JD Wetherspoon – no plans to slow down recruitment or cut jobs despite annual £60m increase in labour costs, no longer using third-party booking platforms for hotels: JD Wetherspoon chairman Sir Tim Martin has told Propel it has no plans to slow down recruitment or cut jobs despite the impending annual £60m increase in labour costs. Wetherspoon said the increases in national insurance and labour rates amount to approximately £1,500 per pub, per week. Speaking following the company’s interim results, where sales increased to a record £1,030m, Sir Tim said despite the extra costs, Wetherspoon would continue creating jobs and added: “We are hoping that trading stays robust.” The sales increase in the first half of the year means the average weekly sales per pub has hit a record £59,800, up from £56,200 in the same period last year, and up from a high of £58,100 in the previous 12 months. In terms of how much further this could grow, Sir Tim said: “I don’t know if there is limit. But we’ve already opened for breakfast so extending trading hours is unlikely. We’ve also covered off areas such as coffee. Further progress will require improvements in the ‘thousand components of the BMW’ – there’s no obvious ‘big win’.” Like-for-like sales at its 56-strong hotels fell 7% during the period, which Sir Tim said was down to the company no longer using third-party booking platforms, which “has had a temporary (we hope) effect on sales”. The company is planning to open 12 new pubs over the next 18 months, including sites at Heathrow airport this autumn and Manchester airport in spring next year. Sir Tim said most of the opportunities it was being presented with were from unlicensed sites – including the two it had opened in the first half of the financial year – the Grand Assembly in Marlow, Buckinghamshire, and The Lion and The Unicorn in London’s Waterloo station. Five new franchise openings are also in the pipeline for the second half of its financial year – four in partnership with holiday park operator Haven that have previously been announced. Sir Tim said he could not mention details of the other franchise yet. Sir Tim said changes to the menu, which will see steak, gammon and mixed grills removed from May, was because “tastes are moving more to chicken, vegetarian etc” and the dishes were not loss-making. “We have an extensive menu, and we’re adapting to the brave new world,” he added. The average length of service for a pub manager has now passed 15 years, which Sir Tim said he believed was down to looking after staff. “We moved to straight shifts and a 40-hour week some time ago,” he said. “We’re adding staff rooms to all pubs in the next couple of years. Hopefully, these sorts of initiatives add up.” In terms of this week’s spring statement, Sir Tim hopes “pubs are left alone for the next couple of decades” while the rest of the year will be a “tough time for the industry after this gigantic tax raid but we’re hoping the dogs bark and the caravan moves smoothly on, even so”. Sir Tim: diversity policies have become weaponised – see Industry News

Fuller’s CEO Simon Emeny to speak at Excellence in Pub & Bar Retailing Conference, open for bookings with 20% discount on tickets for Premium Club subscribers: Simon Emeny, chief executive of Fuller’s, will be among the speakers at the Excellence in Pub & Bar Retailing Conference. The all-day conference takes place on Wednesday, 14 May at One Moorgate Place in London and is open for bookings. Emeny talks to Propel group editor Mark Wingett about how Fuller’s is facing the challenge of appealing to an evolving consumer base, without comprising on its premium ethos. For the full speaker schedule, click here. Tickets are £295 plus VAT for operators and £345 plus VAT for suppliers. There is a 20% discount for operators and suppliers who are Premium Club subscribers. Email: kai.kirkman@propelinfo.com to book places.

Premium Club members to receive updated segmented Multi-Site Database with 3,360 operators and 27 new companies on Friday: Premium Club members are to receive the updated Multi-Site Database on Friday (28 March), at noon. The next Propel Multi-Site Database provides details of 3,360 multi-site operators and is searchable in seven main segments. The database features 981 (29%) operators from the casual dining sector, 792 (24%) pub and bar operators, 571 (17%) cafe bakery operators, 472 (14%) quick service restaurant operators, 276 (8%) hotel operators, 214 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month, and this edition includes 27 new companies. The database includes new companies in the hotels sector such as Aimbridge Hospitality EMEA, the global hotel operator, Caledonia Inns, the Scottish pub and hotel company, and Brudolff Hotels, the Scottish hotel and wine shop business. 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 Club subscribers 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 International Brands report. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers 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 subscribers 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 subscribers 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.

