Heartwood Collection aiming to more than double turnover by 2027, seven freeholds acquired for next year: Heartwood Collection, formerly Brasserie Bar Co, is aiming to more than double its turnover by 2027, as it plans to reach 90% of site Ebitda from freehold sites. The Alchemy Partners-backed business is currently turning over circa £66m, with a site Ebitda of £12m. Speaking at this month’s Propel’s Propel Multi Club event, managing director Richard Ferrier said that since its secured backing from Alchemy last year, 50% of its 20-strong Heartwood Inns site Ebitda is freehold “and growing”. The company is targeting a turnover of circa £133m by 2027 with a site Ebitda of around £29m. He said: “We have seven further freehold sites acquired to open in 2024 and six to seven more sites in legals.” Its 20 pub sites are currently generating £45,000 in average gross weekly sales, and £405,000 average site Ebitda. It comes as the business has acquired The Sun Inn in Reading as part of its ongoing plan to grow Heartwood Inns. Heartwood Collection is on track to grow to over 60 inns and brasseries by 2027, with circa 45 of those sites set to be pubs. The Sun Inn is the oldest pub in Reading and is located on Castle Street. It is due to open in March 2024 and revert to its original name, The Rising Sun. The Plough & Harrow, in Long Ditton is due to open early December 2023 and The Quill & Scholar in Lichfield is due to open early March 2024. The White Horse in Dorking is due to open early 2024 and will be Heartwood Inns’ first “pub with rooms”, with 56 bedrooms. Ferrier said the company has already secured circa 200 bedrooms in total, as part of its target to reach 500 bedrooms by 2027. He said the business was “targeting £100-£250 a night, through offering “a premium proposition”. Next year, it will also open the Rope & Anchor in Emsworth (43 bedrooms) in May; the Coat & Bear in Newbury (26 bedrooms) in July; and the White Hart in Lewes (26 bedrooms) in August. Ferrier said: “We’re not being kind of shy about how we go about this. But we genuinely believe that there is a real proposition here with rooms, where an already busy pub, adding a captive audience from upstairs who can probably come and have multiple visits with you, we really think that that is quite a special model. But ultimately, you’ve got to have the capital to unlock it. It’s not that we didn’t think this was a good idea in the past. We just didn’t have the funding.” Ferrier said the group’s 14-strong Brasserie Blanc estate was generating average weekly sales of £47,000, with average site Ebitda of £284,000. He said it was also set for a brand refresh in the near future. James Grimes of AG&G acted on the Sun Inn deal. Ferrier will provide further insight in his video from the Propel Multi-Club Conference. Premium subscribers will receive access to all 12 videos from the event on Monday, 1 December at 9am. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

 

Sponsored message – majority of ‘good beer’ drinkers believe it is always worth paying more for quality food and drink: The majority of “good beer” drinkers believe it is always worth paying more for quality food and drink. Despite economic constraints, 93% of those surveyed by We Are Beer for its “The Good Beer Drinker 2023” report said they were uncompromising on quality. We Are Beer, which runs live events “celebrating beer and brewing culture”, surveyed thousands of British drinkers for the report, which identifies “good beer” drinkers as those who have helped push craft beer into the mainstream beer landscape. It also found that 83% of “good beer” drinkers belong to higher social grades, and more than 75% assert that friends turn to them for food and drink recommendations. They also tend to have more disposable income, be urban-based and less likely to have children. A third of those surveyed said they regularly drink non-alcoholic beer, while 89% said they enjoy trying new beers and breweries. Furthermore, eight out of ten said a well-run independent brewery has a positive effect on its community. Greg Wells, report author and We Are Beer co-founder, said: “It’s been brilliant to see that, despite the challenges we’ve all faced in recent years, good beer continues to resonate with drinkers, now more than ever.” To download the report, click here. If you have a sponsored message you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.

