in the US by end of 2027, UK business is flying: Gabriel Shohet, co-founder of speciality coffee shop operator Black Sheep Coffee, has told Propel that the company’s aim is to have 250 shops in the US by the end of 2027, and has signed seven new franchise partnerships Stateside. Last July, the business, which operates circa 90 sites in the UK, made its debut in the US, with a site in Preston Road, Plano, Dallas. Founded in 2013 by Shohet and Eirik Holth, the company followed this up with a further opening in Dallas, in Mockingbird Lane – a double-lane drive-thru/drive-to venue. A site in Miami, in Grove Central, is also part of its US opening pipeline. Shohet told Propel that the brand’s entry into the US market has been a “resounding success” with the group’s US sites regularly beating network-wide records. He said: “In the last couple of months alone, we signed seven new partnerships with like-minded entrepreneurs who took on exclusive development rights to franchise parts of Texas and Florida and we're just getting started. We now host monthly franchise discovery days in Dallas where prospective franchisees fly in from all over the US to sign up and buy franchise territory exclusivities. By the end of 2025 we expect to have sold all development rights for the whole of Texas and Florida and a large chunk of the Sun Belt (the region of the US generally considered stretching across the south east and south west). Our aim is to have 250 shops in the US by the end of 2027.” The company signed a 30-year franchise agreement with Al Farran Group in May 2023 to open 250 stores across the Middle East within 15 years. The first two outlets of the partnership opened in Dubai last March at ACT Towers and Boulevard Plaza Towers. Shohet said: “Our Middle East partner is doing a fantastic job in the UAE and is well ahead of its business plan at this time, not just in terms of shop numbers but also in terms of average unit value, average transaction value and most importantly, customer satisfaction metrics. We have not revised our growth forecast just yet for the region and still anticipate to have 250 shops trading in the GCC by 2038.” Shohet said the business was “flying in the UK”. He said: “We achieved a 20% increase in systemwide sales for the second half 2024 and opened three more UK shops in the UK than our original business plan. We are now the UK's favourite coffee brand so our aim is to open everywhere customers ask us to be and to become the number one coffee brand in our domestic market in shop number terms as well.”

Premium Club members to receive updated Multi-Site Database with 3,313 operators and 32 new companies this week, videos from Restaurant Marketer & Innovator on Friday, 7 February: Premium Club members are to receive the updated Multi-Site Database on Friday (31 January), at midday. The next Propel Multi-Site Database provides details of 3,313 multi-site operators and is searchable in seven main segments. The database features, 968 (29%) operators from the casual dining sector, 790 (23%) pub and bar operators, 566 (17%) cafe bakery operators, 460 (14%) quick service restaurant operators, 271 (8%) hotel operators, 209 (6%) experiential leisure operators and 55 (2%) fine dining operators. The database is updated each month and this edition includes 33 new companies. New additions to the casual dining sector include Notto, the pasta bar concept from Michelin-starred London chef Phil Howard, Lebanese restaurant Beit El Zaytoun, and Bagatel, the international bistro brand. Premium Club members are also to be given access to the entire recording of the 2025 Restaurant Marketer & Innovator European Summit Conference. Members will be sent 26 separate video presentations, featuring more than 60 speakers on Friday, 7 February, at 9am. Premium Club members also receive access to five additional databases: the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Excellence in Pub Retail (May 2025) and discounts on specialist sector reports such as the Propel 500. Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

