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Butcombe Group FY managed lfls up 7.8%: Butcombe Group, formerly Liberation Group, which operates over 120 pubs and inns with over 400 rooms, has reported a 7.8% increase in like-for-like revenue across its managed pubs in the year to 25 January 2025, with like-for-like sales up 11.1% in its first quarter to 26 April 2025. The business reported record full-year revenues of £149m versus £144.4m in the previous year. It saw enhanced Ebitda margins across the group, with 150 bps improvement in the managed estate. The business posted 7.4% growth in underlying group Ebitda and 8.1% growth in divisional Ebitda. Butcombe Group reported an underlying Ebitda of £13.8m for year. The group’s reported operating result shows a loss of £4.6m, which it said was largely influenced by “prudent accounting policies, particularly around depreciation of fixtures and fittings, and impairment charges”. It said that during the year it continued investment in its estate with ten pub investments during the year; invested in menu development with all day brunch, small plates, sandwiches and classics; and improved its all-day offer, with breakfast the fastest growing mealtime. It said that customer segmentation and personalisation had grown visits and spend. During the year, it rolled out Butcombe Boutique Inns, its premium room offering, to ten sites, with a further site added since period end, and that it was “driving encouraging results”. For the year, it said that its Brewing and Drinks division achieved 8.4% growth in the UK Free Trade, its largest drinks channel. In the three months to 26 April 2025, the business saw growth in all three categories of food (+10.3%), drink (+13.3%) and accommodation (+5.3%). The company said that its loyalty programme gives it “significant advantage in the market” with loyalty sales continuing to grow and now making up 22% of our total sales. Jonathan Lawson, chief executive of Butcombe Group, said: “We are delighted to report another strong year across all divisions of Butcombe Group. We have delivered record revenues and sector-leading like-for-like growth of 7.8% in our managed pubs, a clear indication of our continued operational strength and effective strategic investments. This result is especially pleasing considering the strong comparatives we faced against last year. We have made substantial progress in harnessing our data and loyalty capabilities, which have significantly enhanced our customer understanding and engagement. With loyalty transactions across our managed pubs now representing 22% of total sales and a greater percentage of our like-for-like growth. Encouragingly, we’ve carried this momentum into the new financial year, achieving impressive Q1 like-for-like sales growth of 11.1%, underpinned by strong performances in food (+10.3%), drink (+13.3%), and accommodation (+5.3%). Notably, we delivered our highest-ever trading day on Mother’s Day, surpassing our previous record set on Christmas Day, further highlighting the strength of our proposition. The Brewing and Drinks division was broadly flat versus last year in Q1, once again the UK Free Trade performance lead the way growing by 8% vs LY, with online ordering now adding a further service provision to our customers and driving basket spend. The success of Goram IPA Zero, our award-winning low alcohol IPA has encouraged us to develop Tall Tales Pale Ale Zero, a refreshing Pale Ale that will be perfect for the summertime. While we remain mindful of the ongoing inflationary pressures and changes to National Insurance contributions that impact the broader hospitality sector, we are confident in our strategy. Our continued focus on premium segments, operational efficiencies, and customer-centric innovation positions us strongly for sustained Ebitda growth and margin enhancement through the rest of the year.”

Premium Club subscribers to receive next UK Food & Beverage Franchisor Database tomorrow: Premium Club subscribers will receive the next UK Food & Beverage Franchisor Database tomorrow (Friday, 16 May), at 12pm. The database will feature ten new entries, for a total of 350 companies either franchising in the UK or looking to franchise here. The new entries include Indian street food concept Karak Chaii, which has grown to 22 locations, and said it is on track to grow to 40 stores by the end of 2025. They also include Mayyil, the Lebanese street food concept owned by Zataro Group, which is set to open its first overseas site and has plans to grow to 20 UK locations over the next five years. Premium Club subscribers also receive access to five other databases: the Multi-Site Database, the New Openings Database, the Turnover & Profits Blue Book, 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 the Operational Excellence Conference in July and discounts on specialist sector reports. 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.