Premium subscribers to receive updated Propel Multi-Site Database and Mark Wingett’s 2023 video picks today: Premium subscribers will receive the updated Propel Multi-Site Database today (Friday, 24 November). The Propel Multi-Site Database, which is produced in association with Virgate, has now grown to include 3,060 businesses that operate 71,189 sites. An additional 37 companies, which operate 246 sites between them, have been added. Premium subscribers also receive access to five other databases: the New Openings Database; the Propel Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the UK Food and Beverage Franchisee Database; and the Who’s Who of UK Food and Beverage. Premium subscribers will also receive at 9am tomorrow, for the first time, the 12 best videos from Propel conferences in 2023. Selected by group editor Mark Wingett, they will feature a selection of talks and interviews that resonated with delegates from across the breadth of the hospitality sector. Premium subscribers are also to receive all the videos from this month’s Propel Multi-Club Conference on Friday, 1 December. They will be sent 12 videos at 9am. Premium subscribers receive all the videos from Propel conferences each year – around 100 in total. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Mark Wingett.

UKHospitality – tourism bouncing back but VAT cut needed to reach pre-covid levels: UKHospitality is calling for the government to address the UK’s lack of competitiveness on the global tourism market, beginning with a cut to VAT for hospitality, tourism and leisure. New figures from the Office for National Statistics show that visits increased 112% year-on-year, generating £30bn in revenue, but remain 9% down on 2019 levels. UKHospitality chief executive Kate Nicholls said: “These figures are really encouraging and show that tourism is making a strong, albeit delayed, recovery from the pandemic. The UK is a top destination for foreign visitors, with our superb hospitality offering, culture and extensive history, and these figures show the continued demand to visit. However, it is worrying that we still remain almost 10% behind pre-pandemic levels. Our 20% rate of VAT ranks among the highest in Europe and the introduction of tourist taxes in Scotland and Wales will further add to the cost of visiting. A reduced rate of VAT for hospitality, leisure and tourism is proven to stimulate demand, both from abroad and domestically, and generate revenue. It is the single biggest measure the government can introduce to boost the sector and I would urge it to do just that at the earliest opportunity.”

Further tributes paid to Stonegate’s outgoing chairman Ian Payne: More operators from across the sector have paid tribute to Ian Payne, who is to step down as chairman of Stonegate, the UK’s largest pub group, after announcing his retirement. The 70-year-old informed the board of his decision to retire at the end of January 2024 and step down from his role with the group after 13 years. Payne has enjoyed a long and distinguished career in the licensed trade over the past 50 years. Mary Willcock, chief executive of Brunning & Price, told Propel: “It’s very strange to think of Ian retiring. For some reason, it’s just not something I ever considered would happen. He has been a constant in pretty much all of my working life – starting in 2001 when he arrived as the new boss of Laurel Pub Company. He then guided me through my early career, initially under the Bay Restaurant Group banner and then latterly in Stonegate, undeniably providing me with opportunities when others might not. I seem to remember his mantra was to ‘promote to the point of terror’, an approach that opened many doors for many people over the years I worked with him. Ian taught me that it is okay sometimes to make decisions based on gut feel and emotion; that successful pubs really are all about people; and, most importantly, that we should love what we do and not take ourselves too seriously. After all, it is just beer and chips. Always the first on the dance floor (assuming the song was Summer of 69 or Don’t Stop Believin’) and the last to bed, he has unwaveringly lived and breathed the work hard/play hard philosophy. I cannot thank him enough for his advice and guidance over the years and hope that he enjoys his retirement every bit as much as he appears to have enjoyed his career. It is very much deserved.” Alex Reilley, chairman of Loungers, said: “The word ‘legend’ is often bandied around far too easily, but in Ian Payne, the industry has a true legend. His encyclopaedic knowledge of not just his pubs, but it feels like every pub, is the mark of someone who has spent 50 years obsessing about pubs, the customers that use them and the teams that operate them. Ian’s lifetime of dedication to our great industry is only matched by his dedication to doing Pop Master every day with his driver, Wayne. Ian will be sorely missed, but I very much doubt he will be a stranger.” Further tributes to Payne will be included in the Diary section of Premium Opinion, which will be sent to Premium subscribers today (Friday, 24 November) at 5pm. 

