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Morning Briefing for pub, restaurant and food wervice operators

Mon 19th Jul 2021 - Propel Monday News Briefing

Story of the Day:

Rolling 12-month sales down 27%, but June provides cause for optimism as sales near 2019 levels: Sales at Britain’s managed pub, restaurant and bar groups in the 12 months to June 2021 were down by 27% on the previous 12 months, highlighting the effect of the pandemic on the sector. But the Coffer CGA Business Tracker, produced by CGA in partnership with The Coffer Group and RSM, also showed sales in June were almost level on both a total and like-for-like basis compared with 2019. Consumer demand was particularly strong in restaurants, where total sales were up by 3% in June. Pubs recorded a 2% drop, with mixed weather and restrictions dampening any benefit from the Euro 2020 football tournament. Sales were down by 11% in bars, where social distancing and early closing requirements continue to impact footfall. June's performance is a significant improvement on May, when total sales were down by 26% on May 2019. The Tracker indicated a particularly good month for regions beyond London – sales outside the M25 were up 4% in June, but down by 11% inside the M25. Many operators continue to benefit from strong delivery and takeaway sales while higher average spend by some consumers after the end of lockdown also contributed to the solid month. Karl Chessell, director – hospitality operators and food, EMEA at CGA, said: “June's figures are a testament to the enduring appeal of restaurants, pubs and bars, and the resilience of the businesses behind them. With an easing of covid restrictions imminent, it suggests a bright outlook for the eating and drinking out sector. However, rising costs and limited capacity mean many businesses are still struggling to make a profit, and major challenges including debt burdens and a recruitment crisis are casting a long shadow. Hospitality remains fragile, and it will need sustained support and concessions from government in the months ahead if it is to help drive the UK's economic recovery.” Mark Sheehan, managing director at Coffer Corporate Leisure, added: “Let's not pretend the road ahead is going to be smooth but what is clear is consumers want to eat and drink out and the trend is upwards. This continues to be a difficult time, but optimism remains in the hospitality sector.”

Industry News:

Propel Premium subscribers to receive updated database of multi-site companies on Friday, 30 July with at least 57 businesses added: Propel Premium subscribers will receive the updated database of multi-site companies on Friday, 30 July, at midday. The exhaustive database will have at least 57 new multi-site companies added to it – and is only available to Propel Premium subscribers. The 57 new companies operate 243 sites between them. The last database, released at the end of June, saw an additional 63 multi-site companies added, taking it to 1,880 businesses with subscribers also receiving a 10,389-word report on the new brands, concepts and growth businesses, many of which have big growth ambitions in Britain. The go-to database has the most comprehensive multi-site operator information in the sector – it provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different, and what each business specialises in. In a new feature this year, there is a synopsis of what the business does and significant news associated with it. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. Premium subscribers also receive access to a second exclusive monthly database, the Propel Turnover & Profits Blue Book. The Blue Book database provides an insight into UK operator turnover and profitability over five years, profit conversion and directors’ earnings. The latest version, which was released on Friday, 9 July, added another 62 companies, which means the database features a total of 280 companies. They are ranked by turnover and profit conversion. It also shows directors’ earnings over five years and the top-earning director. Total turnover for the 280 companies is £25.8bn. The minimum company turnover to be included will be £4m. Premium subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel insights editor Mark Wingett. Email jo.charity@propelinfo.com to sign up.

