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Morning Briefing for pub, restaurant and food wervice operators

Mon 10th Dec 2018 - Propel Monday News Briefing

Story of the Day:

City Pub Group to make first move into experiential sector with crazy golf and street food stalls at former Wetherspoon pub in Cambridge: City Pub Group, led by Clive Watson, is to make its first move into the experiential sector by turning a former JD Wetherspoon-owned pub in Cambridge into a venue featuring crazy golf and street food stalls, Propel has learned. City Pub Group bought The Tivoli, which was ravaged by fire in 2015, earlier this year after Cambridge City Council rejected previous plans by a developer to turn it into luxury flats. The new-look venue will feature a rotating line-up of three street food traders on the ground floor. The outlets will be franchises and won’t offer takeaway food but may operate a delivery service. Diners will also be able to order food at the main bar. The first floor will host the crazy golf course, while there will be a shuffleboard deck in the basement. The second floor will feature an 80-seater, multi-purpose events space that will be fully equipped for community groups to hold film screenings and host yoga classes, live music, meetings and parties. The room will open on to a terrace facing the river Cam. The pub will also feature a rooftop terrace, with the company beginning the planning process in the coming weeks, a spokesman told Propel. If the plan is approved, construction and fit-out could begin in April for an opening in the autumn. Meanwhile, City Pub Group has acquired the freehold of Cardiff bar restaurant Chapel 1877 off a guide price of £2.6m in a deal brokered by agent GVA. The venue is a renovated chapel designed by architect Henry C Harris in a gothic style. It has also opened Brighton Beach Club in the old Milkmaid Pavilion in Brighton's Kings Road, which was formerly an Italian restaurant called Al Fresco. The company has refurbished both bars, now offering more than 40 different craft beers, world wines all sold by the glass and a list of cocktails that refresh every week just to “spice things up”. City Pub Group currently owns 43 sites.
 

Industry News:

New speakers join Restaurant Marketer & Innovator line-up: New speakers have been added to the line-up for the Restaurant Marketer & Innovator European Summit, which is returning for its second year. The two-day event, a partnership between Propel and Think Hospitality, will feature more than 40 speakers with a unique blend of senior marketers, business leaders and entrepreneurs. The new speaker additions are Ailish O’Brien, industry manager for Google, who will be interviewed by Wisetiger managing director Andy Shaw about the latest developments at Google and technological trends relevant to the restaurant industry. Meanwhile, Estonian multi-site restaurateur Martti Siimann, founder of the Baltic’s best restaurant NOA, will join the concept development panel. Tickets for the two-day conference, which will take place on 16 and 17 January at One Moorgate Place, London, cost £575 for operators and £845 for suppliers. Group ticket packages are available when purchasing three tickets or more. Tickets can be purchased by emailing Anne Steele, of Propel, at anne.steele@propelinfo.com or calling her on 01444 817691.
 
Bookatable partners with Instagram: Michelin’s reservation service Bookatable has partnered with social network Instagram to allow users to make a reservation directly through a specific Instagram business profile. Bookatable said with more than 200 million people visiting business profiles daily, the move would drive incremental covers and increase opportunities for restaurants on Instagram. Bookatable chief executive Michel Cassius said: “We are delighted to offer this free integration to our tens of thousands of restaurants across Europe. Connecting restaurants and diners to help create great experiences is central to what Bookatable does. In a connected world where diners get their inspiration from many sources, this integration only makes it easier for all to discover and book a table via a few taps within the Instagram app. We are also giving restaurants the chance to turn pictures, posts, shares and tags into diners and monetise this cycle, which is a real plus for the hospitality industry.” Instagram product marketing manager Aishwarya Bhake added: “We look forward to driving even more value for the restaurants on Instagram with this integration. Thanks to this partnership with Bookatable, Instagram users will be able to reserve a table at their favourite restaurants, no matter where they are, while making it even easier for restaurants to connect with current and new customers.” Bookatable’s partners include Google, Apple, TripAdvisor, Timeout and Bing.
 

Company News:

The Times – Patisserie Holdings marketing chief raised financial figure issues more than a year ago: The Times has reported a former marketing chief of Patisserie Holdings raised potential issues with the company's financial figures to its board more than a year before the company said it had discovered an accounting black hole. The newspaper stated: "Nicola Hedley, who is suing Patisserie Valerie’s parent company for breach of contract and constructive dismissal, included information challenging some of the group’s revenue figures in documents relating to her claim that was sent to board members in July 2017. Lawyers filed Hedley’s proposed claim at the employment tribunal in Birmingham one month after the board had been alerted in August. Her case raises more questions about the management of Patisserie Holdings. In October, the company suspended trading of its shares after revealing that it had discovered ‘significant, potentially fraudulent accounting irregularities’. It came close to collapse but survived after Luke Johnson, its chairman and biggest shareholder, provided two £10m loans and shareholders backed an emergency £15m placing."

