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Exclusive – Greene King to trial two new concepts as it continues to create a balanced portfolio
Brewer and retailer Greene King is trialling two new concepts as part of its continuing plans to create a balanced brand portfolio, Propel has learned.
The Nick Mackenzie-led business has begun trialling Seared – a pub concept, with a “freshly grilled, globally-inspired menu”, and Everly, a boutique hotel offer, positioned as “affordable luxury”. The trials and continuing investments in the group’s existing and fledgling brands, including Crafted and Hickory’s, is part of the group’s long-term strategy to create a balanced brand and asset portfolio, broaden the range of customers it is reaching and stretch into different occasions.
The first Seared site will open on The Castle in Droitwich, Worcestershire, early in the new year. It will be positioned “slightly higher than Hungry Horse”. Mackenzie said: “Hungry Horse remains really important to us – we’ve still got 230 sites under the brand and we’re still investing in those businesses and evolving that brand – but this sits slightly above it. Seared is something we’ve been working on for a little while now. It is very much about maximising our position in the value segment of the market. Seared is about staying as a pub but putting in a really good value for money, well executed food offer focused around freshly grilled food, with a little bit of an international twist to it.”
The first Everly site will open at the Three Horses site in Rottingdean, East Sussex. The site will have 32 bedrooms and 290 covers, with a food menu focused on local produce. Mackenzie said: “We think there is a really good opportunity in the leisure/break market with Everly. It’s affordable luxury and in a premium part of the market we have not been in before.”
The company will open the sixth site under its premium pub offer, Crafted, next Thursday (7 December), with The Prince of Wales in Esher, Surrey. Mackenzie said: “We continue to hone them, but we’re really pleased with where they’ve got to, and customer scores are really good. We will take our time with Crafted, we need to make sure we get the sites right as we evolve them.”
Earlier this month, the business opened its fifth Hickory’s site since it invested in the brand last autumn, in Wrexham. Mackenzie said: “The Hickory’s management team uses a really rigorous approach to site selection and to how they open a business, and we’ve been really impressed by that. So far, the openings have been really strong, and got stronger as we’ve gone on. We’ll start to ramp up again a little bit more next year, and then we’ll start to plan what happens after that.”
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Phil Urban (pictured), chief of Mitchells & Butlers (M&B), the All Bar One, Toby Carvery and Harvester owner, has said margin percentages are “not something that we obsess about” but is focused on how quickly the business can get “back to and beyond the cash profit that we were making pre-covid”.
Speaking to Propel after the company reported a 9.1% increase in like-for-like sales for the 53 weeks ended 30 September 2023, Urban said: “We were in volume growth last year. In the first half of the year, we were probably flatlining a bit. I’m always cautiously optimistic, and you have to remember that before covid, the industry was in a very slow, structural volume decline. We’re working hard to maintain our volumes and we’re doing that through a lot of guest-obsessed workshops that we do as part of our Ignite programme.
“In terms of margins, we were something like 14% pre-pandemic. It’s not something we’re that obsessed about. It’s the quantum we’re more interested in, because we probably won’t get back to pre-covid levels of margin. Once you’ve got a living wage going up by 10% and others cost burdens, then by definition, unless you really pass all of that on, you’re not going to maintain your percentage ratios. Plus, every time we convert a Harvester to a Miller & Carter, we’re sort of making a conscious decision to sacrifice percentage margin for cash margin. So, the way we view it is how quickly we can get back to and beyond the cash profit that we were making pre-covid, and we are hopeful that is only two years away.”
Urban said Christmas bookings have started a lot earlier than recent years and was “really encouraged” by their levels. However, he said a “good or bad Christmas will absolutely be dependent on the walk-ins you get”.
In terms of sector consolidation or acquisitions, Urban told Propel: “If I look in the crystal ball for M&B and the journey we are on, first and foremost, we want to get our profit back to where we were pre covid. Once we’ve done that, we’re going to be a highly cash generative business, the pension liability will have disappeared, and the end of the securitisation will not be in the too distant future. The optionality for M&B then becomes big, because we can do a number of things. But that is sort of tomorrow. In between times, opportunistically, if we felt something was on the table that was of interest, then we would make a call.”