Door staff shortage a ‘ticking time-bomb’ for pubs and bars: The government has been accused of ignoring a “ticking time-bomb” over a shortage of door staff for pubs and bars, with representatives for 10,000 businesses warning there is an urgent risk to public safety. Industry leaders, hospitality and security firms in the night-time economy have called on prime minister Boris Johnson to act. The collective includes Stonegate Group and Wetherspoon, alongside trade bodies the Night Time Industries Association (NTIA), UK Door Security Association, Music Venue Trust and the UK Crowd Management Association. In an open letter, the signatories warn failure to address staff shortages poses an “urgent risk to public safety” for the millions of Britons who enjoy nights out and festivals, among other events, with some businesses forced to close or reduce hours due to lack of staff. The UK Door Security Association has warned six in ten door supervisor positions are at risk of being unfilled in pubs, nightclubs, events, and festivals, as a result of the covid-19 pandemic. Much of the sector has been closed for more than a year, and many door security staff have sought more stable sources of income during this time. The signatories call on the government to consider solutions such as funding training incentives, streamlining new training requirements, or tackling shortages through legislation. They have asked government ministers to call an urgent meeting to discuss the issue. NTIA chief executive Michael Kill said: “The Home Office has wilfully ignored a ticking time-bomb that will compromise public safety and our sector’s ability to recover from a time of devastation. By focusing on the rhetoric of reopening, the government has refused to acknowledge or consider the practicalities of opening a venue after a year of enforced closure, lacking the foresight and apparent motivation to pre-empt ensuing crisis.” Stonegate Group chief executive Simon Longbottom added: “It is extremely concerning the government appear to lack an understanding of this gravity. If the prime minister really wants us to drive the UK’s economic recovery, we must have the required security resources in place to do so.”

Four in ten Brits planning to visit the pub more often after ‘Freedom Day’: Four in ten (41%) Brits said they will visit the pub more often when restrictions are removed on “Freedom Day”, according to new research. The findings by KAM Media on behalf of the British Beer & Pub Association (BBPA) and Long Live The Local, also showed six in ten (59%) of pub-goers have said they are looking forward to meeting up with friends and family more easily. Half of Brits (47%) were looking forward to the atmosphere returning to normal when restrictions end. Almost a third of pub-goers (29%) said they missed chatting to pub staff like they used to before covid restrictions came into place. Half of the most regular pub-goers – 51% of those who visit a pub more than once a week – said that they were most looking forward to ordering at the bar once more. BBPA chief executive Emma McClarkin said: “Brits are looking forward to enjoying our pubs as they are meant to be. After almost 18 months of closure or heavy restrictions, this is a huge moment for our sector. Only now can the recovery of our pubs and breweries begin.” Patrick Dardis, chief executive of London pub retailer Young’s, added: “It’s great the pubs we love are back, but we cannot take them for granted, which is why we are backing the Long Live The Local campaign.” Nick Mackenzie, chief executive of brewer and retailer Greene King, added: “We support Long Live The Local and call for the government to invest in Britain’s pubs and breweries. In return we will help create stronger and more connected communities, investment, jobs and a thriving industry to be proud of.”
KAM Media is a Propel BeatTheVirus campaign member

UKHospitality calls on Scottish government to relax planning restrictions on outdoor seating indefinitely: Calls have been made for the Scottish government to relax planning restrictions on outdoor seating indefinitely by UKHospitality. As a response to the pandemic, the Scottish government’s chief planner encouraged local authorities to relax planning restrictions on pavement and outdoor seating to allow cafes, restaurants and pubs to have more seating in the open air. That relaxation is due to be reviewed in the coming weeks and UKHospitality Scotland said the continental-style cafe culture must be here to stay. The call comes as similar planning laws in England are set to be streamlined, cutting red tape for businesses, as part of an ambitious plan to support high street recovery. UKHospitality Scotland executive director Leon Thompson said: “Many businesses have invested in outdoor seating and the imaginative approaches demonstrated by businesses should be encouraged and supported, with planning relaxed or streamlined indefinitely. Outdoor areas also provide additional capacity for businesses that need to be given increased opportunities to trade as profitably as possible. Relaxation of the planning restrictions showed real pragmatism and responsiveness from the Scottish government and was applauded by businesses at the time. Let’s keep supporting our hospitality businesses as they seek to recover from 16 months of closure and restricted opening.”