UK’s first returnable cup initiative between multiple national brands launches: The UK’s first returnable cup initiative between multiple national brands launches today (Monday, 27 January). The scheme in Glasgow aims to cut into the 388 million disposable cups used in Scotland each year. Operators including Costa Coffee, Caffè Nero and Burger King UK are joining forces to participate in “Borrow Cup”, a project set up by environmental charity Hubbub and reuse start-up Reposit. Several local cafes are also part of the initiative, which aims to expand further across the UK in future depending on the success of an initial three-month period. Customers purchasing a drink at any participating store will be given the option to use a “Borrow Cup” for a £1 deposit and will receive a discount or extra loyalty rewards at most participating locations. Cups are available in three different sizes, and customers can return them at any participating venue to either use again, swap for a clean cup for their next drink, get their deposit back at the till or a £1 voucher at a return point. To date, returnable cup initiatives have generally failed to progress due to trials being too small-scale, cumbersome user experiences have deterred engagement, and a lack of data-led traceability and measurement has limited further development. The organisers said Borrow Cup is different as it is a “pioneering collaboration” with major brands and local cafes, creating a high concentration of return points in the busiest areas of Glasgow. Borrow Cup will be offered at the following retailers across Glasgow: Costa Coffee (11 locations), Caffè Nero (14 locations) and Burger King UK (12 locations). Local cafes include Tinderbox (five locations) and Sprigg (three locations). The project has been funded by the participating brands along with environmental health service Ecosurety, distribution group Bunzl, British Plastics Federation and KFC. 

Diageo rules out sale of Guinness: Diageo has ruled out a sale of its Guinness business, after reports said that the drinks firm was looking to cash-in on the demand for the brand. The business issued a statement on Sunday afternoon (26 January), denying that Guinness was up for sale or that a disposal of its 34% stake in the champagne and cognac business Moët Hennessy was on the cards. Diageo said: “We note the recent media speculation around the Guinness brand and our stake in Moët Hennessy and we can confirm that we have no intention to sell either.” It is understood that listing Guinness on the stock market is not under consideration either. Analysts had suggested that Guinness could fetch up to $10bn (£8bn) if it was sold or spun off, according to Bloomberg. The rumours sent Diageo shares up more than 4% on Friday (24 January). A sale of Guinness was billed as one of the ways to turnaround the company’s fortunes. It follows a difficult period for Diageo, whose share price has floundered since Debra Crew took over as its chief executive in the summer of 2023. Crew was forced to issue a profit warning just months after taking the reins.

Edinburgh confirms visitor levy with transition period delay for businesses: Edinburgh has confirmed the introduction of a visitor levy but councillors have voted to push back the start of the transition period until October. This means accommodation businesses will have a further three months to prepare to collect levy funds for bookings made for 24 July 2026, onwards, when the levy comes into effect. UKHospitality Scotland has said the decision was critical to give businesses and booking platforms an appropriate amount of time to implement new systems to collect levy funds. Executive director Leon Thompson said: “Not only has Edinburgh’s visitor levy been confirmed, but so too has the hit to the city’s competitiveness as a leading tourist destination. Our fundamental concern has always been that this levy will only serve to make visitors trips to Edinburgh more expensive, ultimately reducing their spending in the wider visitor economy and deterring future visits. It’s now the job of the council to use these funds wisely to improve the capital’s attractiveness as a visitor destination and mitigate the impact of the levy on businesses.”

Research highlights independents at risk of falling behind in sustainability progress: New research highlights a stark divide between larger hospitality companies and independent operators when it comes to sustainability progress, due to a lack of support. The findings showed while 76% of leaders from larger companies believe their initiatives have significantly reduced their carbon footprint, only 31% of independents feel the same. There is also a clear call for increased government support to help hospitality businesses achieve their sustainability goals, as nearly three quarters (73%) of industry leaders agree grants and subsidies are essential to accelerate progress. The report from foodservice technology provider Nutritics and CGA by NIQ, “Sustainability Matters: What hospitality leaders are planning”, showed the gap stems not from lack of commitment but from differing levels of resources. Dubbed the “green gap”, the report also marked a difference in employee engagement with sustainability, with larger companies twice as a likely as independents to feel they have succeeded in fostering employee involvement. The research also revealed nearly half (47%) agree that staff in their business engage well with sustainability practices – rising to three quarters (75%) of those in charge of bigger businesses with 50-plus sites. Stephen Nolan, chief executive of Nutritics, said; “Leaders across the board agree better government support could play a transformative role in empowering businesses for change, regardless of size. The engagement gap is particularly concerning given the increasing consumer demand for sustainable practices.”

