Propel Morning Briefing Mast Head CPL Learning Link Paul's Twitter Link Greene King Banner
Morning Briefing Strap Line
Fri 14th Aug 2020 - YO! to undergo CVA, 19 UK restaurants to close
YO! to undergo CVA, 19 UK restaurants to close: YO!, the global multi-brand, multi-channel Japanese food group, is to undergo a company voluntary arrangement (CVA) that will see 19 of its 69 UK restaurants close. The company, led by Richard Hodgson, will also use the CVA to address nine sites YO! no longer operates but where the company is legally responsible for the rent. The CVA, which will result in up to 250 redundancies, will be voted on by creditors on Tuesday, 1 September. YO!, which is using Deloitte to handle its restructuring, has been working with landlords to agree revised rent deals so it can reopen some of its restaurants. YO! has been able to reopen restaurants with its new contactless format in which customers order remotely and have food delivered to them on conveyor belts. Since the end of lock-down, those sites are understood to have traded ahead of expectations, with the Eat Out To Help Out scheme also understood to have boosted sales in the past fortnight. An associated cut in food waste is also understood to have delivered significant cost savings. The company stated: “Throughout the pandemic we have been working hard to manage the many challenges and ensure a viable and sustainable future for YO! This has included adapting its restaurant model for the socially distanced era. This is delivering significant cost savings and has been well received by guests. However, in the current climate and due to changes in consumer behaviour, some of YO!’s sites are no longer financially viable. Rental costs associated with these stores are unsustainable and many are loss-making.” Hodgson said: “Like the rest of the sector we need to take decisive action to adapt to the lasting changes the covid pandemic has brought about. While we have already taken measures to reduce costs, rents remain an issue. In the current climate it’s not viable for us to keep any sites that no longer perform. While it has been a very difficult decision to make and I’m very sorry it will mean losing many of our team members, a CVA has become an essential measure to secure our business for the future and enable us to protect as many jobs as possible.” The roll-out of YO!’s new format – currently in 19 restaurants – has been undertaken with the financial backing of Mayfair Equity Partners, the private equity firm that bought a stake in the company in 2015. Reopened sites continue to operate as normal during the process, and Manchester Arndale, Birmingham Grand Central and Meadowhall will reopen with the new format in the coming weeks as planned. YO!’s Tesco kiosk lease agreements, which operate in 52 stores, are unaffected by the CVA proposal. Since its initial investment in YO!, Mayfair has helped to orchestrate the takeover of Canada-based Bento Sushi and a merger with US company SnowFox last year. YO! employs about 1,400 staff at its UK restaurants. It is also ramping up the roll-out with Asda of its pan-Asian street food concept Panku.

Ten Entertainment Group to reopen 35 sites in England tomorrow: Ten Entertainment Group will reopen 35 of its 39 bowling alleys in England tomorrow (Saturday, 15 August) following the lifting of restrictions by the government. The four remaining sites – in Parrswood in Manchester, Blackburn, Rochdale and Luton – are in areas where local lock-down restrictions remain in place and will reopen when allowed. Ten Entertainment Group has already reopened three sites in Wales. The 38 sites in total account for 86% of group turnover. Modifications have already been put in place at each site to adhere to social distancing protocols. The company is also introducing a web-based ordering platform that allows customers to order food and drink directly to their lanes or tables via a QR code and enables contact-free payment. Employees returning from furlough will undergo a comprehensive retraining programme before restarting work and receive personal protective equipment. More than 6,000 NHS workers have registered for the company’s free bowling offer, which it launched as a thank you for their work during the pandemic. Interim executive chairman Nick Basing said: “We are delighted we can now open and welcome back customers, especially families and children. We are fully prepared and look forward to bringing people and families together and delivering entertainment in a safe way.” Ten Entertainment Group said its three sites in Scotland were fully prepared to reopen once government restrictions lifted.

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
Quickpad by Pepper Banner
Growth Partners - Find out More Banner
Santa Maria MEXI-GO Banner
Quickpad by Pepper Banner
Contract Furniture Group Banner
Bizimply Banner
BrewDog Black Heart Banner
Heineken Silver Banner
Peppadew Banner
Propel Banner
Quickpad by Pepper Banner
Access Banner
Christie & Co Banner
The Licensees Association Banner
Airship – Toggle Banner
Libeo Banner
COREcruitment Banner
Hospitality Rising Banner
Cynergy Bank Banner
John Gaunt Banner
Zonal Banner
HGEM Banner
Bums on Seats Banner
BrewDog Black Heart Banner