UKHospitality – ‘tunnel vision’ approach to growth would leave large swathes of the country behind: UKHospitality has warned the government that a “tunnel vision” approach to growth would leave large swathes of the country behind. The trade body said its Social Productivity Index reveals that focusing on economic growth alone, such as in the government's Industrial Strategy, risks creating a “prosperity postcode lottery”. The index shows that foundational sectors, like hospitality, are the most effective at delivering wider growth, while high economic productivity sectors, like those prioritised in the government’s strategy, often perform the worst. The index said while those sectors deliver for specific areas, towns or cities, they fail to widely reach communities or provide accessible opportunities. According to the index, hospitality ranks first in employing part-time workers, under-25s and non-graduates, and is in the top five for geographic spread, gender balance, employment of non-White British team members and proportion of people in managerial roles without a degree. Kate Nicholls, chief executive of UKHospitality, said: “There is so much more to growth than just raw economics, as our new Social Productivity Index reveals. A tunnel vision approach to growth, which relentlessly pursues a narrow definition of economic growth alone, would risk creating a prosperity postcode lottery. It will only benefit small clusters around the country, mainly in the south east, and sectors that deliver real change felt by real people would be overlooked. It would leave swathes of the north and the Midlands behind. Hospitality’s ability to support jobs and communities in every part of the country, offering career opportunities for all and driving social mobility are the qualities the government needs to get more people back into work. Government policy needs to recognise sectors that deliver this social value to ensure national renewal can truly be delivered.” UKHospitality also called on Downing Street to include social productivity and geographical distribution of growth when making impact assessments and developing public policy, establish location-based strategies for areas and sectors that have been excluded from highly concentrated high-economic productivity sectors, and carry out analysis to reveal how high social productivity sectors contribute to the success of high-economic productivity sectors.

Caffe Nero founder – government should encourage businesses to hire young staff to get the country at optimum productivity: Gerry Ford, the chief executive of founder and group chief executive of Caffe Nero, has argued the government should encourage businesses to hire young staff to get the country at optimum productivity. Caffe Nero employs more than 7,000 people in the UK, many of them under 30. Ford points to Caffe Nero's “pipeline”, where the company takes on youngsters as a barista and encourages them to work their way up to be a manager. He told the Mail on Sunday: “Around 85%-90% of store managers have come through this pipeline. It is like a school in running a small business. We have a big celebration when they become a store manager. These are all our own people. This works. The government should encourage more small businesses to enable them to employ young people.” Ford said the cost-of-living crisis has not dampened people's willingness to pay £3.65 for a latte or £3.30 for a cortado. He added: “It is a small treat in what might be a difficult world, with a new government and lots of uncertainty. It is a ritual and a routine. There aren't that many places where you can spend between £2.50 and £5 and sit there for a while. In today's world of inflation, it is still a good bargain.” Coffee prices are “extremely high right now” on the commodity market, Ford said, and if that is sustained then the business will have to put up prices. Ford said Brits have also developed a more sophisticated taste in coffee. When he launched the business 28 years ago, “British people drank instant coffee”, he said. “Many had no idea about espresso, they didn't have machines in their home,” he added. “We were one of the first movers and it was hard going.” Caffe Nero has gone from a start-up to the largest independent coffee house brand in Europe, with 1,100 stores in 11 countries, including 700 in the UK. Sales in the UK for the first half of last year rose 11.4% to £185.4m and hit a record over Christmas. 

