Propel Newsletter Archive Page

F1 Arcade in ‘fast-moving growth phase’ as it reports revenue increases to £31.9m: F1 Arcade, the Formula 1-licensed experiential brand, has said it is in a “fast-moving growth phase” as it reported revenue increased to £31,870,135 for the year ending 29 December 2024 compared with £13,857,645 the year before. Of the 2024 turnover, £19,769,903 was generated from the UK (2023: £13,857,645) and £12,100,232 from the US (2023: nil). The group, which secured $130m (£101.2m) of funding in 2024 to support its expansion, posted an adjusted Ebitda loss of £0.6m (2023: loss of £2.7m). The group, which operated sites in London and Birmingham in the UK and opened venues in Boston and Washington in the US during the period, said each of the sites generates strong positive site level Ebitda and the group’s loss reflected its continued investment in people and systems. Pre-tax losses grew to £16,249,056 from £7,484,418 the previous year. In their report accompanying the accounts, the directors stated: “The increase in revenue was driven by positive like-for-like growth in London, the full year effect of opening the Birmingham venue in the UK at the end of the prior period and the new site openings of Boston and Washington during the period. The new sites had very strong opening phases and exceptionally strong peak trading periods in 2024 (October to December). The group has lease commitments to open four new sites in the USA during 2025, with Philadelphia and Denver now open and Las Vegas, and Atlanta to follow. During 2024, the group secured a growth financing raise of $130m commitment funded by Cheyne Capital, Liberty Media Corporation, Permira Credit and OakNorth. This funding is a draw down facility allowing multiple drawdowns as and when required subject to drawdown conditions in the facility agreement relating to revenue and Ebitda. The funding was used initially to support working capital requirements and is currently being used in stages to fund the capital expenditure and pre-opening expenses associated with our new site openings. As at the balance sheet date, $20m of the facility had been drawn down with an additional $34m being drawn down in 2025 as at the date of the signing of the financial statements [25 June 2025]. The group is in a fast-moving growth phase with further expansion planned in 2025, 2026, and 2027. The future investment required for this growth has been anticipated and secured through the growth financing facility. The group has in place a pipeline of future USA owned and operated sites and international franchise sites. The group has entered into two new lease commitments for two additional sites, with one scheduled to open in 2026 and the other in 2027.” No dividend was paid (2023: nil). Earlier this month, The business signed deals to open in Chicago and a master franchise agreement with Top Racing Iberia, which will see it open its debut venue in mainland Europe, in Madrid, Spain, by 2027. F1 Arcade previously said it plans to add about 30 locations across the US by the end of 2027. Last month, the company launched a smaller format called F1 Box. The company said the new immersive racing experience, which opened at Westfield Stratford City in London, offers “significant global growth potential”.