NTIA – towns and cities must follow Manchester’s lead and find alternatives to ULEZ and CAZ schemes: The Night Time Industries Association (NTIA) has said the UK’s towns and cities must follow Manchester’s lead and find alternatives to ultra-low emission zones (ULEZ) and clean air zones (CAZ). Greater Manchester mayor Andy Burnham has pledged to invest £86m in projects such as low and zero-emission buses, traffic management measures and helping the city’s taxi drivers move to cleaner vehicles, rather than implement a ULEZ scheme like that in London. The NTIA said while sustainability is an important goal, policies such as ULEZ and CAZ disproportionately affect businesses, particularly those in the late-night sector. “These policies are pushing businesses to the brink and threatening livelihoods across the UK,” said NTIA chief executive Michael Kill. “Mayors and leaders must act now to support recovery and growth. Andy Burnham’s approach to these challenges, which includes a focus on both sustainable investments and practical solutions, is a model for other local leaders to follow. The NTIA urges mayors and city leaders across the UK to take responsibility and follow Andy Burnham’s lead in finding a path forward that ensures a flourishing late-night economy while continuing to work toward sustainability.”

Job of the day: COREcruitment is working with a hospitality and leisure business that currently operates 40 sites in the UK and is looking for a senior operations director. A COREcruitment spokesperson said: “The business is looking to open three sites in the UK and overseas. With an annual net turnover exceeding £100m, this independent group is seeking an autonomous operations director with a creative vision and a genuine passion for building long-term opportunities. Candidates must have experience in the luxury restaurant sector.” The salary is between £170,000 and £200,000 and the role is based in London. For more information, email stuart@corecruitment.com. 

Urban Pubs & Bars increases banking facilities to £30m to support growth as it reports record-breaking Ebitda and turnover: Urban Pubs & Bars, the London pub operator founded by Malc Heap and Nick Pring and backed by Davidson Kempner and Global Mutual, has secured additional funds to “accelerate” its ambitious expansion plans as it reports record-breaking Ebitda and turnover. The group posted Ebitda of £8.7m for the financial year ending 28 April 2024 – a 26% increase compared with the previous year (2023: £6.4m). The company also reported a 16% rise in turnover to £60.5m (2023: £52.2m) and a 4% increase in like-for-like sales in the period. The 53-strong business – which has a “strong pipeline” of openings for 2025, including The George & Dragon in Wanstead, The London Fields in Hackney and a new site in Covent Garden – has also refinanced with Barclays, increasing its available facilities from £16m to £30m. Urban Pubs & Bars said this enhanced funding will enable the group, which has opened ten new sites in its current financial year, to “seize new opportunities across London’s pub and restaurant market”. Chief financial officer Jim Pickworth said: “Barclays has been a fantastic partner, and we're thrilled to extend our relationship to fuel our future growth. This increased financial flexibility puts us in an excellent position to execute our strategic vision.” It comes as the group also reported a record-breaking Christmas trading period, which saw a 16% surge in like-for-like sales in December 2024, with 75% of the estate recording its highest ever sales week. Managing director Chris Hill said: “This has been a landmark year. Our growth is a testament to the hard work and dedication of our team, which continues to deliver exceptional experiences for our customers. From iconic pubs to innovative dining and entertainment concepts, our venues represent the best of what London has to offer. While we remain mindful of economic challenges, our strong trading performance and solid financial foundation give us confidence in our ability to achieve even greater success. With new openings already planned and further opportunities on the horizon, we are excited about what 2025 and beyond will bring.” 

Wingstop UK announces biggest opening pipeline since launch: Wingstop UK, which is backed by US private equity firm Sixth Street, has announced its biggest opening pipeline since launching in the UK in 2018, with more than 20 new sites set to open this year. The 57-strong business has ten new locations confirmed so far, with dine-in restaurants opening in Swansea, Newcastle, Lakeside in Essex, Streatham in south London and Cardigan Fields in Leeds, as well a further delivery kitchen in Brighton, set to open in the first half of the year. The business opened 18 sites across the UK, including the opening of its 50th site, including a flagship site at Westfield Stratford City, the biggest Wingstop worldwide, with more than 160 covers. Chris Sherriff, chief executive at Wingstop UK, said: “2024 has been a landmark year for Wingstop UK, marked by record site openings, a new flagship location and industry accolades. This year, we are poised for even greater growth, with plans to expand into new regions and create hundreds of jobs. There is huge momentum and we can’t wait to bring our flavours to more areas across the UK.” Last month, Propel revealed Sixth Street has agreed to acquire Wingstop UK’s parent company Lemon Pepper Holdings for a price that is believed to be in excess of £400m. The California-based Sixth Street, which also owns the American Wingstop franchisee Far West Services, came out ahead of rival investment firms KKR and TSG Consumer Partners, and Domino’s Pizza Group, in the race to become Wingstop UK’s majority shareholder, and support its continued growth.

