Propel Newsletter Archive Page

BrewDog future set to be resolved today with James Watt ‘out of the running’, closes all bars for the day as it looks to complete sale: The future of BrewDog is “set to be resolved today”, with co-founder and former chief executive James Watt “out of the running” for the business. The Scottish brewer and retailer has also closed all of its bars for the day (Monday, 2 March), as it looks to complete the sale of its business. Giving an update on the process, Sky News tweeted last night: “Revealed: I understand that the future of BrewDog, the independent brewing and bars group, is likely to be resolved as soon as tomorrow through a pre-pack administration, and that James Watt, its co-founder and former CEO, is out of the race to acquire the company’s assets.” And this morning, the BBC reported that chief executive James Taylor confirmed to staff in an internal email that a series of staff meetings would take place today, with bars closed to comply with licensing issues. The email said: “We appreciate this is an unsettling time for everyone, and we want to ensure that all colleagues have the opportunity to hear directly from us about what happens next. We will therefore be holding a series of comp-ny wide All Hands calls tomorrow (Monday) for all employees across the whole business. These will be scheduled tomorrow. To enable everyone to attend, and to comply with licensing issues arising from an anticipated change of ownership, we have taken the decision that none of our bars will open tomorrow (Monday). All sites will remain closed for the day. We have also cancelled food and beer deliveries, as well as customer bookings, for that day.” BrewDog called in advisers last month to oversee a sale that could trigger a break-up of the business, with AlixPartners sounding out prospective suitors. Propel revealed on 18 February that first round bids for the whole or parts of BrewDog had already been submitted, with a deal or deals needed to be done by the end of this month, and it later emerged that Watt, who stepped down as BrewDog’s chief executive in 2024, was ready to plough £10m of his own money into a rescue bid. On Friday (27 February), it emerged that Denmark brewing company Royal Unibrew Group, which is listed in Copenhagen, is among several parties said to be seriously interested in BrewDog, and earlier this morning, Propel reported C&C Group, the Bulmers and Magners owner, was the latest to be linked to a rescue deal for parts of the company. As suggested in Propel Premium last month, C&C's interest is said to be principally in BrewDog's brand portfolio and brewing capacity rather than its bar estate. The business, which operates circa 70 bars, was founded in 2007 by Watt and Martin Dickie. Last October, BrewDog announced job cuts across its business after posting a £37m loss in 2024. It was the fifth year running that the company has posted pre-tax losses – now totalling £148m. The announcement came after the departure of BrewDog co-founder Dickie and the closure of ten bars across the UK after a strategic review, with the business looking to position its bar portfolio under – “destination hubs” and “community bars” for “long-term, profitable growth”. BrewDog also rowed back on plans to become a public company as chief executive James Taylor said he was plotting a return to growth underpinned by “sensible financial discipline”. In a Premium Opinion Special last month, Mark Wingett, Propel’s chief operating officer – editorial, wrote: “For a brand that built an empire on disruption, BrewDog’s latest move will be anything but punk, but it should draw a line under years of turbulence, closures and financial strain. How much the business is now valued at will also be a bone of contention, with one sector analyst suggesting its FY24 balance sheet enterprise value was £299m, including £153.7m of IFRS lease liabilities – throwing up the question of whether TSG will crystalise any return on its investment. What happens next will determine whether BrewDog becomes a comeback story, a cautionary tale or the next trophy in a global brewer’s portfolio.” Receiving Premium Opinion Specials such as Mark Wingett’s deep dive into the BrewDog sales process are just one of the many benefits for Premium Club subscribers. 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.

Premium Club subscribers to receive new searchable and segmented New Openings Database on Friday: The next Propel New Openings Database will be sent to Premium Club subscribers on Friday (6 March), at noon. The database will show the details of 141 site openings, including which company has opened a site or its plans to open one in the future. The database will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club subscribers will also receive a 9,156-word report on the 141 new additions to the database. It is segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. The database includes new openings in the casual dining sector by London Malaysian concept Med Salleh, Bancone, the modern pasta restaurant, and Italian casual dining franchise concept Ci Gusta. Premium Club subscribers also receive access to five other databases: the Turnover & Profits Blue Book, 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 chief operating officer – editorial, 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.

Blackstone invests £100m in OurHouse: Blackstone has invested £100m into OurHouse, the family members’ club concept from Incipio co-founder Charlie Gardiner. Propel revealed last year that international investment firm Blackstone, which backs Merlin Entertainments and Village Hotels, had invested in Little Houses Group (LHG), which last month rebranded as OurHouse. The Times has now reported that the size of the investment in the company, which has two venues – Jaego’s House in Kensal Rise and Jesse’s House in Parsons Green – is £100m. James Seppala, head of European real estate at Blackstone, told the Times: “We got so excited by the business because it offers this incredible and relatively affordable combination of things that everyone wants – gyms, fitness classes, co-working spaces, food and beverage, childcare facilities.” Seppala acknowledged that it was unusual for Blackstone to partner with business founders at such an early stage. He said: “The funds that we run more generally mean we focus on larger businesses but frankly the uniqueness of the concept and the excellence of the management team and the clarity of the customer proposition really convinced us.” Propel reported last month that having rebranded from Little House Group, OurHouse had set out its next three openings. Gardiner, who co-founded Incipio Group in 2015, opened Jaego’s House in London’s Kensal Rise as the first venue under the LHG umbrella in November 2022. Branded as a club for all the family, the venue features a jungle gym, crèche, child-minding service and kids’ cinema for children, plus a co-working office, gym, treatment room and library for adults. The 20,000 square-foot site also features a restaurant and waterside cafe, seating 85 inside and 24 on a canal side terrace. The business opened a second site – Jesse’s House in Heathman’s Road, near Parsons Green tube station – in August 2024. A third club – Orly’s – will open at Parkway House, East Sheen, later this year. This will be followed by Leo’s, which will open in Clapham in 2027. The business has also secured a site in Chiswick, which will be called Olive’s.

