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Morning Briefing for pub, restaurant and food wervice operators

Mon 19th Feb 2024 - Propel Monday News Briefing

Story of the Day:

Mitchells & Butlers launches Orleans Smokehouse concept, expects ‘to see it grow across the UK’: Mitchells & Butlers (M&B), the All Bar One, Toby Carvery and Harvester operator, will today (Monday, 19 February) launch its new Orleans Smokehouse format, near Solihull, and said it expects “to see it grow across the UK”. The new concept will open on a converted Harvester site in Shipley. Orleans Smokehouse said it will offer “big, smoky flavours and a great atmosphere for all the family” when it opens from 10am on weekdays and 9am on weekends. The concept will smoke meat “low and slow” through the night to make it “tender, juicy and bursting with taste”. Dennis Deare, who was operations director for Old Orleans previously and is now leading the development of the concept, said: “Orleans Smokehouse's roots tie back to 1985 when the first Old Orleans restaurant opened. We are ambitious about this modern reinvention, which places an emphasis on big flavour and big hospitality, and we expect to see it grow across the UK. Orleans Smokehouse is more than another restaurant: it's a celebration of Southern culture, good food, and bringing people together. We’re excited to open in Solihull.” Last October, Phil Urban, chief executive of M&B, told Propel he always wanted to bring back Old Orleans. In 2022, Urban told Propel that M&B had thought about exploring an “Old Orleans-type” of format as part of a number of ideas it had been looking at over the years, even before the pandemic. The Orleans Smokehouse menu will feature starters, which range from £6.25 to £8.50, which include smoked pulled pork tacos, popcorn brisket bites and classic corn dogs. Mains will include a selection of ribs-focused dishes, with a half rack priced at £16.99 and a full rack at £23.99. There will also be a selection of Po-boys – sandwiches originating from Louisiana – ranging in price from £12.99 to £16.99, fajitas, and “backyard” burgers, which range in price from £14.50 to £18.50, including fries and house slaw. There is also a selection of “Orleans Classics”, including gumbo and jambalaya, and “The Ultimate Smokehouse Platter”. The latter is described as a “feast of USDA brisket, baby back ribs, pulled pork, barbecue pit beans, smoked wings, cheese and jalapeño sausage and beef short rib. Served with mac ‘n’ cheese, smokehouse slaw, pickles, fries and beef dripping gravy” – and is available at £29.99 for one person and at £54.99 for two. The concept will also feature a kid-friendly cinema room, create your own desserts, and outdoor play spaces. Later this month, Greene King will open a site under its Hickory’s smokehouse brand, which it acquired in 2022, in nearby Earlswood. A Greene King spokesperson said: “They do say that imitation is the sincerest form of flattery and so we’d like to wish M&B all the best with its latest venture.”

Industry News:

Sponsored message – Food Alert launches technical advisory board to keep hospitality sector ahead of the curve: Food health and safety consultant, Food Alert, has launched a new independent technical advisory board, established to provide the sector with the most up-to-date information on legislation, best practice, and future challenges. This team of subject matter experts will convene every month to share the latest insights from their respective fields and feed into the information that Food Alert provides to its clients. The board’s scope includes food safety, nutrition, health and safety, carbon capture and sustainability, with a dedicated sub-committee for each area. The sub-committees will identify key issues, upcoming legislation, and new research in each sector, contributing to Food Alert policies and templates to ensure they best reflect and assist clients with the latest challenges facing their business. Board members will also author articles, whitepapers and run webinars, lending their expertise to unpack new developments in policy and best practice. David Bashford, managing director at Food Alert, said: “Food safety regulations are increasing in number and complexity, making compliance a serious challenge for our large-scale clients at Food Alert. The technical advisory board ensures that the advice they receive from us is cognisant of the latest developments in a digestible and actionable format.” To find out more, click here. If you have a sponsored message you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.

The Salad Project co-founder Florian de Chezelles to speak at first Propel Multi-Club Conference of 2024, open for bookings: Florian de Chezelles, co-founder at The Salad Project, will be among the speakers at the first Propel Multi-Club Conference of 2024. More than 350 people have booked for the conference, which takes place on Thursday, 21 March, at the Millennium Gloucester Hotel in London’s Kensington, and is open for bookings. De Chezelles – whose business was voted the top restaurant in the UK and Ireland as part of Uber Eats' Restaurant of the Year Awards, receiving £100,000 to build and expand – talks about launching a next generation salad bar concept into the highly competitive central London market. Operators can book up to three free places per company while Premium Club members who are operators can book up to four free places. To book, email kai.kirkman@propelinfo.com.