Football fever sees pub and restaurant sales rise 52% on 2019 levels: Euro 2020 provided a windfall for pubs and restaurants as the country reached for pints while watching England reach their first final since 1966, new research has showed. Latest spending data from Lloyds Bank showed spending in pubs and restaurants surged during the tournament, rising 52% compared with the same period in 2019. The volume of punters likely increased as England progressed through the latter stages of the tournament, Lloyds said. Spending was supported by consumers deploying the high levels of savings they have built up since the onset of covid. Lloyds Bank payments director Gabby Collins said: “The feel-good factor from Euro 2020 clearly provided the perfect platform for consumers to spend some of their lockdown savings.”

Campaign launches to ‘stand up for cask’ and help drive pub footfall: A campaign has been launched to “stand up for cask” and help drive footfall into pubs. The social media campaign, instigated by the Cask Matters Group, coincides with the changes in lockdown rules in England, which allow people to stand and chat in pubs – and to order from the bar. Cask Matters Group chairman Paul Nunny said cask has been “all but lost” during the past 18 months, and it now needs “a huge injection of support if a choice of beer on the bar isn’t going to become a thing of the past”. Members of the Cask Matters Group, which includes pub companies, breweries and industry bodies, have committed to using the #StandUpForCask and #PubFreshBeer hashtags on their social media platforms from Monday (19 July) until 1 August, the duration for the campaign. According to a recent report by the All Party Parliamentary Beer Group, cask beer was responsible pre-pandemic for 72,500 jobs. Then lockdowns saw 87 million pints, worth more than £300m, being poured down the drain. Nunny said: “You can’t buy pub atmosphere in a supermarket, nor get it delivered to your door. Ditto for fresh cask beer. These are two of the things that can’t be packaged up and sold as a commodity; two of the things that make pubs special.”

Job of the day: COREcruitment is working with a high-end business and industry caterer that is looking for a business development manager. They will be responsible for the growth of business, focusing on and working with high-end clients. Reporting into the sales director, the individual will work closely on the successful acquisition of new business and retention. Ideally, they will have a clear understanding of the market and its trends and be a true sector specialist. They should have experience working with high-end business and industry clients and will have a proven track record of selling and retention. Culture fit and an understanding of the company’s ethos is essential. An excellent communicator and financially savvy operator would be welcomed. The position is based in the Midlands, paying up to £70,000 plus bonus. Anyone interested can email Dan@corecruitment.com 
COREcruitment is a Propel BeatTheVirus campaign member

Company News:

Chopstix aims to hit 100-store estate in 18 months, sets sights on other territories: Jon Lake, managing director of Chopstix, the pan-Asian quick service restaurant concept, has said there is scope for several hundred sites under the circa 70-strong brand in the UK, as it also sets its sights on other territories. Speaking on Propel’s Friday Wrap series, Lake said: “We have three store types – high street, shopping centre and transport hubs. We are pretty low capex and high margin and on that basis we feel there is some real scope for several hundred Chopstixs in the UK. We have a pretty good supply chain, which means we can get across Europe as well. So we have built ourselves into a position where we have a lot to do in the UK but we also have our sights on other territories as well. We have ten new equity stores in the pipeline and pretty much the equivalent of that coming through on the franchise business as well. We are hoping to hit the 100-store mark in about 18 months’ time. We spent two years prior to the pandemic making a lot of changes to the business and had some real momentum, so we have taken some time to consolidate during the crisis, but coming out the other side we are in a position to put our foot back on the gas again relatively quickly. Now it’s about building the brand, because we have to a degree flown under the radar a little bit.” In terms of trading, Lake said it had been fascinating, with geographical splits, splits between shopping centres and motorways. He said: “Central London is still a challenge, so it will be interesting to see if life returns there this week, and also whether we see an uplift in communal dining areas in shopping centres. Out-of-town shopping schemes have been hugely over trading.” Lake touched on the challenges with staffing and property, but also the issues faced trying to get hold of building materials for new and existing sites. He said: “I was talking to our project manager the other day and she was saying she could barely get hold of a fridge. Then there is the issue with logistics firms with driver shortages and the impact on the food supply chain. The pandemic is obviously a global issue, and there are other factors at play, but it means being able to recover all that supply chain piece is going to be a very sluggish process and will be a huge hangover for businesses as we try to recover.”