Andy Lennox launches new concept: Koh Thai founder Andy Lennox has launched a new restaurant concept – Zim Braai, in Poole, Dorset. The new brand offers dishes from South Africa, and also the Seychelles, Malawi, Zanzibar, Madagascar, Zimbabwe and Cape Town. Lennox has adapted the recipes, flair and cooking style of the world’s second largest and second most-populous continent to suit the UK. He said: “On my travels I had one of those light bulb moments and realised the UK restaurant sector was missing a great new opportunity, yet diners are eager and highly receptive when it comes to international cuisine. I’ve explored southern African food and I decided I wanted to deliver it as a new proposition. It’s an exciting cuisine – featuring fish, meat, vegetables and lots of flavours – there is something for everyone and it offers a tantalising new foodie frontier for the taste buds. Specialisms differ widely in one country, let alone the southern half of a massive continent. There’s a first time for discovering new food, often it is memorable and goes on to become a firm favourite.”
 
Domino's largest franchisees unhappy over profit split between themselves and company: Unhappy franchisees have written to the board of Domino’s Pizza threatening to “declare war” on the company if they are not handed a greater share of profits, The Sunday Times has reported. The newspaper added: "The Domino’s Franchise Association UK & Ireland, set up recently by 11 of the largest Domino’s franchisees, said it would boycott the company’s annual pizza-making festival in March if their demands are not met. They could also refuse to open new stores. The rancour centres on the ability of franchisees, who buy food and services from Domino’s, to make money from their operations. They have been affected by rising costs and pressure to open more sites in existing locations, which benefits Domino’s but damages their own profits. A huge amount of profit has been moving from the franchisees to the company." 
 
Magic Brands Group opens second UK Denny’s diner, in Glasgow: Denny’s franchisee Magic Brands Group has opened a second UK site for the US 24-hour diner brand, in Glasgow. Magic Brands Group, owned by Leon Esfahani, has opened the restaurant in a former Toby Carvery unit near Intu Braehead, reports The Scotsman. The opening follows the launch of Denny’s in the UK earlier this year, in Swansea. The menu replicates the US experience while adding British touches such as baked beans and fish and chips. In December last year, Esfahani secured seven-figure funding from HSBC to support the national roll-out of further diners in the next few years. Denny’s was founded by Harold Butler and Richard Jezak in 1953 and currently has more than 1,700 restaurants worldwide.
 
Profits drop at Bread Holdings: Profits at Bread Holdings, the parent company of Gail's Artisan Bakery dropped to £142,000 in the year to February 2018, down from £2m the year before, the Mail on Sunday has reported. The newspaper added: "Revenues at Bread Holdings rose from £79m to £86.4m, accounts filed at Companies House reveal. Bread Holdings cited competition in both the retail bakery and wholesale markets for its fall in profits. Risk Capital Partners, Luke Johnson’s private equity firm, backed a management buyout of Bread Holdings in 2011 and owns about half of the firm. He had been eyeing a sale of the company, but the process has been put on hold until after Brexit. Earlier this year, it was rumoured Patisserie Holdings – the parent of cake and cafe chain Patisserie Valerie – considered buying Bread Holdings. Gail’s has 47 sites, mainly in London, but it is now expanding further afield. It grew 25% last year, while the Bread Factory grew by 2%."
 
Unsecured creditors of Leelex unlikely to receive any payments: The unsecured creditors of London and Leeds bar operator Leelex are unlikely to receive any payments, the administrator has reported. Unsecured creditors are owed £750,407. Secured creditor HSBC is owed circa £1,196m and "is highly unlikely to recover its indebtedness in full". The company operated Leeds bars Neon Cactus, Jake's Bar, Cielo Blanco in Trinity Leeds and The Distillery in London. The administrator's report states: "A slowdown in the casual dining sector resulted in the company finding it increasingly difficult to service its current debt levels, leading to cash flow issues for the company as a whole. Prior to our appointment, a sale of The Distillery was completed by the directors (for £400,000) to Good Harbour Trading and a separate sale of Neon Cactus, Jake's Bar and Oporto (for £33,282) was completed by the directors to Akito. Both Good Harbour Trading and Akito are connected parties by virtue of common directors. At the date of our appointment, only Cielo Blanco remained as being operated by the company."
 
