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Morning Briefing for pub, restaurant and food wervice operators

Tue 4th Dec 2012 - Prezzo, Soho House and Yummy

Story of the day:

Greene King like-for-likes up 4.3 per cent; 20 sites added to managed division; Hungry Horse to hit 200 sites: Suffolk-based Greene King has reported its managed division has grown like-for-like sales by 4.3 per cent in the 24 weeks to 14 October with total sales up 10.9 per cent. Profit before tax grew 7.1 per cent to £82.7m. A total of 20 sites were added to its managed division, which has now reached 972 pubs – ten were transferred across from the tenanted division. Hungry Horse, Greene King’s largest and most successful brand, is up to 188 sites with eight more under development – the company expects to open its 200th Hungry Horse in the second half of the financial year. Rooney Anand, Greene King chief executive officer, said: “Our team has delivered another strong trading performance driven by 17 per cent profit growth in our retail division. We have continued to focus on providing excellent value, service and quality to our customers, while improving productivity and keeping tight control of costs. This has led to strong sales and profit growth, increased cashflow, improved returns and a stronger balance sheet. While we continue to see a challenging environment for the UK consumer, our strategy has been tailored for these conditions - we provide our customers with ‘everyday treats’ and value for money. We are confident we can generate further success and deliver sustainable earnings and dividend growth for our shareholders.” The Pub Partners tenanted division grew average site Ebitda by 3.9 per cent. During the period, a pizza range was launched in Hungry Horse and the company’s ‘cakeaway’ product continues to grow in both Hungry Horse and Cloverleaf brands. Greene King also transferred seven “Meat and Eat” franchised site to its managed division. In London managed like-for-like sales were up by 8.6 per cent.

ALMR National Restaurant Show Study Tour in Chicago open for bookings: The Association of Licensed Multiple Retailers (ALMR) has opened its study tour to the National Restaurant Association Show in Chicago in May 2013 for bookings. Next year’s visit takes place between Thursday 16 May and Monday 20 May. The ALMR launched its first study tour trip to the NRA show this year, with the trip led by Propel Morning Briefing managing director Paul Charity. The NRA draws 58,000-plus industry professionals from all 50 states and 100 countries, all seeking the newest innovations and up-to-the-minute information about trends and issues. The ALMR trip provides: insights from industry experts on the rise in fast-casual dining, social media, new and emerging brands, menu development, staff management and a host of other issues – with 70 free education sessions; involves a tour of Chicago’s hottest concepts and a market overview briefing sessions from US experts. ALMR chief executive Nick Bish said: “Our first trip in May this year was a tremendous success with our attendees reporting they had benefited enormously from the visit to the Show and the chance to study the key trends in the innovative US market.” Paul Charity, managing director of Propel Info, said: “The NRA show is a fantastic opportunity to find fresh inspiration and understand the emerging trends shaping the fast-changing US market.” To book a place, e-mail Jo Charity on jo.charity@propelinfo.com or call her on (01444) 810304. Places are limited.

Industry news:

Deloitte - going out visits up by 3.3 per cent: Deloitte’s Taste of the Nation report has found consumers are still going out more often with visits up three per cent in the past six months. Women are going out more often, 17.9 times on average per month, compared with 15 six months ago. The report also found average spend per head continues to increase in all areas except quick service and casual dining. However, Deloitte’s report warned that a challenging Christmas is on the cards as consumers predict an eight per cent drop in going out occasions over the festive period versus 2011. Meanwhile, “Generation Y” consumers (18-34 year olds) have reduced the number of times they are going out to eat and drink by 3.7 per cent in the last six months. There was also a sharp decline in the average number of occasions Londoners went out between spring and autumn, down nine per cent from 31.1 to 25.7 visits on average per month. Jon Lake, a corporate finance director in the licensed retail group at Deloitte, said: “Despite the cautious mood, and a period containing numerous activities, including the London 2012 Olympic and Paralympic Games and the Diamond Jubilee weekend, consumers across the UK have continued to go out more often. London has traditionally been a strong driver of growth and remains robust. The slowdown in the capital over the past six months can almost certainly be attributed to these one-off factors and unseasonably wet weather.”