Next Propel Multi-Site Database to be sent to Premium Club members on Friday, grows to 3,061 businesses: The next Propel Multi-Site Database of multi-site companies, produced in association with Virgate, will be sent to Premium Club members on Friday (23 February), at midday. The database has now grown to include 3,061 multi-site operators, which operate 71,344 sites. An additional 14 companies, which operate 130 sites between them, have been added during February 2024. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the New Openings Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. Plus, all members will be offered a 20% discount on tickets to five Propel paid-for events – The Excellence in Pub Retailing Conference (14 May), Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators will also be 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 a supplier. Email kai.kirkman@propelinfo.com today to sign up.

Quarter of hospitality businesses have run out of money as VAT cut tops priority asks: A joint survey by UKHospitality, the British Beer & Pub Association, the British Institute of Innkeeping and Hospitality Ulster shows that a quarter of hospitality businesses have no cash reserves and a further 29% have less than three months’ worth. The research, which surveyed hospitality businesses from 15 January to 1 February 2024, also found 98% have seen food and drink costs increase; 96% have seen wage costs increase; 98% are concerned about the national living wage rise in April; and 85% have seen their energy costs increase. The rising costs experienced by businesses have left almost two-thirds (64%) not optimistic about their business’ prospects for the next 12 months, an increase of 6% compared with October 2023. Respondents were clear about their priorities for government action at the forthcoming Budget, with 94% prioritising a lower rate of VAT. A lower business rates multiplier for hospitality (80%) and business rates reform (71%) rounded off the top three priorities. Reducing employer national insurance contributions (51%), further energy support (48%), capping the business rates increase in April (44%) and reducing the rate of alcohol duty (44%) were also popular among respondents. In a joint statement, the trade bodies said: “These results clearly show the perilous state our pubs, restaurants, hotels and cafes find themselves in. The fact that a quarter have run out of cash reserves is a real cause for concern. Those businesses are extremely vulnerable to the slightest shock forcing them to shut their doors for good. We’ve already seen too many good businesses shut up shop and that has left cities, towns and villages without a vital community asset. These businesses need urgent support. Hospitality is the foundation of the everyday economy and absolutely vital in the services they provide. Measures to help the sector won’t just keep businesses afloat, but it will inevitably lead to further investment from the sector, which has a proven track record of driving economic growth, creating jobs and creating fulfilling careers. It’s clear that practically no business has been immune to the relentless price increases that have plagued the sector and can absorb costs no longer, with many already forced to pass these on to customers. If the government wants to avoid further inflationary price rises for the public and further closures across hospitality, it needs to heed the message from our members to act now. Addressing the looming business rates increase, implementing a lower rate of VAT for hospitality and cutting duty would be good news for businesses, consumers and the economy. We urge the chancellor to act at his Budget next month.”

Foreign worker visa changes will hurt pubs, restaurants and UK economy, warns Cobra beer founder: Changes to foreign worker visas will hit the hospitality industry and prevent the British economy from growing, a beer tycoon has warned. The Evening Standard reported that crossbench peer and Cobra lager founder Lord Karan Bilimoria said the new wage thresholds, due to come into force in March and April, would put further strain on the labour market. The minimum salary required for those arriving in the UK on a skilled worker visa will rise to £38,700, from £26,200, on 4 April. Lord Bilimoria told the House of Lords: “In my own business of Cobra Beer, in the hospitality industry, we supply 7,000 restaurants – a £54bn industry in terms of tax receipts alone, employing 3.5 million. The changes to the immigration system, set to be implemented in April, mean that the minimum salary needed to get a skilled worker visa will rise from £26,200 to £38,700. That will further shrink the talent of good people that the hospitality business needs. The reality is that 75% of hospitality jobs are domestic, but we still need to recruit from abroad. How is our economy meant to grow without access to labour?” The Home Office announced in December that there would be a wave of new restrictions on people coming to Britain, and their family members, in a bid to bring down legal immigration. The reforms include significantly hiking the minimum wage needed to obtain a visa and restricting some migrant workers from bringing family members to the UK with them. However, any skilled worker visa applications received before 4 April will be accessed under the old rules, the government has said. Law firms reported a steep increase in the number applications as companies race to get them in before the changes. Kelvin Tanner, partner at Charles Russell Speechlys, said the biggest rise had come from the hospitality industry. 

