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Morning Briefing for pub, restaurant and food wervice operators

Tue 30th May 2023 - Propel Tuesday News Briefing

Story of the Day:

Zia Lucia aiming to open first regional site in next 12 months, Berto expansion also planned but ‘more opportunistic’: London pizzeria brand Zia Lucia is aiming to open its first regional site in the next 12 months, ahead of planned growth around the M25. Propel revealed in February that Zia Lucia had appointed advisors to help it assess funding options for its next stage of growth, since when it has announced it will open its ninth site in the capital in mid-June, in West Hampstead. Co-founder Gianluca D’Angelo told Propel: “We have a very clear idea of what we’re looking for in terms of London expansion – areas like Wimbledon, Richmond, Hampton Court, Fulham, South Kensington, Chelsea are our target audience – and we are looking to potentially expand outside London, so we are in dialogue with some real estate operators to kick off our UK expansion. We have identified some areas we’d like to go to, probably more surrounding areas of London than too far away because we need to take care of the operations. We hope to open the first within the next 12 months, if not sooner. We’re doing a lot of analysis as to the best areas to target as it’s not just about a lease – we could find a lease tomorrow – and it’s a big area we will grow in over next 12-18 months. We’ve grown organically until now as we wanted to be careful to protect the product, the customer experience and the brand, and not make the mistakes some brands have of opening 50 locations and diluting the experience very quickly. The organisation is now more robust with a bigger management team, so we have the flexibility to grow more organically or inject more capital as we need if there is an opportunity. Capital has never been a problem for us because of our financial backgrounds, it’s about the right opportunity with the right skill set to exploit it.” Zia Lucia is also considering options for its pasta concept, Berto, which launched just before covid and so far has just one site, in Islington. “We were hoping to build a sister brand, and it was a bigger success than Zia Lucia when it opened, but then covid hit when the brand was very new,” D’Angelo said. “Pasta, unlike pizza, is much less of a delivery item, so during covid the sales at Zia Lucia remained 100% the same but transferred to delivery, while Berto suffered more. Now it’s reopened it’s been good, but we now need to weigh up the cost building Zia Lucia first or expanding Berto. We’ve also looked at bigger units where we can put both brands like in Islington. With Zia Lucia there is a clear pipeline, with Berto we’re more opportunistic at this stage. The beauty of it there’s less competition for quality homemade pasta, whereas with the pizza we need to be really careful where we open as lots of areas have a really good offering. For Berto, there is a plain field. We continue to look for units, but it’s a question of where do we prioritise and what is the right thing for the business? I wouldn’t discard the idea that we’re going to grow Berto in the next 18 months as well.”
 

Industry News:

Number of experiential concepts to feature in next edition of The New Openings Database, 5,600-word report included: A number of experiential concepts will feature in the next edition of The New Openings Database. The database will show the details of 121 newly announced site openings and upcoming launches for Premium subscribers when it is published on Friday (2 June), at midday, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis, and the next edition features boutique bowling company Lane7, led by Tim Wilks, which has lined up a second opening in Birmingham, in Link Street. Also added this month is Roxy Leisure, the operator of the Roxy Lanes and Roxy Ballroom concepts, which has launched new family bowling format King Pins, in Manchester’s Trafford Palazzo. Meanwhile, Otherworld, the Imbiba and Edge-backed immersive entertainment business, which has lined up a new opening in Manchester’s Spring Gardens, will be featured. In addition, Energize Games, a new immersive games concept from the team behind the Breakin’ Escape Rooms business, which has opened its debut site within the Islington Square development in London, will be included. Premium subscribers will also receive a 5,600-word report on the new additions to the database. Premium subscribers also receive access to four other databases: the Propel Multi-Site Database, produced in association with Virgate; the Propel Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; and the Who’s Who of UK Food and Beverage. 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 jo.charity@propelinfo.com to upgrade your subscription. Premium subscribers are also to be given exclusive access to the recording and slides to Propel Multi-Club Conferences. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Hugh Osmond – ‘the casual-dining chains, as was, are largely dead’: Hugh Osmond, the restaurant entrepreneur who invested in PizzaExpress and Punch Taverns and founded Various Eateries, has told the Financial Times (FT), “the casual-dining chains, as was, are largely dead”. As part of its report into how mid-market restaurant chains are struggling to recover from the pandemic, Osmond told the newspaper: “The casual-dining chains, as was, are largely dead. That doesn’t mean if you fast forward five years someone won’t have reinvented it …but what you won’t see is just the re-emergence of that broad-menu, middle-market, nothing remarkable type of casual dining.” He said cost pressures mean single restaurant sites with full service menus need to be making upwards of £30,000 a week to break even, which he argued was “basically unviable” for those outside marquee locations. Other options are to pivot away from table service to save on labour costs, like Nando’s, or slim the menu down to focus on one food item, Osmond added. Fellow entrepreneur Luke Johnson, with whom Osmond grew PizzaExpress fivefold to 200 sites after acquiring it for £13m in 1992, told the FT he thought casual dining had “peaked for this economic cycle at least” as “a hangover of debt and a lack of investment” resulting from the pandemic. Johnson, who earlier this month told Propel that lack of authenticity is scuppering some casual dining brands, called it “a bullish sign” for the sector that Japanese food conglomerate Toridoll is finalising a deal to buy Fulham Shore for £93.4m, with plans to expand. “The weak are disappearing but the strong are getting stronger,” added Johnson. Data from CGA by NielsenIQ and AlixPartners shows in the 12 months to March 2023, the number of casual-dining outlets across the UK fell 4.2% to 5,160, with “the squeezed middle suffering the most”, said Milly Camley, chief executive of the Institute for Turnaround, the trade body for advisers helping distressed businesses avoid bankruptcy. “Either people are forking out on expensive treats or trading down, so anything in the middle is finding it really difficult.” Mark Selby, chief executive of Mexican restaurant chain Wahaca, predicted that cost pressures would lead “some fat to be trimmed away” in the casual dining sector. “If the quality starts falling away because you are cutting costs, which some businesses have been forced to do to avoid bankruptcy, then that becomes dangerous,” Selby added. “Mediocre always falls away, but if you can keep it innovative and original, then you will be okay.”

Upcoming rail strikes to cost sector £132m: The upcoming rail strikes will cost the sector £132m, UKHospitality has warned. Members of the Aslef union have announced plans to strike on Wednesday, 31 May and Saturday, 3 June, while an RMT strike on Friday, 2 June will involve 20,000 catering, station staff and train managers working for 14 companies. UKHospitality chief executive Kate Nicholls said: “The May half term normally represents a bumper week for hospitality. Unfortunately, we’ve seen time and time again that rail strikes put a significant dampener on any sales. Disruption throughout the week will cost £132m to the sector, bringing the total impact of the year-long strikes to an eye-watering £3.25bn. It’s critical for the public, workers and businesses that there is a resolution in this dispute as soon as possible.”

Rocketing potato prices could force fish and chips shops to close: Some fish and chip shops could opt to close after the cost of 25kg sacks of potatoes more than doubled to £20, Andrew Crook, president of the National Federation of Fish Friers, has warned. “People might just shut their shop due to all the other costs as well,” he said. “They were barely keeping their heads above water, so this is going to be a step too far. Some shops will close until potato prices settle down but some it may put under.” Crook added that the tightening of UK potato supplies could mean chippies having to source spuds from Cyprus or Spain, which could mean paying more than £30 a sack. Chippies buy potatoes in smaller quantities on the open market, so are more exposed to price moves than retailers and food manufacturers on long-term contracts, reports The Guardian. Even before this new pressure, the price of a fish supper in the UK rose to an average price of £9, up almost a fifth on a year earlier, with shop owners also hit by rocketing costs for fish, cooking oil and electricity. Mark Taylor, chair of industry group GB Potatoes, said growers had faced a “perfect storm” in 2022 as Brexit, covid and the invasion of Ukraine pushed up production costs, while smaller crop yields in the UK and Europe meant “a supply and demand equation going on as well”. While the UK is “90%-plus self-sufficient” in potatoes, the price of European processing potatoes, which are used to make many of the French fries eaten in the UK, is up 66% on a year ago at €420 (£365) a metric tonne, according to Mintec, the commodities data group. “As supplies have decreased over the course of the season, good demand for fresh potatoes and finished products has led to buyers competing for dwindling stocks,” Mintec analyst Harry Campbell said. “Chipping potatoes are typically not grown on contract, which means any rises in free-buy prices are fully reflected in the prices paid by the shops. This has meant that chippies have seen major increases with little to no price stability.”