Midlands smash burger business plans to open six new stores in 2025 including international debut: Midlands smash burger business Brgr Lab has said it plans to open six new stores in 2025, including its international debut. Brothers Hamzah and Hassan Islam, who previously ran a marketing and branding agency together, launched Brgr Lab in 2020, opening its first restaurant in Coventry’s Stanton Road that same year. In October, Brgr Lab launched its first franchise location, at Braunstone Gate in Leicester – part of the De Montfort University campus. A second franchise location is also being lined up to open in Birmingham. “Brgr Lab has ambitious plans for the year ahead,” the company told whichfranchise. “The company is set to open six new locations in 2025, including its first international store, marking a significant milestone in its journey toward global expansion. The new locations will bring Brgr Lab’s signature flavours and cutting-edge dining experience to new communities and markets.” Hassan Patel added: “Expanding internationally has always been a key part of our vision. This year, we’re excited to take Brgr Lab to the global stage and introduce our innovative burger concept to an even wider audience.”

Esquires to complete on seven new stores in first quarter of 2025: Esquires, owned by Cooks Coffee Company, has said it set to complete on seven new stores in the first quarter of 2025. The group started the year with 87 locations in the UK and Ireland and plans to hit the 100-site mark by the end of the year. This follows 16 new openings in 2024. “It was a busy end to 2024, with new store openings in Aylesbury, Corby, Market Harborough and Uppingham and reimages in St Neots and Worthing,” said Tom Parke, Esquires’ head of property management. “2025 off to a flying start, with Nottingham, Norwich, Maidenhead, Crowthorne, Camberley, Saffron Waldron and Leighton Buzzard all due for completion in the first quarter.” Last week, Cooks Coffee Company reported that group store sales were up 26.2% at £25.5m in the nine months to 31 December 2024, with UK store sales up 33.8% at £17.7m and Ireland store sales up 11.9% at £7.8m. Like-for-like sales were up 2.8% in the UK and 5.1% in Ireland. In the 13 weeks to 31 December 2024, the company saw overall growth of 32.4%, with UK growth of 36.5% and Ireland achieving growth of 23.9%.

Lola’s Cupcakes set to open two more stores in the first quarter, most trading up on last year: Lola’s Cupcakes has told Propel it is set to open two more stores in the first quarter and that most of its 25-strong estate is trading up on last year. The brand, which last year said it is aiming for three or four new openings per year, is getting 2025 off to a flying start. Launching in London’s South Kensington in January, the group is planning to also open in Richmond and Clapham Junction in the capital in the coming months, as well as refurbish its Birmingham store. The Birmingham location, within Selfridges in the city’s Bullring shopping centre, is not only its furthest site north, but also its only full store outside of the capital (it has collection lockers in places such as Dorking, Hatfield, High Wycombe, Luton, Stevenage, Watford and Welwyn Garden City). Owner Asher Budwig told Propel last year of his plans to expand north and has now said this will probably be in 2026 or 2027, adding that “35% of our customers are from outside London”. In terms of the effects of last October’s Budget, Budwig said: “Lots of retailers are under pressure. Sales last year were positive, new stores in 2025 should add £1.5m to our revenues, and we’ve not done anything on price point yet. But we will have a £500,000 increase in labour cost from April of this year, so while we have held off as long as we can, we will see some price rises coming in around April time. We saw some strong trade from tourism over the winter period, and we’ve had a good first two weeks of 2025. We’re seeing decent like-for-likes.” The company’s turnover grew from £22,462,005 to £24,869,985 in the year to 31 December 2023, while its pre-tax profit was up from £337,546 to £774,848 – with Budwig having previously said he expects to see 2024’s figures improve on this due to growth in the online operation, offering home delivery, click and collect and nationwide delivery. 