Guest experience has ‘virtually no impact’ on tipping habits, US study shows: Guest experience has “virtually no impact” on tipping habits, according to new data gathered in the US by guest experience management platform Yumpingo. It compared its customer satisfaction data against point-of-sale sales data to analyse tip percentages against net promoter scores (NPS), with the analysis coming from more than a million guests across hundreds of full-service restaurants in 48 states. It found that while guests who had a great experience (5/5) tipped an average of 19.38% on their bills, those who had a terrible experience (1/5) only tipped marginally less at 19.02% on average. There was also virtually no difference in tips received from guests who had neutral experiences (4/5) compared with a great experience (5/5). It also showed the positive effect that upselling had on guests, with those who were simply given dessert menus not only spending more money but leaving an NPS nearly 40 points higher than those who weren’t. However, the data also showed that if cross-selling is done ineffectively, or perhaps too aggressively, it could drive customers away for good. Matt Holy, Yumpingo’s director of strategic projects, said: “In identifying that tip percentages are relatively stable, regardless of how much guests enjoyed their experience, you could argue that a system designed to incentivise great service has morphed into a system that incentivises driving average transaction value and turning tables quickly. The data suggests that in order to truly be a ‘rockstar’, an element of genuine hospitality is still required. While increasing average transaction value can have great short-term benefits for the server and for the restaurant, this alone will not keep your guests coming back again and again. Anyone can suggest the most expensive dish on the menu, but a ‘rockstar’ will read their table and suggest the right items at the right time to the right people. It’s about adding value to your guests, not simply adding to their bill. While finding this balance may be tricky, especially for servers who are in it for the short-term reward of tips, guests will thank you in the long run by becoming some of the best brand advocates you could ask for. The outcome must be to encourage upselling in a way that enhances guest sentiment.”

Dame Karen Jones – entrepreneurs need to be able to say what their business is about in one sentence: Dame Karen Jones, who co-founded Café Rouge and is currently chair of Hawksmoor, has said entrepreneurs will be better placed to inspire their staff and customers if they can “define, quickly and clearly, the essence of what their company can offer” through what she calls the “one-sentence test”. Writing in the Sunday Times, the ex-chief executive of the Spirit pub group and current non-executive director at Mowgli, said: “Do you have that clear-eyed vision – the single, simple sentence that contains within it the distillation of all your thoughts? It’s very difficult to pass this ‘one-sentence test’; it has to be memorable, it has to be short, and you must love saying it (you will say it a lot), and so must your people. It is your ‘what’, expressing the essence of what you are as a company – and if you aren’t clear about that, why should customers buy into what you offer? I love working with entrepreneurs. Their energy and belief is infectious, creating momentum at best and chaos at worst. To avoid the latter, alignment and structure are essential – and this is where the one-sentence test comes in, as all else flows from it. You can’t write a marketing plan – or a product or people plan – without knowing what you are. That vision can be a factual statement. Café Rouge was centred on ‘straightforward French cooking at value-for-money prices’; Hawksmoor creates ‘world-class restaurants in world-class cities’. And by the way, when I wanted to check that Café Rouge sentence, I asked a business colleague and friend who was also our first Café Rouge employee, and she fired it straight back without hesitation. We can of course get into ‘mission’ and ‘vision’ statements should we wish to. Vision is the wider, more all-embracing aim – for me, it is ‘every customer leaves wanting to return’; for Google, it is ‘to provide access to the world’s information in one click.’ The mission statement, meanwhile, is the one sentence that guides the actions of the company. But whether you opt for both or just one, the sentence is the thing that, if right, will help guide your enterprise forward, course-correcting as needed, through thick and thin.”