FSB calls for increase in small business rates relief and VAT thresholds to boost tourist trade: The Federation of Small Businesses (FSB) has called for an increase in the small business rates relief and VAT thresholds, to help smaller firms make the most of the summer months. It said recent data from the latest Small Business Index shows there has been a big rebound in confidence in accommodation and foodservice, up 53.7 points to minus 17.8 points. The fact it remains in the negative zone highlights the challenges faced by the sector in the aftermath of covid-19, with 77% of small tourism and hospitality firms saying they carry some sort of debt compared with 59% pre-pandemic, the FSB said. It has now come up with a “Sunshine List” of urgent suggestions for the government and other policymakers to consider “to alleviate the burden on our tourism industry”. The small business rates relief threshold should be increased to £25,000 to remove 200,000 small firms out of the rates system, according to the FSB, while raising the VAT threshold from £85,000 to £100,000 could stop many tourism firms having to halt trading near the end of the tax year to avoid incurring additional costs. In addition, the FSB said transport needs to run smoothly this summer, and parking must be accessible on high streets, with tourist hotspots increasing park and ride. And energy firms should allow small firms who negotiated their contract at the height of the energy crisis to be able to “blend and extend” their contracts to take advantage of lower wholesale prices. FSB national chair Martin McTague said: “This summer presents a kaleidoscope of opportunities for small firms in the hospitality and tourism sectors across the UK. Small firms have already endured the profound impact of the pandemic and overcome numerous obstacles, and now they must navigate high inflation. The improvement in hospitality confidence indicates the first green shoots of recovery, but they need continuous care and support.”

UKHospitality backs proposals for UK-wide deposit return scheme: UKHospitality has backed proposals for a UK-wide deposit return scheme (DRS). The project was due to go live in Scotland this August but has now been delayed until March 2024 – a month after it goes live in the Republic of Ireland. Similar schemes are then set to go live in England, Wales and Northern Ireland in October 2025. The UK government is now likely to issue a conditional agreement that could permit Scotland to pilot a UK-wide scheme rather than individual ones. Conditions are expected to include the exclusion of glass and the standardisation of the deposit charge, bar codes and labelling. “We have maintained throughout this process that a UK-wide scheme is essential to make the DRS a success, particularly for businesses,” said UKHospitality Scotland executive director Leon Thompson. “Reaching this point, however, is once again indicative of the delays and uncertainty that have become synonymous with the DRS. Hospitality businesses have sunk millions into preparing for a scheme and will likely have to spend more once again to meet new requirements. For the sake of businesses, I hope we get a decision and clarity as soon as possible.”

BrewDog co-founder reveals finalists for £5m unicorn business funding: James Watt, co-founder and chief executive of Scottish brewer and retailer BrewDog, has revealed the five businesses to reach the final of the Next Unicorn competition – his search for the next billion-dollar business. Having whittled down more than 750 entrants, the finalists will be heading to Las Vegas, where they will find out who will be taking home a share of Watt’s initial £1m investment at BrewDog’s rooftop bar on Saturday (3 June). The exact amount to be invested in each company will be revealed at the Las Vegas final, with a minimum of £100,000 set to be injected into each of the winning businesses. There is also the potential for the companies to unlock a further £4m should they reach certain milestones. The finalists are: Basket, an app allowing shoppers to bookmark potential purchases from any site; Mous, which provides extra-protective cases and accessories for consumer technology; Tallow & Ash, which offers a range of planet-friendly laundry shampoos and conditioners; skincare treatment brand Uncouth; and insect-based foods business Yum Bug. The competition also allows members of the public to invest in the three chosen businesses via Crowdcube on exactly the same terms as Watt. 

Welsh pub offering new recruits £500 joining bonus to fill summer job vacancies: A Welsh pub is offering new recruits a £500 joining bonus in a bid to fill its job vacancies for the busy summer season. The Golden Lion in Newport, Pembrokeshire, has made the offer due to an expectation of being “very busy” over the coming months – its peak season for tourists visiting the Pembrokeshire Coastal Path. It is offering staff a hiring bonus if they work an average of 35 hours a week over a ten-week period, which will also be paid to existing staff, reports Wales Online. “As we are approaching our busy spring and summer season, we are recruiting for various roles, front of house, housekeeping and kitchen,” the pub’s owners said in a statement. “We have full time and part-time positions available. “We are busy during the summer months and are offering a £500 bonus payment to new and existing staff who work an average of more than 35 hours over the ten weeks of summer. We are also offering a second-tier bonus of £200 to employees averaging 30 hours a week for the same period.” Office for National Statistics figures earlier this month showed vacancies in the sector fell by 22% over the last year but remain at 132,000, which is still 48% higher than pre-covid levels.

