Propel Morning Briefing Mast HeadAccess Banner  
Propel Morning Briefing Mast Head Propel's LinkedIn LinkPaul's Twitter Link Paul's X Link

Krombacher Headline Banner
Morning Briefing for pub, restaurant and food wervice operators

Wed 15th Jan 2014 - Propel Wednesday News Briefing

Story of the Day:

Hall & Woodhouse MD – ‘My successor won’t be a family member’: Mark Woodhouse, managing director of the Dorset-based brewer and pub operator Hall & Woodhouse, says the next managing director of the company will not be a family member. Woodhouse, part of the fifth generation of his family, took over the reins after his brother Anthony died five years ago. He told South West Business Insider that two of the next generation are already working in the company, and for the first time, female family members are working for the business. However, he told the magazine, he already knows the next managing director won’t be a family member, saying: “We want to attract and retain the best people,” and that means no one gets a job just because they have the right surname. Woodhouse also said that he saw the company, which turns over almost £100m a year and runs 250 pubs, as “the Waitrose of the industry”. Four out of five of its managed houses are food-led, he said, and 50 are “big beasts” – managed houses that turn over roughly £20,000 a week net of VAT. However, he said, the tenanted business “was not in good shape”, and to improve the offer, the company lowered its rents. While this will hit profitability in the short term, Woodhouse said he was confident it would not have long-term detrimental effects. Woodhouse said although the brewery’s Badger Ales are now available in 23 countries, he is focused on UK growth. There are plans to refurbish two pubs in 2014 and open a new pub/restaurant on a greenfield site in Melksham, Wiltshire. The company has recently arranged a £20m ten-year loan to help it acquire and develop new pubs from M&G UK Companies Financing Fund 2, a fund backed by the UK government through the Business Finance Partnership, Prudential and several UK pension funds. Meanwhile the company is investing in core skills and leadership training for “team members”, who can take a hospitality and business management course in conjunction with Bournemouth University, and trying to foster what Woodhouse called “a thank-you culture”, with the HR department renamed the “great place to work department”.

Industry News:

The first Propel Multi Club Conference of 2014 open to bookings: The first Propel Multi Club Conference of 2014, to be held on Thursday 13 March at the Lancaster London Hotel, Lancaster Gate, central London, is now open for bookings. Multi-site pub, restaurant and foodservice companies can claim up to two free places each. E-mail jo.charity@propelinfo.com to reserve places.

Tye – pubco report delay is a positive: Spirit chief executive Mike Tye has told The Financial Times that he is optimistic that business secretary Vince Cable’s proposals to regulate big pub groups will be more lenient than some in the industry fear. The report from the Department of Business into the relationship between tenanted pub companies and their licenses was due late last year but has yet to be published. Tye, whose company has around 400 tenanted pubs, said: “Anything which gives uncertainty to any market is unhelpful. But what you are seeing is a good sign. It means that the government is prepared to take the evidence. From the 7,000-odd responses, people have a lot to say. It appears that the government has listened.”

Dunkin’ Brands reports growth plans: Dunkin’ Brands Group, the parent company of Dunkin’ Donuts, which has returned to the UK, and Baskin-Robbins, has reported strong global expansion results in 2013 for both brands. For the full year, the company’s franchisees and licensees opened a combined total of 790 net new Dunkin’ Donuts restaurants and Baskin-Robbins shops globally, again making Dunkin’ Brands one of the fastest-growing franchise companies by unit count in the quick service restaurant (QSR) industry. In 2013, Dunkin’ Donuts opened 138 net new restaurants outside the US. The company also announced that in 2014 its franchisees and licensees plan to open a net 685 to 800 new Dunkin’ Donuts and Baskin-Robbins locations globally.

Activist shareholder increases pressure on Darden management: Activist shareholders are stepping up pressure on Darden Restaurants, owner of The Red Lobster and Olive Garden chains, to squeeze value from a property portfolio they claim could be worth $4bn. Barington Capital signalled it would oppose any sale of Red Lobster, under consideration by the company, that could rob shareholders of the chance to profit from a property restructuring. The hedge fund, which is leading an investor group that controls 2% of Darden’s shares, said in an open letter to the company on Monday that management “can and should be doing more to improve value for its shareholders”.

