Propel Newsletter Archive Page

Wildwood operator – current trading tracking behind last year but expecting uplift in sales and return to profitability once disruption from restructuringing plan subsides: Tasty, the Wildwood and Dim T operator, has said current trading is tracking behind last year but that it is expecting an uplift in sales and return to profitability once the disruption from its restructuring plan subsides. Speaking following the group’s results for the 52 weeks ended 29 December 2024, chairman Keith Lassman said: “The board maintains a cautious outlook with many of the headwinds highlighted above continuing since the year-end, as well as the increase in the National Living Wage and employers' National Insurance contributions having come into effect from April 2025. However, the board believes that once the disruption from the restructuring plan subsides and the group reaches a period of stability, the group will experience a modest uplift in sales and should be able to return to profitability. The benefits of a smaller, more profitable estate in conjunction with the cost efficiencies should ensure a robust structure with greater agility for future growth. We are optimistic that the group will be well positioned to capitalise on new opportunities in the sector in 2025, extending beyond current operations allow us to explore new concepts, attract diverse audiences and consider potential partnerships. Current trading is tracking behind last year but has been in line with management expectations. The decline is largely due to the cost-of-living crisis and the tail end impact of the restructuring plan. The workforce cost increase outlined in the 2024 Autumn Budget presents additional challenges and is negatively affecting the hospitality sector. Three sites have closed post year-end as we finalise the tail of closures through the restructuring plan. The rationalisation of loss-making restaurants and a reduced central overhead should enable Ebitda and efficiency improvements. However, the board maintains a cautious outlook.” The group reported revenue of £36.6m for the year (2023: £46.9m), a decrease of 21.9% year-on-year, driven by the closure of 16 trading units through the group restructuring plan initiated in April 2024. Adjusted Ebitda (pre IFRS 16) was an £0.3m loss (2023: £0.9m loss), an improvement of £0.6m, while adjusted Ebitda (post IFRS 16) was £3.6m (2023: £4.4m), a decrease of £0.8m. Operating loss (pre IFRS 16) was £1.6m (2023: £2.6m loss), an improvement of £1m, while operating profit (post IFRS 16) was £0.4m (2023: £0.3m profit), an improvement of £0.1m. A total of 16 trading restaurants closed in 2024 – one dim t and 15 Wildwood – while two non-trading and three sub-let restaurants also closed under the restructuring plan. Lease agreements for three further sites were agreed outside the restructuring plan. A £750,000 secured loan, which converted to equity following shareholders' consent on 22 July 2024, was invested into the group. Post year end, a full and final settlement reached with the group’s insurer for £2.5m in connection with a claim for breach of contract regarding insurance coverage for losses incurred in 2020. The group said it is now on a secure footing for potential future growth. At the period end, the group comprised 36 restaurants: four dim t and 32 Wildwood. Lassman added: “The group’s performance did not meet management's expectations in the year, with like-for-like sales declining by 4.5%. The group experienced disruption as a direct consequence of the restructuring plan and subsequent site closures. Sales were further impacted by events such as the 2024 Euros, the Olympics, and, most profoundly, by a decline in consumer confidence following the general election. Remote working trends post covid, transportation strikes and adverse weather during key trading periods caused a further deterioration in customer footfall. This has all been compounded by the increased costs of living and the knock-on reduction in consumer spending leading to the overall decline in performance. Delivery and takeaway sales continued to decline in the first half of the year. However, towards the year-end, trading improved slightly and returned to growth as a more targeted approach to promotions and discounting was adopted. Redundancies were an unfortunate consequence of the restructuring plan to ensure the long-term security of the group, but we would like to thank all our loyal and dedicated employees at every level who have worked tirelessly throughout all the challenges encountered.”

New Various Eateries CEO – ‘real optimism about what we can achieve’: Mark Loughborough, the new chief executive of Various Eateries, the Hugh Osmond-backed business, has said he sees “real optimism about what we can achieve”. Loughborough, who was appointed to the role in January, was speaking after the company’s trading update for the 26-week period ended 30 March 2025 showed sales of £24.7m, an increase of 8.8% versus the prior year (H1 2024: £22.7m), driven primarily by the contribution of new site openings. Like-for-like sales for the period were flat year-on-year, primarily reflecting the impact of Easter falling later this year and after the period end. Including the five weeks of post-period, trading to date (which include Easter), like-for-like sales are up 1.3% versus the prior year. Operational performance continued to improve, with site-level Ebitda increasing by 81% on the prior period. Cash at bank as at 30 March 2025 was £6.0m (H1 2024: £7.2m). Loughborough said: “First-half trading reflects the efforts made across the business to strengthen operations and establish a solid platform for long-term growth. Like-for-like sales for the year to date have been positive, driven by strong performances from proven, all-season venues such as Coppa Club Tower Bridge and Tavolino. Our outlook is further supported by a significant improvement in profitability. In my first weeks as CEO, I’ve spent time with teams across the business and gained a detailed view of our estate and how we operate. I’ve been encouraged not only by the capability, energy and structure in place, but also by the quality of the food, service and overall guest experience being delivered across the group. The combination of these strengths gives me real optimism about what we can achieve. While the external environment is not without its challenges, the enhancements made to the business have put it on a firm footing. The group has grown despite minimal price rises, maintaining its strategy of absorbing most price increases and prioritising customer satisfaction over short-term profit. This group still has many levers to pull and is in a strong position to absorb any external head winds. Looking ahead, we will continue to take a disciplined and measured approach to expansion but do so with steadily growing confidence.”