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Nando’s has said it will continue to expand with new UK restaurants, despite the uncertain economic backdrop putting pressure on consumer spending. The company said it plans to open 14 new sites in the UK in its current financial year to the end of February 2024, with ten of these already opened. It came as the restaurant chain’s business, excluding South Africa, revealed it returned to profit for the first time since the pandemic in its latest set of full-year accounts to 26 February 2023. The company swung to a £17m operating profit for the year, compared with a £1.2m operating loss a year earlier. It said sales jumped by almost a fifth to £1.27bn for the year, up from £1.06bn a year earlier. The company said sales jumped beyond pre-pandemic levels as it was boosted by a strong recovery in UK consumer demand, as well as further restaurant openings. However, it still fell to a £86.2m pre-tax loss for the latest year after exceptional items. Nando’s said cost inflation has remained “at elevated levels” into the current financial year. The group said it has managed the impact of cost pressures but still expects these to “remain a significant drag” for the rest of 2023-24. Rob Papps, group chief executive, said: “The macroeconomic outlook for 2024 remains uncertain but we are continuing to invest for the future with further menu innovation, enhancements to our digital capabilities and new restaurant openings planned in all our markets, including 14 in the UK. The 2023 financial year saw Nando’s deliver a steady recovery to pre-pandemic sales and a return to operating profit, driven by strong consumer demand for our flame-grilled peri-peri chicken, supported by our brand and customer proposition. Despite the improved sales performance, cost pressures including higher energy, labour and food prices remained a challenge.”Consumers loosen purse strings on high tempo occasions but quality and atmosphere key: Consumers are ready to spend freely on high tempo occasions in the on premise, but only if they get high quality, new experiences and great atmosphere, according to CGA by NIQ’s Evolving High Tempo Occasion Report. On consumer intercepts for the research, nearly half (47%) of high tempo on premise users said they hadn’t budgeted for their spend, while another 13% said they probably wouldn’t stick to their budgeted amount. Only a fifth (19%) thought they would adhere to the money they had allocated themselves. Nearly nine in ten say new or innovative experiences are now either essential (41%) or nice to have (45%) on their high tempo occasions. While bars and drinking pubs are still the most common destinations (visited by 28% and 26% on their last high tempo occasions), other channels include pubs with a food focus (22%) and casual dining restaurants (15%). In total, food-led venues now account for 30% of all high tempo visits. Just under two thirds (64%) of high tempo consumers say they like visiting event spaces and creative venue complexes, and half (49%) of these think the atmosphere there is better than in traditional outlets. “Consumers’ decision-making on high tempo visits is more complex than some might think,” said Paul Bolton, CGA by NIQ client director. “The range of channels they use now goes well beyond conventional late-night venues, and they are more sharply focused on atmosphere and quality. These consumers are ready to spend heavily and trade up to premium options, but with disposable incomes under pressure, they want to be sure they’re getting good value for money and memorable experiences.”
Consumers are ready to spend freely on high tempo occasions in the on premise, but only if they get high quality, new experiences and great atmosphere, according to CGA by NIQ’s Evolving High Tempo Occasion Report. On consumer intercepts for the research, nearly half (47%) of high tempo on premise users said they hadn’t budgeted for their spend, while another 13% said they probably wouldn’t stick to their budgeted amount. Only a fifth (19%) thought they would adhere to the money they had allocated themselves. Nearly nine in ten say new or innovative experiences are now either essential (41%) or nice to have (45%) on their high tempo occasions. While bars and drinking pubs are still the most common destinations (visited by 28% and 26% on their last high tempo occasions), other channels include pubs with a food focus (22%) and casual dining restaurants (15%). In total, food-led venues now account for 30% of all high tempo visits. Just under two thirds (64%) of high tempo consumers say they like visiting event spaces and creative venue complexes, and half (49%) of these think the atmosphere there is better than in traditional outlets. “Consumers’ decision-making on high tempo visits is more complex than some might think,” said Paul Bolton, CGA by NIQ client director. “The range of channels they use now goes well beyond conventional late-night venues, and they are more sharply focused on atmosphere and quality. These consumers are ready to spend heavily and trade up to premium options, but with disposable incomes under pressure, they want to be sure they’re getting good value for money and memorable experiences.”
