Story of the Day:
Sector sales flatten in October as cost pressures mount: Britain’s top managed hospitality groups achieved year-on-year sales growth of 0.6% in October 2024, the latest edition of the CGA RSM Hospitality Business Tracker shows. It marks the fourth month of below-inflation like-for-like growth in a row, and means the tracker is now at its lowest point since April. The flattening of sales reflects fragile consumer confidence amid ongoing cost increases, as well as poor weather for much of October. Weak growth raises concerns for trading over the crucial Christmas period and adds to new pressures on hospitality’s tax burden set out in the government’s recent Budget, it said. October’s figures are mitigated to some extent by Hallowe’en, which usually boosts trading but fell on a Thursday this year. Many celebrations will therefore have taken place over the following weekend, and tracker data from early November shows they have contributed to a bright start to the month for pubs and bars in particular. The tracker shows total sales growth in October – including new venues opened during the last 12 months – was slightly better at 2.4%. Managed pubs achieved like-for-like growth of 1.5%, but it was a challenging month for restaurants, where sales were clipped by 0.1%. Elsewhere, bars saw sales fall 4.2% below the levels of October 2023. On-the-go groups performed best of the major segments with 4.3% growth – possibly the result of some consumers trading down their spending from meals out. For the third month in a row, growth in London lagged the rest of the country. Managed groups’ sales inside the M25 were down by 0.1% year-on-year, while venues further afield achieved 0.9% growth. Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “It’s clearly been a tough autumn, and real-terms growth remains elusive. Conditions haven’t been helped by the Budget. It is going to be a make-or-break Christmas for some operators, and while underlying demand for hospitality remains good, trading conditions are likely to remain very difficult well into 2025.”
Industry News:
Sponsored message – haysmacintyre rebrands as HaysMac: Hospitality specialist accountant haysmacintyre has rebranded as HaysMac, in a nod to how the firm’s clients and people refer to it. HaysMac’s modernised identity emphasises its progressive and unique approach and elevates its three core values: for business, for people and for good. The new brand also honours HaysMac’s growth trajectory and positive impact. In five years alone, its revenue has risen 81%, while headcount has grown 60%, with four new additions to the partnership in 2024. HaysMac’s continued commitment to nurturing its people and ensuring a progressive working environment for all has also seen the firm recognised as one of The Sunday Times’ Best Places to Work 2024, and a LinkedIn Top 15 Midsize Company in the UK to Work for. Managing partner Natasha Frangos said: “We’re excited to be unveiling our new name and new look. We are proud of the organic growth and evolution that the firm has achieved in recent years, and it’s time for a fresh identity to reflect better the modern, client-centric, innovative and collaborative principles we place at our core. Change brings significant opportunities, and with our new identity signalling our next phase, HaysMac is energised by the prospect and ready to take this on.”
If you have a sponsored story you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.
Premium Club members to receive next Who's Who of UK Hospitality and videos from Multi-Club Conference on Friday: The next Who’s Who of UK Hospitality will be released to Premium Club members on Friday (22 November), at midday. Another 11 companies have been added to the database, which now features 874 companies. This month’s edition will also include 61 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members will also receive all the videos from the final Propel Multi-Club Conference of 2024 on Friday, at 9am. They include
David Campbell, the former chief executive of PizzaExpress and Wagamama, and chair of Gaucho owner Rare Restaurants, and Ole & Steen, talking to Propel group editor Mark Wingett about the progress of both businesses and his take on the issues impacting the wider market. Meanwhile,
Nick Kleiner, co-founder of Sandwich Sandwich, which last October won the £100,000 top prize in the Uber Eats restaurant of the year awards, discusses how the business is updating the humble sandwich for a new generation, its launch in London and wider expansion plans. Premium Club members 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 Franchisor Database and
the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members 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 members 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 members 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.