UKHospitality backs Euros licensing extension: A blanket relaxation of licensing hours for the semi-final and final of the 2024 men’s European Championships will benefit football fans and businesses alike, UKHospitality has said. The Home Office is proposing a blanket relaxation of licensing hours if any of the qualifying home nations reach the semi-final or final of the tournament. Licensing hours for these games are proposed to be extended to 1am in England and Wales, which will be particularly important for any games on a Sunday, including the final, the trade body said. On Sundays, many venues are only licensed until 10.30pm. Kate Nicholls, chief Executive of UKHospitality, said: “Big sporting events, like the Euros, bring huge crowds into pubs and bars to cheer on the home nations and deliver a significant sales boost to venues. An approved blanket extension of licensing hours until 1am for these key matches will remove unnecessary hoops for pubs to jump through at the last minute and that is why we wholeheartedly support this relaxation. We’re also supportive of the private members’ bill currently in parliament, to make this process even easier in the future. The relaxation will allow hospitality to be at the heart of events and, hopefully, celebrate the great progress the home nations will make in the Euros this summer.”

Job of the day: COREcruitment is working with a food manufacturer that is seeking a corporate sales manager. A COREcruitment spokesperson said: “You will be responsible for kick-starting the business-to-business side of the business and driving sales for the corporate events and celebrations market. This is a new position within the business, and it is looking for resilient, ambitious, and hungry corporate sales manager that it can build the team around.” The salary is up to £70,000 and the position is based in London. For more information, email mikey@corecruitment.com.

Company News:

Punch reports all three divisions delivering like-for-like sales growth, trading to date 'encouraging': Punch Pubs & Co, the Fortress Investment Group-backed business, has reported that all three of its divisions (leased and tenanted, management partnerships and Laine Pub Co) saw strong like-for-like sales growth in the ten weeks to 11 February 2024. The Clive Chesser-led business said trading in its second quarter to date has been “encouraging with profitability materially ahead of the prior year”. The group said it expects to benefit from inflation positively impacting leased and tenanted net income together with the improving margins and the “benefit of maturing sales and profitability in the pubs converted to its management partnerships estate since August 2021”. The business reported total revenue of £96m for the 16 weeks to 3 December 2023 (2022: £92m). It said all three divisions delivered like-for-like sales growth for the 16-week period compared with the prior year. Underlying outlet Ebitda for the pub estates (management partnerships, leased and tenanted and Laine) before central costs increased by £2.3m to £33.5m. Underlying Ebitda for the 52 weeks to 3 December 2023 was £83m (2022: £76m). The company said: “As noted in previous reports, having converted 71 pubs from leased and tenanted across to the management partnerships division since August 2021, the rate of pub conversions has slowed down as we take time to select and build the next pipeline of pubs for transformational investment and conversion, taking learnings from the successful conversions we have completed to date. We have now identified the next tranche of pubs to convert to the management partnerships model, having identified a population of up to 70 pubs that would be suitable for conversion. Future conversions would be expected to achieve a return on investment of between 20% and 30% and would be phased progressively over a three-year period. During the most recent quarter we have transferred a small number of pubs to the leased and tenanted division, representing pubs with lower sales revenue opportunity that are better suited to a leased and tenanted model.” The group disposed of seven pubs in the quarter to 3 December 2023, generating proceeds of £4.1m, at £1.7m above book value. As at 3 December 2023, the group had £54.1m of available liquidity (13 August 2023: £60.3m), represented by £4.1m of cash and cash equivalents and £50m undrawn against the revolving credit facility.

Pret slashes sandwich prices: Pret A Manger has slashed the price of its best-selling sandwiches. Six of Pret’s most popular products have had price cuts, with some sandwiches reduced by as much as £1. This includes the tuna baguette, which has been reduced from £4.25 to £3.99, and the posh cheddar baguette, down from £4.99 to £3.99. The price of its cheese toastie has also been cut by 66p to £4.99, while its egg mayo sandwich has also been reduced from £3.40 to £2.99. It comes after Pret was forced to defend price rises over the past two years. The company’s shops and franchise director, Guy Meakin, said last October that the company had always been “transparent” with its customers. Pret chief executive Pano Christou also blamed the price rises on the cost of inflation, which has hit labour, materials and energy. Pret has also increased the cost of its subscription service, which allows members five barista-crafted drinks per day, from £25 a month to £30. This helped Pret return to profit in 2022 after suffering a £225m loss during the pandemic. It currently runs around 450 stores across the UK and expects to reach 500 in 2024. As part of its expansion, Pret is opening stores in more rural areas and commuter towns. Clare Clough, managing director of UK and Ireland at Pret, said: “We are looking for opportunities to reduce our prices where possible. Earlier this year, we reduced the prices of six of our best-made freshly made sandwiches and baguettes by an average of more than 10%, including the much-loved tuna mayo baguette and Jambon Beurre. Our Club Pret customers will also receive an additional 20% off these products as well as our entire menu.”