Job of the day: COREcruitment is working with a boutique fitness brand that is looking for a managing director. A COREcruitment spokesperson said: “You will drive the overall vision, strategy, and growth initiatives of this multi-site fitness business, mentor and lead a high-performing team to exceed operational and financial goals, identify market trends and opportunities, and lead the implementation of cutting-edge fitness and wellness offerings. You will also be required to foster relationships with stakeholders, partners, and the community to enhance brand presence and impact.” The salary is up to £100,000 and the position is based in London. For more information, email david@corecruitment.com. Meanwhile, COREcruitment will be hosting its Christmas event on Wednesday, 6 December at The Conduit in Covent Garden, London. Speakers will include Ben Whur, interim chief executive at Stonewall; Elizabeth Dumergue, director of diversity, inclusion and engagement at Pride In London; and Shaun Prime, global chief operating officer at The Conduit. For more details, email elouise@corecruitment.com.

 

Greene King to cease trading Loch Fyne Restaurant brand: Brewer and retailer Greene King has ceased trading through its Loch Fyne Restaurant brand, Propel has learned. The company said that as part of its strategy to optimise its assets, a number of the brand’s remaining restaurants have been converted to pubs. In August 2007, the then Rooney Anand-led Greene King acquired the 36-strong Loch Fyne Restaurants, which were primarily based in the south east of England, for £68.1m. As of August 2022, there were 11 Loch Fyne restaurants open and trading. Since then, Greene King has converted five Loch Fyne sites to pubs, including Langbourns in Whitechapel, The Anchorage in Poole and The Foundry Bell in Wokingham. The brand’s Edinburgh, York and Portsmouth branches were the last to close, in October and November, and Greene King said it is “working hard to identify alternative roles for those team members in pubs nearby”. Wayne Shurvinton, managing director for Greene King Partnerships and Ventures, told Propel: “Optimising our existing assets is a key strand of our strategy. Loch Fyne is no longer a core part of the Greene King portfolio, and therefore we have been evaluating our remaining 11 sites over the past year. We looked at each of our Loch Fyne restaurants individually to identify where we could transform them into pubs, and we have been successful at five sites, providing extra jobs and investment in these local areas. However, there were some sites where this was not possible. We worked closely with our affected team members to find alternative roles with our business.”

SSP launches travel-focused F&B concept for UK regional rail stations, further 15 stores planned in next 12 months: SSP Group, the operator of food and beverage outlets in travel locations worldwide, has launched a travel-focused cafe and retail store concept called Café Local, which has been developed for UK regional rail stations. The first 15 Café Local stores have opened at stations around the country, including Exeter, Dover, Reading and Sheffield, and the flagship store has recently opened at Peterborough station. Plans are in place to roll the concept out across the UK over the next few years, and a further 15 stores are planned to open in the next 12 months, with sales so far “exceeding expectations”. SSP said the Café Local proposition “reflects the unique requirements of regional railway stations, where there are often limited outlets for passengers and staff to shop”. Café Local offers barista coffee, cakes, bakes, paninis and toasties, and a wide range of retail goods including confectionery, sandwiches, cold drinks, alcohol and travel essentials. Kari Daniels, chief executive of SSP UK and Ireland, said: “We’re delighted to upgrade our regional rail offer with the new Café Local concept, which is already proving to be a success with customers. With one-stop convenience, Café Local meets a broad spectrum of customer needs under a single roof, and we very much look forward to opening more outlets in the coming months.”