Imbiba invests additional £5m in House of Gods as part of £9.8m package to expand offering including two new hotels: Sector investor Imbiba has invested an additional £5m in boutique hotel brand House of Gods as part of a £9.8m package to expand its offering, including two new sites. House of Gods, which was founded by brothers Mike and Ross Baxter in September 2019 and opened its Edinburgh property that year, has also secured a £4.8m loan from OakNorth Bank. The funds are helping the Baxters create two, four-star, boutique hotels in Manchester and Glasgow, and launch Casablanca Cocktail Club at their Edinburgh site, with the intention of further expanding the brand to other UK cities. The team is looking for additional freehold and leasehold properties that could be converted to further House of Gods hotels. An Imbiba spokeswoman told Propel the UK staycation market has been booming in recent years, a trend which is expected to continue, with millennials increasingly seeking to spend more time holidaying in Britain. House of Gods Hotel in Edinburgh was partially funded via a £1.1m loan from OakNorth Bank. The brothers said at the time they wanted to have five House of Gods hotels by 2022 with 20 to 50 rooms each. Mohith Sondhi, senior debt finance director at OakNorth Bank, said: “Prior to covid-19, The House of Gods hotel in Edinburgh had been trading extremely well. When hotels were allowed to reopen in late April this year, it achieved 90% occupancy in May and 95% occupancy in June – a clear demonstration of the demand for this unique hotel concept. We want to ensure the business has the capital it needs to not only take advantage of the demand when all restrictions end next month, but to also maximise opportunities to continue growing the brand in the meantime.” Mike and Ross Baxter said: “The Edinburgh hotel has been incredibly well received and we feel both Glasgow and Manchester are the perfect locations for the two new hotels.”

7Bone Burger Co to open two restaurants in Kent, in legals on four others: 7Bone Burger Co, which is backed by Kings Park Capital, is set to open two new restaurants in Kent and has four further sites in legals, Propel has learned. 7Bone, which recently opened its tenth site, in Coventry, has managed to remain profitable throughout the pandemic and maintained sales, on average, of more than 60% of pre-covid levels. The company is on site at the two Kent restaurants and is aiming to open them in August or September. The company will be opening in Canterbury after securing the former Byron site in Burgate and in Maidstone in the former Cafe Rouge premises in Earl Street. 7Bone is also in legals on sites in Surrey, the West Midlands, Kent and Spelthorne. Co-founder Matt Mollicone told Propel: “Where we’ve seen rental markets soften (and stayed militant around rent levels in our model, it’s enabled us to maintain a rent to revenue ratio of under 5%), we’ve been able to pick up sites in target towns where previously we wouldn’t have been able to afford to. Trade through the pandemic has been solid and given real confidence to the next phase of growth, as we’ve been able to maintain sales, on average, of more than 60% of pre-covid levels while solely operating as takeaway/delivery, which has meant the business has remained profitable throughout. This is largely thanks to being quick out the blocks with a very proactive team. The time also offered a great opportunity to review all aspects of the business and dedicate time to major website improvements (new site launching imminently) and a step change in quality and design of our takeaway packaging, resulting in a customer experience (at home) as close as it can be to what they receive in the restaurants.” 7Bone opened its first restaurant in Southampton in 2013 with Kings Park Capital taking an equity stake in the business in August 2016. Its other sites are in Bournemouth, Camberley, Eastbourne, Hove, Newbury, Northampton, Portsmouth and Reading.

KFC UK secures former PizzaExpress site in central London: KFC UK has secured a new flagship restaurant in central London. The company has acquired the former PizzaExpress premises in Charing Cross Road in a deal brokered by CDG. KFC has taken a new 20-year lease on the property, which is situated at the entrance of Leicester Square tube station. Salvatore Di Natale, associate director at CDG, who brokered the transaction, said: “We are all looking forward to seeing KFC thrive in this fantastic location.”
KFC UK features in Propel’s Turnover & Profits Blue Book, which has recently been updated for Premium subscribers. KFC UK converts 47.1% of turnover to pre-tax profit, making it the highest of the 280 companies featured. The Blue Book provides a five-year overview of turnover and profit, ranks the companies according to turnover, pre-tax profit and profit conversion. It also provides details of directors’ earnings and highest paid directors. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. Email jo.charity@propelinfo.com to sign up.