TRG Concessions opens bespoke pub concept at Southend airport as part of £5m-plus F&B contract: The Restaurant Group (TRG) Concessions has opened bespoke pub concept The Navigator at Southend airport as part of a £5m-plus contract to run its food and beverage offering. TRG Concessions has invested £300,000 to revamp the former Lakers Bar in the departure lounge. The pub has capacity for 300 people and is open from 4am until the departure of the final flight, reports the Basildon, Canvey and Southend Echo. TRG Concessions took over running the airport’s food and beverage offer in June on a ten-year contract. While TRG Concessions will operate and develop the existing catering concessions, it will also introduce new brands this year, including Giraffe Stop and Costa Coffee with other high-street brands in the pipeline.
 
Dishoom opens Manchester restaurant for seventh UK site: Indian restaurant Dishoom has opened a site in Manchester – its seventh UK venue. The company has opened the restaurant within the grade II-listed Manchester Hall in Bridge Street. It has 230 covers spread between two dining rooms and The Permit Room cocktail bar. There is a familiar aesthetic in part to the other Dishoom restaurants, with frequent references to the Irani cafes of Bombay, as well as antique furniture sourced from India such as an original teak in/out board from a Bombay hospital. Dishoom has five sites in London and one in Edinburgh.
 
Eataly in Las Vegas to be first in world to open 24 hours a day: A new 40,000 square foot Eataly set to open in Last Vegas on Thursday, 27 December at the front of the Park MGM will be the first in the world to open 24 hours a day, seven days a week. Another first for the site is a wine counter where customers can samples as many as 50 different varieties to help make a decision. Eataly plans to offer a variety of restaurants, serving Neapolitan pizza, pasta, and regional Italian street food at counter-service and full-service outlets. Shoppers can also take cooking classes at the Las Vegas location at a chef’s table that sits in the middle of the store, as well as watch live demonstrations. Shoppers can also witness the team of bakers, mozzarella makers, pizzaioli, and pasta makers make their dishes.
 
Cabaret bar brand Ma Kelly’s reopens one of Blackpool’s oldest pubs for seventh site: Cabaret bar brand Ma Kelly’s has reopened one of Blackpool’s oldest pubs for its seventh site in the seaside resort. The No 3, which is located at the junction of Devonshire Road and Whitegate Drive, has operated in the past as a carvery under Mitchells and Butlers’ Crown Carvery brand and Spirit Pub Company’s Flaming Grills. Ma Kelly’s has returned the site to more of a traditional pub, creating a sports bar in one half of the venue and a “chilled-out wine bar” in the other. The sports bar offers 20 screens for live events, while the wine bar hosts acoustic sessions, saxophone nights and DJs, alongside snacks, wine and cocktails. The earliest reference to the pub is by author William Hutton in a description of Blackpool published following his visit in 1788. Ma Kelly’s is headed by entrepreneur Paul Kelly. Its other Blackpool venues are Ma Kelly’s North, Ma Kelly’s Showboat, Ma Kelly’s Station, Ma Kelly’s Foxhall, Ma Kelly’s South and Ma Kelly’s Sports Bar.
 
Restaurateur Jasper Gorst reveals details for fourth London site: Restaurateur Jasper Gorst has revealed details for his fourth site in London. Gorst will head south of the Thames to launch The Oak SW11 in Battersea in January after transforming the former Butcher & Grill in Parkgate Road. The Oak SW11 will serve the group’s signature pizzas alongside an Italian and Mediterranean-focused menu. There will also be a wine list featuring bottles from across Europe, with a heavy emphasis on varieties from France and Italy, while a stripped back cocktail menu will be on offer in the bar. The venue will feature a ground-floor dining room, counter bar, lounge and mezzanine-level dining room. The design will incorporate 3D tiles, banquette seating, artwork by prominent local artists and a long table seating 16. Gorst opened The Oak W2 in Notting Hill in 2001 followed by The Bird In Hand in Brook Green in 2011 and The Oak W12 in Goldhawk Road two years later.
 
North west-based brothers open third site for tapas bar brand Porta, fourth venue in total: North west-based brothers Joe and Ben Wright have opened a third site for their tapas bar brand Porta, in Salford, their fourth venue in total. The Wrights launched the concept in Chester as a sister site for their Altrincham bistro Joseph Benjamin, opening a second Porta, in Altrincham, in 2016. The 65-cover Salford venue has opened in Chapel Street at a former bank branch offering the same formula of “laid-back tapas and drinks”. The main dining area is on the ground floor, with a bar upstairs. The menu mirrors that of Chester and Altrincham with dishes and bar snacks such as salted Catalan almonds, patatas bravas, and fried Andalucian-style squid with aioli. Behind the bar, the venue offers a range of Spanish wine, cava, beer and sherry. Ben Wright told Propel: “I think we could open more in the future but there’s no rush. We’ve grown organically so far and our immediate focus is on the new site. The idea of Porta is to embrace the true concept of tapas. It’s a versatile, social experience that differs from having a more formal, sit-down meal at a restaurant.”
 