Premium Club subscribers to receive updated Multi-Site Database with 3,457 operators and ten new companies today: Premium Club subscribers are to receive the updated Multi-Site Database today (Friday, 26 September), at 12pm. The next Propel Multi-Site Database provides details of 3,457 multi-site operators and is searchable in seven main segments. The database features 1,001 (29%) operators from the casual dining sector, 800 (23%) pub and bar operators, 603 (17%) cafe bakery operators, 487 (14%) quick service restaurant operators, 283 (8%) hotel operators, 229 (7%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month, and this edition includes ten new companies. New additions to the experiential leisure sector include north west padel operator Ignite Padel and BAM Karaoke Box, the Asian-style karaoke concept. Premium Club subscribers also receive access to five additional databases: the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers 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 subscribers 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. In this week’s Propel Premium, Simon Anderson, food hall consultant at Ideas Food Consultancy, and ex-chief operating officer at Market Halls, argues that pubs are a key part of the country’s social infrastructure and why they must be central to town and city regeneration plans. Meanwhile, Wingett looks at the week’s news, including the group rebrand of Prezzo Italian and its plans to become a multi-brand platform. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Cornish Bakery MD – ‘we’ve seen incredible like-for-like growth from what are often small investments’, to open four more stores by Christmas: Cornish Bakery managing director Mat Finch has said the business has seen “incredible like-for-like growth from what are often small investments”. Discussing how the business is combatting cost pressures, on the Rise of the Café Bakery panel at Lunch! 2025, Finch said: “We’ve managed to raise our average transaction value by offering more premium products, which command a higher price because of the flavours and the taste. We also do a weekly Dragons Den, where each of the bakery managers can pitch an idea for investment. It will be things like can I have an outdoor seating area, or can I have a second oven so I can bake more and increase sales in a certain daypart. We’ve seen incredible like-for-like growth from what are often small investments, but which can unlock 5%, 10%, 20% growth. So, in terms of cost savings, our quality is not up for debate, but we can grow through this, and that’s where we’re finding success at the moment.” Finch reiterated the 75-strong business sees scope for an eventual 400-strong estate, but while he won’t be held to shorter-term targets, said there will be four more openings before Christmas. “We’ve done a bit of work this year to identify how far we can go,” Finch said. “We’ve identified 400 locations, but the pace at which we do that is about finding great locations and not obsessing about numbers. Too many businesses set a target and compromise on the locations, and might take sites that aren’t quite right for them. We’ve got four more opening before Christmas, but we’ll visit a town and a location multiple times to look at the validity and the footfall. We have the ambition to grow and expand but we won’t be held to a number of openings we do each year.” Reflecting on why the success of concepts blending artisan bakery with speciality coffee, Finch added: “I think it’s the fact that it’s a food-led proposition. This sector has been dominated by coffee shops, which has really pushed up the quality of coffee over the last 20 years, but the food gets left behind. It’s often wrapped in plastic, made in factories and is essentially an upsell to the coffee. What the bakery has done is put freshly baked and freshly prepared food at the top and matches it with a good coffee.”

Two Magpies revises growth target to 30 locations, countered Budgetary headwinds with drive for efficiency: Suffolk bakery Two Magpies has revised its growth target to 30 locations and said it has countered Budgetary headwinds with a successful drive for efficiency. Co-founder Steve Magnall told Propel in 2022 that he saw the potential to grow the then seven-strong brand to 50 locations. Two Magpies currently has ten locations, spread across Suffolk and Norfolk – some with all day menus and others focusing on filled croissants, bagels and sweet treats. Speaking on the Rise of the Café Bakery panel at Lunch! 2025, Magnall said: “Self-funding takes forever. We’ll go for two locations next year. I promised the team we wouldn’t do any this year, and we’ve managed to hold to that so far. We get offered a lot of premises, but it’s all about location. Ambitions, realistically; I’m 62, I’ve probably still got the energy of a 40 year old. I would like to get to about 30 sites, and then my kids can take over so I can retire.” Magnall added: “The Budget cost us £810,000 this year, so the efficiency drive for us was basically this – I had pastry in one part of the business and bakery and savoury in the other, so we merged them together. We’ve not lost any people, but by putting them together, if we have a pastry chef waiting ten to 15 minutes for something to bake, he can go and make a frangipane to go on the almond croissants. So we’ve gained a little bit of efficiency – probably about five percentage points – so that is countering all of the wage increases and national insurance.”

Time Out Group to open first ‘neighbourhood’ market and second in New York today: Time Out Group, the global media and hospitality business, will open its Time Out Market in New York today (Friday, 26 September) – its first “neighbourhood” site. This is the company’s 13th food and cultural market following last week’s opening of Time Out Market Budapest. There are a further four management agreements signed, with more markets in advanced negotiations. The 10,000-square-foot company-owned site in New York’s Union Square features seven kitchens, a full-service bar and around 240 seats, including on the outdoor terrace. This is the second Time Out Market in New York where in 2019 a flagship opened in Brooklyn’s Dumbo neighbourhood across 24,000 square foot with 21 kitchens, three bars, a stage, and rooftop views of the Manhattan skyline. By contrast, Time Out Market Union Square is the company’s first “neighbourhood” market – “a smaller but equally vibrant format”, which is one of Time Out’s focus areas as it is expanding its portfolio. The lease agreement for the site was signed in February 2025. The space previously housed a food hall, which Time Out said ensured the market opened in just a few months and construction capex was lower compared with other sites. The further four management agreements signed are in Vancouver, Abu Dhabi, Prague and Riyadh. Last month, Time Out Group reported its markets revenue grew 10% to £47m for the year ending 30 June 2025 compared with £42m the previous year, but said trading performance in the final quarter was below management expectations.