JD Wetherspoon to place eight-strong package of pubs on market: JD Wetherspoon is set to place an eight-strong package of pubs on the market, Propel has learned. Propel understands Wetherspoon will place the package of pubs, which comprises six freehold and two long leasehold sites, on the market this week. The pubs are The St Georges Hall in Redfield, Bristol (freehold); Chapel an Gansblydhen in Bodmin, Cornwall (freehold); The Drum in Leyton (freehold); The Bell in Aylesbury (freehold); North & South Wales Bank in Wrexham (freehold); Sir Daniel Arms in Swindon (long leasehold); Postal Order in Worcester (freehold); and the Robert Peel in Bury (long leasehold). From Monday (19 July), the company will revert to the measures that were in place in its pubs in July 2020 after the first lockdown as they are a “sensible backstop for the industry and strike a fair balance between health, employment and the economy”. Chairman Tim Martin said he hoped the “arbitrary and capricious” government rules, such as the requirement for substantial meals, curfews and table service, “which have no scientific provenance”, can be avoided in future.

Rileys reports like-for-like sales up 43% during Euro 2020 against 2018 World Cup as refurbishment programme pays dividends: Sports bar operator Rileys has reported a 43% increase in like-for-like sales during Euro 2020, compared with the last major football tournament – the 2018 World Cup. The company pushed forward with three refurbishments during the pandemic – in Swansea, Coventry and Victoria – and has recently announced a return to the acquisition trail as it looks to expand its 13-strong portfolio in more densely populated areas of cities. Christie & Co is seeking large freehold and leasehold opportunities in prime city or town centres across the UK, as well as further premises in London that will complement the company’s existing venues in the capital. Rileys chief executive Craig Mayes said: “We continue a strong run since being allowed to reopen and there is no doubt in my mind we are benefiting from the refurbishment programme we initiated in 2019. However, implementing booking and payment in advance systems definitely secured a record European Championships for us. We managed our capacity under the covid restrictions but were sold out in the majority of our clubs for every England game so we are looking forward to the 2022 World Cup where we will be able to trade without restrictions.” The recently refurbished clubs include English and American pool tables and snooker. They are also the first Rileys sites to include electronic dartboards. Comprising four lanes, players can choose from a selection of games. In addition, Rileys, which is owned by Weight Partners Capital, shows live sport on HD screens around the club, as well as offering a dedicated sports zone serving food with a large cinema-style HD projector. Competitive sport also happens within the clubs by hosting local and national pool, snooker and darts competitions including the Professional Darts Corporation qualifiers.

FB Holdings secures second site for Caribbean/jerk chicken concept: FB Holdings, which is behind the rapidly growing Dirty Wild Wings concept, is to open a second site for its Caribbean/jerk chicken concept, Jamaya. The company has signed a ten-year lease on a 1,911 square foot ground-floor unit at 126 Colmore Row in Birmingham. The Jamaican restaurant was selected after property consultancy FHP received multiple bids on the space. Jamaya, which describes itself as the UK’s first gourmet Jamaican fried chicken restaurant, serves a variety of chicken-based and vegetarian dishes, as well as soft and alcoholic drinks and cocktails. Jamaya opened its first outlet in Touchwood Shopping Centre in Solihull in 2019. Other brands within the FB Holdings portfolio include Indian street food establishment Indico, which currently operates in The Mailbox in Birmingham and Shirley; JAQKS Chicken & Chips, with sites across the Midlands; and the most recent, Bulls Street Burgers, serving-up classic burgers and sides. Andrew Thompson, of AMT Commercial, acted for Jamaya on the Colmore Row deal.