The pay deal for rail workers agreed by the RMT union gives the hospitality sector a “degree of certainty” over Christmas, UKHospitality has said, but the trade body warned we are “not yet out of the woods”. The RMT has agreed to an offer from 14 train companies, which means its members will no longer be involved in industrial action until at least the spring of next year. However, train drivers represented by the Aslef union will still strike over the next week. Members will take part in a “rolling programme” of walkouts from tomorrow (Saturday, 2 December) until Friday, 8 December, while drivers will also refuse to work any overtime from today (Friday, 1 December) until Saturday, 9 December. UKHospitality chief executive Kate Nicholls said: “Hospitality businesses will be breathing a sigh of relief that the critical festive period will be protected from strikes from RMT members. Businesses, workers and the public now have a degree of certainty when it comes to their Christmas plans. We are not out of the woods yet, with strikes by Aslef set to cause significant disruption. I would urge Aslef to follow the lead of the RMT and commit to holding no further strikes in December and the new year. Any further strikes would decimate the essential Christmas trading period for businesses, prevent millions from working and interrupt families’ festive plans.” A Night Time Industries Association spokesperson added. “The consequences of this industrial action extend beyond mere inconvenience; they pose an existential threat to countless businesses that form the backbone of our economy. The cumulative toll on night-time economy businesses is reaching unprecedented levels, with the stark reality that many will not survive this hugely challenging trading period. It is imperative that unions and relevant authorities recognise the severity of their actions and work swiftly to find a resolution that doesn’t compromise the livelihoods of hardworking individuals and the very fabric of our night-time economy.”
Indian high-end sports bar concept, The Studs Sports Bar & Grill, is looking to come to the UK. Established in 2017 and based in Mumbai, it currently operates ten franchises, offering a “European-style sports bar concept restaurant and pub with high-quality food and premium alcohol”. Established Indian food and beverage firm Ambros World Foods, which is behind the concept, stated London and Manchester as its preferred locations, alongside other high profile cities worldwide. “The high-end sports bar concept is prevalent in the UK, and Ambros World Foods brings this concept into the Indian market, a market with a strong sports fan base,” it said in a pitch on investment banking platform Smergers. “We have 12 such outlets across Mumbai, Bangalore, Navi Mumbai, Nainital, Ranchi and Kolkata and have served 1,000,000-plus lakh guests, clocking revenues of more than INR 6 crore in 12 months. We primarily franchise under the franchise owned, company supported model, supporting the franchise partner every step of the way to ensure the quality of service and a breakeven period of two years.” The company said investment from franchisees would be £191,000 to £232,000, including a £30,000 brand fee, with 2,000 to 3,000 square feet of space required for sites. Expected monthly sales are £50,000, with a 30% profit margin and royalty fees of 10%.
Toby Rolph (pictured) has stepped down as chief financial officer at Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of 46 bars. Rolph has been involved with Nightcap since its initial public offering (IPO) nearly three years ago and will remain with the business for the coming months to ensure a smooth handover. He has already stepped down as a director of the company, which has appointed Richard Haley as interim chief financial officer. Haley most recently held the role of deputy group chief financial officer of Delinian, formerly Euromoney Institutional Investor (a FTSE 250 company). He previously held senior financial roles at Future, Tesco, William Hill and Halma, and spent the early part of his career at KPMG. Rolph said: “Having been involved with Nightcap for nearly three years, I am really proud of the growth and expansion that we have achieved over a relatively short period. Following publication of the latest annual results, I feel that now is an appropriate time to pursue other opportunities.” Nightcap chief executive, Sarah Willingham, added: “Nightcap has evolved considerably since its IPO in 2021 as we pursue our goal of becoming the UK’s leading bar business, and we are grateful for the key role that Toby has played. We are also excited to welcome Richard Haley as interim chief financial officer, as we continue our focus on integrating and consolidating our business in readiness for the next phase of growth.” Nightcap last month reported like-for-like sales in the 13 weeks to 1 October 2023 were down 16.7% compared with 2022 due to the impact of additional rail strikes and warm weather throughout September. This after the group reported revenue for the 52 weeks ending 2 July 2023 increased 29% to £46.4m (2022; £35.9m). Adjusted Ebitda on an IFRS 16 basis was up to £6.6m (2022: £6.0m) and it made a pre-tax loss of £4.9m (2022: profit of £0.2m). 