Hospitality faces more supply chain headwinds as inflation nudges up in March: The latest CGA Prestige Foodservice Price Index reveals a marginal increase in year-on-year inflation in the hospitality sector, rising to 2.0% in March from February’s 1.8%. While overall year-on-year inflation remains relatively low, the latest data presents a nuanced picture. The oils and fats category continues to be the most inflationary category, with a significant 5.8% increase compared to March 2024. Sugar, jams, syrups and chocolate also remain subject to inflationary pressures, with a +2.4% year-on-year rise–partly due to ongoing volatility in cocoa pricing. However, while many categories may have enjoyed a continuation of lower inflationary rates in March, the Index said it should not be taken as any assurance that future figures will be immune to the supply shocks that are currently manifesting in the market. It said that in the produce sector over recent weeks, there has been a deviation from typical seasonal trends. Instead of the usual price reductions as we approach summer, various factors are contributing to price increases on key items. Significant rainfall and flooding in Europe have affected root vegetables, leading to notable surges, particularly in onion prices. Meanwhile the dairy sector continues to be impacted by challenges in butter and cream production stemming from adverse weather conditions that affected milk quality and volume last year. However, while suppliers are not yet indicating price decreases, the second quarter of this year offers a more optimistic outlook with the anticipation of improved milk volumes. Meat and poultry markets are also facing headwinds, including a tightening of cattle supply, with UK beef production forecast to drop 5% in 2025. This fall in production is significantly influencing prices, and as the summer BBQ season approaches, increased demand for popular cuts is expected to amplify pressures. The chicken market remains volatile due to ongoing avian flu outbreaks in key production regions, causing extended disruptions to supply. While price increases may be nearing their peak, any subsequent decrease is anticipated to be slow. Avian flu also remains a key driver behind elevated egg prices due to reduced flock sizes. Shaun Allen, chief executive of Prestige Purchasing, said: “While the latest CGA Prestige Foodservice Price Index offered a glimmer of hope in March, the persistent pressures in key areas like oils and fats, coupled with emerging challenges in produce, dairy, and particularly meat and poultry, underscore the continued need for strategic supply chain management within the hospitality sector. Navigating these complexities will be crucial for businesses looking to maintain margins in the coming months.” Reuben Pullan, senior insight consultant at CGA by NIQ, said: “March’s uptick in foodservice price inflation, albeit marginal, is more unwelcome news for hospitality businesses in an extremely challenging environment. Alongside an increase in labour costs from April, it adds to heavy pressure on menu pricing and margins. Underlying demand for hospitality remains strong, but all suppliers and operators will be hoping for calmer waters in pricing as we move towards the crucial summer months.”

Knoops to make US debut in Utah, plans 30 new international stores annually: Luxury hot chocolate shop brand Knoops is to make its debut in the US, in Utah, as it plans to open 30 new international stores annually. The business, which currently operates 26 sites in the UK and one in Dubai, told Forbes that later this year it will launch in China via a joint venture partnership starting in Beijing. Knoops is also making its US debut, in Utah, as a wholly owned subsidiary staffed by local teams on the ground. Last year the brand began its global expansion, opening its first Middle Eastern store in the UAE in November, with a third due to open this summer. The goal is to open 30 new international stores annually. “Knoops is picking up the coffee business through the lens of chocolate. The coffee industry has to pick up chocolate, but not through a lens of chocolate, because traditionally they have offered poor-quality chocolate,” said chief executive William Gordon-Harris. “The conclusion is that you pick up coffee to a level that allows you to essentially replace coffee shops. Look at Greg’s and MacDonald’s. They are two of the largest coffee sellers in the UK, but that’s not their core product, it’s their outcome.” While the front end of the business encapsulates the consumer’s desire for an independent, bespoke chocolate drink, at the back end is a process-driven business that can be scaled to hundreds of stores very quickly. Revenue from stores, wholesale and DTC is on track to exceed $20m this year. With the ongoing organic growth of coffee sales, founder Jens Knoop confidently predicts at least 300 stores in the UK and 3,000 globally in the next decade. He said: “You only get one opportunity to do something like this. Luke Johnson did PizzaExpress. He’s tried to repeat that many times, but you’re never going to do two Pizza Expresses. Achieving that Apple or Facebook phenomenon requires a coming together of the right people and the right timing. We have that. Chocolate represents love in a cup, and people are loving it.” Knoops expects its footprint in Britain to grow to around 40 sites by the end of this year. In March, the company strengthened its leadership team with four new appointments, as it looks to accelerate its expansion plans here and abroad. These included Jo Brett, formerly of Pret A Manger and Starbucks, as chief operating officer, and Kai Hepworth, previously of Marston’s and Costa Coffee, as UK managing director.