Tim Martin – minimum price won’t affect dinner parties in Notting Hill: JD Wetherspoon founder Tim Martin has described minimum pricing proposals as “purely a tax on people who don’t have a lot of money”. He told City AM: “For people in London it’ll open up the booze cruise again and once that bandwagon starts rolling then the chancellor starts to lose a lot of income from VAT, employment and alcohol duty. It’s bad for the poor and it’s bad for the sensible but it won’t affect dinner parties in Notting Hill.”

El Bulli to auction its wine collection: Spain’s El Bulli restaurant, which closed in July 2011, will auction its wine cellar to raise cash for chef Ferran Adria’s new venture. Adria and business partner Juli Soler planning to establish “an experimental center looking at the process of innovation and creativity”. “In around a month’s time, the full list of wines will be published,” Adria told Associated Press. “I don’t really know that much about wine, I drink and enjoy them, but that’s about as far as it goes.” More than 8,800 bottles from El Bulli’s cellar would be auctioned with a view to raising an estimated $1.6 million. The auctions, due to be held by Sotheby’s in Hong Kong on 3 April and New York on 26 April, will offer connoisseurs an opportunity to buy a treasure trove, including continuous vintages of some of the world’s most exclusive wines.

Brewers sign up for Cask Beer Rising event: A host of brewers have signed up to take part in a London beer, music & street food event has been launched to fulfill the curiosity and taste for craft beer made by the nation’s brewers. The Craft Beer Rising event will take place on Friday 22 and Saturday 23 February in the atmospheric Old Truman Brewery in East London. There will be tastings from some 40 plus breweries, reflecting both established and experimental British brewing. Several rooms will feature different attractions and moods. For complimentary tickets for the Trade day on Friday 22 November, visit www.craftbeerrising.co.uk. Breweries and brands wishing to be involved, should contact: Sam Lloyd, event development manager, on sam@craftbeerrising.co.uk Breweries confirmed to date include: Bath Ales, Boxsteam, Brentwood, Elephant School, Offbeat, Raw, The Rebel Brewing Company, St Austell, Thwaites, Traquair House and Vale.

Irish licensees call for 15 per cent tax on off-licence booze: Irish licensees have called on the government to introduce a 15 per cent tax on off-licence alcohol sales in the budget. The so-called “lid levy” on unopened alcohol sales would raise €240 million for the state while protecting 50,000 jobs and business, the Vintners’ Federation of Ireland and Licensed Vintners Association have jointly argued. The publicans argue the measure would go some way to meet concerns over the availability of cheap alcohol in supermarkets.

Yum! Brands China warning sends stock down by ten per cent: Yum! Brands reported last Friday that its like-for-like sales in China, its largest growth area, would fall four per cent for the fourth quarter, which led the company’s stock to fall as much as ten per cent during trading. Previously, Yum! Brands had forecast sales in China would be flat.

Company news:

Yummy Pub Company’s new opening sees 3,000 visitors in the first weekend: Yummy Pub Company’s new opening, The Gorringe Park, Tooting, a joint partnership with Charles Wells pub Company, saw 3,000 visitors in its first weekend. Yummy founder Tim Foster said: “We have smashed all expectations for the first weekend’s trade. The idea of opening quietly and fixing the teething problems was thrown out of the window by 9pm on Friday night as people just keep arriving, it was literally all hands on deck! We expected it to quieten down through Saturday to Sunday, but on Sunday we had sold 150 roasts by 1.30pm and peeling spuds as they hit the pan. Our new team coped with the pressure fantastically and we are thrilled it has been so well-received by the people of Tooting.” 