McDonald’s Hong Kong introduces Ferrero Rocher coffee: McDonald’s in Hong Kong has started serving Ferrero Rocher coffee. The company’s new limited-time Golden Moments range features two drinks and one coffee cake inspired by Ferrero products. The New White Chocolate Coffee is available iced or hot and tastes like Ferrero’s Confetteria Raffaello, a white chocolate round wafer covered with coconut. The Golden Nutty Mocha tastes like the iconic Rocher and features steamed milk, chocolate sauce, espresso, and hazelnut syrup.

Five German breweries fined for price-fixing: Five breweries in Germany, Europe’s biggest beer market, face fines totalling more than €100m for price fixing after an investigation launched when Anheuser-Busch InBev blew the whistle on the case. Germany’s Federal Cartel Office said it would fine Bitburger, Krombacher, Veltins, Warsteiner, Ernst Barre and seven individuals connected to the breweries a total of €105m. The price fixing took place between 2006 and 2008, the office said. Krombacher, Bitburger, Veltins and Warsteiner also cooperated with the investigation, which reduced their fines, the cartel office said. Barre disputes involvement in price-fixing but decided to settle with the cartel office nevertheless. The affected breweries can still appeal against the fines. The cartel office continues to investigate six other breweries, which it declined to name. Denmark’s Carlsberg said it was one of them.

Company News:

SSP owner denies float plan: Foodservice operator Select Service Partner (SSP) has denied it has hired advisers with a view to launching an initial public offering (IPO). It issued a statement after claims that its owner, the Swedish private equity firm EQT Partners, is planning to list SSP on the London Stock Exchange later this year. SSP said: “You may have read reports in the press speculating on an SSP IPO and the appointment of an advisory bank. Having been privately owned by EQT for more than seven years, there will inevitably be media speculation about a potential exit. However, we can confirm that we have not appointed any advisers.” Sky News claimed SSP, which has 30,000 UK staff, could be floated or sold privately.

Masterchef winner buys Cornish pub: Masterchef winner Anton Piotrowksi, who operates Treby Taverns, has bought the freehold of The Springer Spaniel, an award-winning country pub in Treburley, near Launceston, Cornwall through the agent Christie + Co. The Springer Spaniel’s food offer is sourced from local farmers and its awards include the Taste of the West Silver Award. Richard Wood, of Christie + Co’s Exeter office, said: “We are delighted to have sold the freehold interest in the Springer Spaniel as it is one of Cornwall’s finest dining pubs. This demonstrates a real demand for high-quality freehold businesses with strong trading figures, which can achieve strong prices within today’s market.”

Toby Carvery site scores zero food hygiene rating: A Toby Carvery in Chaddesden, Derbyshire, owned by Mitchells & Butlers, has been scored zero by food hygiene inspectors. The low rating is linked to a problem with “pests”. The inspection took place in October but details of the rating have only just emerged. A spokeswoman for the company said it was satisfied problems at the Chaddesden premises had now been rectified. She said: “We take our food hygiene responsibilities very seriously and the Toby Carvery Chaddesden has always achieved good hygiene audit scores. The business did have an issue with pests recently and, as a result, was temporarily re-rated by an environmental health officer while we carried out essential pest-proofing works. That work has now been completed and we await a re-visit from the officer, so that the business can be re-rated. We are confident that the day-to-day food safety and hygiene practices remain at a high standard.”

Whiting & Hammond starts work on eighth site: Whiting & Hammond, the gastro-operator led by Brian Whiting, has started work on its eighth pub, a Punch Taverns site in Kent that will see an estimated £700,000 co-investment. The company hopes to re-open the King’s Head in Bessels Green, Sevenoaks at the end of March after an extension to the pub and a refurbishment. Whiting said: “Punch has really pulled out the stops to recruit us to the estate. I don’t think Punch will get much change out of £500,000 and we’ll be spending around £200,000. It’s a beautiful site opposite the village green, right in our heartland.” Whiting & Hammond’s seven sites currently have a turnover of circa £9.1m.