Cavendish – market has been slow to catch on to opportunities in the experiential leisure sector: Investment bank Cavendish has said the market has been slow to catch on to the opportunity to invest in the experiential leisure sector, which offers “an attractive combination of high growth, excellent returns on invested capital and lowly valuations”. Initiating coverage on Everyman Media, Hollywood Bowl and XP Factory, Cavendish said it believes the sector is set to outperform, with ambitious company roll-out plans and depressed share prices amidst a challenging UK consumer backdrop. Cavendish said a “fragmented market presents significant opportunity”. The bank said: “While many of these competitive socialising activities have been around for decades, operators have repackaged them into engaging and fun formats. There is a high level of demand for these repurposed activities across many cities in the UK that are currently under-served, with the competitive socialising sector remaining highly fragmented at present. With landlords keen to fill high-street space left vacated by the closure of retail and restaurant businesses, it is an attractive property market, with prime site availability and landlord concessions to aid site rollouts. There is also a strong slate to drive cinematic recovery: although admissions remain suppressed compared with pre-covid admissions of 176.1 million, we believe the environment is fertile for smaller, higher quality cinemas to capitalise on a continued recovery. The UK hospitality sector has faced a number of challenges in recent years, with inflationary pressures and staff shortages compounding the impact from covid-19 lockdowns. More recently, Labour’s October Budget delivers a triple whammy of pain on hospitality operators that have part-time staff and often pay minimum wage, creating yet more uncertainty for hospitality operators. Despite this, recent economic data points to the UK consumers’ willingness to spend a bit extra on unique experiences. Against this backdrop, we believe the growing and rapidly evolving experiential leisure market is well positioned to capture a greater proportion of the wider hospitality wallet.”

Bitters ‘n’ Twisted founder – these latest changes in taxation are simply the final nail in the coffin: Matt Scriven, founder and chief executive of the Midlands operator Bitters ‘n’ Twisted, which at one time had 14 sites but now has one, has said “these latest changes in taxation are simply the final nail in the coffin” for many hospitality companies. The company’s Bodega Cantina had been trading in Bennetts Hill, a stone’s throw from Birmingham New Street station, for 14 years, but it closed earlier this month. “I gave it my best shot,” Scriven told the Sunday Times. He said Brexit, and its impact on finding staff, had taken a toll, as had covid and high interest rates. He said: “It has felt like I have been treading in treacle for the last couple of years. I think the last six months, it’s just me saying, ‘I can’t fight this anymore’. These latest changes in taxation are simply the final nail in the coffin.” The closure of the Birmingham site leaves Bitters ‘n’ Twisted operating The Victoria in the city’s John Bright Street.

JD Wetherspoon founder – diversity policies have become weaponised: Sir Tim Martin, founder and chairman of JD Wetherspoon, has said corporate diversity policies have been “politicised and weaponised” and called for common sense on the topic, which has become a flashpoint in the culture wars. It comes after Donald Trump has scrapped diversity, equity and inclusion (DEI) initiatives across the US government and vowed to single out “woke companies” that maintain such policies. It has prompted a string of businesses to either water down or scrap DEI schemes. However, Sir Tim told The Telegraph: “Diversity is an excellent principle if interpreted sensibly, but it’s become politicised and weaponised, so common sense is in short supply. You shouldn’t adopt inflexible diversity quotas to keep the corporate governance lobby happy – and you shouldn’t ditch your sensible diversity policies just because Donald Trump says so.” Sir Tim has in the past also said that boardrooms have become “havens of wokery and political correctness”. While Sir Tim defended the principle of diversity in business, he insisted Wetherspoon did not “impose” policies and instead considered it “a natural process”. He said: “I think our staff and customers just reflect the nature of the communities in which we trade. No disrespect to Joe Biden or Donald Trump, but they haven’t had much influence on our policies. The difficulties multinational companies have in staying on the right side of popular opinion shouldn’t be underestimated, but understated policies may generally be preferable to virtue-signalling in sensitive areas.”