Mexi Bean Express secures first franchise partner, adapts concept to grab-and-go market after taking learnings from debut travel hub location: Mexican food concept Mexi Bean Express has secured its first franchise partner and said it has adapted its concept to the grab-and-go market after taking learnings from its debut travel hub location. The concept, founded by Danielle Best, currently has sites in Huddersfield, Brighouse, Halifax, Bradford and Wakefield Westgate train station. Best told the Next Big Thing panel at Lunch! 2025 that the business has just signed its first franchise partner and that its next opening will be in Peterborough, which will also be the first outside of its Yorkshire heartland. Best also said she has adapted the concept after finding the Wakefield Westgate site, its first travel hub location, was struggling to attract commuters in a hurry. “People now don’t have the time – they want that fast, quick service,” she said. “They want to be able to go in, grab it and leave, as everyone is rushing to do something else. And I don’t see it slowing down again unless, heaven forbid, we get another covid. Everyone’s lives are getting faster and faster; we’ve got more things to do and less time to do it in. I think having that Greggs concept has changed the whole food dynamic really. People want to be able to go in, grab something and leave, so we’ve had to really be able to adapt our concept. We opened in Wakefield Westgate railway station about two months ago, and we found sales were not what we thought they were going to be. When we spoke to everyone that came in, they said it was because they were rushing to get trains. So they’d go to Greggs and get a pasty or potato wedges or whatever to go. We’ve now adapted ours to a food-to-go concept, where the burritos are there ready-rolled, so people can grab it to go. We’ve adapted it to the grab-and-go market.”

Pre-tax losses double and job cuts at Eden Project as visitor numbers halve: Visitor numbers to the Eden Project have halved since the pandemic, leaving the Cornish attraction facing its heaviest annual loss in more than a decade and prompting dozens of job losses. The West Country venue has reported that between April 2024 and March 2025, a total of 543,000 people visited Eden, 10% fewer than in the previous year. Before the pandemic, the project was regularly welcoming more than a million visitors a year. The company said the decline reflects “the more challenging trading conditions in south west tourism”. Revenue at Eden Project fell 4.4% to £23,165,000 for the year ending 31 March 2025 compared with £24,231,000 the year before. Pre-tax losses more than doubled to £3,516,000 from £1,518,000, which was its worst result since 2013, when it lost more than £6m. “The financial statements reflect the challenging period the organisation has been through alongside the backdrop of tourism in the south west and ongoing challenges of the visitor economy,” chief executive Andy Jasper said. The Eden Project, built on an old clay pit just outside Par, Cornwall, opened in 2000. In response to the drop-off in visitors, at the start of 2025 the business undertook a “major restructuring” that led to the loss of 75 jobs – about a fifth of its workforce. A spokesman said at the time it had been a “very difficult process” but one that was “essential” to ensure the attraction’s long-term future. Although visitor numbers have halved since 2019, the Eden Project’s annual running costs and administrative expenses have spiralled by more than £6mi over that period to £31.5m. “Proactive measures we took in [the past year] enabled us to stabilise our business through restructuring and control of costs resulting in a healthy operating surplus of more than £750,000,” Jasper said. He added that this coming year is “likely to be a pivotal one for us”, with the attraction due to welcome its 25 millionth customer and construction work on the Eden Project Morecambe slated to begin in 2026. That £100m project is expected to open towards the end of 2028.