CMA scrutinises PepsiCo’s acquisition of Pipers Crisps: PepsiCo’s acquisition of Pipers Crisps is being scrutinised by the Competition and Markets Authority (CMA). PepsiCo announced last month it planned to buy Pipers, which is stocked by a number of sector operators, for an undisclosed sum. However, the CMA has decided to look at the deal to see if there would be a lessening of competition. It stated: “The CMA is considering whether this transaction, if carried into effect, would result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may result in a substantial lessening of competition within any market or markets in the UK for goods or services. To assist it with this assessment, the CMA invites comments on the transaction from any interested party by Friday, 21 December.” PepsiCo said it plans to accelerate the growth of the Pipers business in the UK and continue to develop exports, while Pipers would complement its own savoury snacks portfolio.
 
Monmouthshire-based operator eyes expansion in Wales as he opens second Italian restaurant: Monmouthshire-based operator Andreas Christou has opened his second Italian restaurant – and is eyeing further expansion in Wales. Christou’s opened his first site, La Piccola, in Monmouth. Now he has added a second venue – Casa Bianca – in Frogmore Street, Abergavenny. Casa Bianca is set over two floors and has been renovated to give it a “homely feel with a modern twist”. Christou told the South Wales Argus: “I am delighted to bring our unique Italian style to Abergavenny. We have had great success with La Piccola in Monmouth and we hope to achieve the same in Abergavenny, leading on to further expansion in Wales.”
 
UK’s oldest hotel goes on the market: The UK’s oldest hotel has been put up for sale alongside a neighbouring pub by their East Yorkshire operator. The Lowther Hotel and The Drake Inn, both in Goole, are being marketed by agents Christie & Co. The grade II-listed Lowther Hotel was built in 1824, operating as a hotel since its inception. It was named the oldest in the UK in 2016 after the Royal Clarence Hotel in Exeter burnt down. Comprising three storeys, the main building features 12 en-suite bedrooms, private function rooms and two licensed venues, Eddie’s Bar & Bistro and Voodoo Chilli nightclub. The cobbled courtyard to the rear of the hotel leads to the Coach House, a bar and events space, the Coco Havana Bar, and the JD Grill diner and takeaway. The additional venues are also accessible via a separate street entrance. The Drake, which is in the same street, operates as a pub and sports bar and features ten bedrooms. The Lowther Hotel and The Drake were purchased in 2008 and 2014 respectively by Julie and Howard Duckworth, who run Julie Howard Partnership, restoring and developing properties. Christie & Co is seeking offers for the freehold interest of The Lowther Hotel and The Drake off an asking price of £1,400,000, also with the option to purchase The Lowther Hotel complex without The Drake.
 
Irish chip restaurant Chipmongers to open fourth site in Northern Ireland: Irish chip restaurant Chipmongers is to open its fourth site in Northern Ireland, in Craigavon. Chipmongers, a franchise owned by retail and wholesale company Musgrave, has been granted permission by Armagh City Banbridge & Craigavon Borough Council to convert a site at the junction of Lake Road and Drumgor Road West, reports the Irish News. Chipmongers has 11 sites across the Republic and Northern Ireland.
 
Heavenly Desserts to open in Colchester for first Essex site: Artisan dessert restaurant Heavenly Desserts is to open its first site in Essex. The company will open the venue in Colchester High Street on Saturday, 15 December in a unit previously earmarked for better burger brand Byron, reports Essex Live. Heavenly Desserts’ menu includes pancakes, waffles, fondants, cakes and slices as well as an artisan tea range, coffee and soft drinks. Heavenly Desserts was founded in 2008 and operates 12 sites with nine more listed as “opening soon” on its website, including Cardiff, Sheffield and Walsall.
 
Swansea-based operator opens second site, home to Boss Brewing’s third bar: Swansea-based operator Sililo Martens has opened his second site, which is also home to a third bar for local brewer Boss Brewing. Martens has launched cafe bar The Bookshop in Uplands Crescent. The name is a nod to a former occupier of the unit, Uplands Bookshop, which was there for 70 years before closing in August. It also features a Boss Brewing bar inside, becoming the brewer’s third Swansea site after its brewery tap in Neath Road and Copper Bar in Castle Street. Martens told Wales Online: “It is initially going to be a coffee bar in the day and a bar at night, and we’ll open a restaurant in January. We’ll have a synergy with Boss Brewing and we’ll educate how its beer is brewed as well.” Boss Brewing co-founder Sarah John added: “We are delighted to be able to collaborate with Sililo and it can be a flagship for us in Uplands.” Martens also operates the Flickering Light bar in Wind Street.
 