Sector charity initiative raises £320,000 to smash last year’s total: Pedalling for Pubs, the industry-coordinated bike trek raising money for Only A Pavement Away and the Licensed Trade Charity, has smashed last year’s total of £274,000 by raising £320,000. The sum was raised by 26 riders from the hospitality industry who tackled more than 450km of hills and challenging terrain in April as they journeyed across Sri Lanka. Alongside the cyclists, the target-smashing total was achieved through supporting partners and sponsors including KAM, Greene King, Punch Pubs, Wireless Social, Lucky Saint, the British Institute of Innkeeping (BII), Airship/Toggle, Barclaycard and Fleet Street. The destination of Pedalling for Pubs 2024 has also been confirmed as Kenya, with applications now open. Organiser Katy Moses, managing director at KAM, said: “I’m stunned by the amount raised! Fundraising for the inaugural ride came in over a significantly longer period due to delays from covid, so we didn’t think we’d get close to the 2022 total. To not only reach last year’s total, but to smash it, is testament to how hard all fundraisers have worked and how much the industry has gotten behind this challenge.” The fundraising continues next month with the inaugural Pedalling 2 Pubs UK Edition, taking place between 9-11 June, with BII chief executive Steve Alton riding 240km across the Yorkshire Wolds, alongside 50 people from across the sector, in aid of the two charities.

Job of the Day: COREcruitment is working with a rapidly growing company in the hospitality industry seeking a head of marketing to join its client’s leadership team. As the driving force behind the marketing department, you will have the chance to shape and build your own team, supporting its ambitious plans for expansion and driving innovation in the experiential market. International growth is on the horizon. You will have a proven experience in B2C product marketing, with a wealth of industry knowledge in the hospitality sector. Expertise in digital, content, and advertising strategies across both online and offline platforms will be strongly required. The salary for the position is up to £80,000 and based in London. For more information on the role please contact gemma@corecruitment.com
 

Company News:

Whitbread tipped to sell around 250 pubs, M&B and Greene King tipped as suitors: Whitbread is looking to sell circa 250 of its pub restaurants, which operate under brands including Beefeater and Brewers Fayre, and is working with advisors Goldman Sachs on its options. Sky News reported last week that Premier Inn owner Whitbread was laying the groundwork for a sale of part of its £700m pub and restaurant arm. It is understood to have hired advisers to explore options for the division, amid concerns that poor food and drink sales are weighing on the wider business. Sources said discussions are at a preliminary stage and may not result in the business being offloaded, and insisted only a “small part” of Whitbread’s food and drink operations was under consideration. It follows a warning in Whitbread’s recently published annual report of “the increasing divergence of performance of the hotel business and the food and beverage business”. This could have a detrimental effect on the premium charged by Premier Inn for rooms compared with its rivals, Whitbread said. Whitbread’s accommodation group sales grew by 27% in the year to March compared with a year earlier, while food and beverage sales by 4%.” At the end of FY23, Whitbread, which also operates the Bar + Block, Cookhouse & Pub, and Whitbread Inns concepts, had circa 425 pub restaurants that were standalone/collocated next to a Premier Inn, with the remaining 374 integrated inside hotels. There are around 100 sites where a third-party operator provides the F&B, of which Greene King is by far the largest, given its acquisition of Spirit, which owned the original Premier Lodge budget hotel business created by S&N and Greenall. Subsequently, Greene King, Mitchells & Butlers and RedCat Pub Company have been put forward as possible suitors for some or all the proposed pub-restaurant portfolio. In 2006, M&B bought 239 pubs from Whitbread in a £497m deal, while two years later it exchanged 21 Holiday Inn Expresses for 44 Whitbread pub restaurants. Last September, RedCat, the investment vehicle from ex-Greene King chief executive Rooney Anand, appointed former Whitbread managing director Phil Birbeck as its new chief executive. Birbeck was managing director of Whitbread’s pubs division for more than five years.