£7m attraction based on ITV show I’m a Celebrity… Get Me Out Of Here to open at MediaCityUK: A £7m indoor attraction based on the ITV show I’m a Celebrity… Get Me Out Of Here! will open at MediaCityUK in Salford later this month. Continuum Attractions will operate the attraction, which will take visitors into the heart of the themed jungle setting to navigate a series of challenges. It will open on Friday, July 30 at Quayside MediaCityUK, formerly known as the Lowry Shopping Centre, which is owned by Peel L&P. Featuring Main Camp, the Throne and Winners Bridge, the experience will “put campmates’ nerves and agility to the test as they race against the clock in a bid to collect stars and be crowned king or queen of the jungle”. Timed trials will involve scaling The Ascent, with more than eight metres of vertical rock, racing across the suspended Treetop Trail, swinging round the Jungle Run, taking a leap of faith on Get a Grip and gliding through the trees on a zipline. James Penfold, controller of partnerships for ITV Global Entertainment, said: “I’m a Celebrity… Jungle Challenge is a one of a kind, multi-sensory adventure – bringing together the heart and soul of the hugely celebrated series and ITV’s expertise in curating fantastic, memorable live brand experiences for guests and families across the world.”

Hickory’s finally opens in Wilmslow: American-style smokehouse and barbecue brand Hickory’s Smokehouse, which is backed by Piper, has opened in Wilmslow, more than a year after it was initially due to launch. It is almost two years since Hickory's took over the site in Racecourse Road, and it was originally due to open in April 2020 but was delayed due to the pandemic. There are now 12 Hickory’s restaurants across the country, with its 13th site, in Nottingham, due to open later this year. Along with the usual Hickory’s features, such as the “cosy sheltered veranda and welcoming neighbourhood bar area”, the Wilmslow restaurant also boasts a new glass Garden Room. This has a fully retractable roof and sides. Super-fast Wi-Fi and “working from home” points are also included in a new multi-functional Sports Book room. Hickory’s managing director John Welsh said: “At times it’s felt like this day would never come but we are finally there. One benefit of the delayed opening has been the extra time it has given us to finesse the design of the restaurant, add a few quirky extra touches.”

Vaulkhard Group to open Cuban-inspired bar and restaurant in Newcastle: Newcastle-based leisure firm Vaulkhard Group is opening a Cuban-inspired bar and restaurant in the city centre. Castro’s, which will offer Latin-inspired food, drink, and cocktails, will launch on Wednesday (21 July) in Hood Street, formerly the Beeronomy site, which the group purchased from Newcastle Building Society. Castro’s will offer both vertical drinking and table service for its customers and also have outdoor space. The venue will have the “north east’s largest rum selection”, while the food menu will follow a Cuban theme, mixing traditional chicken, fish and rice dishes with twists from its neighbouring Caribbean islands and South America. The venue will also feature a hidden secret bar that will host salsa dance classes, rum sessions, cocktail masterclasses, and a private booking area. Vaulkhard Group, which also owns other city centre venues including Blakes, Bealim House, and Mushroom, is recruiting for 30 roles at Castro’s. Director Ollie Vaulkhard said: “As a business, we’ve been lucky enough to come out of lockdown with a positive outlook, and now we want to give back to our customers who have helped us throughout the past 16 months with something new and exciting for their Newcastle night out.” The company recently announced a string of acquisitions, taking on ownership of drinking venues such as Bridge Tavern and Town Wall, and dispensing of late-night venues Perdu and MSA. The operator currently has more than 7,000 members signed up to its loyalty card scheme.