Welcome Break opens first new service station in 20 years with Pret, Burger King, KFC and Chopstix sites: Welcome Break has opened its first new service station in 20 years – featuring Pret A Manger, Burger King, KFC and Chopstix sites. The £55m state-of-the-art Welcome Break Rotherham also showcases an entirely new concept for the brand. The site, which is located at junction 33 on the M1, has been designed to resemble a Yorkshire village. The service station has created about 230 new jobs. A Welcome Break spokesman said: “It has been a really mammoth task to bring Welcome Break Rotherham to fruition, and I’d like to congratulate the entire Welcome Break team and all of its suppliers and contractors, who put in such a huge effort to deliver a wonderful product for our customers.” Welcome Break features in the Propel 500 report, an unparalleled resource that profiles the UK’s leading hospitality operators ranked by turnover – which is available now. 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. A list of the operators included can be discovered now by visiting the Propel 500 page on Propel’s website. 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 quick service restaurants 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. 

Lane7 to take a more cautious approach to UK expansion: Lane7, the boutique bowling alley operator, is to take a more cautious approach to UK expansion due to combination of “oversupply” of competitive socialising venues, as well as turbulence in the UK economy since covid. Founder Tim Wilks told The Times: “We’re trying to really manage build costs closely. It’s become a lot more expensive in the last four or five years to build a site and then when it’s open it’s less profitable than it was previously. So our business is still good but we have just got to make sure we manage both the build side and then, like everyone else, try to operate as efficiently as we can.” Wilks said that he had seen a sharp increase in overheads because of surging energy prices as a result of the Russia-Ukraine conflict as well as the increased costs of employment. Like other businesses, Lane7 is bracing itself for the increase in both the national minimum wage and employers’ national insurance contributions that were announced in the Budget, and come into effect in April. The company employs many of its staff on part-time and zero-hours contracts – at their request, Wilks said – with up to 700 on the roster, equivalent to around 350 full-time employees. “We have a lot of extra costs coming our way,” he said. The company, which operates 18 venues, including two in Birmingham and one each in Sheffield, Manchester and Liverpool, will open three new sites in the UK in the next month and is currently scouring mainland Europe for further growth opportunities. In November, it opened a site in central Berlin – Lane7’s first location in mainland Europe. In addition to nine bowling lanes, visitors can also play shuffleboard, table tennis and darts, and book karaoke booths. Wilks said he’s “not rushing” to choose the next European site but is thought to be considering Amsterdam as a potential location. 

West Yorkshire McDonald’s franchisee reports turnover increases to £41.2m: West Yorkshire McDonald’s franchisee Ronnie’s has reported turnover increased to a record £41,246,669 for the year ending 31 December 2023 compared with £35,862,186 the previous year. Pre-tax profit was up to £251,273 from £29,723 the year before. Gross profit margin was down slightly to 64.09% from 64.31% the previous year, which was “in line with expectations”. The nine-strong business is owned by Anne Wainwright, who has been franchising with McDonald’s for 15 years and has said she has ambitions to be its leading female franchisee in the UK. In her statement accompanying the company’s accounts, Wainwright said: “As a result of the 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. The rise in sales is predominately due to continued growth in delivery sales within our existing restaurants, alongside the acquisition of a new restaurant in November 2023. On a like-for-like basis for the seven stores open throughout both 2022 and 2023, sales increased by approximately 4.36%.” Dividends of £1,191,383 were paid (2022: £735,211).