Bewiched Coffee aiming five new stores in 2024 followed by first designer village outlet in 2025: Midlands cafe operator Bewiched Coffee is aiming for five new stores in 2024, followed by a first designer village outlet in 2025, Propel has learned. It is currently fitting out its next opening, in Market Harborough, which will be in 17th location across the region. This will be followed by further new stores in Leamington Parade, Northampton Grosvenor (new site for an existing store), Bedford and Wellingborough (a second drive-thru) – all in the first three quarters of next year. Its Peterborough Bridge Street site will also get a refit, while in 2025, it will open its first location within a designer village – although which one has not yet been confirmed. “2023 has been a really good year for us for quite a few different reasons,” founder Matt Fountain told Propel. “Our sales and transaction growth have been strong, but equally, we saw the best growth, in quarters one and two, so far this year. What most excites us is the number 3,105. Tracked since 1 August, this is the number of organic recognition moments within our team. Our target was 5,000 for a calendar year, and we are going to smash that and hopefully deliver more than 10,000! Our senior team, which includes Mel Hastings, Rich Wagg and Jon Powell, have all been instrumental in leading this recognition culture. Our target is to have 50,000 by 2033, but we may have to revise that up! We have always been a customer focused business, but for the first time we feel like we are genuinely becoming authentically and consistently team focused as well. Our team turnover is averaging 4.2%, and so far this year, we have had more than 1,200 applications to work with us through our website alone. We don’t want to be the biggest or the fastest growing, we want to be the best. Can we scale this business with a consistently elevated customer and product experience? That is our challenge, time will tell.” The new locations will all be equity sites. In May, Bewiched opened its second franchise site in partnership with Heart Of England Co-operative Society, in Leamington Retail Park.

Fast-growing Kent bakery in master franchisor talks with national restaurant chain, appoints Pret director of property as advisor and strategist: Fast-growing Kent bakery Cheran’s has said it is in master franchisor talks with a national restaurant chain and has appointed Pret’s director of property as its advisor and strategist. The company is currently overfunding on its £225,000 fundraising campaign on crowdfunding platform Seedrs, launched last month to help it open more stores. Having been founded in 2022 by Cheran Friedman, it has five stores in the county and is gearing up to launch a sixth, in Tunbridge Wells. “Our plan has always been to grow, grow, grow, but have just recently been in conversations with a national chain of restaurants with a view to them becoming the master franchisor,” Friedman said in an update on Seedrs. “Of course, nothing may come of this, but we will share some financial forecasts that are less ‘shop capital’ intensive and more ‘marketing’ in order to spread the Cheran’s brand far and wide.” She added: “We are excited to announce the arrival of Lucy Winzer to our team as an advisor and strategist. Lucy sits on the board of Pret as a director for property and acquisitions and brings a wealth of experience to Cheran’s.” The company’s fundraise currently sits at almost £240,000 from more than 110 investors, with 13 days of the campaign left. Cheran’s is offering investors 7.38% equity, giving it a pre-money valuation of £3m. It also appears in the latest series of The Crown, showing now on Netflix, with its Rochester store having been transformed into a flower shop for the filming. “It was not only a great privilege to work with Netflix, but it also provided lots of free publicity, and Cheran’s provided more than £6,000 of treats to the cast and crew,” Friedman said.

Creams co-founder to launch new premium seafood restaurant: Balal Aqil, co-founder of fast-growing dessert parlour operator Creams, is set to launch a new premium seafood restaurant. Aqil, who founded Creams in 2008 with Adam Mani, will next month open Shrimp Shack in Streatham, south London, in partnership with Danny Caratella, Rish Gola and Raf Adam. The core menu will centre on a “build your own” experience where diners first choose their size of shrimp, followed by the dip and seasoning. Other seafood, including crab and lobster, will be on the menu, alongside meat choices of beef, lamb or chicken, and a selection of sides and desserts. Targeting a core audience of 18- to 45-year-olds, it is aiming to be a “fun and engaging experience” with a “high energy, vibrant and welcoming nature”. It will also offer a takeaway service. Aqil said: “We wanted to launch something totally unique that is different from the hundreds of burger chains around, which is where the idea of grilled shrimp came from. This new casual dining experience is going to be as much fun as it is tasty, showcasing innovative experiences to its guests that they’ll want to come back time and time again.” Investment company Pistachio Holdings acquired a majority stake in Creams, which now operates more than 100 UK sites, at the end of 2020. In May 2022, Pistachio acquired a further shareholding from the founders, at which point Aqil stepped down from the board of directors and become an advisor to the brand.