Singer Inns and Taverns hands back landmark Plymouth site to St Austell: Singer Inns and Taverns has handed back the keys on the landmark Waterfront bar and restaurant in Plymouth to the freehold owner, the Cornish brewery St Austell. The company, run by Devon couple Dean and Simone Singer, took the lease on the Waterfront bar and restaurant, at West Hoe, in March 2012. But the sub-lease has been handed back to St Austell Brewery, which is now looking for a top chef to take on the venue and develop it into a destination diner. The site is located on the waterside and has views across Plymouth Sound. Adam Luck, estate director at St Austell Brewery, said Singer Inns wanted to concentrate on its other business premises. The firm has a portfolio of pubs, including the Inn on the Shore, in Downderry, and free houses around Devon. Luck said the Singers’ departure gives the brewery the opportunity to look for a new operator for the Waterfront, preferably a talented chef who can turn it into another of Plymouth’s well-regarded restaurants: “It’s one of the best sites in Plymouth, with car parking and a fantastic waterfront location. The problem with the site is it’s very seasonal and weather-dependent.”

Sonnet 43 opens third brewery tap: Sonnet 43, headed by Mark Hird, has opened its third brewery tap. The Kicking Cuddy pub at Coxhoe, County Durham, was bought by restaurateur Hird in 2012, as part of the creation of the adjoining Sonnet 43 Brew House. Now, after being closed for more than 14 months for refurbishment, the pub is being re-launched as a brewery tap, with bar and restaurant. The new venue, which has created around 50 full and part-time jobs, has been re-named the Clarence Villa. It is the third brewery tap to be opened by Sonnet 43 in the past 12 months, following the launch of the Lambton Worm, Chester le Street, and the White Lead, Hebburn, with more expected to follow this year. Hird said: “Sonnet 43 Brew House has been performing extremely well since its launch in 2012 and this has allowed us to invest in the former Kicking Cuddy pub and transform it into a modern brewery tap, offering not only good quality craft ales, but British food made using locally sourced ingredients. We are already planning to develop the site further in the future and hope to also include a visitor’s centre, offering brewing experiences and tours.”

Leamington nightclub has licence revoked: Evidence of drugs being used around a Leamington bar has led to the premises losing its licence. The Juice Factory in Court Street was subject to a review of its licence brought about by Warwickshire Police and carried out by a panel of Warwick district councillors before Christmas. As a result the bar’s licence was revoked, with its owners having 21 days to appeal against the decision while the venue remains trading. At the hearing, Paul Calver, harm reduction sergeant for South Warwickshire Local Policing, produced evidence of police incidents, crimes, statements, officers’ accounts and CCTV footage to the panel, which highlighted the scale of the problems at the venue.

Simon French reiterates buy recommendation on Spirit: Panmure Gordon leisure analyst Simon French has reiterated his ‘Buy’ recommendation on Spirit shares after yesterday’s trading update. He said: “We expect Spirit to trade well over the next seven months, helped by favourable weather comparatives in January and March and the football World Cup in June and July. However, much of the group’s future success lies in its own hands and its focus remains on the execution of its strategy in managed pubs, including the addition of pubs to the managed estate. In the leased estate the focus is on improved quality through investment, innovation and selective disposals. We reiterate our ‘Buy’ recommendation and 110p target price. The target price implies a circa 30% potential upside.”

Zagat Guide names ETM Group founders as ‘innovators to note’: The respected dining guide Zagat has named ETM group founders Ed and Tom Martin as “innovators to note” in the London eating out scene. The guide said: “The Gun, the Jugged Hare and the Botanist in Sloane Square are on every smart gastropub list, and they were all opened by Tom and Ed Martin. The two brothers branched out into mainstream restaurants with the Chiswell Street Dining Room, and then late last year, they opened One Canada Square. Their latest restaurant may cater to the young Turks of the financial giants in Docklands, but it’s not all meat at their ultra-modern glass and steel restaurant. The Raw Selection epitomises the current zeitgeist of healthy dining with such dishes as venison carpaccio, steak tartare, smoked wild halibut and yellowfin tartare fresh from nearby Billingsgate Market.”