One in three customers with allergens ‘have been put at risk’: One in three customers have been given incorrect information regarding allergens or served food that contained items they are allergic to when dining out, according to new research. A white paper – Managing Food Allergens and Intolerances in Hospitality – from insight consultancy KAM and hospitality software provider Polaris Elements found more than half of these consumers would not go back to a venue where this had happened to them. Around 60% of people research menus and allergen details online before visiting, typically preferring the venue’s own website (71%), yet only 31% of operators display detailed allergen information online. If allergen information isn’t easy to find, 40% of customers said they’re unlikely to visit. However, dining out is still popular among people with food allergies or intolerances – 66% eat out at least weekly, and 77% have tried a new place in the past three months. Half of these customers tend to stick with familiar spots to avoid the hassle of asking about allergens, with one in five saying they feel awkward raising the issue. A total of 71% of operators still handle allergen updates manually. Four in five operators said the responsibility is placed on their staff “to a great extent” to ensure customers are given correct information and nearly all are confident their staff can appropriately deal with allergen requests from consumers.
Deliveroo launches campaign calling on government to protect delivery riders: Deliveroo has launched the “Right to Ride Safely” campaign calling on the government to include better protections for delivery riders in its upcoming Crime & Policing Bill. The campaign has been backed by the GMB Union and the British Retail Consortium. The government has committed to creating a standalone offence of assaulting or threatening a retail worker when they’re at their place of work, but the Crime & Policing Bill in its current form stops short of specifically protecting delivery riders when they are on delivery. Deliveroo is calling on the government to extend the scope of the offence so it applies for the entire duration from accepting the order, travelling to collect it and through to consumer drop-off. Deliveroo is also calling on the government to make clear in the legislation that restaurants and other hospitality settings are included in the definition of a retail premise. New figures released by Deliveroo show in the last six months, there has been a 28% increase in the total number of abusive incidents towards riders when compared with the six months prior. The GMB Union has backed the plans and, since it signed an industry-first union recognition agreement with Deliveroo, has been working collaboratively to support and represent riders. This includes launching a landmark Respect Charter, which was signed by 30 national restaurant brands including Wagamama, Wingstop and Bella Italia.
Job of the day: COREcruitment is working with a heritage site and cultural landmark that is seeking a director of finance and resources. A COREcruitment spokesperson said: The role will drive the evolution of financial and IT capabilities, ensuring compliance with regulatory requirements while fostering a high-performing team. The director of finance and resources will lead budgeting, forecasting and financial analysis, supporting the business in achieving financial sustainability and excellence. Leadership will extend across HR and IT strategies, providing a professional company secretarial service and managing a diverse range of corporate responsibilities. The position will also oversee audit processes, risk management and procurement, to ensure they meet and exceed sector standards.” The salary is up to £75,000 plus benefits and the position is based in London. For more information, email oliwia@corecruitment.com.
Company News:
Tesco Hospitality MD – in terms of cafes versus concessions, whoever is chucking out the best numbers wins: Tesco Hospitality managing director Adam Martin has said the business is looking to open more cafes, but in terms of cafes versus concessions, “whoever is chucking out the best numbers wins”. Tesco currently has circa 500 hospitality business, with 322 being its own cafes and the rest with retail partners. These include around 150 Costas and “a lot of smaller partners we’re trialling an experimenting with, such as Creams”. Martin told the Propel Multi-Club Conference: “We take a very pluralistic view. At the moment, we are performing extremely well, the investment returns are good and the profit is very attractive, so the business is very supportive and actively trying to find space in larger stores. The future in terms of cafes versus concessions will be down to who does the best job for customers and who makes the best financial proposition. We work with the concessions, but it’s obviously a very market forces-led environment. My personal ambition, naturally, is to increase the cafés, but there deliberately isn’t a plan – whoever is chucking out the best numbers wins. We all know the hospitality market is a big number, and an amazingly stable number, and any retailer is going to be looking at that and wanting a slice of it.” Martin also said the business is working on rolling out smaller format locations for its own brand offering. “The other proposition we’re working on is how to fill a smaller footprint, where we don’t have the physical space required for a full-size kitchen – essentially a coffee shop environment,” he said. “That’s a new venture we have just started working on. We’ve got three up and running and we’re experimenting with them to see how we can build the customer equity and profitability and make it an investable proposition for Tesco.” Martin said the current sales mix in Tesco cafes is 36% drinks and 63% food, and in the 2024 financial year, it sold £4m of lattes, £4m of pots of tea and £3m of breakfasts. The cafes offers 17 breakfast options priced from £1.79-£8.95, 19 lunch items priced from £4.50-£8.95, 23 drinks and a kid’s menu. “We think this reflects broadly what the Tesco shoppers wants and uses,” Martin said. “If you think about who’s in shops in the daytime, it is overwhelmingly mums with pre-schoolers and pensioners, so you have to build a proposition around that. It’s not a loss leader to drive traffic, and you won’t have people hanging around in the cafes with their friends all day if they’ve got frozen peas in their bags.” The cafes also link in with the Tesco Clubcard for promotions and local marketing, while 75 of them now have digital kiosks.