Safestay reports ‘challenging year’, with group revenue declining by £3m and adjusted Ebitda down £2.5m, due to pricing pressures and increased staff costs: Safestay, one of Europe’s largest hostel groups, has reported a “challenging year”, with group revenue declining by £3m and adjusted Ebitda down £2.5m, due to pricing pressures and increased staff costs. In the year to 31 December 2025, the company said it was experiencing significant pricing pressures across its European markets which were impacting revenue. These pressures continued to the end of FY25 and, as a result, group revenue for the period declined to approximately £20.6m (2024: £23m). Adjusted Ebitda decreased to approximately £3.9m (2024: £6.5m), reflecting the revenue performance as well as inflationary pressures, in particular, higher staff costs across several of its UK and European properties. Total bed nights decreased by 6% to 877,674 (2024: 931,688), of which 32% were booked through direct and non-commissionable channels (2024: 37%) and 16% were group bookings (2024: 16%). The occupancy rate was 70% (2024: 75.2%). The average bed rate (ABR) decreased by 6% to £20.07 (2024: £21.40) reflecting the highly competitive pricing environment. As a result, total revenue per available bed (RevPAB)) decreased to £23.46 (2024: £24.67). Forward bookings at 1 January 2026 were £3.1m (1 January 2025: £4.7m). During the period, the group continued the strategic expansion of its hostel portfolio, adding three new properties in popular European travel locations. In June, the group signed a 12-year lease agreement to operate a 300-bed hostel in Naples, and in August, the group signed its first franchise agreement, for two hostels in Kitzbühel, Austria. Safestay also sold and franchised its Edinburgh freehold property and hostel for £5.4m and sold and leased back its Brighton freehold property for £3.1m. As a result, at the year end, the group had 22 hostels in its portfolio, including two in development and three operated on a franchise basis (2024: 19 hostels including three in development and zero operated on a franchise basis). Current occupancy levels are in line with the comparative period in the first quarter 2025, but ABR in the year to date is approximately 20% ahead of the prior year reflecting management's focus on increasing pricing. The Board expects RevPAB to strengthen throughout 2026 which should have a positive impact on the Ebitda. Cost pressures persist, with several destinations imposing tourist levies on travellers, alongside increased business rates in the UK and VAT changes in Europe. Against this backdrop, Safestay is taking proactive actions to control costs and selectively increase pricing to support improved profitability. The cpmpany said: “As previously announced, the board continues to consider various strategic options, including further disposals and/or the sale and leasebacks of certain of the company's properties. Further announcements will be made as and when appropriate. The board remains positive about Safestay's long-term prospects as a proven operator in the significant and fragmented European hostel market, with several further expansion opportunities being appraised.” Larry Lipman, chairman of Safestay, added: “Despite what remained a challenging trading environment across the UK and Europe, Safestay delivered important further strategic developments in 2025. Looking ahead, our ambition remains to deliver sustainable growth and crystallise value for shareholders, whilst over the medium-term growing the portfolio selectively. With a leading brand in the European hostel market, as well as well-invested systems and a strong pipeline of opportunities, we remain confident in Safestay’s ability to deliver sustainable expansion.”

CMA launches investigation into hotel chains: The Competition and Markets Authority (CMA) has launched an investigation into suspected sharing of competitively sensitive information among competing hotel chains – Hilton, IHG Hotels and Marriott – using the hotel data analytics tool STR, owned by CoStar. A government statement said: “All four businesses are under investigation. Companies use various types of data analytics tools and algorithms to help them make commercial decisions. This can bring benefits including more intense competition, lower costs, and faster changes in prices to better match demand and supply in markets. However, when rival businesses share competitively sensitive information – including through a third-party data analytics provider – this reduces the uncertainty competing businesses normally have about how each other will act. This can affect how strongly companies compete because it makes it easier for them to predict what each other will do and coordinate their behaviour. At this stage, no assumptions should be made about whether the law has been broken. Following a period of investigation and information gathering, the CMA may issue a statement of objections if it comes to the provisional view that competition law has been infringed. This investigation reflects the CMA’s wider commitment to ensuring new technologies support fair competition and do not harm consumers.”

Price of restaurant wine rockets 40% in five years: If you have dined out recently and nearly choked at the prices on the wine list, you are not alone, reports The Times. The cost of the average glass of wine is nearly 40% higher than in 2020, according to figures from UKHospitality. Price rises have been so steep that many upmarket restaurants do not offer any bottles for less than £35 to £40. Jay Rayner, the food critic, recently called out restaurateurs’ excessive wine prices, which he said, “make the whole experience of going to the restaurant feel uncomfortable”. Restaurateurs, however, insist they are grappling with the same pressures as their customers. Honey Spencer, co-owner of Sune in Hackney, who trained as a sommelier, said she had cut her margins in an effort to keep her list accessible. “When we opened, wine sales accounted for between 30% and 35% of total revenue. I think that number has dropped now to between 25% and 30%, so it’s fairly significant,” she said. Restaurants typically add a margin of about 70% to wine, and the highest margins are usually on the cheapest bottles. Spencer said she has added a lower fixed margin to each bottle rather than using a percentage uplift as her customers were “not drinking as freely” and “certainly not drinking many really good bottles”. James Chiavarini, the owner of Il Portico in Kensington, has begun buying “bin ends” – the final bottles of premium lines left with suppliers. He said: “Instead of having a premium wine list, what we do now is we go to our suppliers and say, right, what have you got on bin ends? The customer gets a really good wine, and we get some cash in the bank.”