‘Alcohol can’t have its big tobacco moment because we’ve always known it's bad for us’: Roseanna Ivory, investment manager at Aberdeen Standard Investments, has argued “alcohol can’t have its big tobacco moment because we’ve always known it's bad for us”. Talking to the FT, Ivory was responding to a research note by analysts at Jefferies titled “Is alcohol the next tobacco?”. Jefferies analyst Ed Mundy said: “During my 20 years of covering the drinks sector, the degree of investor questioning around alcohol has never been more prominent.” Edward Kevis, fund manager at Aviva Investors, said younger people drinking less alcohol had also created “structural uncertainty” around the sector. Research company Gallup has surveyed people aged between 18 and 34 every decade since 2001 to track the number who say they have drunk alcohol in the preceding week. Results have declined from 49% in 2001 to 38% in 2023. Laurence Whyatt, analyst at Barclays, noted the data showing young people drinking less was largely from surveys, so was not fully reliable. Research by the bank found Generation Z was spending a similar or higher proportion of its income on alcohol compared with other generations. “We suspect Generation Z’s relatively low absolute spend on alcohol has more to do with the group’s lower earnings profile,” Whyatt said. “As earnings increase, we think it is reasonable to expect alcohol spend to rise with it.” Ivory said the “extraordinary” level of alcohol consumption in 2021 had led companies to raise guidance because they believed it would last. “What we’re talking about is a normalisation — there’s always an overcorrection,” she said. “It will take a bit longer to get back to the same growth rate.” Like tobacco bosses before them, who pivoted to smoke-free alternatives to offset shrinking sales, drinks executives have couched moderation as a growth opportunity, pouring investment into no and low-alcohol beverages to retain abstinent consumers. Mundy said unlike the tobacco industry, which hid its knowledge of how harmful its products were, the alcohol sector has actively engaged with regulators on promoting responsible drinking. 

Ronnie Scott’s owner – ‘nimbys’ are killing London’s nightlife: London’s nightlife is under threat from a “vocal minority” complaining about noise, the owner of London jazz club Ronnie Scott’s has warned. John James has said proposals for pubs and clubs in Soho to host more “quiet nights” threatened to “kill an international city” and would put the capital far behind rivals such as Paris, Milan and New York. Labour-led Westminster City Council is consulting on plans to push pubs and clubs in Soho to hold more quiet and alcohol-free activities after 6pm to make Central London more peaceful for residents. James told The Telegraph: “Every other high street in the land would be deeply envious of what Soho has. And yet we, by the virtue of Westminster City Council becoming restrictive in the granting of planning and licences, are trying to kill off our high street. Westminster is overly listening to the minority resident view, but it seems to be the one that is listened to more keenly than others. It doesn’t take into account any of the opinions of thousands of visitors.” In its Westminster After Dark consultation, the council said its policies would help “businesses to thrive, visitors to enjoy the city’s attractions, and residents to get a decent night’s sleep”. James described a proposal to shift the late-night economy to new “entertainment zones” in the Strand, Oxford Street and Victoria as “mind-boggling”. James Raynor, the chief executive of Grosvenor’s property company, which owns much of nearby Mayfair, told The Telegraph: “If you start to limit those sorts of activities, you’re going to put a lot of businesses out of business.” Geoff Barraclough, a Westminster councillor and cabinet member for planning and economic development, said: “The measures we’re consulting on have been designed to add to, not take away from, existing nightlife.”

Bristol launches feasibility study into a potential ‘tourist tax’ for the city: Bristol City Council has launched a feasibility study into a potential “tourist tax” for the city. The proposal would see hotel guests paying an additional £2 per night, with the study exploring how such a tax could be implemented. Raphael Herzog, chair of the Bristol Hoteliers Association, warned it could deter visitors and harm businesses already grappling with rising costs. “With increases in the minimum wage and the raising of employers’ national insurance contributions, the last thing we want is yet another challenge to our businesses,” he said. “Why would a guest choose Bristol and pay a tourist tax when there are plenty of other cities they can visit without additional charges?” Herzog suggested instead imposing an annual licensing fee on companies such as Airbnb, and short-term lets, which currently operate without the regulatory costs hotels must bear. “Other European cities charge a licence fee of around £180 per year and cap the number of nights properties can be rented out,” he added. “This would not only generate revenue but also help regulate the market and create a level playing field for accommodation providers.” Elsewhere, Liverpool’s hospitality leaders will this week begin to vote on whether to adopt a proposed £2 a night charge on visitors to the city. The ballot will open on Friday (28 March), with the results announced on Thursday, 24 April, and a levy could be in place by June. Birmingham is currently re-investigating whether to introduce a “tourist tax” on overnight visitors, while Greater Manchester mayor Andy Burnham has said he wants to see the city centre’s optional city visitor charge replaced by a compulsory fee. Edinburgh is set to become the first Scottish city to introduce a “tourist tax” when it comes into effect next summer, while the Welsh Senedd’s finance committee has launched a consultation into a similar levy in Wales.

