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Morning Briefing for pub, restaurant and food wervice operators

Mon 6th Oct 2025 - Update: Chaiiwala reports 2024 sales up 35%, household savings fear
Chaiiwala – 2024 sales up 35%, system sales year to date up 16%: Chaiiwala saw global sales increase 35% to £89.4m in 2024, a year which saw it open 24 sites globally, including 15 in the UK, as it continues to target 500 openings over the next decade, with the aim of cementing “its position as the global leader in accessible Indian street food”. The business, which operates more than 100 sites across the UK, circa 20 in Canada, and a handful in Dubai, said that its performance in 2024 was driven by strong growth across all markets, demonstrating “the global relevance of the brand and successful store expansion strategy”. The company opened 24 sites in the year – 15 UK stores, including flagship stores at Birmingham Airport, London Luton Airport, and a second drive-thru location in Mellor Brook; and nine international stores, including a site at the University of Calgary in Canada and in Al Barsh, Dubai. In the period, it said that more than nine million cups of Karak chaii were sold – an 18% increase year-on-year, and over 750,000 Wala wraps were sold. It said that average order value growth was driven by bundling and the expansion of its ‘Street Snacks’ offer and sides. The company also launched its Chaiiwala Loyalty app, which currently has more than nearly 40,000 active users. Chaiiwala said it had continued its strong momentum into 2025 with system sales in the year-to-date up 16%. It said that this has been driven by further new menu innovations, including the launch of its high-protein, on-the-go range of breakfast wraps. Chaiiwala said it sold more than one million breakfast wraps within 12 weeks of its launch to the market, showing “growing consumer demand for alternative and flavourful breakfast menu items”. The group has also opened six new stores in 2025, including a new container concept launched at Watford Gap. The business said that this compact, low capex format will provide new opportunities for franchisees to scale, particularly in areas with high footfall, like service stations, universities and shopping centres. The company said it was also exploring new international markets, including the US, Saudi Arabia and Qatar. Muhummed Ibrahim, co-founder and chief executive of Chaiiwala, said: “We are delighted to record another strong year of commercial and strategic progress at Chaiiwala. When we first started Chaiiwala, there was a clear gap in the market for quality, on-the-go chaii and traditional Indian flavours that could be enjoyed at all dayparts. We took our passion for street food and chaii and created Chaiiwala from the ground up, bringing a unique and universally loved cuisine into a new format that can provide a delicious alternative to other high-street brands. Today, driven by the hard work and commitment of our fantastic teams across the business, we have cemented our position as the leading Indian street food and café brand and have incredible momentum. We have an expanding, global footprint in various formats, a strong network of hugely ambitious franchisees, and bold ideas for how we can keep delivering long-term sustainable growth and become a household name. These are really exciting times for Chaiiwala.”

Premium Club subscribers to receive updated Turnover & Profits Blue Book on Friday: Premium Club subscribers will receive the updated Turnover & Profits Blue Book on Friday (10 October), at noon. The database will feature 17 new companies, taking the total to 1,177. Of those, 743 are in profit and 434 are making a loss. The Blue Book is updated each month and ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Premium Club subscribers also receive access to five other databases: the New Openings Database, the Multi-site Database, 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. 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.

Fears for economy as ONS halves estimate for household savings: The UK economy could be on shakier ground than initially thought, analysts warned after a chunky revision to Office for National Statistics data raised doubts about how much households have been saving. The Times reports that analysts said the downgrade to the household savings ratio showed that there was unlikely to be “a massive wodge of cash” savings built up during the pandemic and its aftermath for consumers to raid to increase spending and boost economic growth. Last week, as part of its revisions to legacy gross domestic product figures, the ONS made a draconian cut to its estimate for the household savings ratio in the final quarter of 2022, hacking it by 4.1 percentage points to a little over 5%. The near-halving of the ratio amounted to one of the largest downgrades by the statistics office in the past three decades. The ONS also made deep cuts to its estimates for the years 2022 to 2024. The revision indicated that the economy broadly flatlined in 2023 – when it expanded by only 0.3% – despite consumers saving less and potentially spending more over that period than first thought. Economists have partly blamed the UK’s weak growth rate in recent years on sluggish consumer spending and elevated saving. Many have argued that the economy would gather momentum once households used this supposed mass of pent-up savings to finance retail spending, probably when the Bank of England cut interest rates, which have already fallen to 4% from 5.25%. Analysts pointed out that, after accounting for inflation, which peaked at a 40-year high of 11.1% three years ago, households may not in fact have a mound of savings that they could spend. “It’s not clear to me that households are sitting on a massive wodge of cash,” Paul Dales, chief UK economist at Capital Economics, a research outfit, said. “After taking account of the effects of inflation, the value of cash in households’ bank accounts doesn’t look high relative to the pre-pandemic trend.”

Chef Carlo Scotto to open restaurant at Buckinghamshire hotel this month: Carlo Scotto, who was part of the team behind Amethyst in Mayfair, will open a restaurant at Crazy Bear Group’s hotel in Beaconsfield, Buckinghamshire, this month. Bear by Carlo Scotto, described as his most ambitious project to date, opens on Wednesday, 15 October. The menu “showcases an extraordinary commitment to foraged British ingredients”, with ingredients foraged daily from the Chiltern Hills and local woods. There will be an intimate 14-cover chef’s table experience, before which diners can enjoy cocktails and canapés in the lounge bar. Dishes will include Ike Jime chalk stream trout with wild sea beets, green walnuts and Ardbeg; miso glazed duck with blue moon radish, girolles, damsons and umeshu jus; and caramelised French toast with St Helena, meadowsweet and Beaconsfield truffle honey.

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