D-Day looms for Luminar Oceana in Kingston: Luminar’s flagship Oceana nightclub in Kingston will be forced to close on 11 December unless the company lodges an appeal against the decision. The nightclub, which has been the most profitable site in the company’s portfolio, had its licence revoked last month after a fatal stabbing. A spokeswoman for parent company Luminar Group said: “We are still considering our position. In the meantime, the club is open for business and we continue to operate our industry leading security measures, which include ID scanning systems and metal detectors, ensuring the public can enjoy a safe night out at Oceana. The club employs 200 young people and we will do everything we can to safeguard jobs.” Meanwhile, friends and family of a young man fatally stabbed in Oceana joined his grieving mother on a march against knife crime on Sunday afternoon. A security loophole through Woo Woo bar, which does not have metal detectors, is believed by Oceana to have allowed a knife to be brought into the club on the night the 20-year-old died. Mrs Sanderson said: “The day was about trying to get people to bin the knife and save a life.”

J Noble plans to re-open former Luminar site in Sunderland: Leisure company J Noble and Sons has applied to re-open the former Liquid and Diva venues in Sunderland as The Basement and Utopia club. Northumbria Police have objected to the Chester-le-Street firm’s bid for a licence to serve alcohol from 11pm until 4am. The force claims that extending opening hours in the city centre could increase booze-fuelled violence. Sunderland City Council’s licensing sub-committee will consider the application for changes at the Galen building, in Green Terrace, which would have a capacity for 1,560 customers over two levels.

Adventure Bar to open fourth site this week: Adventure Bar officially opens its fourth site, a 175-capacity venue, this Friday (7 November) on Clapham High Street. The new bar promises “an eclectic mix of music, eats and drinks, along with an electric service and atmosphere”. The bar will be serving 18 original cocktails, eight distinctive beers and serving high-end hot dogs and wings. The venue has had a soft opening prior to its official launch.

Flat Iron opens in London’s Soho: Flat Iron will make the transition from highly rated pop-up restaurant, located above the Owl and Pussycat in Shoreditch, to its own permanent site tomorrow with the opening of a restaurant in Soho’s Beak Street. Flat Iron is headed by Charlie Carroll, a former operations advisor for Wahaca, and serves the succulent cut of steak from the shoulder of a cow that has previously been hard to butcher. Carroll has described the Flat Iron cut as a “wonder cut”, criminally wasted in the past by being used in hamburgers. Former Mitchells & Butlers executive Mike Palmer has consulted on both projects – the Owl and Pussycat opening saw large queues forming day after day.

Propel Opinion by Paul Charity: A soft opening at the weekend provided Propel Morning Briefing with a chance to try the fabled Flat Iron steak. The new Beak Street restaurant retains the pop-up’s formula of serving a single menu item – the Flat Iron steak for £10 – supremely well. The Flat Iron steak is wondrously tender and the Beak Street site is an atmospheric and cosy den for steak-lovers looking for perfection at bargain prices. Extras such as sauces, salad and triple-cooked chips are (sensibly priced) extras that mean the perfect steak dinner will still cost less £15. The menu will be expanded with the addition of specials but Flat Iron is a worthy addition to the slew of restaurants that prosper by dint of focus on ensuring its speciality is raised to the status of revered hero.

Soho House Group re-open Electric Cinema with double beds in front row: Soho House Group has re-opened its fire-stricken Electric Cinema in Notting Hill with double beds in the front row. The new-look Electric has undergone a £5m refurbishment. The Electric House club next door has been redesigned with a new Chicago-influenced diner and a library inspired by the Speakeasy bars of Prohibition-era America. The foyer of the cinema will have a new American-style donut bar with flavours such as Maple Bourbon, Bergamot Orange, Ginger Chew, Mexican Chocolate and Berry Trifle. Nick Jones, founder and chief executive of the Soho House group of members’ clubs, which owns the Electric, told the London Evening Standard: “There used to be smooching in the back row, now there will be smooching in the front row under a blanket. In the ten years since the Electric reopened cinema-going in London has really developed. Now there are so many different ways of seeing films you actually have to give people a really special experience to get them to go out to the cinema. If you are going to see a movie the Electric’s not a bad place to go.”

David Beckham and Gordon Ramsay working together on new restaurant: Footballer David Beckham has reported that he is working with Gordon Ramsay on a new restaurant venture. He told The Sun: “We’ve got something in the pipeline. We are obviously good friends and we are excited about a project that could happen pretty soon. It will be a business thing but owning a restaurant is going to be fun as well. It’s something I’ve always wanted to do. I’ve always loved cooking. I’d love to cook for Gordon and I definitely will one day.” Beckham said that he is likely to be “spending more time in England” following his departure from the Major League Soccer club this weekend.

