Exclusive – The Karali Group acquires Côte: Côte the French brasserie brand backed by the Partners Group, has been sold to The Karali Group, led by Salim Janmohamed OBE and Karim Janmohamed, for an undisclosed sum, Propel has learned. Propel understands that the deal is on a solvent basis and is for the whole of the circa 70-strong Côte business. The family-owned The Karali Group currently also operates the Taco Bell, Marugame Udon, and Crosstown Doughnut brands under franchise in the UK, with a proven track record of success in the hospitality, consumer and real estate sectors. The Côte team said it is looking forward to working with them and “benefitting from their knowledge, expertise and network”. Propel revealed this summer that Côte was working with advisors at Interpath on its funding options, to aid the next stage of its growth. The business has been backed by Partners Group since September 2020. Côte chief executive Emma Dinnis, the former managing director of the DFS-owned Sofology, who joined the business earlier this year, said: “I am proud to have led the brilliant Côte team to a sale that is a huge positive for all involved. The sector continues to face challenges, but with the strength of our people and a clear vision, I'm confident we'll ensure Côte remains everyone's favourite brasserie. With a delicious new menu amplifying what we do best and exciting plans for the future, we will continue to transform and grow this brand. Thank you to Partners Group for its support of the business over the past five years. Thank you also to our advisors, Ravi Patel and Will Wright, of Interpath, and Caroline Platt and Richard Tett, of Freshfields, and to our valued supplier and landlord partners. Most importantly, thank you to our team who have worked unbelievably hard, with amazing professionalism and kindness for each other.” Karim and Salim Janmohamed said: “We have long admired the much-loved Côte Brasserie and are thrilled to welcome this fantastic brand into our growing portfolio. We are looking forward to working with both management and the broader team on the exciting plans for the brand and welcome them all individually to the Karali family. We extend our gratitude to our trusted advisors from Freeths and PKF Smith Cooper.” Côte features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club subscribers and will feature 1,177 companies when the next edition is released next Friday (10 October). Côte’s turnover of £147,569,000 for the year ending 24 September 2023 is the 84th highest in the database. 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.

German Doner Kebab to make Irish debut through master franchise agreement with Strava Group, 30 restaurants planned over next decade: German Doner Kebab (GDK) – which is backed by private equity group True and will open its 150th UK site this month, in Leeds – will launch in Ireland this year through a master franchise agreement with long-standing partner Strava Group. The move will see the opening of GDK’s first Irish site in Liffey Valley, Dublin, before the end of the year, with a commitment to roll out 30 restaurants across the country over the next decade. GDK has grown at pace through a franchise model, cementing its presence on UK high streets, travel hubs, and shopping centres, and is now accelerating its international footprint. The Leeds site will be operated by Strava Group. Simon Wallis, chief executive of GDK, said: “At GDK, our vision is to dominate the kebab category across the world and in every neighbourhood – one kebab, done right, at a time. We value working with master franchise partners who share and believe in our purpose to elevate the kebab experience, one kebab, done right, at a time. I am excited we have further strengthened our relationship with our long-standing franchise partner, the Strava Group, which has helped build the brand to what it looks like today. We look forward to continuing to work with them to fulfil the potential of the brand in Ireland.” Rickey Sharma, chief executive of Strava Group, added: “GDK is rewriting the rules of the kebab experience worldwide, and Ireland is the next chapter in that story. We see tremendous potential in introducing our fresh, premium, and innovative approach to this market, and we’re confident it will resonate with a new generation of customers. Our mission is to deliver the same high-quality food, distinctive style, and cultural connection that have made GDK a global success. Liffey Valley will be the launchpad for what we believe will be a strong and sustained nationwide presence.” Strava Group is also a franchisee for Costa Coffee and Domino’s Pizza. Last month, Strava Group acquired 14 additional Domino’s stores in Scotland, bringing the total number to circa 40 sites, spanning both England and Scotland. The strategic move is part of the Strava Group’s growth strategy to operate 75 Domino’s sites.

Welcome Break secures £815m refinancing: Motorway service station operator Welcome Break, which is owned by Applegreen, has secured a new £815m refinancing. The all-senior debt package, raised from a syndicate of leading UK and international banks alongside long-term core infrastructure investors, enables the full repayment of existing group debt and includes a £200m undrawn facility to support Welcome Break’s active pipeline of growth projects. Welcome Break chief executive John Diviney said: “We are delighted to have completed this landmark refinancing, supported by our key relationship banks and long-term infrastructure partners. This new facility strengthens our balance sheet, provides significant flexibility to fund growth, and positions Welcome Break to continue investing in enhancing the customer experience across our network.” Welcome Break operates 61 motorway services and 31 hotels across the UK and has partnerships with brands including PizzaExpress, Starbucks, KFC, Burger King, Subway, Krispy Kreme, Pret, Chopstix, Costa, Harry Ramsden’s, Tossed and Greggs. In July, Welcome Break reported that 2025 started strongly for the business, with non-fuel sales up 3% year on year, and that traffic is now close to pre-pandemic levels overall, and noticeably stronger at weekend. Turnover for 2024 was £928.7m (2023: £917.5m), with the increase mainly due to the strong catering performance, while pre-tax profit for the year stood at £35.1m (2023: £35.9m). Capital expenditure of £29.5m (2023: £20.8m) included the opening of a number of new catering units, notably Greggs and Pret A Manger, as well as the introduction of a new brand in Taco Bell. Evercore acted as financial adviser to Welcome Break on the refinancing. Simpson Thacher & Bartlett served as borrower’s counsel, and Latham & Watkins advised the lenders.

KFC to see out 2025 by opening 13 new stores in as many weeks: KFC has said it will see out 2025 by opening 13 new stores in as many weeks. Earlier this year, the company said it was looking to secure 50-plus new stores in the UK this year as part of its £1.5bn investment in its 1,000-strong estate here over the next five years. KFC also said it will spend £466m on expanding the number of restaurants it operates in the UK and Ireland by a further 500 over the next decade – focusing on building sites and drive-thrus in key locations such as Ireland and the north west. Julian Reilly, KFC’s franchise and expansion leader, said: “The Colonel’s Christmas countdown is on – 13 new KFCs in 13 weeks – powered by biscuits, coffee and a lot of hard work from our franchisees and equity team. Big finish to 2025 incoming.” Earlier this week, KFC reported its UK profit jumped by almost £40m in the period from 25 December 2023 to 29 December 2024, despite a £14m drop in turnover as adverse trading conditions hit store sales. The company’s pre-tax profit rose from £59,192,000 in 2023 to £97,969,000 as costs dropped from £92,651,000 to £85,234,000 and administration expenses decreased from £148,219,000 to £104,385,000. The company’s turnover was down from £294,511,000 in 2023 to £280,227,000. Of this, £139,598,000 came from company store sales (2023: £144,558,000) and £126,338,000 from franchise royalties and fees (2023: £138,389,000). Further analysis shows that £262,317,000 came from UK operations (2023: £265,973,000) and £17,910,000 from Europe (2023: £28,538,000).