Peel Hunt – Whitbread vulnerable to opportunistic bid: Peel Hunt leisure analyst Ivor Jones has argued Whitbread is vulnerable to an opportunistic bid. Issuing a “Buy” note on the shares with a target price of 3,600p, Jones said: “Whitbread's share price has fallen 17% in the past three months. Its share price is 41% below January 2020 levels and, after adjusting for additional shares and somewhat higher debt, its EV is 11% lower. It has fallen along with other travel and hospitality shares in light of concern over increased UK covid-19 infection rates and the related risk of the reintroduction of restrictions on movement. The recovery in hotel demand may once again be delayed, but this will be more of a problem for Premier Inn's competitors. Premier Inn is the UK hotel market leader with more rooms than the next three competitors combined. We expect it to be competitive on price as travel demand recovers, and to take market share as the decline of the independent hotel sector accelerates. At the end of May, Whitbread had just £71m of net debt (IAS 17 basis) and, we estimate, more than £2bn of cash and undrawn facilities. This credit quality has enabled Premier Inn to sign up new sites and to continue to open new hotels. Between the beginning of May and the end of August it plans to open the equivalent of one new UK hotel per week. There may also be additional options to accelerate the expansion of the estate in Germany where the pipeline already stands at 73 hotels/more than 13,500 rooms. Whitbread has circa £4.5bn to £5bn of freehold assets underpinning its valuation. Its commanding UK market position could appeal to an industry major and the asset backing and low net debt would contribute to making a deal financeable. We believe management's strategy of prudently recycling the capital in the estate into the business is the best way to create value in the long term but it does mean there is an opportunity for a bidder. Whitbread is the kind of high-quality business with good long-term prospects that will never be cheap. Investors have to buy on dips when they occur. We believe this is one of those occasions and we upgrade our recommendation from ‘Add’ to ‘Buy’ and reiterate our 3,600p target price.”

Mac & Wild team launches food hall concept at St James Quarter in Edinburgh: Bonnie & Wild – the food hall concept from the founders of Scottish restaurant brand Mac & Wild at the St James Quarter in Edinburgh – has opened. The venue features eight chef-led food stalls, four speciality retailers and three bars. Alongside offerings from chefs Gary Maclean and Jimmy Lee, the food hall showcases restaurants such as Erpingham House, the UK’s largest plant-based restaurant, which has opened its third site at the venue. The Cheese Club, the latest venture from Scottish-Italian chef Nico Simeone, is running the venue’s deli counter. Bonnie & Wild was established with the aim of providing a premium and high-profile venue to showcase Scotland’s best-in-class independent food and drink producers, providers and purveyors. Bonnie & Wild operations director Ryan Barrie said: “The menus are diverse, innovative and exciting, while the overall food and drink offer is of exceptional quality. There’s something for everyone here.” 

Former Nobu chef gets go-ahead for pub-restaurant in Derbyshire: Lisa Thorley, who worked as a chef at Nobu and Aubergine, is set to launch a pub-restaurant in Derbyshire. Thorley, who also ran Lisa Jean Brasserie at the Bennetts department store in Derby, has been given the go-ahead for the new venture by Amber Valley Borough Council. The proposed site traded as community pub The Pattenmakers Arms in the village of Duffield, which closed in March last year. Thorley will restore the property and add an extension to the site, which was acquired in November 2020 by the Lidher family. The opening is expected to create 35 jobs. Thorley trained as a chef at Buxton College and went on to work at restaurants such as Nobu and Aubergine before relocating back to Derbyshire. She ran the Lisa Jean Brasserie for more than three years until the department store’s closure in 2019. Thorley said: “We are delighted we can now move forward with our plans to bring this popular local business back into use and provide variety and further choice to the residents of Duffield. Our aim is to create a sustainable long-term future for this popular business, retaining the original use in a way that is fit for the present day.”
 