Martin was among the speakers at the Propel Multi-Club Conference. His video and the 12 others from the conference will be made available to Premium Club members on Friday (22 November), at 9am. 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 a supplier. Email kai.kirkman@propelinfo.com today to sign up.
Vapiano hires Lloyd Bloom as new UK MD: The McWin-backed Vapiano brand, which currently operates circa 155 sites across 32 countries, including five in the UK, has hired Lloyd Bloom, formerly of The Big Table Group, as its new UK managing director, Propel has learned. Bloom spent more than four years at The Big Table Group, including two and a half years as chief operating officer of its Bella Italia brand. Prior to that, he spent 20 years at Casual Dining Group, including nine years as operations director for its concessions business. In September, Propel revealed that Richard Downs had stepped down as managing director of US comfort food and cocktails brand Dirty Bones to join Vapiano as its new director of development. Sinclair Beecham, the co-founder of Pret, was one of the group investors that backed the new owners of the Vapiano brand when it was acquired in summer 2020. The group of investors, which also included AmRest founder Henry McGovern, backed Mario C Bauer, who was Vapiano’s former head of international franchising, to restart the brand after it filed for insolvency due to liquidity problems following declining sales earlier that year. In March, it appointed Andrew Walker, former chief executive of EAT and ex-managing director of Pret A Manger, as its new chairman. Last month, Vapiano launched a new “smaller, more accessible format” called Vapialino. The new concept has been “designed to offer the same authentic Italian flavours and quality service, just in a more compact space”, and includes a grab and go offer. The first site under the new format opened in Spreitenbach, Bern, Switzerland. The company said it is planning to launch three more sites under the concept by 2025 and a total of 40 within the next five to seven years. It is unclear whether it will be introduced into the UK over time.
Burger & Beyond launches international franchise programme, plans up to five UK openings next year: Burger & Beyond, the London concept founded by Tom Stock and Craig Povoas in 2015, has launched its first international franchise development programme after receiving interest from potential partners in Europe and the Middle East, Propel has learned. Stock told Propel: “We see Burger & Beyond becoming an international leader in the casual dining sector with venues in key cities, in all continents across the globe. We have attracted interest from potential franchise partners in Europe and the Middle East over the past few years and are currently exploring these; however, we would also love to open in America, Asia and Australia sooner rather than later. We are excited to announce the launch of our international franchise development programme, marking a significant milestone in our expansion strategy. The programme focuses on securing the best possible strategic franchise partners internationally. We look forward to introducing Burger & Beyond to a new audience and establishing our presence in the global culinary landscape.” It comes as the business, which operates sites in Soho, Shoreditch and Borough Yards, has begun looking for its first regional UK site. Stock said: “In the UK, we continue to operate and expand the business ourselves. We are currently looking for our next London restaurant and our first permanent location outside of the capital. In 2025, we are planning to open three to five new locations in the UK, which would be a mixture of restaurants and food hall sites.”