Charles Wells re-opens pub hit by devastating fire: Bedford-based Charles Wells has re-opened the historic Swan Inn in Milton Keynes, which closed a year ago after a devastating fire – licensee is Tyrone Bentham. Peter Wells, managing director of Charles Wells Pub Company, told The Milton Keynes Citizen: “The fire at The Swan almost destroyed the pub and came as a devastating blow last Christmas. However it was really inspiring to see how everyone came together to get the pub at least partially open for Christmas Eve and how hard Tyrone and the team have worked since to minimise disruption to customers during the pub’s restoration. We were really pleased to be able to help during this extensive renovation work which has restored the pub to a picturesque inn with a modern feel and I’m sure that everyone will be really impressed with the end product.”

Hong Kong chef Alvin Leung opens Bo London on Thursday: Alvin Leung, who held two Michelin stars at his Hong Kong restaurant, will open his London restaurant, Bo London, on Thursday (6 November). The Hone restaurant Bo Innovation in Hong Kong had a reputation for extreme Chinese cooking with dishes such as Sex on a Beach, which featured such delights as an edible condom. The new London restaurant will pay tribute to British cooking with an “Ode to Great Britain menu” - 12 courses for £98 - which includes items like Bed and Breakfast (smoked quail egg, crispy taro nest, caviar) and a Toad in the Hole (frog leg, bone marrow, lotus leaf), Steak and Kidney (Xiao long bao, avruga).

Italian restaurant chain opens in Bluewater: Ask Italian has opened a new flagship site at Bluewater Shopping Centre in Kent. Located on the Lower Thames Walk, the new venue occupies 315 square feet and has capacity for 160 diners. Steve Holmes, managing director at ASK Italian, said: “As Europe’s largest retail and leisure destination, Bluewater attracts over 28 million shoppers a year which makes it the perfect location for our new flagship restaurant.”

Enterprise Inns submits plan to make the most of iconic site: Enterprise Inns has submitted plans to revive an iconic pub in Portishead High Street. The White Lion pub, once an old water mill, closed its doors in June 2011 and has remained empty ever since. Enterprise Inns has now submitted a planning application to North Somerset Council to carry out improvements to the property. Proposals include the demolition of a rear lobby and the construction of a ground floor extension, with roof terrace. The plans show a bar and DJ booth on one side of the ground floor, while dining facilities are proposed for the other half and the extension. Drawings also show extended outside seating, gates and railings. The first floor would be dedicated to a restaurant and roof terrace and the second floor would be used for private accommodation. An Enterprise Inns spokesman said: “We are currently reviewing various concept ideas for this site. To this end, we have submitted planning applications to ensure the White Lion continues trading and realise the full potential of this iconic site.”

Prezzo to open former Chingford pub site next week, one of four pre-Christmas openings: Prezzo is to open the former Bull on the Green in Chingford as a new restaurant next Wednesday (12 December) The company won planning permission to convert the pub in June. The Bull on the Green has been a pub since the 1880s, when it traded as The Crown, before the pub was knocked down and replaced by the current building in 1910. The Bull on the Green was closed by police for nearly a year following a drug raid in July 2009. Its current owner is Atlantic Housing. It will also open in Wandsworth’s Southside shopping centre on 14 December, Manchester’s Printworks on 18 December and in Aldershot’s Westgate on 19 December.

Mitchells & Butlers to open Harvester and Toby Carvery in Aldershot next week: Mitchells & Butlers will open its last new Harvester of 2012 at Aldershot’s new £65 million Westgate leisure development, which includes a multiplex cinema, restaurants, a hotel and Morrisons food store. The seven-screen Cineworld cinema and Travelodge hotel are already open. The development’s eight restaurants, including Frankie and Benny’s, PizzaExpress, Prezzo, Subway, Nando’s and Mimosa, will all be open before Christmas.