Cosmo to open in Sheffield next week with improved offer: The buffet restaurant chain Cosmo is to open a £1m site in Sheffield next week, creating 45 jobs. Cosmo will offer more than 150 dishes when it opens at St Paul’s Square in Sheffield city centre next Tuesday. There will be ten live cooking stations, including a Japanese teppanyaki bar, a robata grill and a Brazilian-style meat barbecue. New additions include freshly made pasta and rotisserie chicken. James Brion, creative director for the restaurant chain, said: “We are very much looking forward to opening up our new restaurant in the heart of Sheffield and introducing our unique dining experience to the city. We have been planning to open a restaurant in Sheffield for some time now because it is a vibrant city with huge economic potential. Our investment in St Paul’s Place is certainly significant, but we feel the location and Sheffield’s demand for quality eating-out destinations will work in our favour. We pride ourselves on the outstanding variety of dishes we offer and we are excited about expanding our range to include freshly made pasta and rotisserie chicken, which will ensure our customers in Sheffield will be even more spoiled for choice.” The restaurant will have 300 covers.

Loch Fyne survey – Brits still wary of fish: Despite the wealth of publicity about seafood and healthy living, many Britons will still not go near fish, according to a survey by Greene King’s Loch Fyne chain, which has more than 40 fish restaurants in the UK. The survey found that a good proportion of the population are still nervous about buying or cooking seafood, with a third declining to try oysters and one in ten who will not eat fish whatsoever. The biggest turnoff, according to the survey, is eating fish with their heads still on and eyes staring up at the diner. Fish with eyes came second for most-feared foods in the poll and anchovies were fifth, while shellfish and fish on the bone took up places eight and nine. Only offal and meat cooked rare managed to break the underwater monopoly on the top five spots, while blue cheese, liver and gherkins also appeared in the top ten.

Bill’s opens first site of 2014: Bill’s Restaurants has opened its first site of 2014, with an opening in Ealing, West London on Monday, taking the estate to 31 sites. The next opening will be in Windsor on 3 February. The Ealing opening is on New Broadway and has 136 covers inside with a further 20 or so outside. The Windsor opening is part of Windsor Royal shopping centre, next to Windsor and Eton Central station, with 118 covers inside and 34 further covers outside. In addition, this month sees a new range of teas launched for both restaurants and the retail side of the business. Blended exclusively for Bill’s, the range includes a robust breakfast tea, a lightly perfumed Earl Grey, a peppermint tea, a pure China green tea, a camomile tea with notes of green apples, and a Bramble Berry infusion. All will be available in gift tins to take home. Bill’s specially roasted coffee (a blend of Arabica and Robusta) will also be available ground and ready to take home.

Distiller acquires Islay pub: Morrison Bowmore Distiller’s has acquired the Harbour Inn on the whisky island of Islay. The hotel and restaurant has seven en suite bedrooms. The award-winning restaurant features local quality produce. The Harbour Inn joins the Bowmore Visitor Centre and Distillery as well as luxury self-catering cottages on the island. The visitor centre’s operations and development manager, Anne Kinnes said: “In growing the Bowmore business to include the Harbour Inn, this is a very exciting time for us. We are looking forward to the opportunity of welcoming guests to experience our world class service on Islay.”

Paris House Restaurant enters liquidation: Paris House Restaurant Ltd, the company that used to own Bedfordshire’s only Michelin-starred restaurant, and linked to 10 in 8 Group, has entered into liquidation owing more than £400,000 to creditors. Documents filed at Companies House revealed that Paris House Restaurant Ltd was wound up voluntarily on 31 December 2013. 10 in 8 Group, which once set out to open ten financially sustainable Michelin-standard restaurants in eight years, runs two sites, La Becasse in Ludlow, which recently lost head chef Will Holland, and the Angel in Dartmouth, which is now closed.

PizzaExpress to open at Skipton shopping centre: PizzaExpress is to open a new site within the new £8.5m Albion Place development off the High Street in Skipton, the largest town centre development in Skipton in more than 20 years. It will feature a large Next clothes and home store over two floors and a Dawsons department store, also over two floors, selling a range of household items. The PizzaExpress will feature balconies at the front and outside seating at the rear. The opening of the new shopping centre is scheduled for Easter.