Sandwich Sandwich – we have already received substantial interest around funding: Bristol operator Sandwich Sandwich has said it has already received substantial interest in terms of funding its expansion plans and has multiple franchise requests, both at here and internationally. The business, which made its debut in London earlier this year in Gresham Street, has secured a site in Mark Lane – linking Great Tower Street and Fenchurch Street. It is set to be the “largest sandwich shop in the UK” when it opens next year. The business hopes to grow to up to 25 sites in the capital over the next five years. Nick Kleiner told Propel’s Multi-Club Conference: “This is an addition to multiple franchise requests that we receive from a host of operators, both at home and abroad. In order for us to fully capitalise on the expansion plans, we know that three vital things must be fulfilled for the business. Number one, additional support in terms of expertise to help us grow the business to critical mass. Number two, we need sufficient funds to grow the business, which we are currently working on and have already received substantial interest. And finally, strategically suitable locations for the brand, important high street sites, more in the City’s square mile, the West End, transport hubs, shopping centres and so on. Another absolutely vital area for us is building a structure of highly experienced individuals in key functions; we’re building and assembling a highly driven and talented, like-minded head office team, focusing initially on finance, people and operations. These people we hire will help us maintain our ethos and build a strong foundation for growth. As we press the accelerator on our journey to expansion, we know there are potential dangers out there as you grow, it is absolutely imperative that the two main things that we can control are always maintained. That’s quality of product and quality of service. I believe, if you get these two things right, the path for success to us will open up.”
Kleiner was among the speakers at the Propel Multi-Club Conference. His video and the 12 others from the conference will be made available to Premium Club members on Friday (22 November), at 9am. 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 a supplier. Email kai.kirkman@propelinfo.com today to sign up.
Merlin to launch Minecraft themed attractions in UK and US: Merlin Entertainments is to launch Minecraft themed attractions in the UK and US. The company has entered into a global strategic partnership with Mojang Studios, the creator of Minecraft, to bring the adventures to life through immersive and interactive entertainment attractions in fixed locations around the globe. Merlin will be investing in excess of £85m in the first two attractions, which will be launching in the US and the UK between 2026 and 2027. This will include the development of first-of-its-kind concepts for Minecraft-themed guest accommodation, retail and food and beverage, alongside experiences – including a Minecraft-themed ride – at Merlin locations in the two countries. In the longer term, Merlin will expand the experiences to other destinations globally. Merlin chief executive Scott O’Neil said: “This is a significant milestone for Merlin, which reinforces our commitment to reaching new audiences through bold and captivating concepts, and directly supports our ambitions for growth. This initial investment is just the beginning, replicating Merlin’s tried-and-tested approach to globally launching new concepts and platforms, as we have with Lego, Peppa Pig, Sony Pictures, CBeebies and others.” Kayleen Walters, vice-president franchise development for gaming at Microsoft, added: “Our vast and diverse community is always looking for new opportunities to explore and engage with Minecraft, and we are thrilled to build touchpoints around the globe that will surprise and delight them.”
YouMeSushi seeking new franchisees as it reiterates doubling its network within three years: YouMeSushi, the restaurant and takeaway business, has said it is seeking new franchisees as it reiterates plans double its network within three years. The brand, founded in 2008, currently has 26 restaurants and has hired Krishma Vaghela as franchise consultant to help drive its franchised expansion. “YouMeSushi is an exciting business with a fresh and innovative approach within the fast/casual industry,” said Vaghela, who also this month signed as franchise consultant for Soho Coffee. “We now have big plans to propel the brand to the next level and welcome applications from potential single and multi-unit franchisees to feed demand as we continue to grow. YouMeSushi has fast attracted and welcomed well experienced food and beverage franchise operators, a few of whom have already expanded into multi-site operations.” Tim Circus, head of franchise at YouMeSushi, added: “We have recently signed a new franchisee, and we will be opening more locations soon. For new applicants, we are now able to offer exciting opportunities to join our growing network throughout the UK, so they can develop their own profitable business through our established and proven model. We offer comprehensive training and support so franchisees can capitalise on the company’s established market position and successful growth.”
YouMeSushi features in the Propel UK Food and Beverage Franchisor Database, the next edition of which will be sent to Premium Club members on Wednesday, 11 December, with 50 new additions. The database is updated every two months, and the latest version features 280 businesses. Companies can now have an unlimited number of people receive access to Propel Premium 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.
Gail’s lines up Birmingham opening: Gail’s, which opened its 150th site last month, has lined up its first opening in Birmingham. The business, which earlier this month opened its first West Midlands site in Solihull, plans to open at 42a New Street, Birmingham, in January. It is also understood to be in talks on a site in Moseley. Gail’s, which opened its first site in London’s Hampstead High Street in 2005, opened its 150th last month, in Watford. This year has seen the business venture into the south west, secure a first Midlands site and will see it open its first major travel hub location – in London’s St Pancras station next month. Gail’s remains co-owned by original founder Tom Molnar and is backed by Bain Capital Credit and Ebitda Investments.