PizzaExpress executives to launch Brazilian street food restaurant: Former PizzaExpress executives Leo Alexander and Antonio Romani are to open a new Brazilian street food concept in Soho next year. Their new restaurant, Galeto, which means “Little Chicken” will be located on Dean Street, and opens in March next year. The pair also run Mediterranean restaurant Hugo’s in Egham, Surrey. Galeto will focus on the street food of Rio and offer a selection of grilled meats and tapas style small dishes. The restaurant will feature a robata wood burning grills.

Two new concepts opening at Westfield: Two new dining concepts are opening at Westfield London in Shepherd’s Bush. Both join the Balcony, the shared seating dining area offering a range of international cuisines such as Pho, Tapas Revolution and Comptoir Libanais. Meatballs, the new concept from Hugh Fowler of Covent Garden Restaurants, has moved to Westfield London from its original home at the former Quality Chop House in Farringdon. Meatballs specialises in a range of freshly made varieties, including Beef and Ricotta, Greek Lamb, Italian Pork with Rosemary and Lemon, Spicy Thai Chicken as well as vegetarian options. It has taken the 560 square foot former Tiffinbites unit. Meanwhile, Indi-Go, the authentic Indian street food concept has chosen the West London shopping centre for its third site, which comprises 947 sq ft and is scheduled to open before Christmas. Indi-go already trades at Westfield Stratford City and has also opened at Bluewater’s Wintergarden. The concept was founded by restaurateur Ranu Miah, who also operates The Scarlet Dot restaurant in Spitafields and Zeera in Mile End. Kate Taylor, associate director at Davis Coffer Lyons, which signed up the concepts on behalf of Westfield, said: “There is always enormous competition from food and beverage operators who want to trade at Westfield because of the ongoing success of both London and Stratford City, but we are very mindful not to be complacent of the Centre’s position in the market and are always seeking new ways to keep the eating and drinking offer fresh and at forefront of dining trends. These are two examples of how Westfield is constantly reinventing itself to offer customers the widest range of concepts possible.”

Enterprise bounces up 4p after Deutsche Bank upgrade: Enterprise Inns shares rose 4p to 90p yesterday after Deutsche Bank analyst Geof Collyer published an upgrade. The Times reported this morning: “Maybe, just maybe, yesterday’s share price could be the latest sign that the company is clawing its way back to normality after teetering on zombie status.”

HMV sells MAMA: HMV has raised £7.3m selling MAMA Group, which includes Camden Barfly, the Manchester Ritz and The Edinburgh Picture House to Lloyds Development Capital for £7.3m. It follows the sale of the Hammersmith Apollo for £32m.

Punch Taverns launches licensee forums: Punch Taverns has launched a National Partner Forum to create closer relationships with licensees. The second forum took place last month at the Punch Taverns Burton head office in November. Licensees attended from pubs across the UK to discuss areas at the heart of their business, ranging from better access to marketing materials to software systems which could improve business efficiency, as well as key issues surrounding the pub industry. Richard Giles, managing director of BG Inns which operate two Punch pubs in the Cheshire area, found the forums very beneficial: “It was a great opportunity to talk to senior Punch board members about real issues and understand how Punch is reacting to current market conditions. It’s an extremely positive initiative and I believe it is a good move by Punch to build stronger relationships going forward.” Punch operations director David Wigham said: “We found the forum very useful, helping us look more closely at the needs of our partners and to develop a number of initiatives. Feedback from the partners who attended was very positive and has encouraged us to plan more similar events.”

Smashburger opens in third international market: Smashburger, the US better burger concept that is looking for a UK franchise partner, has opened in its third international market – its first site in Costa Rica opened on 1 December. The restaurant is the first of 18 franchises planned for the region by partner Richard Eisenberg of QSR International. Eisenberg plans to open other locations in Central America, South America and the Caribbean. Smashburger currently operates locations in Kuwait and Canada, and plans to open its next international locations in Saudi Arabia in early 2013. Smashburger chief executive David Prokupek said: “Our expansion into Latin America is an important milestone for Smashburger.”

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