Chipotle plans Fitzrovia opening: US brand Chipotle is planning to further increase its presence in central London, with an opening in Fitzrovia. Propel understands that the business, which opened a new site in Uxbridge earlier this month, is set to take on the former Le Pain Quotidien site in Tottenham Court Road, which closed last year. Chipotle currently operates 19 sites in the UK – 17 in London plus one each in Watford and Guildford. Earlier this month, it opened a new site in Uxbridge, at 48 High Street, in The Pavilions shopping centre. Speaking last month, Jacob Sumner, director of European operations at Chipotle, said: “Given the rising popularity of Chipotle across London, our expansion in the larger area remains a top priority for our international strategy.” 

Six by Nico eyes Oxford opening: Six Company, the company behind the Six by Nico restaurant business, is eyeing an opening in Oxford. Propel understands that Six Company is thought to have lined up an opening on the rooftop terrace at the Westgate shopping centre for its Six by Nico brand. The company currently operates 15 sites throughout the UK and Ireland. At the end of last year, it announced it was to invest £3m opening three new venues in Glasgow. The new openings included a new flagship Six by Nico Glasgow restaurant located in Merchant City, which subsequently opened last month, and a fish and chip restaurant and takeaway called Sole Club in Finnieston. The business will also make further investment at its Six by Nico site in the city’s Byres Road with the introduction of Somewhere by Nico – a new cocktail bar.

Private equity looks to check out of Village Hotels for £800m: An American private equity fund has kicked off an £800m auction of Village Hotels, one of the UK’s biggest mid-market chains. The Sunday Times reported advisers to KSL Capital Partners have begun marketing Village Hotels by sharing “teaser” documents with interested parties, City sources said. Morgan Stanley, the investment bank, was selected last year by KSL, based in Denver, to explore options for Village Hotels, which is thought to be inviting offers in excess of £800m. KSL bought the chain for £485m from De Vere Group in 2014. It then had 3,100 rooms across 25 sites. Village Hotels has grown to 33 properties with more than 4,000 rooms. Proceeds from the sale to KSL a decade ago were used to repay Lloyds Bank, which acquired De Vere in a deal where debts of £1.75bn were swapped for equity to save the hotel group from collapse. KSL is understood to have decided to go ahead with the sale of Village Hotels following market soundings that suggested appetite from real estate investors. A City source said Village Hotels, which owns freehold properties, could attract interest from the likes of US private equity company Blackstone as well as Starwood Capital, based in Miami, which now owns De Vere. Originally called Village Urban Resorts when it was founded in 1995, the chain’s hotels have about 100 to 150 rooms and feature conference centres, pub dining, gyms and swimming pools. KSL declined to comment. Village Hotels did not respond.

Gourmet Coffee Bar & Kitchen closing in on 30 sites with two new openings: Gourmet Coffee Bar & Kitchen, which has sites situated within or near train stations across the UK, is closing in on 30 sites following two new openings. The business, founded in 2007 by Nick and Liz Garnell, has opened at Brockenhurst station and on platform four at Didcot Parkway, where it already has a site within the station’s ticket office. It now has 28 locations, with six more “coming soon” according to its website – in Derby, Hereford, Milton Keynes, Portsmouth & Southsea, Shrewsbury and Telford. In December 2022, Gourmet Coffee Bar & Kitchen acquired six sites from AMT Coffee after it was placed into administration. Gourmet Coffee Bar & Kitchen is understood to have paid £62,500 for sites in Weymouth, Wimbledon, Richmond and three at Cambridge station.