Hell Yeah Hospitality Group has appointed advisors to help assess its funding options for the next stage of growth for its eight-strong Pizza Punks brand. The business, which also operates the Mamasan concept, has appointed FRP Corporate Finance to assist in raising new funding, as founder Brad Stevens looks at the next stage of the restaurant group’s growth journey. Pizza Punks said it has spent six months consolidating following four new openings in 2022 – in Leicester, Nottingham, Durham and Liverpool. It said it now sees the potential to grow into a UK-wide business, with plans to expand into Edinburgh, Manchester, Cardiff and Birmingham in 2024, plus four other major university cities to follow. Stevens said: “We are extremely excited about where Pizza Punks is at, both as a brand and a business, and the opportunities it has for significant further growth. We’ve seen very strong sales across the entire Pizza Punks portfolio, which has driven record sales for us recently. This has come off the back of exceeding our budget expectations, as well as getting our labour and cost of sales into a healthy position during our last financial year. We have reviewed our options for expansion and have identified the next cities we are keen to bring the Pizza Punks experience to, working closely with FRP to identify funding options for our next stage of growth into Edinburgh, Manchester, Cardiff and Birmingham. We are feeling really positive about what the future holds for Pizza Punks.” At the same time, the business has strengthened its senior team. James Richardson, ex-head of operations for The Apartment Group, joins Hell Yeah in the newly formed role of director of operations and people, while David Moffat, previously of Stonegate Group, Gondola Leisure and Hero Brands, is the new commercial director. Finally, Louise McCabe, who has been with the company for seven years, steps up into a new role of sales, marketing and brand director. She was most recently the company’s group operations director. 
John Eckbert, chief executive of Five Guys Europe, has said the business plans to open 50 new sites next year. Talking at this month’s Propel Multi-Club Conference, Eckbert said in 2024, the business would open 20 sites in the UK, ten in France, 16 in Spain and four in Germany. He said: “We’re going to open up to 50 sites across the joint venture next year. Every country has a big ambitious goal to open, but most importantly, you’ve got to develop human beings to open these restaurants and staff them and be ready to serve customers from opening. If you don’t have great brand execution when you open, it is a disaster and you’re going to set yourself back probably two years in that market. Having the in-store leaders to be able to open a new site and new market is particularly challenging. There’s a lot of site selection and construction, but even more importantly there’s human development, so that when you’ve got a queue around the block and you’re doing £100,000 a week in your opening sales, you are actually delivering a fantastic customer service experience.” Eckbert said his biggest fear for the brand, which operates 155 sites in the UK, was that “we would lose the passion, intensity and concentration of people who believed in something”. He added: “That was kind of my waking fear for the first few years that we grew. What really overcame that for me is that we’ve gotten stronger with every hire. We now have 8,300 people and they are as intense and as passionate as ever. We brought talent into the business who believed in what we were doing.” Eckbert will provide further insight in his video from the Propel Multi-Club Conference. Premium subscribers will receive access to all 12 videos from the conference tomorrow (Friday, 1 December) at 9am. 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.