Black Sheep Coffee records strongest week ever for iced drink sales: Speciality coffee shop operator Black Sheep Coffee has recorded its strongest week ever for iced drink sales. Chief operating officer Ben Fenton said the company truly made hay as the sun shone last week, breaking records “across the board”. He said: “What a week! With sunshine, spring flavours, and serious momentum on our side, Black Sheep Coffee has just delivered its strongest week for iced drinks sales ever, breaking records across the board! Here’s a glimpse of our achievements: Over £1.9M in estate-wide net sales – a nearly 10% week-on-week increase; outstanding +227% year-on-year growth in the iced drinks category; a remarkable 315% rise in lemonades sales post our spring range launch; 40 stores achieving all-time weekly sales records. This marks the ninth record week of 2025, and we're only in April. Across our estate, 90% of stores experienced sales growth, with our top three sites (hello, Luton airport) leading the charge, and even mid-volume stores achieving their best-ever weeks. Transactions surged by +38K – a clear sign that our customers are loving our offerings. A massive shoutout to the teams in store and behind the scenes who made this remarkable week possible. Your energy, dedication, and belief in the brand truly set us apart.” It comes a month after Black Sheep Coffee, which has circa 105 UK stores, reported a record-breaking week for the seven days ending 31 March 2025. The company said overall estate net sales were £1,804,323 – a 9.3% increase on the previous week’s total of £1,650,262 – underpinned by a UK record high for the company. It said this growth was driven by strong weekday performances, peaking at 15% week-on-week growth on the Tuesday, while all but three sites experienced like-for-like net sales increases in the week, with a record-breaking 48 sites breaking their all-time highs.

Esquires owner agrees master franchise deal for India: Cooks Coffee Company, owner of the Esquires brand, has agreed a master franchise deal for India. The agreement has been signed with Sterling Coffee House, which will be responsible for the establishment and operation of the business in India, with ongoing support from the parent company. Cooks Coffee said the market size for India’s coffee retail chains was valued at $18.83bn in the year to March 2025 and is projected to grow at a CAGR of 9.84% from 2030. It said this growth can be attributed to the growing coffee culture and changing lifestyle, the rising urbanisation and increasing per capita income. “This exciting new partnership represents a significant step in expanding Cooks Coffee's global footprint and marks the next phase in the international development of the Esquires brand,” a company spokesman said. “The company is confident that the strong local expertise and proven track record of the franchise partner will contribute to the success of this venture.” Cooks Coffee chief executive Aiden Keegan added: “India represents a dynamic and growing market, and we are confident that Sterling Coffee Houses will be a great partner in bringing the Esquires brand to new customers across the country. This partnership will enable us to extend our brand presence while benefiting from the proven operational support provided by our teams in the UK & Ireland.” There are circa 72 Esquires stores in the UK, plus 17 in Ireland.

Popeyes UK hires Jo Vaughton as CMO: Popeyes UK, the US fried chicken quick service restaurant brand backed here by TDR Capital, has hired Jo Vaughton, formerly of PizzaExpress, as its first chief marketing officer. PizzaExpress appointed Vaughton as its new marketing director, in March 2023. Vaughton, who will join Popeyes UK next month, joined PizzaExpress after a brief stint as head of brand marketing at payment service provider Mollie. She spent more than three and a half years as director of brand marketing EMEA at Celebrity Cruises, and the same length of time as head of PR and social UK & Ireland at Royal Caribbean International. Popeyes UK said that Vaughton’s appointment comes at an exciting time for the brand, which earlier this year revealed ambitious plans for 2025 to almost double its footprint in the UK, creating approximately 2,500 new jobs and targeting sales of more than £200m. Last month, the company also launched a strategic partnership with SPP Group to open a pipeline of Popeyes restaurants across UK travel hubs, starting at Birmingham airport this summer. Popeyes UK, which holds the UK and Ireland franchise for the brand, entered the UK market in November 2021 and has subsequently expanded to circa 70 sites across the UK. The brand has ambitious expansion plans and is targeting 350 UK outlets by 2031. Vaughton said: “I’m thrilled to be joining Popeyes UK as chief marketing officer at such a pivotal time for the business. Popeyes is a fantastic brand that is known and loved internationally, and I’m excited to be part of team Popeyes as the company delivers against its ambitious growth over the coming years.”

Lane7 confirms launch of Gutterball site in Lincoln: Boutique bowling company Lane7 has confirmed it will open a site under its Gutterball concept, in Lincoln, later this year. The company launched the original, more family-focused Gutterball concept in North Shields at the end of 2019. Lane7 has secured the former Boots store in Lincoln High Street for the concept, with an opening planned for the third quarter. The company has acquired the freehold of the 18,556 square-foot site, which will feature bowling, darts, beer pong, long shuffleboard and arcades. Gavin Hughes, managing director of the Lane7 Group, said: “Gutterball is all about creating memorable moments – the kind of place where everyone can let loose, have fun and leave with a story. We’re proud to expand Gutterball across the UK into Lincoln! Expect noise, colour, chaos – in the best possible way.” The group recently opened two new Lane7 sites in Dublin and Milton Keynes. The business has also secured a site in the Ealing Broadway shopping centre for the Gutterball format. Opening in the third quarter of 2025, the site will see the transformation of the 15,000 square-foot Ealing Project cinema into a Gutterball.