Vaulkhard Group secures £5.2m of new funding, acquires freehold of Newcastle site: North east leisure firm Vaulkhard Group has secured a new £5.2m funding package from HSBC UK, to aid its continued growth. The business, which owns 14 bars and pubs across Newcastle, has used some of the funding to purchase the freehold of Barluga in the city’s Grey Street, a site it has operated for over 20 years. It said the funding will also support the refurbishment of Offshore 44, on Newcastle’s Quayside, enabling Vaulkhard to revitalise the historic Sandhill building. The company said that the purchase of the Barluga freehold “safeguards” the site’s future and strengthens the group’s commitment to the region’s hospitality industry. Craig Bell, finance director at Vaulkhard Group, which currently employs around 350 people across the north east, said: “It’s important that our great city continues as a leading leisure destination. Barluga has long been a cornerstone of Grey Street’s hospitality offering, housed in one of Newcastle’s most architecturally significant buildings. We are thankful to HSBC UK for their ongoing support which has been a key contributor to the growth of our business.” Stuart McLaren, relationship director at HSBC UK, said: “Newcastle’s hospitality sector has always been a vital part of the city’s economy, and Vaulkhard Group has played an important role in helping it thrive. This funding not only safeguards a much-loved site but also paves the way for further investment in the region’s leisure industry, which will bring lasting benefits to both the local economy and the wider community.”

Westminster’s short-term alfresco licences ‘stifle Soho economy’: The local authority that oversees Soho and the West End is under fire for granting only short-term licences to businesses to spill out on to the pavement in what industry figures have called a “cash grab” that is “actively stifling our night-time economy”. The Times reports that Westminster city council presently issues only six-month “pavement licences” to hospitality businesses to trade outside their front door. It defies government guidance that local authorities should offer two-year licences to avoid the bureaucracy, costs and uncertainty that come with regular reapplications. It also seems to go against instructions from the mayor of London’s office that local authorities should “do what [they] can” to encourage alfresco schemes. Westminster charges businesses the maximum £500 for an initial pavement licence and £350 for each renewal. Last year, its licensing committee said the six-month time period gave “local residents a degree of protection” should “tables and chairs be problematic”. Sacha Lord, chair of the Night Time Industries Association, said Westminster was guilty of “pure short-termism and a cash grab”. He said: “The government guidance is clear: councils should be granting two-year pavement licences to cut red tape and support growth, but instead we are seeing some who are deliberately sticking to shorter terms, raking in renewal fees and dragging venues through endless paperwork.” Kate Nicholls, chief executive of UKHospitality said the “short-sighted” decision would only “ramp up” costs for businesses and increase red tape. In Lambeth, the City of London and Kensington and Chelsea licences are granted for 12 months at a time. Westminster city council said: “Westminster has a vibrant outside dining scene with over 900 pavement licences granted in the last six months, allowing over 12,000 additional covers across the city and there are many others on private land.”

Restaurant grant programme returns for its fourth year: Independent restaurant businesses in London and Manchester can now apply for grants of £11,000 to help grow their business as an American Express-supported grant programme returns for a fourth year to the UK. Run by the International Downtown Association Foundation in partnership with the Association of Town & City Management in the UK, the global Backing International Small Restaurants programme is open to applicants in three new countries – France, New Zealand, and Spain – in addition to restaurants in the UK, Australia, Canada, Japan and Mexico. In total, the programme is offering $1.45m in funding to 100 restaurants worldwide so they can make critical improvements, like enhancing their digital capabilities, refreshing dining spaces, and improving kitchen operations. In the UK, the programme will provide a total of £220,000 in support of small, independent businesses in both London and Manchester. Twenty recipients will be selected to each receive £11,000 in grant funding. Dan Edelman, UK general manager of Merchant Services, said: “It’s thrilling to see the grant programme return to the UK once again, supporting independent restaurants in Manchester and London. These venues bring people together and contribute so much to local communities. Our hope is that these grants will help businesses grow, innovate, and continue to thrive into the future.” Last year’s UK winners included Bury-based café Wax and Beans, which upgraded its kitchen and expanded its outside seating area. Commenting on the impact of the grant, they said: “Receiving the Backing International Small Restaurants grant last year has allowed us to invest in upgrading our kitchen, as well as extending the outdoor dining area so that even more people can enjoy great coffee, food, and, of course, some excellent music, in the sun. The grant has made a real difference towards our mission of being a community hub and providing people a place to relax and socialise.”