Job of the day: COREcruitment is working with an established and growing premium soft drink business that is seeking a head of wholesale to lead the account management with multiple large-scale foodservice wholesalers. A COREcruitment spokesperson said: “The role will be instrumental in delivering business growth with existing accounts and optimising on sales strategies. The ideal head of wholesale will have a passion for the drinks industry and have experience managing multiple wholesale partnerships.” The salary is up to £60,000 with hybrid working – three days per week in the company’s office in London. For more information, email mark@corecruitment.com.

Emilia’s Crafted Pasta begins exploring investment options, secures new flagship site: London Italian pasta restaurant concept Emilia’s Crafted Pasta has begun exploring investment options and secured a new flagship site in the capital, Propel has learned. The four-strong business, which was founded in 2016 by Andrew Macleod, has secured the former Leon site at 56 Victoria Street for what it has called its “biggest and boldest project yet”. The 100-cover site – 70 inside across two floors and 30 externally – follows openings in St Katharine Docks in 2016, Aldgate in 2019, Canary Wharf in 2022 and Baker Street last year. The new site, which will open this summer, follows off the back of Emilia’s pasta retail products launch in the fourth quarter of 2024. Macleod said: “We're thrilled to open our fifth Emilia’s restaurant in vibrant Victoria – our largest and most ambitious restaurant to date. Following our success in east London, the City, Canary Wharf, and Baker Street, this flagship marks a major milestone, making Emilia’s the UK’s first five-site pasta restaurant group. We’re committed to making fresh, comforting pasta with 100% natural ingredients affordable for everyone. With this new Central London location, we take another step towards continuing our mission to become the UK’s favourite pasta brand for the next generation.” Macleod said there was huge demand and potential for the business, which is looking to grow inside and outside the capital, but at a steady rate. He said the company has received some investment interest. He said: “That has been very flattering, and although we don’t need any investment help at present, I think it is time that we begin exploring what opportunities might be out there for the business, especially off the back of the success of our restaurants and our retail range, which we hope to enhance further.” Adam Bowers, of onepoint2, acted on the Victoria Street deal.

London bagel concept targeting 20-strong estate by 2029 as it prepares to open seventh site: London bagel concept, B Bagel, has told Propel it is targeting a 20-strong estate by 2029. It comes as B Bagel is set to open its seventh outlet in the capital. The opening next month in The Strand will be followed by a launch in New Oxford Street this summer. Founder Yoav Baumgarten sad: “We’re thrilled to be opening in The Strand, bringing our proper bagels to such an iconic part of London. This marks our seventh opening, a milestone that reflects our dedication to quality and community. This new location will be a vibrant and welcoming space. As we continue to grow, our focus remains on quality, authenticity, and creating a real community feel at each of our locations.” In terms of trading, Baumgarten told Propel: “2025 has started off great, with in-store leading the way with 75% of revenue contribution, Deliveroo at 20% and corporate catering 5%. We’re seeing significant uptick during breakfast.” In terms of potential expansion outside the capital, Baumgarten said: “Never say never but for now our eyes are locked on London.” B Bagel launched in Fulham Road, Chelsea, in 2016 and serves bagels, bagel sandwiches, salads, breakfast and deli produce. The company’s other sites are in the Brent Cross shopping centre, Camden, Highgate, Soho and Tottenham Court Road.