TriSpan-backed chicken and steak concept opens debut site: L'atelier Entrecôte & Volaille, the steak and chicken concept backed by TriSpan – the global private equity firm which backs Pho, Mowgli and Rosa’s Thai Café – has opened its debut site, in Paris. Propel revealed last May that TriSpan had invested in the concept, which has been developed by chief executive Hubert Lansac, through Rising Stars, its dedicated restaurant programme. The company will focus on a European roll out “capitalising on Hubert’s 30 years of experience in the sector”. It marked TriSpan’s 11th restaurant investment globally, and its fifth in Europe. The first site under the concept has opened at 128 rue Réaumur. It is understood that the business plans four to five new openings this year and is targeting a roll out in France, Luxembourg and Belgium. The concept said it offers “meticulously selected French beef or free-range chicken, perfect French fries, melt-in-your-mouth on the inside, crispy on the outside: that's the way you like them, all served with our famous irresistible secret sauce”. 

Wireless Social founder invests in influencer marketing platform Invyted: Julian Ross, chief executive and founder of Wireless Social, has become a strategic investor in Invyted, the influencer marketing platform. Ross, who started Wireless Social from scratch in 2013, sold the business to software firm Access Group at the end of last month. Invyted said that Ross will bring to the business a decade of experience in the hospitality and technology sectors. Invyted founder Asti Wagner said: “Julian built Wireless Social from the bottom up by creating smart solutions for hospitality businesses. It’s going to be great having his help as we grow.” Ross believes that the influencer marketing company has a big opportunity in the UK and internationally. He said: “Invyted is transforming how companies collaborate with influencers to grow sales, and to build the longer-term reputation of their brand.” Ross’ investment follows that of Leon founder John Vincent, who invested at the time of Invyted’s launch, and that of former Sainsbury’s chief executive Justin King last year. Both remain active advisors to the company. Invyted said it plans to be a global platform that brings together interesting brands with talented influencers in all sectors. Wagner said: “We want to make it easier for creative people and brands to share what they are up to. Too many great ideas don’t take off because people don’t find out about them. The Invyted community is here to stop great things being a secret and to help people lead more fun and interesting lives.” Invyted, which recently celebrated its first anniversary, has grown its community of influencers to more than 1,300 across the UK, with a total combined audience of in excess of 160 million.

Two Cotswolds pubs acquired by former Wadworth operations director reopen: Two pubs in the Cotswolds that were acquired last year by Rupert Bagnall, former operations director for the managed business of brewer and retailer Wadworth, have reopened. Bagnall’s Ebrington Collection bought The Harcourt Arms in Stanton Harcourt, near Witney, and the Plough in the village of Kelmscott, near Lechlade. The 17th century village pubs have been revamped and relaunched by brothers Olly and Will Oakley. Will is general manager of the two pubs, with head chef Olly running the kitchens. At the Harcourt Arms, the menu reflects his training in Catalonia, with Spanish influences in dishes such as wild mushroom coal-fired rice. At the Plough, the emphasis is more on British pub classics such as a double Gloucester soufflé or a 700g Porterhouse to share, reports Harden’s. Bagnall was operations director of Wadsworth's managed houses from 2006 to 2019 and then joined Barkby Group as director of operations before leaving in May last year to launch Ebrington Collection.

Country club group narrows losses as membership levels grow and demand remains strong for health and golf activities: The Club Company, which owns and operates circa 15 country clubs in the UK, narrowed its losses in the year to 30 September 2023 as membership levels grew and demand remained strong for health and golf activities. The business operates clubs including The Essex in Colchester, Woodbury Park in Exeter, Wharton Park in Kidderminster, Whitney Lakes near Oxford and Chesfield Downs in Hitchin. Director David Smith, in the company’s accounts for the period, said: “The group was pleased to see its membership continuing to prioritise wellness, with demand remaining strong for both health and golf activities. Health membership increased above pre-covid levels, and the covid-related surge in golf demand continued unabated. Membership subscriptions increased 12.5% versus the prior year with membership levels 4.3% higher at the end of September 2023 than the equivalent prior year month. Operating revenue increased 5.7% driven by general demand and the impact of capital investment in the current and prior year. Beyond the balance sheet date, membership levels declined marginally versus the September 2023 closing position, as would be expected following the annual price increase in October. However, they remain significantly ahead of the same period in the prior year. Monthly subscription revenues have continued to grow, despite this small headcount reduction, mainly as a consequence of price changes.” The company’s pre-tax loss narrowed from £8,126,000 in 2022 to £6,341,000 in 2023. Turnover was up from £55,772,000 to £60,922,000 while group Ebitda increased from £11.5m to £13.0m. Alongside a programme of improvements across its estate, the group started work on a new health club at Cams Hall, due to open in the winter of 2024. The group reported a net asset position of £2.3m, inclusive of £3.7m of deferred income, compared with a net liability position in 2022. The clubs’ fixed assets were revalued at £177.20m compared with £155.75m at the end of the previous financial year. “The group delivered strong year-on-year growth and, pleasingly, no drawdown of the agreed £2m revolving credit facility was required during the financial year,” Smith said. He added that the group is “seeking to capitalise on other unutilised planning consents within the estate as well as looking towards new acquisition opportunities”.