Turtle Bay – four-day working week scheme leading to higher team engagement and increased stability: Turtle Bay, the Caribbean restaurant brand backed by Piper, has said that its four-day working week scheme has led to its team engagement scores reaching an “all-time high” and increased management stability. The circa 50-strong business created its “4 Days at the Bay” working model in 2020, aiming to create a better rota system for its salaried management and kitchen teams to work four days a week. The business said: “The goal? To have the right people in the right place at the right time, while improving work-life balance, consistency, and business performance. After trialling it, the results spoke for themselves, with increased stability, higher team engagement, and better work-life balance. By 2024, all salaried managers and kitchen teams were on the 4 Days at the Bay model. We are proud to share that management stability as of September 2024 is at 82%, and our engagement survey results have hit an all-time high of 87.3% (with an 84% participation rate).” This summer, the company reported turnover grew 6.1% to a record £93,657,953 for the year ending 31 March 2024 compared with £90,103,059 the year before. Adjusted Ebitda stood at £9.0m (2023: £10.2m). Pre-tax profit was down to £1,861,259 from £9,925,555 the previous year, although that included the beneficial impact of insurance proceeds of £6.4m. The company said the new financial year had started “in line with expectations” and the economic environment “remains extremely tough”.
Hotel Chocolat set to open concept store and Velvetiser Café in Newcastle: Hotel Chocolat, the premium British chocolatier, is set to open its latest concept store and Velvetiser Café, in Newcastle. The 3,128 square-foot store in Eldon Square will open on Saturday, 30 November, offering a wide range of Hotel Chocolat’s premium chocolates and a Velvetiser Café, serving its Velvetised drinking chocolate alongside other hot drinks. Guests will be able to choose from 18 different flavours served hot, over ice or as a choc shake, tailored with dairy milk or plant-based alternatives, along with an array of toppings. Hotel Chocolat omnichannel director, Frankie Haynes, said: “Our new Velvetiser Café is designed to offer a relaxing space where people can enjoy our signature drinks and treats at a leisurely pace. The Newcastle store marks another step in our expansion, and we’re excited to continue offering more of these delightful experiences across the country in the coming years.” Following Hotel Chocolat’s £534m sale to Mars at the end of last year, Propel revealed the business would operate as stand-alone brand within Mars, with Angus Thirlwell remaining as chief executive. Thirlwell co-founded the business, which has 142 UK sites plus a handful in Ireland, St Lucia and Gibraltar, in 1993 with Peter Harris.
Wingstop signs for Cheltenham site: Wingstop, which is being rolled out here by Lemon Pepper Holdings and is currently seeking new investment, has signed for a site at the Brewery Quarter scheme in Cheltenham. Wingstop is building towards having 57 UK units by the end of this year and 200 within the next five years. Wingstop UK chief executive Chris Sherriff said: “The Brewery Quarter stood out to us as an ideal location due to its dynamic mix of offerings and high foot traffic. We’re excited to bring our signature wings, bold flavours and exceptional service to Cheltenham.” .
The Ivy Collection opens in Liverpool: The Ivy Collection, the Richard Caring-backed restaurant brand, has opened a new restaurant in Liverpool. The venue has opened in the former Bank of England building in Castle Street, having restored the grade I-listed building to feature a bar, space for 180 diners and a 16-person private dining room. The midweek 1917 menu, which offers two courses for £19.17, is available, as well as afternoon tea and a children’s menu. The restaurant also offers The Ivy’s festive menu, featuring whiskey barrel smoked venison tartare; goose, turkey and duck shepherd’s pie; turkey ballotine with apricot, cranberry and pork stuffing; and foraged wild mushroom and truffle linguine. There is also an array of cocktails, fine wine and beer. The launch follows openings in Belfast, Canterbury and Bournemouth over the last three months.
