Propel Newsletter Archive Page

Young’s confirms Cubitt House deal: Young’s has confirmed the acquisition of London gastropub operator Cubitt House, which is backed by funds managed by TDR Capital, for circa £29m. Cubitt House comprises a collection of eight leasehold pubs and pubs with bedrooms in west London. These include The Barley Mow in Mayfair, The Builders Arms in Chelsea, The Coach Makers Arms in Marylebone, The Grazing Goat in Marylebone, The Orange in Belgravia, The Princess Royal in Notting Hill, The Thomas Cubitt in Belgravia and The Alfred Tennyson in Belgravia. The acquisition also includes a ninth pub in Belgravia that is currently being developed with the former post office in Eccleston Street set to be converted into The Duke of Connaught. Young’s said it has closely followed the Cubitt House pubs business for some time and “recognises the strong culture and exceptional teams that have contributed to its success, something which Young’s will look to retain, support and develop these qualities further”. Young’s added: “The acquisition aligns closely with Young’s strategy to grow in London and operate well-invested pubs in prime locations. The acquisition will be funded from existing banking facilities and is expected to complete on 22 April 2026.” Chief executive Simon Dodd said: “We are delighted to be adding this collection of iconic pubs and pubs with rooms to the Young’s estate. Located in some of London’s most affluent neighbourhoods, these premium sites align perfectly with our strategy to selectively expand our business.” Peel Hunt leisure analyst Douglas Jack said: “Young’s is acquiring Cubitt House for circa £29m. We estimate Young’s is paying 7.2 times Ebitda (IAS17) and 5.4 times on an IFRS 16 basis. The sites generate £24m of annual turnover. The acquired estate is located in Mayfair, Chelsea, Belgravia, Notting Hill and Marylebone, yet the rent roll is just £1.35m per annum. The acquired leases range from four to 49 years (most are around ten years) with the right to renew. Cubitt House currently has a head office (costing £2.1m per annum at present). We believe Cubitt House’s like-for-like sales are circa 4.5%. After our forecast upgrades, which assume Cubitt House is run on a semi stand-alone basis, FY27 EV/Ebitda (IAS 17) is just 6.2 times. Following this transaction, our FY27E forecast for Youngs’ net debt/Ebitda rises from 2.0 times to 2.2 times, falling to 1.6 times in FY29E. We do not believe this is onerous, nor in the EV/Ebitda, which is close to record levels. We increase FY27E profit before tax by £1.2m (2%) and FY28E by £1.8m (3%). We maintain our Buy recommendation and 1,400p target price.” A consortium of private investors led by TDR Capital partner Manjit Dale acquired a majority stake in the then four-strong Cubitt House in December 2015 for approximately £12m. Latest available accounts show Cubitt House turned over a record £20,047,858 for the year ending 29 December 2024 compared with £19,932,710 the previous year. Pre-tax loss increased to £1,942,282 from £1,375,671 the year before. Adjusted Ebitda was down to £1,117,000 from £1,478,000 the previous year. Young’s is in the process of moving its shares from the junior AIM exchange to the main London market as it attempts to target a broader investor base. The company has expanded through acquisitions in recent years, most notably with the purchase of The City Pub Group in 2024, which added just over 50 pubs. Young’s now comprises more than 275 sites across London and the south east. Sapient Corporate Finance advised on the Cubitt House deal.

Premium Club subscribers to receive next Turnover & Profits Blue Book and videos from Propel Multi-Club Conference on Friday: Premium Club subscribers will receive the next Turnover & Profits Blue Book on Friday (10 April), at 12pm. The database will feature 25 new companies and 120 updated accounts. The database now features a total of 1,265 companies, with 759 in profit and 506 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. Also on Friday, at 9am, Premium subscribers will receive all 13 videos from the Propel Multi-Club Conference. Premium subscribers also receive access to five other databases: the Multi-Site Database, the New Openings 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 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. A new Premium Unlimited Plus option, which costs £1,995 plus VAT per annum, has some amazing additional benefits including four free tickets to Propel’s paid-for conferences – Excellence in Pub & Bar (19 May), Operational Excellence (9 July) and Talent & Training (15 October) – and the opportunity to run one free sponsored message or situation vacant notice during the year on the newsletter. Email kai.kirkman@propelinfo.com today to sign up.