Stack reveals pipeline of 14 new locations, Bishop Auckland build delayed by structural issues: Neill Winch, chief executive of leisure venue operator Stack – which operates mixed-use sites known for their fusion of bars, live entertainment and leisure activities – has revealed a pipeline of 14 new locations for the concept. The business, which is backed by Kings Park Capital, opened in Newcastle, Lincoln and Middlesbrough last year to add to its existing sites in Seaburn (Sunderland) and Lincoln. Winch told Propel last month it will open four further sites this year – in Newcastle, Bishop Auckland, Durham and Whitley Bay – with further sites in Sheffield, Leeds, Carlisle, Wigan, Northampton and Manchester “at various stages”. Winch told Insider Media that altogether, its current pipeline stands at 14, while locations in Cardiff and Swansea are also being considered, as well as in Liverpool and in the south. Newcastle is set to open in May, followed by Bishop Auckland in July, although work at the latter is currently halted due to structural issues with the building. “There’s been a catalogue of events that have delayed the scheme, but we’re still doing it,” Winch said. “It’s been one thing after another, but we have some monitoring equipment in there to make sure the building isn’t moving, and then we’ll be straight back in to crack on with the development.” Durham and Whitley Bay will follow later this year, in the winter. “Whitley Bay, back in the day, was the place to be for a night out, and there's a huge catchment area, so we feel very confident that the site will do very, very well,” Winch said. He added the concept’s success is “not rocket science”. Winch said: “The atmosphere is very infectious and social media is mad, so it sort of publicises itself. It’s about giving people a good time with good drinks, good service, and making it safe and secure. I can be sitting in Stack next to a grandma and grandad, who are there with their grandkids. Two tables away, there might be a husband and wife in their mid 30s, and then further down, there will be people in their early 20s.”

Chock Shop seeking to expand to new regions through franchising after taking some areas back in-house: Artisan brownie business Chock Shop has said it is seeking to expand to new regions through franchising after taking some areas back in-house during a “challenging” 2024. Founded in 2013 by Greg Shearman, Chock Shop has two bricks-and-mortar sites in Wales, in Abergavenny and Saundersfoot, as well as operating at festivals, shows, live events and market pop-ups. Shearman said: “Chock Shop was founded in 2013 by myself, and I basically would bake, cut and decorate all by myself, and then go off and sell them at street food events and markets. Within a short period of time, we grew as more organisers wanted us at their events. Suddenly, we were at two or three events every weekend. Sadly, in late 2016, I was diagnosed with cancer and my prospects weren't great. During this time, I stayed in the wonderful Velindre Hospital, where I was hooked up 24/7. So, while I waited non patiently in my hospital bed, I planned the future. If I survive this, I am going to franchise the business, so I did! Eleven franchises later – from Scotland to London, South Wales to Cambridgeshire – but now it’s time for a change. Last year was a challenging year and an opportunity has arisen to take some of the more local areas back in house. Our team from our production hub now covers the whole of the south Midlands, south west and west Wales. So is that it for franchising? No, it’s not, but now we are looking for serious players who want to incorporate our concept within their street food portfolio in Central London, north west England, Yorkshire and Ireland.”

Karak Chaii on track for 40 stores by the end of 2025 following Reading launch: Indian street food concept Karak Chaii has said it is on track to grow to 40 stores by the end of 2025. The 22-strong business was founded in Birmingham in 2019, by husband-and-wife team Javed and Sara Sughi, following their travels through the Indian subcontinent. Their latest café, in Oxford Road in Reading, was opened last week by franchisees Manpreet and Gaurav Gill. “Karak Chaii isn’t just a brand, it’s a passion project built from the ground up by founders Sara and Javed,” a company spokesman said. “No external investors, no big financial backing – just a dream, a lot of hard work, and an unwavering belief in what we were creating. We are on track to open 40 stores by the end of this year. Our journey from a small shop in Birmingham to a growing national brand has been one of resilience, family, and a deep connection to our roots. Our aim? 100 million cups of chai served in the next ten years. We’ve come a long way since March 2019, when the first store was opened in Hall Green, Birmingham. From then, we’ve had one mission: to perfect the ultimate cup of Karak Chaii. It took us nine months and countless recipes, but one day, Sara made a batch, and the moment we tasted it, we knew, and Karak Chaii was born. Fast forward to today, we’ve served more than four million cups of chai and have grown to 22 locations across the UK – but our journey has been far from easy. The pandemic hit right after we launched, and we went from serving 300 customers a day to just a handful. But even in uncertainty, something unexpected happened – our inbox was flooded with franchise inquiries. We’ve always been about more than just great chai – we’re about bringing authentic Indian street food to the UK, creating spaces where people feel at home, and sharing a love for chai that transcends cultures. And we’re just getting started.” Franchise consultant Paolo Peretti previously told Propel that the then 15-strong Karak Chaii could “comfortably open up to 80 more sites before exploring smaller formats”.