Market Taverns acquires historic west London pub: Market Taverns, the privately owned pub company operating sites across London, has acquired the historic Crown & Anchor pub in Chiswick for its 15th site. The former Convival London pub was acquired by Mitchells & Butlers in 2013. Thought to be one of Chiswick’s oldest pubs, its dates to around 1825 and has also been part of the Young’s portfolio. “The Crown & Anchor is a welcome addition to the Market Taverns estate,” said operations director Adrian Laws. “It sits prominently opposite Turnham Green, combining contemporary style with its rich heritage creating a homely bar and offering a fantastic function room with views over the green. We can’t wait to add our touch of Market Taverns magic.” Backed by serial entrepreneur Rolf Munding, Market Taverns told Propel in July it is now seeing its businesses “steadily recover” from a “historic period of challenges”, with current sales performance “in line with projections”. For the year to 30 September 2023, the then 13-strong company posted turnover of £12,289,713 (2022: £10,007,327), with pre-tax profit standing at £604,289 (2022: £379,163). Since then, it has also added The Spencer Arms in Putney.
Wagamama launches first set menu and group booking: Wagamama, The Restaurant Group-owned brand, has launched its first set menu and the ability to book a table at any of its restaurants for groups of six or more. Available from now until 31 December, the specially priced three course set menu features an array of dishes from “classic icons and newer menu items to plant-based favourites – perfectly paired for a festive feast”. The menu features dishes like teriyaki beef donburi, chicken and prawn pad Thai and chicken katsu curry. With both meat and plant-based menus available, guests can enjoy three courses for £27.50 and £24, respectively. In July, Wagamama launched its first brunch menu into 22 UK sites, served from 8.30am to 11.30am.
Team behind Madre to open new bar and pool hall: The team behind Mexican taco restaurant and bar concept Madre is to open a new bar and pool hall in Manchester. Salon Madre will open on Friday, 6 December, next to the group’s existing restaurant in the city’s Chorlton Street, on the former Seven Brothers pop-up site. Salon Madre will house four pool tables and big screens that will show Lucha Libre (Mexican wrestling) as well as a host of US sports. The menu will feature rotating tacos of the day, alongside al pastor tacos and a range of frozen and flavoured margaritas and palomas, as well as draft wine, local beer and Mexican specialities. The Madre team is also gearing up to open the first UK site for the Norwegian burger concept, Doug’s Hamburgers. The concept, which currently operates three sites in Norway, will make its UK debut in Manchester’s Circle Square before the end of the year. Earlier this year, the Madre team opened a new venture, Medlock Canteen, in the South Tower, Deansgate Square, in Manchester’s Owen Street. Madre, which is from the founders of the Liverpool restaurants Belzan and Volpi and London’s Breddos Tacos, opened a permanent site in Manchester last summer as part of the Kampus scheme.
London champagne and cheese concept secures first franchise site: London champagne and cheese concept Champagne + Fromage has secured its first franchise site, in Chester. The company has signed up HF Viticulture & Wine as its first franchisee, with plans to open in Chester’s Watergate Street, on the former The Antiques Shop site. Champagne + Fromage owner Stefano Frigerio last year launched a two-pronged franchise scheme – through partnerships whereby pub, restaurant and deli owners introduce the Champagne + Fromage offering into their existing setup, and through franchisees opening their own stores. Founded in 2011, the company has grown to two London locations – in Covent Garden and Greenwich – alongside sister businesses Cheese + Fizz in Brixton and Comptoir + Cuisine in Bath, and this summer made its hotel debut at the Wellington Hotel on the Isle of Wight. Frigerio told Propel in June that the business was set to expand its regional portfolio as it is seeing more opportunity outside the capital. On the upcoming launch in Chester, he said: “It’s been an incredible journey building this business, and to see our vision expand into such a wonderful city is truly a dream come true. Chester has always had a special place in my heart. We’re not just opening a wine bar! we’re creating a space where people can come together, unwind, and enjoy the finest French delicacies in an authentic and welcoming environment.”