Maison François team to launch new French-inspired café in Borough Market: The team behind Maison François in London’s Mayfair is set to launch a new French-inspired café in Borough Market. Restaurateur François O’Neill opened brasserie and wine bar Maison François at the former site of Green’s Restaurant & Oyster Bar in 2020. His team will now open Café François this autumn, drawing influence from the classic cafés of Paris, the contemporary delis of California and the stylish bistros of Montreal. On the ground floor will be a deli counter, rotisserie, open kitchen and dining room, while on the first floor will be two further dining rooms. O’Neill, along with executive chef Matthew Ryle and Ed Wyand heading up front of house, are creating a menu that “pays homage to much loved affordable French classics, while also embracing global influences and flavours”. This includes rotisserie chicken sliced to order and added to baguettes, sandwiches or fresh salads, alongside the likes of steak sandwiches laced with Béarnaise sauce; Toulouse sausage with lentils; Vadouvan monkfish curry; and whole lobster frites to share. There will also be an international wine list and classic cocktails. O’Neill said: “Following the opening of Maison François, we had our eyes on a second site and couldn’t have found a more perfect location. Borough Market has a real neighbourhood feel to it as well as being a hub for visitors too. We have travelled around different cities, both in France, Canada and the USA, bringing together different iterations of cafe culture to create something we think everyone will enjoy.”

Deal operators to open Japanese-inspired restaurant and natural wine bar: The husband-and-wife team behind The Rose in Deal, Chris Hicks and Alex Bagner, are launching a Japanese-inspired restaurant and natural wine bar in the Kent town. The Blue Pelican will open on Wednesday (21 February) in a seafront townhouse with views over Deal Pier. The restaurant is based on a Japanese izakaya, featuring small plates, born from the owners’ shared love for Japan and its cuisine. Head chef Luke Green, who led the kitchen at The Rose under the mentorship of Nuno Mendes, and spent five years in Tokyo, will combine Kent’s coastal produce with his passion for Japanese food and techniques. The menu will include house-made sesame tofu with daikon tops; and dry-aged rump cap with Tokyo turnips. The wine list will focus on low-intervention English and European vineyards while the cocktail menu will feature Japanese-inspired flavours with coastal herbs and seaweed, alongside a selection of hot and cold sake and Japanese whisky. Positioned on the ground floor of the townhouse, the restaurant will feature a ten-person kitchen counter, with additional seating downstairs for drinks in the wine cellar, a private dining room for up to ten people on the first floor and a garden courtyard. Hicks and Bagner said: “Inspired by Japanese culture, we're thrilled to showcase Kent's coastal produce in a new way.” 

Hand Picked Hotels launches new apprenticeship initiative: Hand Picked Hotels, a collection of 21 country houses and spa hotels across the UK, has launched a new apprenticeship initiative. It is seeking applications from existing employees who want to develop within their role or enter a new one, young people or those looking for a career change. Apprentice roles include data analyst, sales, HR, spa therapist and chartered manager. The business currently has four spa apprenticeship roles at Brandshatch Place Hotel & Spa, Nutfield Priory Hotel & Spa, Fawsley Hall Hotel & Spa and Wood Hall Hotel and Spa available and will also be actively recruiting for its chef apprenticeship programme over the coming months. In October, Propel revealed that Hand Picked Hotels had secured a further £6.35m in shareholder loans after its losses increased in the year to 29 December 2022. Shareholder debt in the period increased from £118.7m to £126.5m – with net current liabilities of £4.3m (2021: £6.3m) and net liabilities of £31.3m (2021: £15.4m). The group has no external bank loan facilities, having repaid £30m in bank loans during the previous year.

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