Kibou to open largest site yet, focused on expanding the brand over the next five years: Kibou Restaurants, the Japanese concept led by Regent Inns founder David Franks, has secured its fifth and largest site to date, in Cambridge, and said it was focussed on expanding the brand further over the next five years, Propel has learned. Located in the heart of Cambridge within the grade II-listed building at 7a Jesus Lane, home to the Pitt Club, the brand will take up residence in the former Pizza Express site. The company, which already operates sites in Cheltenham, Battersea, Clifton, and Solihull, will open the new 150-cover bar and restaurant later this summer. The site will comprise a cocktail lounge and dining area that also features an open sushi and hot kitchen, and a marble-topped cocktail and spirit bar. There will also be two dining rooms and a standalone bar serving signature Japanese-inspired cocktails; no-and-low options; Japanese whisky, sake and umeshu; and Japanese beers. Sam Horswill, joint managing director at Kibou Restaurants, said: “We’re so excited to bring our brand to Cambridge and to open what will be our largest site in such an iconic and impressive building. We’ve long set our hearts on operating here, it’s spot on to our core demographic, so when the right site came along, we knew it was time. We’ve been fortunate to attract some incredible new talent for the restaurant and we’ll also be creating many more front and back-of-house job opportunities for the local area. Following the successful opening of Kibou Solihull last year, we remain firmly focused on expanding the brand over the next five years, with a further site already in the pipeline for 2023.” Franks, who founded Kibou in 2019, was that same year instrumental in the sale of Redcomb Pubs’ 15-strong pub estate to Young’s.

Latest Tavern Propco investment portfolio valued at circa £10m: The 14-strong pub investment portfolio placed on the market last week by Tavern Propco, which acquired the circa 370-strong commercial properties estate from Ei Group in 2019, is valued at circa £10m, Propel has learned. The properties, which are being marketed by Savills, are located throughout England and are being offered for sale individually or in small packages. The properties have an average unexpired lease term of 11.25 years and average rent of £57,072 per annum, and combined are understood to be valued at £10.2m. Many of the leases are subject to five-yearly open market rent reviews as well as annual uncapped Retail Price Index increases. The occupational businesses are unaffected by any sale. The 14 properties comprise the Boars Head, Crowborough; The Chequers, Old Loose Hill, Loose (asking price £1.365m); The Crown, Newbury Road, Kingsclere; Draughts, Eltham High Street, Eltham (£1.1m); Great Gatsby, Division Street, Sheffield; Horns, Bramfield Road, Datchworth; London Trader, East Beach Street, Hastings; New Inn, Parson Lane, Clitheroe; the former Olivo’s, St Thomas Square, Newport; Ship Inn, Burcombe Lane, Burcombe; Spice Merchant, Holloway, Malmesbury; Theobalds Arms, Kings Walk, Grays; Horns & Horseshoes, Foster Street, Harlow; and the Royal Oak Hotel, Town Lane, Neston (£850,000). In March, Propel revealed Tavern Propco, which was backed by Davidson Kempner and Global Mutual in its £348m acquisition of the circa 370-strong estate from Ei Group, had placed a 16-strong pub investment portfolio on the market, with a combined value of circa £12.6m.

Starbucks’ largest UK franchisee closes in on 100 stores with Reading opening: Starbucks’ first and largest UK franchisee, 23.5 Degrees, is closing in on 100 stores with an opening in Reading, Berkshire. The store, in Rose Kiln Lane, is 23.5 Degrees’ 98th in the UK. It follows the recent opening of two stores in a day – at Galley’s Corner in Braintree, Essex, and at the new £2.6m Agnes Street development in Stanley, County Durham. In January, 23.5 Degrees reported turnover increased to £74,979,078 for the year ending 31 August 2022 compared with £66,716,851 the previous year, while pre-tax profit was down to £8,057,651 from £10,004,677. The company said over the past 12 months, its pipeline of new stores has increased to 50 from a base of 25-30 in previous years, with a focus on drive-thrus. 23.5 Degrees features in Propel’s Turnover & Profits Blue Book. Its turnover of £74,979,078 in the year to 31 August 2022 is the 94th highest in the database. Its pre-tax profit of £8,057,651 is the 66th highest in the database. 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 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 jo.charity@propelinfo.com to upgrade your subscription.