Flight Club to open in Oxford: Flight Club, the darts brand owned by Red Engine, is set to open a site in Oxford, Propel has learned. The brand, which recently opened a site in Edinburgh’s St James Quarter scheme, is set to open a site on the rooftop of the Westgate development in the city next year. Chief executive Steve Moore told Propel: “We’re really looking forward to bringing Flight Club Oxford to life, it’s an incredible city that we can’t wait to open in. It’s very early days on site so we can’t yet confirm a date but look forward to sharing more news in the coming months.” Flight Club recently also lined up an opening in Liverpool, taking over the former Boujee restaurant at Kenyon Steps within the Liverpool ONE scheme for an opening in the autumn of 2024. The Edinburgh opening marked the 15th UK opening for Flight Club and the second in Scotland, closely following the opening of Flight Club Glasgow in October. Looking ahead to 2024, the Red Engine team has confirmed openings for its Electric Shuffle concept in both New York and Manchester, with a number of additional sites yet to be announced.

Rosa’s Thai secures Cheltenham site: Rosa’s Thai, the TriSpan-backed business, has secured a site in Cheltenham for an opening next summer, Propel has learned. The Gavin Adair-led, 37-strong company will take on the ex-TM Lewin site at 16 Promenade in the town, with an opening scheduled for the end of the first half of 2024. Rosa’s will open its next restaurant on Monday, 4 December in Westfield London. Propel revealed in July that Rosa’s had secured the site on the Southern Terrace that was operated by The Hush Collection’s Cabana brand. Rosa’s is also currently on site in Guildford, for an opening in January. Earlier this summer, the company made its Scottish debut in September with an opening on the former Cote site in Glasgow’s West Nile Street. It followed this up with an opening on the ex-63rd+1st site in Edinburgh. It also has openings lined up in Bristol and Reading. Thomas Rose, of P-Three, acts for Rosa’s.

Young’s acquires Epsom Downs pub from Whitbread: Young’s has continued its acquisition spree with a deal for the Tattenham Corner, in Epsom Downs, Surrey, from Whitbread. Formerly a Beefeater overlooking Epsom racecourse and the wider Epsom Downs, Tattenham Corner is a two-storey, 8,000 square-foot, 220-cover freehold pub with an expansive garden and car park. The site has closed with immediate effect to undergo a significant refurbishment. Simon Dodd, chief executive at Young’s, said: “As Young’s continues to expand its presence in the home counties, Tattenham Corner offers a great opportunity for growth as an established site in an affluent area where we are yet to make our mark. While the site undergoes an extensive refurbishment to create a premium pub and dining destination, we are working closely with Whitbread, along with Young’s internal recruitment team, the Ram Agency, to offer roles to the existing team.” Joining the 232-strong Young’s pub portfolio, Tattenham Corner follows the recent acquisition of The Crooked Billet in Clapton, along with four out-of-London sites acquired from Marston’s. Last week, Young’s agreed a deal to acquire City Pub Group, in a deal which values the owner and operator of circa 50 pubs across southern England and Wales at around £162m. Noel Moffitt at Christie & Co acted on behalf of Whitbread on the Epsom Downs deal.