Wildwood operator Tasty to run ‘Eat Out to Help Out’ promotion: Tasty, the Wildwood and Dim T operator, has said it is “stepping up to make dining out accessible again” by relaunching its own version of the Eat Out to Help Out (EOTHO) promotion seen during the covid pandemic. During April, the company said that its restaurants will be offering customers 50% off food and drink, up to £10 per person, every Monday to Wednesday. Tasty said: “The restaurant industry has been hit hard by rising costs, taxes, and wages, making it difficult for businesses to stay open and for customers to afford dining out. By funding EOTHO ourselves, we hope to support both our customers and our teams.” Chief executive Jonny Plant said: “We are committed to making dining out a more accessible experience for everyone, because we believe that good food should be something that brings people together, not something that feels out of reach and we want to attract the early and midweek trade back. With the backdrop of spiralling prices, increased taxes and higher labour costs we needed to take drastic action to turn the tide and grow sales during our quieter times. We decided to relaunch the most successful promotion of all time to bring back customers to the early part of the week and keep people in jobs and give them the hours they need.”

Wiltshire and Oxfordshire McDonald’s franchisee returns to profit and sees turnover grow three-fold after acquiring eight new restaurants: Wiltshire and Oxfordshire McDonald’s franchisee Jaam Restaurants returned to profit in the year to 31 March 2024 and saw its turnover grow three-fold after acquiring eight new restaurants. The company, founded by Joanna Jones in 2017, now operates 14 restaurants across Wiltshire and Oxfordshire. Turnover grew from £28,387,603 in 2022 to £91,443,965. The company’s pre-tax loss of £70,699 turned into a profit of £76,282. As its estate expanded, costs rose from £17,495,951 to £56,588,239 and administration expenses were up from £10,832,497 to £33,484,411. Dividends of £78,000 were paid (2023: £38,000). Jones said: “Sales increased by 222.12% due to the acquisition of eight new stores in September 2022.” The company will open its latest restaurant this Friday (28 March), in a former Leon unit at Cornmarket, in Oxford. The existing McDonald’s in Cornmarket will close when the new, larger one, which has four floors, opens, reports The Oxford Mail.

Cumbrian holiday park operator makes a loss and sees turnover drop: Cumbrian holiday park and marina operator Lakeland Leisure Estates made a loss and saw its turnover drop in the year to 31 March 2024. The company – which operates three holiday parks, three hotels, six marinas and one pub in the UK – saw pre-tax profit of £1,455,812 in 2023 turn into a loss of £554,438. Turnover fell from £17,523,614 to £16,554,880. Of this, £15,012,924 came from the UK (2023: £16,118,219) and £1,541,956 from Europe (2023: £1,405,395). Group Ebitda was down from £3,158,390 to £2,110,902 while company Ebitda was down from £2,617,036 to £1,357,897. Director Carol Morgan said: “Group turnover decreased 6% in the year driven by a slowdown in boat sales reflecting cyclical market conditions as consumers tightened their levels of spend on discretionary items as a result of the increase in the base rate of interest. Beyond boat sales, occupancy rates were strong throughout the year across all sites. Although turnover declined, group gross profit margins increased from 62% to 69% due to a change in sales mix. Group Ebitda reduced by £1.0m, which was driven by exchange rate translation losses and an increase in staff costs following increases in the national living wage. Although the economic climate remains challenging, the directors consider the group is well positioned with its diverse range of locations and income streams, coupled with continued investment across the business. At the balance sheet date, the group's current liabilities exceeded current assets by £26,908,000 (2023: £528,000) and the company’s current liabilities exceeded current assets by £25,377,000 (2023: current assets exceeded current liabilities by £1,006,000). The year-on-year change reflects the renewal dates of the group's bank loans, the renewal of which has been sanctioned by the group's lender post year end.”