The Sidemen to open first high street restaurant as part of expansion plans: YouTube collective The Sidemen are set to open their first standalone high street restaurant this year as part of plans to expand their Sides fried chicken brand. The group, which has 18.5 million subscribers, first launched the Sides brand for delivery only in late 2021 and has since expanded into food courts. It has now revealed plans to expand it to a further ten locations in 2023, in a move that will expand its footprint to northern England and Scotland and create around 100 jobs. They have not disclosed exact locations for the sites but confirmed it would include the group’s first standalone high-street restaurant. Sides is a part of Virtual Hero Group, a subsidiary of German Doner Kebab and Island Poke owner Hero Brands. Virtual Hero said it hopes the brand can expand to 200 sites over the next decade as part of a long-term growth strategy. Robin Mehta, chief executive of Sides, said: “We are keen as a brand to keep evolving, and our new high street restaurants will do that, alongside furthering our reach in the UK as part of our larger growth target of 200 Sides sites globally in the next ten years. The virtual locations have allowed us to rapidly reach more people across the nation, but we are thrilled to expand our brick-and-mortar offering this year. The high street restaurant is a fresh concept for creating a new form of engagement for fans.”

Chipotle founder to launch robot-powered fast-food concept: Chipotle founder and ex-chief executive Steve Ells is reportedly planning to launch a robot-powered fast-food start-up, named Kernel. The New York Post reported that Ells has been pitching the business idea for to investors since at least last year. The new plant-based start-up aims to operate restaurants with as few as three employees. It intends to “revolutionise technology, labour, real estate and menu, and implement automation with a human touch”. The operations will likely feature three employee workstations, computer screens, and robotic arms. The restaurants will employ slots and chutes to move food through an assembly line. The first store is expected to be launched later this year, with Lower Manhattan mentioned as a possible debut location. Ells will self-fund the company before a planned fundraising round. The start-up is expected to attract between $30m and $50m in the initial round, the publication said. The business aims to operate its stores with sizes as small as 800 square feet. It said: “Kernel intends to open doors with a material smaller footprint than fast food and fast casual incumbents.” The automated kitchens will offer cuisines ranging from acai bowls, wraps and salads to hamburgers, pasta and pizza.

Josh Light promoted to MD of The Sababah Company: The Sababah Company, which is backing Israeli chef Eyal Shani’s expansion plans, has promoted Josh Light to managing director, Propel understands. Light had been director of people at the business, which includes Ramy Goldstein, the former vice chairman of UBS, as a shareholder, for the past year. He previously worked at The Curtain Hotel & Members Club and Firmdale Hotels, where he was head of people and development. Shani recently added to his growing London portfolio with the opening of upscale restaurant Lilienblum in City Road, east London, adding to the two restaurants under his Mediterranean-inspired street food concept Miznon. Propel reported last month that The Sababah Company plans to open ten restaurants in London with the chef, across five brands, over the next three years. Shani is also set to launch a restaurant under his Seven North concept at the new Sircle London hotel in Devonshire Square this autumn. At the same time, he is looking to open a site under his fine dining restaurant HaSalon concept in the capital this year and has been linked with the ex-Joy site in Portobello Dock.

Greggs to open concessions in Sainsbury’s stores: Food-to-go operator Greggs and Sainsbury’s have partnered for the first time for an in-store concession. The new Greggs shop has opened inside a Sainsbury’s Biggleswade petrol station, located in Biggleswade. Both the baked goods retailer and the supermarket chain are expected to open further concessions together later this year throughout the UK. Greggs property director at Tony Rowson said: “Our opening at Biggleswade will be our first with Sainsbury’s as we expand and diversify our retail estate as part of our ambitious property strategy. The opening will allow us to provide Greggs’ favourites to even more customers, in a format that complements Sainsbury’s existing petrol station offer.”

7Bone Burger opens new Southampton location following restaurant fire: 7Bone Burger has opened a new location in Southampton following a restaurant fire. A blaze in its Portswood Road premises in July last year forced its closure after nine years. The company is now set to open a new location in the city, in Bedford Place. It said: “In the beginning (ten years ago) we created the mothership in Southampton. She served us well for nine great years and created the blueprint for what has followed. A year ago, she suffered a huge fire and took her out of action, but we are happy to announce we are coming back bigger and better. Unfortunately, it will be a different location, so Southampton peeps, keep your eyes peeled for a new location in Bedford Place.” 7Bone Burger also has locations in Bournemouth, Camberley, Coventry, Hove, Newbury, Northampton, Portsmouth, Reading and Staines. In November 2022, Propel revealed the company had secured new investment after concluding a restructure, which included a pre-pack administration and the closure of two sites – in Maidstone and Eastbourne. It is now backed by a new entity led by Kings Park Capital.

