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Mon 19th May 2025 - The Restaurant Group in talks on Oakman Group package |
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The Restaurant Group in talks on Oakman Group package: The Restaurant Group (TRG), the Andy Hornby-led Wagamama operator, is believed to be in talks to add to its circa 80-strong Brunning & Price pub operation, with the acquisition of a package of freehold sites from Oakman Group, Propel has learned. The deal for circa ten freehold sites could be valued at up to circa £45m. Propel understands that TRG has set up a new company – Fireside Inns – to oversee the deal, which would include the Royal Foresters in Ascot – the 24-bedroom, 140-cover site, on which Oakman invested £10m – and The White Hart in Ampthill, Bedfordshire. A successful deal would see the Mary Willcock-led Brunning & Price increase its geographical reach and significantly up its bedroom stock, a category of the market it has been looking to further expand into. Brunning & Price currently operates just five pubs with rooms, including the Arrow Mill near Alcester in Warwickshire, and the Mytton & Mermaid in Atcham, near Shrewsbury. It is thought that the deal would also enable Oakman, which would be left with 17 leasehold sites, to clear its senior debt of around £40m. It is thought that PwC is negotiating with other prospective bidders about a sale of the remaining Oakman sites and different parts of the business. At the start of 2020, Cynergy Bank provided circa £11m in newly negotiated loans for The White Hart (£3.172m) and The Royal Forester (£7.809m). Last month, Propel revealed that Oakman had appointed advisors to aid the circa 30-strong pub and restaurant company with its options, which could include a restructuring of the business. Oakman is working with PwC on its options under the name Project Firestone. It was understood that if no acceptable offers are forthcoming, Oakman will look at a possible restructuring, including a refinancing of its circa £65m debt. Oakman founder and chief executive Peter Borg-Neal has stepped away from the business due to illness, with chairman John Leslie leading the company at present. Last November, Oakman sold two freehold pubs to brewer and retailer McMullen’s with the proceeds set to allow the repayment of debt together with providing the business additional capital to invest in its existing estate. The sale of the two pubs – The Rose in Wokingham, Berkshire, and The Polecat in Prestwood, Buckinghamshire – followed a review of strategic options available to Oakman including a potential sale of the business and fresh investment. The company had been in discussions with a number of parties regarding the possibility of an offer being made for its entire issued share capital, but said that “all such discussions have now been terminated”. At the start of the year, McMullen’s acquired The Anchor in Hullbridge, Essex – a third freehold pub from Oakman in the space of three months. TRG and Oakman Inns feature in the Premium Club Turnover & Profits Blue Book, which features 1,108 companies. TRG’s turnover of £824.0m for the year ending 31 December 2023 is the 19th highest in the database while Oakman’s turnover of £57.8m for the year ending 2 July 2023 is the 213th highest. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. 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 a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Diageo reports net sales up 2.9% in third quarter as it unveils $500m savings plan, tariffs to have $150m a year impact: Guinness maker Diageo has reported net sales increased 2.9% to $4.4bn for its third quarter ending 31 March 2025 as it unveiled a $500m savings plan to “create a more agile operating model”. The company said organic net sales were up 5.9% in the quarter, with organic volume up 2.8% and positive price/mix of 3.1%, “with sequential improvement in the second half of the year”. For the year to date, sales were up 0.4% to $15.3bn. Diageo said all regions delivered positive price/mix in the third quarter except Asia-Pacific “where continued consumer downtrading and adverse market mix impacted net sales”. Diageo said assuming the current tariff charges in the US remain unchanged, the unmitigated impact is estimated to be circa $150m (£113m) on an annualised basis. The company said of its savings plan under a new “Accelerate” programme: “We expect to sustainably deliver circa $3bn free cash flow per annum from FY2026, increasing as performance improves. This is supported by a circa $500m cost savings programme, which will enable both reinvestment in future growth and improved operating leverage. We expect to return to well within our target leverage ratio range of 2.5 to 3.0 times no later than FY2028 providing us with a lot more flexibility, and which will also be supported by appropriate and selective disposals over the coming years.” Chief executive Debra Crew said: “We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market. We view the near-term industry pressure as largely macroeconomic driven, with continued uncertainty impacting both the timing and pace of recovery. Consistent with our strategic priorities and our focus on what we can manage and control, we are introducing the first phase of our Accelerate programme. It will strengthen Diageo by increasing our effectiveness, agility, and resilience. It will also ensure we are well-positioned to deliver sustainable, consistent performance while maximising shareholder returns; even if current trading conditions persist.”
Chef Richard Bainbridge – ‘I’m resisting temptation to expand because at the moment hospitality is so fragile’: Chef Richard Bainbridge, who trained under Michel Roux before opening Benedicts restaurant in Norwich ten years ago, has said he is resisting the temptation to open further sites because “at the moment hospitality is so fragile”. “Sometimes we got carried away and nearly went for it,” he told The Times. “But at the moment hospitality is so fragile. No matter how big your name is, no matter how strong your brand is, I think hospitality is in the hardest place it’s ever been.” Instead, Bainbridge said he and wife Katja are focusing on Benedicts’ continued success, and growing RB Provisions, an online business that sells cupboard staples on his website and in 73 independent and farm shops in Norfolk. To keep costs low, he still smokes all the nuts himself – despite selling two and a half tonnes of them last year. The two businesses had revenues of £1m in 2024, with RB Provisions contributing more than £100,000. The couple employ 18 staff, many of whom work part-time around caring responsibilities and studies. Benedicts closes for two weeks at Christmas, “which is practically unheard of in our industry”, to give staff time off with their families and only opens for four lunches a week, to try and avoid chef burn-out. Bainbridge, who won the BBC show Great British Menu in 2015, which was broadcast just months after he opened Benedicts, said: “I don’t need to make millions. I don’t need a bigger house or a bigger car. I have a better life than I ever could have dreamed of so I just want to focus on the staff that we’ve got, make sure they’re happy and thriving, and our business will become stronger because of it.”
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