Bancone confirms first foray into west London with Kensington site: Bancone, the all-day fresh pasta concept led by Will Ellner and backed by David Ramsey and Jason Myers, has confirmed it is to open a fourth site, in Kensington, which will be its first opening in west London. Propel revealed last month that Bancone planned to open a site at 127a Kensington High Street as part of the Kensington Building in Wrights Lane. The new 120-cover, 2,565 square-foot site, within the new Wrights Arcade, will join the company’s existing restaurants in Covent Garden, Golden Square and Borough Yards. Ellner said: “When we opened Bancone in Covent Garden, none of us thought we'd be opening our fourth site a few years later in such a great spot. We have been looking for the right location in west London for a while now and we are thrilled with this site: spacious and bright, giving us the freedom to create a unique restaurant. We are delighted to be opening our fourth site in the heart of west London to enable us to bring our pasta to new audiences.” Bancone, which previously raised more than £900,000 from a crowdfunding campaign in 2023, opened a site in the Borough Yards development, in 2023. The concept launched in Covent Garden’s William IV Street in 2018 and opened its second site, in Soho’s Lower James Street, the following year. The company said at the time of the fundraise: “We have honed our business model and are now set to expand in London, with sites potentially lined up in Borough, Battersea, Notting Hill and Shoreditch/City (dependent on amount raised). We’ve successfully survived covid and are now serving circa 4,500 customers per week at our popular Soho and Covent Garden restaurants, which now regularly turnover £110,000-£120,000 per week.” Distrkt acted for Ashby Capital, the landlord of the Kensington Building.

Hertfordshire gelato shop owner set to open third location: Hertfordshire gelato shop owner Fabio Vincenti is set to open a third location. Vincenti and wife Hannah opened Fabio’s in Hitchin in 2015 and followed that with a site in Letchworth. Vincenti has now teased the opening of a new location, in Stevenage, on social media. He said it would not be another Fabio’s, but that his gelato is coming to the town. In 2023, Vincenti renamed his new Percy Pig flavour Fabio’s Pig after receiving a “polite and fair” letter from M&S, which owns the trademark to the Percy Pig sweets brand.

 

Belgian indoor electric karting brand gets go-ahead for third UK site: Belgian indoor electric karting brand BattleKart, which combines indoor karting and video games, has been given the go-ahead for a site in Sheffield for its third UK venue. Plans were lodged with the city council in December for the change of use of a storage and distribution unit in Downgate Drive, in the Lower Don Valley area and the application has been approved. The facility would also include a reception and foyer, cafe, staff facilities, briefing and conference areas, changing rooms and spectator viewing areas, reports Insider Media. Founded in 2015, BattleKart has since grown to circa 30 sites in Belgium, France, Germany, Austria, the Netherlands and the Middle East. The franchise has been brought to the UK by couple Paul Scriven and Carly Warner, who came across the idea on social media a few years ago. They opened the first site here in Sittingbourne, Kent, last year, and have since added a venue in Gateshead, in the north east.

London’s G-A-Y Bar goes on sale as Soho ‘loses vibrancy’: One of Central London's main LGBTQ+ bars has gone on sale with its owner saying Soho has “lost its vibrancy”. G-A-Y Bar owner Jeremy Joseph said he had had to make the “tough decision” after his other venue, Heaven nightclub, was temporarily closed late last year following a police matter that led to a licence review. Joseph criticised Westminster City Council and the Met Police as well as local residents’ groups as being too resistant to measures, such as late licences, which he said would benefit the nightlife industry. Joseph also cited what he said was a wider decline in Soho as an “LGBT capital”. He added the closure of Heaven while its licence was under review had put G-A-Y Bar “at risk financially”. “Even now after Heaven's reopening, the damage financially and mentally has been irreparable,” he said. After another one of his venues, G-A-Y Late, closed in 2023, he said he had planned to apply for a late licence for his remaining venue under that brand. He later decided against this as he felt it would face too many objections from the council, police and residents. Joseph said he wanted the G-A-Y Bar to remain an LGBT venue and he was also considering a franchising option to achieve that, but he believed it would not happen “in the current climate”. A council spokesperson told the BBC it was proud supporters of LGBT+ businesses and the wider community in Soho and Westminster, while the Met said it understood the “complexities” that night-time venues face.