Rik Campbell, co-founder of Indian restaurant group Kricket, has told Propel the business wants to “kick on next year” and is looking at further growth opportunities for its eponymous brand and for its cocktail bar concept, Soma. Earlier this week, the business secured new funding ahead of opening a fourth London site in Canary Wharf next spring, which will include an adjoining Soma bar. The business, which was founded by Campbell and Will Bowlby in 2015, secured the new round of funding from existing backer White Rabbit Projects (WRP), alongside additional funds from the founders. The company, which currently operates three Kricket sites in the capital, launched its debut Soma bar, next door to Kricket Soho, earlier this year. Campbell told Propel: “Trading is generally strong across all sites. We want to kick on next year with a focus on driving more covers and try to hold our prices, and perhaps cut prices where possible and drive covers instead. Canary Wharf is the only confirmed site we have for next year but we are looking at other opportunities. We want to grow organically and target the best locations, particularly in London. The capital is still our focus for the next 18 months. There’s still plenty of high traffic areas in London for our brand. Pre-covid, we were looking at opportunities abroad, but we have gone full circle as there are far too many good opportunities at home.” He said that Soma is playing a “very important role for the business” and that it had been a bigger success than expected. “It really sits beautifully alongside Kricket, he said. “I think we’ve done something unique down there. We’re really excited about developing that concept further, and if we can find sites where we can do both Kricket and Soma variations side by side, that’s what we’ll look to do. Could we do a standalone Soma site? Potentially if the right opportunity arises. We have seen opportunities recently to do them on their own, but it’s very much dependent on the site itself and the right licence being available.” Campbell added that the business was “really conscious of still remaining affordable”. He said: “We are now actually seeing areas where we can reduce pricing. One of the things we’re going to be doing going forward is designing each site differently, so, each site is a different experience. We want to be fun, affordable and accessible to all.”
David McDowall (pictured), chief executive of Stonegate Group, the UK’s biggest pub company, has said the business is in talks to “strengthen the balance sheet” but was under “no extreme time pressure” to find the route towards a refinancing event. Speaking at this month’s Propel Multi Club Conference, McDowall said: “The most important thing that me and the team can do, day in and day out, is try to drive profitable growth in the business. We’ve got a clear strategy that is designed to significantly increase our runway earnings over the next year to 18 months or so, and that’s starting to pay off. At the same time, we’re speaking to some people about what comes next in terms of strengthening the balance sheet. We feel we’re in the right spot with that.” McDowall said the business is very proud of the performance of its Craft Union Pub Company division, and that the business was opening “eight or so a month” under the format. He added: “The model is very simple and straightforward. It relies on great local entrepreneurs who are at the heart of the communities that we serve and are operating in. The model is working well and we’re at circa 560 at the moment. There’s quite significant growth still. Craft Union is about value, sport and community. When we get that right, and when we select and partner with the right operator, the model is an absolute dream. We’re very excited about continuing to do more. The great thing about the integration of the two businesses (Stonegate and Ei Group) is although that happened a few years ago, there’s still plenty in the conversion pipeline for us to go after. We don’t really need any more pubs. There’s lots and lots of assets to continually optimise, and we’re seeing a fair chunk of that when you look at the right pub and the right format – quite often right now, the answer is Craft Union.” McDowall was among the speakers at this month’s Propel Multi-Club Conference and Premium subscribers will receive access to all 12 videos tomorrow (Friday, 1 December) at 9am.
Cooks Coffee, the Esquires-brand owner, has reported a 22% increase in like-for-like sales across its UK estate to NZ$17.8m (£8.65m) compared with last year and by 58% compared with pre-covid levels as it said its development in suburban areas and smaller market towns rather than the larger cities gained further momentum. Profit from continuing operations for the UK and Ireland was up 40% at $800,000 (HY23: $600,000). The company said that its pipeline of store openings was “robust and underpinned by strong consumer demand”. It said it has entered into an agreement to establish a regional developer in the UK for the south west, South Wales and West Midlands. The regional developer will focus on store growth and build on the success of this model in the south east, London, east England and East Midlands regions, which has proved “very successful to date”. UK store numbers were 53 at the end of September 2023, up from 49 as of 31 March 2023. It said sales from the Esquires outlets for the six months were up 58% on the pre-covid period from April to September 2019 and up 22% on the same period in FY23. Record sales per store have been recorded in September and again, post period end, in October. The company’s average store sales for the first six months rose 16% compared with FY23 and 25% compared with FY20 as its strategy of enhancing store locations is being implemented. The business said that further discussions are underway to secure agreements for the remaining regions, and it is confident of securing suitable partners before the end of the financial year. New store locations have focused on suburban areas and market towns where the ongoing impact of the permanent post-covid changes in consumer behaviour have led to positive store performance. Earlier this autumn, the company appointed RSM UK as liquidators to its Triple Two coffee franchise business, comprising Triple Two Holdings and its subsidiaries. As a result of this action the company fully impaired the Triple Two investment of $4.8m and this has led to reporting a negative equity position for the group of $3.6m at the end of September 2023. The Esquires business is not affected by the Triple Two process however the company has fully impaired the investment in the September group accounts. The company expects to have up to 80 Esquires outlets operating in UK & Ireland by the end of March 2024 with more than 100 operating in total internationally and is confident of the growth potential for all markets in the future. Keith Jackson, executive chairman, said: “The directors believe the prospects for the business for the remainder of the financial year and beyond are strong. The company is committed to building the business based on ethical principles and community values. Store sales trends have been very positive in recent times, with the company benefiting from the ‘working from home’ trend, which we are confident will remain in one form or another as a permanent change in consumer behaviour in the post-covid environment. There is a solid pipeline of new stores in both core markets of UK & Ireland that will build upon the growth for FY24 to date. As a result, the board is confident about the prospects of the business.”