Team behind Lane7 to open Level X site in Edinburgh: The owner of boutique bowling company Lane7 and gaming and entertainment venue Level X is to open a site under the latter concept in Edinburgh. It is opening the new circa 30,000 square-foot site, its third Level X, on the ground floor of the Ocean Terminal scheme, next year. The company already operates Level X venues in Glasgow and Middlesbrough. Founder at Level X, Tim Wilks said: “Level X is all about merging the games you loved as a kid with cool tech elements to elevate the experience. We have been all over the world looking for the latest and best games, with a particular focus on tech, that will be showcased perfectly within the venue. The fit-out will be fantastic, with lots of colour, different zones, and huge attention to detail. We’re really looking forward to bringing Level X to Ocean Terminal – it’s a mind-bending concept, mixing virtual and real-world experiences. Level X is the future of entertainment today.” Last week, Propel revealed that Lane7 is to make its German debut. Ten years after the opening of the first Lane7 in the UK, the brand is launching in The Playce at Potsdamer Platz for its first international site at the start of 2024. Torridon London acted for Lane7 in securing the Berlin location and is mapping out its European expansion route as its retained advisor. Thomas Rose, of P-Three, acted for the Berlin landlord.

Popeyes lines up drive-thru on outskirts of Nottingham: Popeyes Louisiana Kitchen, the US fried chicken quick-service restaurant brand, is lining up a site on the outskirts of Nottingham. AC Lloyd is seeking planning permission from Gedling Borough Council to build a single-storey facility on land north of Magenta Way in Stoke Bardolph. The site forms part of the wider Teal Close Strategic Urban Extension, which was granted outline planning permission for residential development (up to 830 units), employment uses, a local centre, primary school, hotel and care home in 2014. Lined up is an approximately 2,700 square-foot drive-thru restaurant that would be occupied by Popeyes, reports Insider Media. Last week, Propel revealed Popeyes has lined up its next tranche of openings in the UK, including on a former Wendy’s site. Popeyes is set to open in Ilford, east London, in the High Street site that Wendy’s previously occupied until it closed earlier this year. At the same time, the Tom Crowley-led business has openings lined up in Exeter, Lewisham, Doncaster and Bishop Auckland. Launched in 2021 in Britain, Popeyes UK has expanded to 35 sites and said it has “double that number in the pipeline already”. Earlier this year, the brand secured £50m of funding from private equity firm TDR Capital to accelerate its growth plan.

Pub People adds Peak District pub to estate: Midlands pub company Pub People, which is backed by investment manager Downing, has added to its estate with an acquisition near Belper, Derbyshire, which is the 14th site it has acquired in the past 12 months. The business has acquired The Spotted Cow in Holbrook, from the Holbrook Community Association. Pub People said: “Nestling on the edge of the Peak District National Park, The Spotted Cow is a character cask ale and traditional pub food business, popular with locals, walkers and visitors to Derbyshire.” Earlier this month, the company acquired The Miners Arms near Nuneaton, which took its freehold estate to 34. In September, Propel revealed that Pub People had raised its expansion target to 75 sites as backers Downing opened a new bond for investment.

Subway launches first UK self-serve kiosks, at MFG Cirencester: Subway has launched its first UK self-serve kiosks, at a Motor Fuel Group site in Cirencester, Gloucestershire. Propel revealed earlier this week that the global sandwich chain was gearing up to introduce self-service kiosks into its UK stores, having been a feature of its US sites since 2017. Large-scale Subway franchisee Daljo Group – responsible for the growth and development of Subway in East Anglia, the west country and south west – had been trialling the equipment ahead of its roll out. The group, which supports circa 340 stores and more than 100 franchisees, has now given an update, saying: “Open that front door, we’ve got kiosks in store! Yes, that’s right, you heard us! Kiosks have landed at Motor Fuel Group Cirencester! We are unbelievably excited to have the new kiosk platform live. A huge congratulations to MFG on the opening of your newest site and we cannot wait to see how the store performs.” Subway currently has nearly 37,000 outlets in more than 100 countries, including more than 2,300 restaurants in the UK and Ireland.