Black Sheep Brewery acquired by Breal Group: Black Sheep Brewery has been acquired by investment firm Breal Group, in move which the Yorkshire brewery and pub operator said would “protect jobs”. Black Sheep announced at the start of May that it would be appointing administrators after struggling to attract investment. Breal soon emerged as the leading contender to acquire the brewery, which was founded in 1992 by Paul Theakston and operates four pubs. The sale has now gone through, with the new Black Sheep Brewing Company trading as Black Sheep Brewery and continuing to produce its beers. A spokesperson for the new Black Sheep Brewing Company said: “We are pleased to announce that Black Sheep Brewery has been acquired by the Breal Group and has become Black Sheep Brewing Company, trading as Black Sheep Brewery. This marks the next chapter in the history of Black Sheep as we look to grow the business in a sustainable way. Our team will continue to produce great beers from our landmark brewery in Masham, North Yorkshire and we look forward to welcoming bank holiday customers and tourists to all our retail sites this weekend. Breal has a proven track record of successfully transforming and growing the businesses it acquires through the private capital, operational resources, and strategic expertise it brings and we look forward to working closely with the team.”

Lakeland Inns enters liquidation: Cumbrian pub group Lakeland Inns has entered liquidation, with debts to creditors totalling more than £830,000. The company, under director Amy Mackenzie, has appointed Leonard Curtis of Preston as voluntary liquidator. The company ran the Royal Oak in Curthwaite, the Black Cock Inn in Broughton, Clarke’s Hotel in Rampside, The Commodore Inn in Grange and The Sun Inn in Ulverston. All of the pubs, except the Black Cock Inn, are currently still trading, reports The Northern Echo. The group’s Statement of Affairs details debts of £837,453.14 and company assets of £439,393. It also has an unpaid tax bill of £374,425 and an outstanding loan with HSBC totalling £212,500, among other debts.

Paddy & Scott’s alumni opens cafe with support of former employer: Rosie Culley, a former employee of independent coffee shop operator and wholesaler Paddy & Scott’s, has opened her own cafe – with help from her previous employer. Culley has launched Rose + Thorn in Main Road, Harwich, offering a menu of cakes and pastries, alongside barista coffee. She was supported by the Paddy & Scott’s team with putting together her business plans and profits and losses, as well as help with branding, suppliers, loans, contracts, coffee, and equipment. Culley said: “I used to drop by this café before heading to the train station for work. When it closed down, I knew I had to make it happen. Harwich may be a small town, but it has a large community at its core. I have gained a lot of knowledge, and to come back to my roots and provide a new perspective and offering to this incredible community means a great deal to me.” Jon Reed, chief executive of Paddy & Scott’s, added: “Rosie is the eighth employee we’ve helped set up their own business in recent times – we’re not just about selling coffee, we’re committed to fuelling ambition.”

Latino fried chicken concept El Pollote to open debut bricks and mortar site: Latino fried chicken concept El Pollote is to open its first bricks and mortar site. El Pollote will launch in London’s Carnaby Street on the back of its success at Seven Dials Market, which is operated by street food collective Kerb, and Camden Market. The new opening is part of El Pollote’s plans for wider expansion across London. The 40-seater restaurant, which will feature a terrace with 20 seats, will offer El Pollote’s signature Latino fried chicken and a choice of sauces, alongside a selection of small plates and sides. Downstairs will be a bar featuring a range of Latino-inspired cocktails and craft beer. Founders Katherine Delgado and Rotsen Ibarra said: “We are thrilled to extend our flavour-filled journey to Carnaby, in the form of our first bricks and mortar site, where we can introduce more foodie fans to the vibrant and bold cuisine offered at El Pollote.” After moving from Venezuela to the UK, Delgado and Ibarra launched Venezuelan arepa bar Petare in 2014. They launched El Pollote, with support from Kerb’s “inkerbator” programme, and traded with the concept across multiple Kerb markets from 2016 before being granted a permanent spot with Kerb at Seven Dials Market in 2019.

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