KFC franchisee Gastronomy Restaurants has opened the brand’s first box concept “little drive-thru” in the UK. The small-scale restaurant has opened at the Beacon Business Park in Weston Road, Stafford, creating 35 jobs. The new model was designed, constructed and deployed by manufacturer Modular 500 under instruction from the site’s developer, Espleys. Ian Gill, property director for Gastronomy Foods, said: “Stafford number two and the UK’s first little drive-thru has opened. A long time coming and culmination of a lot of hard work from many people in the Gastronomy Restaurants team and KFC UK & Ireland. A fantastic asset perfectly designed to plug the gap in smaller trade zones and for tight sites. We remain keen for further new restaurants of all formats.” Acky Khan, chairman and chief executive of Gastronomy Restaurants, added: “We’re delighted to be able to open our second restaurant in Stafford, a town we love, providing the area with more of their favourite fried chicken. It’s been particularly exciting to innovate with our new little drive-thru design, which we hope you’ll love.” Gastronomy Restaurants is part of Gastronomy Foods UK, which is based in Shrewsbury and operates more than 40 KFC franchises across Wales, Cheshire, Staffordshire, Derbyshire and Nottinghamshire. It was founded by Khan and Subash Thamboo, who had previously worked in the KFC business in and around London since the 1980s, acquiring an initial seven restaurants in Shropshire. The company made a pre-tax loss of £2,473,546 in the year to 24 December 2022 compared with a profit of £5,121,142 in 2021. Turnover also fell from £70,699,996 in 2021 to £69,354,559, due to VAT rate changes, price increases and food and labour pressures. Gastronomy Foods features in the UK Food and Beverage Franchisee Database, the next edition of which will be sent to Premium subscribers in December. The database, which is sent bi-monthly, is the first time that profiles of the top food and beverage franchisees have been available in one place in the UK, and currently features 110 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.
Carl Traill has announced he is to stand down as managing director of south west-based operator Miss Millie’s Fried Chicken after five years in the role to “pursue new challenges”. Traill, the former director of operations at Burger King UK, joined the business at the start of 2019 and will step down on 22 December. Under his leadership, the business, which is backed by HBM Investments, has grown to 16 sites, launched a franchise offer and partnered with MFG, the UK’s largest independent forecourt operator. Traill, who was previously consultant chief executive at Burger King franchisee Millcliffe and CPL Foods, said: “Since joining Miss Millie’s, the last five years have been full of challenges, achievements and milestones, which I am hugely proud to have led the brand through. We have doubled the number of stores to 16, with a strong pipeline for new openings in 2024/25. We have rebranded, remodelled, developed new operations and training systems and launched a new menu, as well as secured a first-class supply chain to facilitate the brand’s future growth plans. I have no doubt that the company will continue to expand and take its awesome chicken to even more people across the country. My thanks and gratitude go to the owners James Harris, Amir Mashkoor and Jonathan Barton for their guidance, support, friendship and trust in me with the leadership of this amazing company. I would also like to thank the franchisees for working with us as we developed and grew the brand. And so it’s on to pastures new, where I am looking forward to getting my teeth into some exciting opportunities in the new year.”
