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Morning Briefing for pub, restaurant and food wervice operators

Mon 7th Apr 2025 - Update: Gong Cha reports record sales, Safestay gets go-ahead for Brighton hostel
Gong Cha reports record sales as it steps up expansion: Gong Cha, the fast-growing bubble tea brand headquartered in the UK, enjoyed record sales last year as it stepped up aggressive expansion plans. The brand said system sales, comprising both franchise and corporate store turnover, hit more than $600m in the year to December 2024 having grown its portfolio by 240 stores to reach 2,162 outlets by the year end. Last year, it launched in five new markets including Saudi Arabia, Morocco and Puerto Rico, and hopes to open in at least six more markets this year. Chief executive Paul Reynish told The Times that he believes there is a “tangible opportunity” for the business to scale to at least 10,000 stores by 2032. The company plans to open at least 225-plus stores in the UK over the coming years after last month signing an agreement with Jinziex – a new company led by Diljit Brar, chief executive of Goldex; Azha Rehman, founder and chief executive of Kaspa’s Desserts; and Steve Falle, managing director of WY&SF. The agreement will create nearly 2,000 jobs and is an important part of Gong Cha’s global expansion strategy. In the UK, Gong Cha currently operates 13 stores. Jinziex’s first Gong Cha locations are expected to open in April with stores in Sidcup in south east London, Gravesend in Kent, Romford in east London, and Hornchurch in Essex. At the end of 2023, Gong Cha teamed up with Shahia Food Group, a franchise operator in the Gulf, to open at least 300 stores in the Middle East. Gong Cha said it had enjoyed a strong start to 2025 with trading ahead of expectations. Gong Cha was founded in Taiwan in 2006. Gong Cha features in Propel’s highly anticipated International Brands report, featuring the 100 leading international brands in UK hospitality, and has now launched. This in-depth report explores company histories, leadership structures, site numbers and turnover figures – an essential tool for industry professionals navigating the UK hospitality market. The top 100 includes expanding brands from markets such as the US, Canada, Europe, Australia and Asia. The guide will be sent out as two files – an introductory PDF featuring deep dives into international brands from Propel’s writers, and a fully searchable Excel sheet for easy access to key data. The analysis includes Matteo Frigeri, founder of Seeds Consulting, on the challenges of recruiting the right UK franchisee, Michael Ingemann, director of Think Hospitality, on why European brands chose the UK for expansion, and Meaningful Vision founder Maria Vanifatova examining the UK market for quick service restaurant operators. The International Brands report is available for £595 plus VAT, with existing Premium Club members able to purchase at a discounted rate of £395 plus VAT. Premium Club members will receive it free on Friday, 9 May at 9am. Order your copy today by emailing: kai.kirkman@propelinfo.com.

Premium Club subscribers to receive two updated databases and Multi Club Conference videos this week: Premium Club subscribers will receive two updated databases and the videos from the Propel Multi-Club Conference this week. The 14 videos from the conference will be made available to Premium Club subscribers on Wednesday (9 April) at 9am. The latest Propel Food & Beverage Franchisee Database will be sent the same day, at 12pm. The database will feature 50 new entries to take the total number of entries to 240 and more than 98,000 words. The new entries include McDonald’s franchisees Compassco, Kyra Enterprises, Mavas Foods, Luma Restaurants, Smash Operations, Kazper Restaurants, Direct Dialog Visual, Strand Holdings, Poa Restaurants, S&VE Williams, Dynamic Restaurants, Sherwood Restaurants, LLPT Foods, Orchestra Restaurants, Lansia, Lloyd Sharp Restaurants, JMC Restaurants, PGL Enterprises, Fenko Restaurants, State4 Restaurants, Northgate Restaurants, CJP Group Operations, ILS Operations, A&M Family Enterprises and Synergy Four Restaurants. Premium Club subscribers will then receive the next Turnover & Profits Blue Book on Friday (11 April), at 12pm. The database will feature 78 updated accounts and 20 new companies, taking the total to 1,108. A total of 697 companies are making a profit while 411 are making a loss. Premium Club subscribers will then receive the next Turnover & Profits Blue Book on Friday (11 April), at 12pm. The database will feature 78 updated accounts and 20 new companies, taking the total to 1,108. A total of 697 companies are making a profit while 411 are making a loss. Premium Club subscribers also receive access to four other databases: the Multi-Site Database, the UK Food and Beverage Franchisor Database, the New Openings 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.
 
Safestay gets go-ahead for Brighton hostel: Hostel brand Safestay has been granted permission to develop a new 170-bed hostel in Brighton. The planning approval from the city council follows the group’s acquisition in June 2024 of the freehold property in Pavilion Parade for £2.275m. Set over five storeys, the building spans 15,300 square foot. Safestay will invest approximately £1.0m in the conversion of the property, with the hostel anticipated to open in early 2026. Chairman Larry Lipman said, “We’re delighted to have obtained planning approval to convert our Brighton location into a 170-bed hostel. Once operational, the site will create approximately 20 jobs in the area as well as making a significant contribution to the local economy by enabling potentially thousands more visitors a week to stay in one of Brighton’s most vibrant and commercial areas. Brighton is an amazing city, attracting millions of visitors throughout the year, making it a perfect fit for Safestay’s strategy of building its portfolio offering fantastic, highly affordable accommodation in premium locations across some of Europe’s most vibrant travel locations. We have a proven track record of acquiring and developing hostels across Europe to create value. Our Edinburgh Cowgate hostel that opened in 2024 following refurbishment has performed incredibly well. I am very confident that Safestay Brighton will be another fantastic addition to the group’s portfolio.” Safestay has a portfolio of 20 sites across the UK and Europe.

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