Chipotle to open first UK food court restaurant: Chipotle is to open its first UK food court restaurant on Friday (10 April), at London’s Westfield Stratford City. The launch marks a new step in the brand’s UK expansion into high-footfall retail destinations and is Chipotle’s 21st location here. The restaurant, in the food court on the lower ground floor level, will create 30 jobs and join nearly half of Chipotle’s UK restaurants offering halal-suitable Adobo Chicken. Anat Davidzon, managing director, international at Chipotle, said: “Westfield Stratford City is one of London’s busiest shopping and transport hubs, making it an ideal location to bring Chipotle’s real food to more guests in a highly convenient setting. Whether they’re shopping, commuting, or on the go, this opening helps us meet guests where they are. As our furthest restaurant east, it also marks an important step in our continued growth across London.” In February, Chipotle chief executive Scott Boatwright said its London restaurants are now generating “strong cash-on-cash returns”, paving the way for expansion in the capital this year.

Leon CEO – ‘Labour has killed the restaurant industry’: John Vincent, the co-founder of Leon, has accused the government of “totally killing the restaurant industry” and insisted “everyone knows restaurants are done”. Vincent, who returned to the business as chief executive in October last year, told Times Radio “the high street is dead”. He claimed this was widely acknowledged by restaurateurs in Britain. Speaking to Jo Coburn on The Times at One, Vincent said: “I spoke to the guy that owns one of the biggest competitors of Leon. I can’t say who because it’s confidential. He said restaurants are done. Everyone knows restaurants are done.” Vincent, who has previously criticised the government for the excessive tax burden it imposes on restaurants, told Coburn: “Why should we allow ourselves to destroy an entire sector and then say, it’s OK, you can try and go into a different business? This is not the market that’s doing this. This is the government. It’s not the consumer that doesn’t want to eat in restaurants. It is the government that is totally killing the restaurant industry.” Vincent said friends in the restaurant industry were “fed up” that their warnings, issued over several months, had not been heeded. He said: “I have people calling me in tears every day saying they’ve owned restaurants for 40 years and now they’re going under.” He said the media had not yet understood the “scale of the disaster” in the restaurant industry. Last week Adam Byatt, a Michelin-starred chef, told the Times he had given up lobbying the government. “No amount of standing on a soap box shouting about VAT or national insurance or any of this stuff is going to change anything, as it’s falling on deaf ears,” he said. Byatt, who owns six restaurants, has begun offering classic British dishes at 2012 prices in his Bistro Union restaurant as an incentive to get people eating out more during the week. Byatt admitted he will not make any money on the special menu and suggested the government should lower the 20% VAT rate to be competitive with other European countries.

Security apprenticeship cuts ‘risk undermining UK public safety as Martyn’s Law demands grow’: The UK’s security and night-time economy sectors have issued a stark warning that the removal of Level 2 and Level 3 security apprenticeships risks creating a critical workforce gap at the very moment demand for public protection is set to increase. Industry leaders have raised concerns that, while these apprenticeships are currently modest in scale, they are foundational to building the future security workforce. With Martyn’s Law set to place new statutory responsibilities on venues and public spaces, the need for a trained, competent and scalable security workforce has never been greater, they said. Leaders also warned from a skills perspective, the removal of these pathways threatens to restrict entry into the sector, limit workforce development, and weaken long-term career progression. Nationally, 74% of apprenticeship completions sit at Levels 2 and 3, highlighting their importance as the primary entry and progression routes across industries. Michael Kill, chief executive of the Night Time Industries Association, said: “This is a short-sighted decision at a critical time. As Martyn’s Law comes into force, venues and public spaces will be under increasing pressure to deliver enhanced security measures. Without the right people, properly trained and developed through structured pathways, we risk creating a gap in capability that will directly impact public safety and business resilience.” Satia Rai, chief executive of the International Professional Security Association, added: “Removing these apprenticeships, before they have had the opportunity to mature, risks stalling the progress we have made in professionalising the sector and limits our ability to attract and retain talent.” Sector leaders are calling for urgent reconsideration of the decision and proposed a roundtable discussion between government and industry. Leaders are also urging ministers to engage directly with front-line workers whose careers have been shaped by these apprenticeships, “to better understand their real-world impact”.