Classic car dealer to open Mediterranean-inspired restaurant in north London: Classic car dealer Paul Michaels is set to open a Mediterranean-inspired restaurant that will use British produce, in Highgate, north London. The Engine Rooms restaurant will open later this month for outdoor dining only followed by an official launch in August when the indoors area will be used as well. The site in Great North Road will comprise a car dealership, The Engine Rooms restaurant and a modern art collection, alongside Bert Blaize’s successful Bottles ’n’ Jars wine shop. Head chef James Harrison, formally of Taka Marylebone, will be running the open-plan kitchen, with a regularly changing menu of Mediterranean dishes while using seasonal British ingredients with a focus on fish and vegetables. Diners can expect mains such as grey mullet ceviche with confit tomato dressing, cured egg yolk, samphire and pistachio; salt marsh Cornish lamb rack, toasted fregola, peas, broad beans, green sauce, rosemary cooking jus; and a vegan mandilli pasta with wild garlic dressing, Westcombe salted ricotta, white and green asparagus, broad beans, snow peas and toasted pine nuts. An all-day menu will also include salads and stone-baked pizzas. Head of pastry Darren Cafferty, who worked at Brown’s Hotel, Trinity in Clapham and Roux at Parliament Square, has created seasonal desserts including apricot frangipane pudding with orange blossom Breton, apricot jam, pistachio and jersey clotted cream; and pistachio cream mille-feuille with pistachio and walnut baklava bites, candied walnuts, sherbet orange peel and crispy cinnamon pastry. Blaize, who was a sommelier at Le Manoir aux Quat’Saisons and The Clove Club in Shoreditch, will be curating the wine list. 

Mondrian Hotels & Residences to open new-day dining and drinking concept at Shoreditch site: Mondrian Hotels & Residences is to open a new all-day dining and drinking concept at its site in Shoreditch, east London. Christina’s will launch on Monday, 2 August on the ground floor of the hotel and will work with small-scale producers across its food and beverage offering, including Chestnut Bakery and Redemption Roasters. The menu at the 45-seater venue will constantly evolve and include a selection of sando sandwiches. There will also be a selection of cocktails, coffee, wine, beer and soft drinks. Mondrian Shoreditch general manager David Lockhart said: “I am proud of the team’s dedication to support independent UK artisans, bringing them to the forefront of the London dining and drinking scene.”

Hill & Szrok to open butchery and bar in Newington Green: London-based butcher and cookshop Hill & Szrok will open a butchery and bar in Newington Green Road, north London. The business operates a site at Broadway Market in east London, which is a butcher’s by day and a restaurant by night. The Newington Green site, which is set to open in October, will launch as a butcher’s and introduce a bar later on, with a possible focus on serving tartare and charcuterie cured in-house. The name Hill & Szrok will be dropped for the new venue since original chef Alex Szrok has moved on but a name is yet to be confirmed. Hill & Szrok opened a restaurant-pub in Old Street in 2016 but that has since closed. 

The Dusty Knuckle to open bakery and pizza restaurant in Haringey this month: East London-based bakery and cafe The Dusty Knuckle is to open a bakery and pizza restaurant. The company is opening the outlet in Haringey in the former Yaalu premises in Green Lanes this month. As well as selling its potato sourdough and other baked goods along with sandwiches, the space will also operate as a pizza restaurant, three nights a week. Co-founder Max Tobias said: “We’ve made use of all manner of materials; begged, borrowed or stolen to bring the space together and have designed the whole thing ourselves. It’s been a labour of love and we really hope the people of Haringey love their new bakery.” Dusty Knuckle operates its bakery and cafe in Abbot Street, Dalston.

Development company acquires Devon hotel off £4.5m guide price for second site: Development company Mallino Development Group has acquired a Devon hotel off a guide price of £4.5m for its second site. The company has bought The Redcliffe Hotel, in Paignton, in a deal brokered by agent Christie & Co. The 70-bedroom hotel was originally constructed between 1855 and 1865 as a grand home named Redcliffe Towers for the retired colonel Robert Smith. Mallino Development Group is also behind the £50m conversion of the historic Bodmin Jail in Cornwall into a boutique four-star 70-bedroom hotel, which opened in February. Mallino Development Group managing director Rob Cox said: “We are delighted to have secured the purchase of this fantastic, stunning hotel and look forward to investing further to reposition it alongside ‘The Bodmin Jail Hotel’ embracing luxury and history to create unforgettable experiences for our guests.” The property has been owned by the Twigger family since 1979, with the family making the decision to sell as the current owner, Stephen Twigger is looking to retire.
Christie & Co is a Propel BeatTheVirus campaign member 

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