Exclusive – True acquires stake in German Doner Kebab, eyes £1bn system sales by end of 2028: Private equity group True has made a “strategic investment” in the circa 170-strong German Doner Kebab (GDK) brand, to support its continued rollout in the UK and accelerate growth across existing and new markets globally, Propel has learned. It marks True’s first investment in the hospitality sector. Since launching in the UK in 2015, GDK has grown to more than 145 UK locations and in excess of 170 globally under Hero Brand’s ownership and the leadership of chief executive Simon Wallis. Hero Brands, the majority investor in GDK since 2016, will continue as an investor and key partner as the business looks to further deliver strong growth. Propel understands that GDK has a global ambition of £1bn system sales by the end of 2028 across 15 markets. It plans to have circa 300 restaurants in the UK by the end of 2028. It is thought that GDK generated interest from private equity players both in the UK and internationally, with the business understood to be valued at circa £70m. GDK also operates 12 sites in the UAE, five in Sweden, three in Canada, eight in the US and one in Saudi Arabia. Earlier this year, GDK opened its first train station site, within the food terrace in London Victoria’s Victoria Place shopping centre. It became the brand’s 55th site in London, and one of 28 restaurants it is planning to open in the UK this year. GDK is also planning to open 45 restaurants in international markets in 2025. GDK, which delivered £163.7m system-wide in 2023, counts Atul Pathak, formerly the UK’s largest McDonald’s franchisee, as one of its UK franchisees. Last summer, Wallis, who spent 13 years at Domino’s Pizza Group, told Propel that GDK was targeting filling “bags of white space” outside London, including its first drive-thru. He said the brand also plans to further roll out its travel hub locations, smaller format stores and its breakfast offer. Propel understands that the company anticipates having its first smaller format store by end of the second quarter of 2025, but doesn't anticipate opening its first drive-thru until next year. True said it will leverage its “deep expertise in the consumer sector and understanding of brands” to support GDK in its ambitions to scale further in the UK, given significant headroom, and accelerate growth across new markets globally. It said that the strategic partnership between True and Hero Brands is a “compelling platform for the sustained success of GDK”. Wallis said: “We are delighted to be partnering with True. Its extensive understanding of brands and consumers will be hugely valuable as we continue on our exciting growth journey. At GDK we are inspired by our purpose to elevate the kebab eating experience and it's great to be working alongside a partner that shares the vision of dominating the kebab category across the world and in every neighbourhood we operate in.” Athif Sarwar, executive chair of Hero Brands, said: “The GDK movement has been blessed with monumental growth. We have built an incredible team at GDK focused on delivering for our partners, franchisees and guests, and we are looking forward to the next phase of the GDK journey with True.” Richard Sharpe, managing director at True and new board member at GDK, said: “GDK is an exciting brand with a highly attractive business model in the resilient quick service restaurant sector. We have known the team at Hero Brands and GDK for a number of years and are excited to partner with Athif, Simon and the team, to continue supporting the exceptional growth in collaboration with our franchisees and delivering great experiences for our customers.” Paul Cocker, chief executive and co-founder at True, said: “I'm excited to welcome another exceptional business to our growing portfolio of high-growth brands – our first investment in the hospitality sector. While the macroenvironment remains volatile and trading conditions are challenging for many consumer businesses, our focus remains firmly on the long term. We believe this climate offers a unique opportunity to back outstanding management teams who are building enduring, category-defining brands. I'm excited to partner with the GDK team as it embarks on the next phase of its journey.” Hero Brands was advised by Cavendish. GDK features in the Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and is available exclusively to Premium subscribers. The next edition will be sent on Friday, 16 May and feature a total of 350 companies. 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.

Exclusive – Rod McKie to step down as chairman of New World Trading Company: Rod McKie is to step down as non-executive chairman of the Graphite Capital-backed pub restaurant group New World Trading Company (NWTC), after nearly three years in the role, Propel has learned. McKie joined NWTC in 2022 as executive chair and later stepped into the role as non-executive chair. During his time with the company, McKie steered the business through a successful company voluntary arrangement (CVA) and built a strong leadership team including Amber Wood as managing director. McKie, who is also currently chairman of cafe and deli concept Megan’s, spent nearly 16 years as chief executive of roadside services operator Welcome Break. He was also previously international chief executive of Sticks‘n’Sushi, managing director of Coffee Republic and an operations director at Pret A Manger. He said: “After almost three years with NWTC, it's now the right time for me to step away from the business. Under the leadership of Amber Wood, and with a strong executive team, the future looks bright for NWTC and I look forward to seeing what comes next.” NWTC operates 24 sites under the groups' core brand, The Botanist, alongside The Oast House in Manchester, The Florist in Watford and The Trading House in London. A new Botanist opens later this month in Bournemouth. Last month, the company reported a 9% improvement in like-for-like sales across the last four quarters as it unveiled a brand refresh. Propel revealed last October that NWTC intended to restructure its business to focus on its large Botanist-branded sites, and as part of the restructuring, it launched a CVA that saw the closure of three loss-making sites.