28-50 Wine Bar & Kitchen operator scales back operations with ‘no immediate solution’ to staff shortage issue: Riviera Restaurants and Luxury, which operates the 28-50 Wine Bar & Kitchen concept in the capital as well as being a tour operator, has scaled back its restaurant operations as it sees “no immediate solution” to the issue of staff shortages. Having operated five sites in 2021, the group now operates two 28-50 Wine Bar & Kitchen outlets – in Marylebone and Oxford Circus. It comes as the group reported turnover fell to £10,178,284 for the year ending 31 October 2023 compared with £10,606,751 the previous year. Pre-tax losses narrowed to £1,070,816 from £2,527,922 the year before. In their report accompanying the accounts, the directors stated: “During covid, the group invested in London restaurants, on the expectation that there would be a strong recovery afterwards. Trading was indeed positive immediately after covid but this was countered by severe staff shortages, as many European hospitality workers left during covid and did not return. This severely restricted the group’s ability to grow, recruit and train its staff. Furthermore, the current UK government does not consider hospitality work to be skilled. As a result, there remains a gap between the number of skilled workers needed and the number available. It is difficult to maintain the service levels enjoyed prior to the departure of the group’s European workforce. This has a negative impact on sales and customer satisfaction at the higher-end of the market where the group’s restaurants are. The group sees no immediate solution to the problem. Accordingly, the directors have decided to reduce the group's restaurant estates in London. A large number of deposits and pre-payments were taken for holidays that were not delivered, and credit was accorded for future seasons. In most cases, the group was unable to recoup payments and engagements already made to suppliers. It will take a few years for the customer credit to wash-through and losses can be expected in travel until 2025.” The company, which employs around 190 staff, received government grants of £5,000 (2022: £28,000).

Open House narrows losses as turnover increases to record £13.9m: Open House, which operates two sites in London, has reported turnover increased 15% to a record £13,852,371 for the year ending 31 December 2023 compared with £11,998,845 the year before. Of the 2023 figure, £7,659,869 came from wet sales (2022: £6,341,585), £5,482,502 from dry sales (2022: £4,448,155), £101,112 from management services (2022: £395,065) and £608,888 from other sales (2022: £814,040). Ebitda improved from a loss of £1.8m to “a breakeven point”. Pre-tax losses narrowed to £1,284,373 from £4,364,197. In their report accompanying the accounts, the directors stated: “Sales were at the expected level. Gross margins were in line with management expectations for the year.” The company, which operates The Lighterman in King’s Cross and The Broadcaster in White City and employs around 230 staff, did not receive any government grants (2022: £18,546). No dividend was paid (2022: nil).

 

Edinburgh restaurateur reports increase in turnover but drop in profit: Edinburgh restaurateur James Thomson has reported his business saw an increase in turnover but a drop in profit in the year to 31 December 2023. Accounts for Pacific Shelf 636, the holding company for Thomson’s interests, showed turnover rose from £13,135,081 in 2022 to £13,956,136. Pre-tax profit fell from £1,969,221 to £1,625,912 and Ebitda was down from £2,846,000 to £2,591,000. Thompson operates The Witchery by The Castle restaurant in Castlehill and five-star hotel Prestonfield House in Priestfield Road. He also previously operated The Tower Restaurant at the National Museum of Scotland, which closed during covid. The company received £10,500 in government grants compared with £28,300 in 2022. The group also made £89,164 from sales of wine held at stock (2022: £13,575). Dividends of £240,000 were paid (2022: £340,000). Thompson said he was happy with a “strong” trading and financial performance, which he said was achieved “despite the backdrop of a challenging economic climate, due to huge customer loyalty and the hard work of the team”.

 

Thai street food operator joins Gloucester Food Dock line-up for second site: Thai street food operator Kinn Kinn has joined the line-up at Gloucester Food Dock for its second site. The family-run business currently operates a site in the food court at Newport Market in South Wales. Founder Sitangsupa Dyer said: “We’re thrilled to bring Kinn Kinn to Gloucester Food Dock and share our love for Thai food with the local community. Our aim is to create a unique dining experience where guests can enjoy the authentic flavours of Thailand right here in Gloucester.” Inspired by Dyer’s Thai roots and her culinary adventures, the menu includes traditional favourites such as pad Thai and Thai green curry as well as her signature Moo Ping – grilled barbecue pork skewers accompanied by Kinn Kinn’s own “Falling Angel Chilli Beer”. Ken Elliott, co-owner of Gloucester Food Dock, said: “We are happy to welcome Kinn Kinn as the latest addition to our dynamic food and drink community and know Gloucester will enjoy its cuisine. Daikoku, our other east Asian cuisine, is also proving to be extremely popular.”