Champagne bar to open on roof of iconic Liverpool building: Work has begun to create Liverpool’s first rooftop champagne bar and restaurant. The bar and a 120-seater restaurant is being built in the two upper storeys of the former White Star Line headquarters at Albion House, in James Street. Called the Carpathia Champagne Bar and Restaurant, it will be the crowning glory of the new Signature Living Hotel – Home of the Titanic. The bar is named after the Cunard Liverpool liner RMS Carpathia, which rescued all 710 survivors of the Titanic disaster, after the White Star flagship hit an iceberg and sank in 1912. The eighth-floor bar will have two balconies 120ft and 110ft long by 10ft wide, on either side of the building, with the kitchen on the attic storey above.

Orchid chief executive – ‘they celebrate New Year’s Eve in style in Scotland: Orchid chief executive Rufus Hall, who refers to himself as McRufus in his blog, has praised New Year’s Eve celebration in Scotland, having spent the evening touring company pubs. He said: “Of course, the Hogmanay atmosphere is set by pubs, bars and restaurants – every bar is packed and pubs and restaurants booked months ahead with dinner and dance events. Everyone is out, from kids to pensioners – the last time I had seen ‘everyone’ out like this was on St Patrick’s Day on the Emerald Isle. Sad but the English just don’t celebrate like this. Grays Inn in Mastrick (is) a heart of the community pub run by local legends Sandra and Bud Kane, 22 years at the pub and still going strong. Here the celebrations are certainly drink-led and adult (I have never seen so much vodka, no not whisky, get drunk anywhere in the world). But what a celebration and what characters you meet – I can’t mention them all but Freddie the DJ is a binman by day, quiet regular Mike Ross is a Wimbledon umpire and team member Annette should run for office she speaks so loudly and passionately about things. It is hard to put into words the atmosphere, fun and sense of community on New Year’s Eve at the Grays. Suffice to say, I have never been to Scotland before on Hogmanay and will certainly never forget it.”

Yum! Brands reports KFC moves into China growth: Yum! Brands has reported a 2% increase in December like-for-likes in China. The company has fought its way back from precipitous sales falls following panic over the country’s supply of poultry. Yum’s results were made up of a 5% increase for KFC, which has more than 4,400 unit in the country and a 3% decline at Pizza Hut Casual Dining. The results are a complete reverse, because the 1,000-unit Pizza Hut brand had been growing its monthly like-for-like sales in 2013, even as KFC struggled.

Hydes plans Northern Quarter gastro-pub and hotel: The Manchester brewer Hydes is planning a hotel, pub and restaurant in the city’s Northern Quarter district. The company is seeking planning permission to convert five buildings on the corner of Turner Street and Red Lion Street, opposite the Solita restaurant, into a large gastro-pub with 14 hotel rooms and space for private dining. Council officers have recommended approval of the conversion of the buildings, previously used by clothing retailers, despite objections from nearby residents that another bar in the area will create more noise and anti-social behaviour. The council has received 15 letters of objection in advance of a planning committee meeting on Thursday. However, in a report, officials said that while the scheme will be close to apartments, a controlling factor will be Hydes’ concern for its own hotel guests. The report says: “The successful redevelopment and regeneration of the Northern Quarter and the adjoining regeneration areas, is critical to the city council’s growth objectives. The proposed development would contribute to these objectives and the hotel, bar and restaurant would inject life and vitality into this part of the city. It should also generate spin-off benefits for adjoining sites. In principle the mix of uses proposed would be acceptable in a city centre location: the proposal relates to five currently vacant and neglected properties within the area and has a geographical relationship with other commercial uses in the proximity of other commercial uses including shops, offices, cafes, bars and restaurants.”

Fish and chip chain upgrades original outlet: The Yorkshire-based fish and chip restaurant chain Wetherby Whaler is spending £200,000 upgrading its original outlet in Market Place, Wetherby. The upgrade will see capacity increased 50% from 60 to 90, a new state-of-the-art kitchen fitted and a platform lift and new toilets installed. The restaurant will be closed from Monday, January 20 until Wednesday, February 12. The takeaway at Wetherby will remain open throughout the work. Janine Murphy, co-owner of the Wetherby Whaler, who bought the restaurant in Wetherby with her husband Phillip in 1989, said: “The restaurant in Wetherby is going from strength to strength. We are very proud of the reputation the Wetherby Whaler has and this major investment in the Wetherby restaurant will enable us to maintain and build on this.” The chain’s other outlets are in Guiseley, Pudsey, Wakefield and York.