North west-based wine shop and bar concept Corks Out closes Timperley site: North west-based wine shop and bar concept Corks Out is to close its site in the village of Timperley in Greater Manchester. The venue in Stockport Road has been trading for ten years but owners Ruth and Richard Yates have decided not to renew the lease, reports Altrincham Today. It will close on Monday, 31 December. A statement on its Facebook page reads: “We are sad to announce we’ll be closing our Timperley store as our lease comes to an end. We’re on the lookout for a new site in the south Manchester area so hopefully we’ll be back open soon. We’d like to thank all our loyal customers for their support through the years and for welcoming us so warmly into the community and we’re excited for our new plans soon.” Corks Out, which was founded by the Yates’ in 2003, has sites in Stockton Heath, Knutsford, Alderley Edge and Chester.
 
Belfast-based operator to open second site for chicken concept: Belfast-based operator Jim Conlon is set to open a second site for his chicken concept Dirt Bird. Conlon has lodged plans with the city council to open a restaurant at a site in Ormeau Road that was formerly occupied by butchers Maks Meat. The opening would add to Dirt Bird’s debut venue in Andersonstown Road, reports the Irish News. Conlon’s portfolio includes The Pizza Co and Chip Co fast food concepts in Belfast. He also operates Gym Co, Wolf & Whistle bar, The Devenish Complex and The Rock Bar in Belfast as well as a nightclub in Glasgow.
 
Marston’s to open new-build pub in Camborne: Marston’s is to open a new-build pub in Camborne, Cornwall. The company will launch The Copper Coast at the Trevenson Gateway development in February. The restaurant and bar will have capacity for 150 diners and create more than 35 jobs, reports the Falmouth Packet. The development will also be home to a KFC restaurant, Costa Coffee outlet and a Travelodge.
 
Chester-based operators open second site: Chester-based operators Neville Sidebottom and Rob Lamont have opened their second site. They have launched The Cavern Of The Curious Gnome and a linked bar called Paysan at a site previously occupied by arts and crafts business Funky Aardvark in Bridge Street Row East. A 9.5-foot gnome is the centrepiece of The Cavern Of The Curious Gnome, which features toadstool seating. Downstairs, Paysan showcases a range of European wine and features wooden furniture and soft lighting. The Curious Gnome name was generated by a suggestion on Twitter while Paysan is French for “peasant”, which appealed to the owners’ desire to create an “unpretentious wine bar open to all”, reports Cheshire Live. Paysan also offers tea, coffee and soft drinks, while its menu consists of small plates of speciality cheese, terrine and paté accompanied by homemade bread. Sidebottom and Lamont also run The Artichoke cafe bar and bistro by Chester Canal.
 
Japanese hotel brand lodges plans for debut UK site, in Manchester: Japanese hotel brand Toyoko Inn has lodged plans to open its first UK venue, in Manchester city centre. The company, which has a strong footprint across Asia, launched its first European hotels earlier this year, in Frankfurt and Marseille. Its UK debut is set to be in Manchester’s Piccadilly and involve the construction of a 23-storey building comprising about 356 bedrooms. Toyoko Inn has submitted an application to the city council with building work targeted to begin in early 2019. The project includes refurbishment of the grade II-listed Union Bank Building, which dates to 1911. Hotel rooms would feature on the property’s first, second, third and fourth floors. The hotel’s entrance would be in Gore Street, with a ground-floor lobby linked via stairs and a lift to the breakfast area within the former bank. Other facilities, such as offices, plant space, cycle parking and laundry, would be located in the basement of the listed building, reports Insider Media.
 
M&B rates Bibendum as top wine supplier: Mitchells & Butlers (M&B) has rated Bibendum as its top wine supplier just months after its acquisition by C&C Group. In M&B’s Supplier Performance, Evaluation & Recognition (SPEAR) results for period one – May to July – Bibendum also came second in the overall drinks category. SPEAR measures factors such as delivery and support, account management, training, drinks quality, support, and ease of doing business. Bibendum chief executive Michael Saunders said: “This review is fantastic coming so soon after C&C’s acquisition of Bibendum in April. The speed in which the Bibendum team has got our business running smoothly for the benefit of our customers and suppliers is the result of huge commitment and talent. I couldn’t be more delighted.”

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