Cambridge bakery set to open two new locations: The award-winning Stir Bakery in Cambridge is set to open two new locations. Founder Matt Harrison will open a cafe within the Old Swiss building in Cherry Hinton Road, and in a new building in Discovery Drive, opposite Papworth Hospital. They will add to the locations Stir already operates in Chesterton, Histon, Fulbourn and Cambridge’s Green Street, as well as its Chesterton bakery. The Cherry Hinton Road café will open at the start of December, followed by the Discovery Drive café at the start of next year. The business’ most popular dish, the Stir’s Big Brunch, will be available in both of the new locations. Harrison told the Cambridge News: “It is our biggest selling item across all of our cafés and I’m sure it will be the same in the new ones. It’s a large dish of avocado, bacon, halloumi, mushrooms, tomato, eggs, and it’s served with our sourdough. We see ourselves as a neighbourhood business. We love being in among where there are communities that we can connect with.”
Dakota lines up York hotel: Boutique hotel brand Dakota is lining up a site in York. A planning application has been submitted for a new hotel at the Northern House site that will form part of the ongoing regeneration of Rougier Street in the city centre. The hotel would include around 140 rooms, a bar, dining areas and top floor room terraces. Dual access would be provided from Rougier Street and Tanner’s Moat. Andrew Ovenstone, managing director of Dakota Hotels, said: “We are excited to reach this milestone, and we believe Dakota will add another choice of hotel, complementing the excellent hospitality offer in the city centre.” In September, Dakota, which operates five sites across the UK, secured planning permission for its debut airport hotel – at the Mix Manchester scheme next to Manchester airport.
Wine bar concept overfunding after passing £150,000 fundraising target to expand physical stores, private wine tastings and subscription model: Wine bar concept Must Wine, founded by chief executive Mike Nuttall in 2018, is overfunding after passing its £150,000 fundraising target to expand its physical stores, private wine tastings and wine club subscription model. Having opened his first Must site in St Albans in Hertfordshire in 2019, Nuttall, a former managing director of international retail and casinos at Ladbrokes, has since launched three London bars – in Hampstead (2021), Wanstead (2022) and Camden (2023). With two weeks remaining, Must has raised more than £150,030 from 40 investors on Crowdcube. Must is offering equity of 6.55% in return for the investment, giving the business a pre-money valuation of £2,139,700.
Australian doughnut brand Lena Lu Donuts opens third UK site: Australian doughnut brand Lena Lu Donuts has opened its third UK site. The company has launched the outlet in the Primark store in Oxford Street West in London’s Marble Arch. The opening follows those at the Primark stores in Lakeside in Essex and Watford in Hertfordshire last month. The brand offers a menu of doughnuts, as well as bagels, coffee and shakes, with the option for guests to create their own doughnuts from a changing menu of flavours, fillings and toppings. Originating in Australia and created by entrepreneur Kym Hall, Lena Lu Donuts is now based in the Middle East. Gamechangers Investments is overseeing the launch of the brand into the UK. Drew Clover, development director at Game Changers Investments, said: “After the success of Lena Lu in the Middle East, it’s exciting to see the brand reimagined in the UK market, and the partnership with Primark will accelerate the brand’s exposure in the UK.” Earlier this month, Clover told Propel the brand is targeting nationwide UK expansion and is “actively developing a robust pipeline of future opportunities”.
Gluten-free vegan doughnut business to launch first retail concession: Gluten-free vegan doughnut business Borough 22 is set to launch its first retail concession, in Selfridges Foodhall in London. Opening on Monday, 25 November, the permanent, standalone kiosk is a landmark moment for a brand which has been a staple in Selfridges’ bakery selection since 2014. Fried and baked allergen-free doughnuts will be available, including glazed, filled and sugared varieties, from £4.49 each. Flavours include Cookies + Cream Glazed, the OG Vanilla Glazed and Baked Red Velvet, plus exclusive creations for Selfridges such as the Korean Strawberry Doughnut. Founded by Ryan Panchoo in 2014 after discovering his children had special dietary requirements, Borough 22 Doughnuts specialises in gluten-free, dairy-free, 100% plant-based, halal and kosher doughnuts. Panchoo said: “A standalone kiosk in the Foodhall at Selfridges London marks a major step forward for Borough 22 as we look to grow our business in the retail sector. This year marks the tenth anniversary of the brand, and what better way to celebrate than with our first permanent concession in one of our very first stockists?”