Doughnut Time, which made its debut in Germany earlier this year, has secured its second site in the country. Following the launch of its first pilot store and bakery in June this year, Doughnut Time is expanding its presence in Berlin by acquiring the former Unilever/Ben & Jerry’s Ice Cream store in the Rosenthaler Platz district. The new site is scheduled to open in January 2024. Doughnut Time said it plans to open further retail stores in the city next year. In addition, Doughnut Time, which currently operates 13 stores in the UK, has increased its coffee focus in Germany. The company has entered a partnership with Bonanza Coffee, also based in Berlin, to enhance Doughnut Time’s beverage offerings.
Zula, the Istanbul-based burger concept, has partnered with Wagamama founder Alan Yau (pictured) to launch in the UK. The concept, which is the brainchild of Üryan Doğmuş and Cihan Kıpçak, is set to launch its first site in the UK next spring after securing a site near Marble Arch. It has acquired a site on Old Quebec Street, just off Oxford Street. Founded in 2017, Zula Burgers has since expanded from one stall at Harbiye to five outlets in Istanbul. The business said that an average of 70,000 people visit Zula every month. It plans to open further sites in the capital. The business has partnered with both Yau – the founder of Hakkasan, Busaba Eathai and Yauatcha – and Reha Arslan, of Yamabahce, to bring its plans to launch in the UK to fruition. Yau launched Yamabahçe, the concept centred around Turkish flatbread, in Marylebone, in 2018. Samuel Nassimi acted on behalf of Zula, while George Griffiths of Kenningham Retail acted for the landlord of The Portman Estate.
Indian restaurant group Kricket has secured new funding ahead of opening a fourth London site and further UK expansion. The business, which was founded by Rik Campbell and Will Bowlby in 2015 as a pop-up in a shipping container at Pop Brixton, is due to launch a new site in Canary Wharf next spring, having secured a new round of funding from existing backer White Rabbit Projects (WRP), alongside additional funds from the founders. Opening in Canary Wharf’s North Dock, the new Kricket restaurant will have 85 covers and be open for lunch and dinner, seven days a week. The adjoining Soma will mirror the “minimalist award-winning concept” of the group’s cocktail bar in Soho, with room for up to 50 guests and a license to open late. It comes as the business, which employs over 120 people, generated sales of £7.3m in 2022. As of 30 September 2023, it said that like-for-like sales are up 17% on the prior year. The business opened its permanent site in Soho in 2016 after receiving an initial injection of funding from WRP. This was quickly followed by the relocation of the Brixton pop-up to its current home on Atlantic Road (2017) and the launch of a new site in West London’s regenerated BBC Television Centre in White City (2018). During the coronavirus pandemic, the group introduced the brand’s first delivery-only concept (2021), which continues to deliver over 2,000 orders a week via an exclusive partnership with Deliveroo. Even more recently, in September 2021, it launched its debut cocktail bar, Soma, next door to Kricket Soho. 
Hospitality sales grew 5.6% year-on-year in the latest 12 weeks, according to analysis from HDI, the provider of card spending insight and pricing data to the UK hospitality sector. Pizza delivery, fast food and takeaway, and coffee and sandwich were the best performing sectors, all seeing double-digit growth over the 12 weeks ending 31 October 2023, with delivery sales close behind with growth of 8.2%. Pubs and restaurants saw low single-digit growth, with casual dining sales declining by 2.2%, according to analysis of HDI’s panel of 10.2 million unique customers. Mark Bentley, business development director at HDI, said: “We’re continuing to see headline inflation easing, with average prices versus six months ago up by 3.4% on food and 4.6% on drinks from our tracking of more than 165,000 like-for-like site/item combinations in pubs and bars. However, it’s been very notable that average transaction values have typically not increased at the same rate as headline inflation, with consumers managing their own personal inflation rates very effectively. With further inflationary pressures still to come, maximising spend per occasion through optimising price, mix and menu architecture is more important than ever for operators.” HDI’s panel tracks more than 160,000 individually identifiable hospitality venues across 350 different brands and formats.
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