Ireland’s oldest independent brewery to expand overseas: Hilden Brewery of Lisburn, County Antrim is developing a new site near its home in Northern Ireland, that will double its brewing capacity, as it plans an international expansion. Hilden, founded in 1981, and the oldest independent brewery in Ireland, is looking to break into markets in Canada, the Czech Republic, Slovakia and the Baltic region in 2014, targeting China, Japan, Australia and New Zealand the following year. The company also expects to take on three new full-time staff in 2014. Seamus Scullion, Hilden’s co-founder, said: “Our market research shows there is a growing taste for our products across all age groups and backgrounds.”

San Carlo chain expands into Cheshire: The San Carlo restaurant chain is opening its first venture in Cheshire after acquiring Players Restaurant in Hale. The new outlet, at the Manchester Airport Marriott hotel, will re-open on January 20 as San Carlo Fiorentina. San Carlo bought the business from Manchester-based administrators at CG & Co who were appointed to Players’ parent company, Boma (UK), in November. The restaurant has around 160 covers inside plus an additional 80 covers on the patio. San Carlo’s managing director, Marcello Distefano, said: “We’re really excited to be opening our second suburban restaurant and our first in Cheshire. Many of our loyal customers, who visit San Carlo Manchester regularly, live within the Hale, Wilmslow and Alderley Edge area and we think it will be a great fit for us.” San Carlo Group currently runs 11 restaurants in the UK, including outlets in Manchester, Leeds, Liverpool, Birmingham and London.

Big Dirty Burger partner opens noodle joint: Colin Tu, one of the partners in the London pop-up operation Big Dirty Burger, is opening a Vietnamese noodle restaurant called Salvation in Noodles in Dalston, East London. The menu will offer regional and street-food noodle dishes from across Vietnam, split evenly between noodle soup dishes and vermicelli noodle salads. Tu told the London foodie website Hot Dinners: “The food can only be described as home-style cooking. It will definitely be stronger in taste compared to what’s available out there right now and will not be shy from sticking to original ingredients how you will find them served in Vietnam. I am hoping to introduce weekly specials once we are opened fully and want to introduce dishes that are not yet available on the market, such as Mi Quang and Bun Oc among others.” The wine list is from Borough Wines, with beer from Crate brewery and soft drinks from Dalston Cola. Salvation in Noodles will open in the third week of February at 122 Balls Pond Road, N1.

Whitbread wins hotel, restaurant and bar permission in St Andrews: Whitbread has been granted planning permission for a 65-room, three-storey Premier Inn hotel, along with restaurant and bar, on the site of a former abattoir in Largo Road, St Andrews, Fife. The development will also include a Marks and Spencer Simply Food outlet. Council case officer Angus Dodds told members of Fife Council’s planning committee that a recent study found a perception of St Andrews being overpriced for visitors. Average room rates in 2011 were £143, with Whitbread indicating a notional target price of £69 at weekends and £70 during the week for its proposed Premier Inn. The applicants offered the council £277,000 as compensation for the loss of “employment land”, which the council will use to purchase a replacement industrial site in the St Andrews area. The granting of planning permission comes almost a year after Whitbread announced its plans for the hotel.

Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Pepper Banner
 
Butcombe Banner
 
Contract Furniture Group Banner
 
UCC Coffee Banner
 
Heinz Banner
 
Alcumus Banner
 
St Austell Brewery Banner
 
Small Beer Banner
 
Kronenberg Banner
 
Cruzcampo Banner
 
Adnams Banner
 
Meaningful Vision Banner
 
Mccain Banner
 
Pringles Banner
 
Propel Banner
 
Christie & Co Banner
 
Sideways Banner
 
Kurve Banner
 
CACI Banner
 
Airship – Toggle Banner
 
Wireless Social Banner
 
Payments Managed Banner
 
Deliverect Banner
 
Zonal Banner
 
HGEM Banner
 
Venners Banner
 
Zonal Banner
 
Access Banner
 
Propel Banner
 
Pepper Banner