Yorkshire better burger business reports 24% month-on-month sales boost for first franchise store: Yorkshire better burger business Urban Fresh Burgers & Fries has reported a 24% month-on-month sales boost for its first franchise store. Franchisee Meliha Candir opened the site in Sheffield’s Ecclesall Road in December, offering 35 covers for customers dining in as well as a takeaway option. The opening was a sixth site overall for the business, which was founded in 2017 by husband-and-wife team Mehmet and Zerin Kent. The company said: “Sheffield, you’ve done us proud! Our Sheffield store has seen a 24% month-on-month sales boost since opening in December. It’s a true testament to the hard work, dedication, and passion of the team, as well as the amazing support from the local community. The great burgers don't hurt either. This solid growth shows what happens when great vision meets strong support from the Urban head office.” Candir added “I’m thrilled to see the positive impact we’re making in the Sheffield community. This success just reinforces how strong the concept is, and I’m excited for what’s to come.” Urban Fresh Burgers & Fries also has two sites in Doncaster, one in Rotherham, one in Barnsley and a delivery-only outlet in Leeds.

VQ Restaurants to return to expansion trail with regional launch: VQ Restaurants, the extended-hours restaurant concept, is to return to the expansion trail with a regional debut, in Ipswich. The two-strong concept, which at one time operated six sites across the capital, currently operates sites in London’s Chelsea and Bloomsbury. VQ will make its regional debut on Thursday, 24 April on the former Byron site, which closed in summer 2013, in Ipswich's Buttermarket shopping centre. VQ will offer early morning breakfast to late-night dining. The new 140-cover café bar will be open from Monday to Thursday, 9am to 11pm and stay open continuously from Friday morning through to Sunday night. Simon Prideaux, co-owner of VQ, told the Ipswich Star: “We’re excited to bring VQ to Ipswich and hope that our offering will be a welcome addition to the town’s hospitality scene.”

Yorkshire coffee shop franchise set to open fifth location: Yorkshire coffee shop franchise Coffee Boy is set to open its fifth location. Coffee Boy, which already has sites in Castleford, Barnsley, Huddersfield and Glasgow, is set to open its latest branch at The Light shopping centre in Leeds. It comes after listed building consent was granted for the construction of the coffee shop, including the installation of signs and alterations to the layout of the grade-II listed building. The founder of the Coffee Boy franchise is Richard Mackay-Gunn, who was previously behind fashion shop Blah Blah Blah Clothing. According to What Franchise, Coffee Boy offers a franchise package for a minimum investment of between £55,000 and £96,000, with options for a full store or a Coffee Boy container. What Franchise said franchisees should budget for between £110,000 and £200,000 per store, including working capital and VAT, while total investment for a complete container is estimated at between £65,000 and £80,000, plus VAT.

Leeds cafe concept set to open fourth site: Leeds cafe concept Rabbit Hole Coffee is set to open a fourth site in the city. Rabbit Hole Coffee was founded by Ste Thomas in 2016 and started as a pop-up shop at Harvey Nichols, but ended up staying there for more than three years, and it also has a site at 1 Stainburn Parade in Moortown, north Leeds. Having formed a close partnership with Leeds Beckett University, Rabbit Hole Coffee also now has cafés operating in its law and arts schools – at Broadcasting Place and City Campus. Rabbit Hole Coffee’s latest expansion will see the company open in the city’s Rose Wharf development, opening this spring. “Rose Wharf is an innovatively refurbished building surrounded by the beautiful setting of the River Aire and I honestly believe it’s going to be the best place to sit and have a coffee in Leeds,” Thomas said. “This move couldn’t come at a better time. We want to provide our brilliant team with a workspace where they’ll enjoy serving tasty coffee and fresh food to a new community, while continuing to deliver our authentic, friendly customer service in this fast-developing area of Leeds.”