Vegan fast food concept Hank’s Dirty opens Cambridge site: Vegan fast food concept Hank’s Dirty has opened its fifth site, in Cambridge. The business, which is the brainchild of Geoff Bligh and Philip Rivers, has taken over the Tall Trees pub in the city. The first branch of Hank’s Dirty, which serves vegan burgers, fried “chicken” and wings, opened in Ipswich in 2019, and further openings followed in Felixstowe and Colchester. Last year, it opened its fourth standalone site, on the top floor of the Castle Quarter, in Norwich. Hank’s Dirty previously operated a site with Snug Bars, at the bar group’s site in St Albans, but the partnership came to an end this summer.

South Yorkshire brewery appoints new GM: The Acorn Brewery in Barnsley, South Yorkshire, has appointed Liz Casserly as its new general manager. Casserly started out with the York-based Pivovar group at its Sheffield Tap pub, where she rose to the role of assistant manager, before managing Abbeydale Brewery’s Sheffield Devonshire Cat beer emporium, while also overseeing its sister site, the Rising Sun Inn at Fulwood. In 2019, she returned to Pivovar in a human resources role to direct recruitment and training across its Tap pub chain, before taking on her most recent posting, as head of bartending with Hickory’s Restaurants. Casserly’s appointment follows the acquisition of Acorn by Sonas Capital in August. Brendan Fitzpatrick, director of Sonas Capital, said: “In Liz, we now have a first-class general manager to lead the excellent Acorn team forward and grow the business in the face of an extremely challenging environment for both brewing and hospitality. Liz brings a wealth of management experience to the post, with the energy, enthusiasm and imagination to match these challenges.”

Perilla team set to open new Mediterranean-inspired restaurant and wine bar in London’s Exmouth Market: The team behind Perilla in London’s Stoke Newington is set to open a new Mediterranean-inspired restaurant and wine bar in Exmouth Market. Opening in February, Morchella will see Ben Marks – who has worked at Claridge’s, The Square and Noma, and Matt Emmerson, formerly of London-based restaurant company Polpo – partner with Great British Menu veteran, Daniel Fletcher, who has worked at The Square, Sky Garden and 28 Market Place. Located at 84-86 Rosebury Avenue, Morchella will offer Mediterranean style sharing dishes, focusing on highly seasonal produce sourced from both artisanal Mediterranean suppliers and small independent British day boats and farmers. The ground floor will feature a 68-cover dining room with an open kitchen at its centre, plus a wine bar. There will also be a private dining room for 14 in the basement, and in the warmer months, a 24-seater outdoor dining terrace overlooking Exmouth Market will open. Marks said: “We are absolutely thrilled to be opening in Clerkenwell – we feel we’ve found a beautiful site and put together a really talented and experienced team.” Emmerson added: “We hope Morchella will be an extension of the vibrant community we’ve built at Perilla – we’re bringing that same neighbourhood warmth to Exmouth Market.” Fletcher said: “I am really excited to be joining Ben and Matt on this journey – it is something we have been planning as a team for a long time.”

London better burger concept launches £400,000 fundraise as it looks to add to team and support daily operations: London better burger concept Wonderland has launched a £400,000 fundraise as it looks to add to its team and support daily operations. The concept, co-founded by Alex Stanton and Oliver Santoro, launched in June with a flagship store in London’s Soho, offering organic, grass-fed and halal meat alongside vegan options, as well as milkshakes, fries, beer and cocktails. It has so far served more than 7,000 customers and driven sales of £120,000 gross and £100,000 net, doubling monthly sales since opening. It has already secured £700,000 in investments and rented out its restaurant space to beauty brands Kosas and Space NK for more than £11,500, “showing the restaurant’s event space potential”. Wonderland has so far raised more than £344,000 from 12 investors, with 30 days left on the campaign. The company is offering investors equity of 36.76%, giving it a pre-money valuation of £688,000. Almost half of the proceeds will go towards hiring a social media manager, head chef and general manager, as well as a budget for marketing, PR, content creation, photography and influencers. Almost half again will go on daily operations, with smaller slices going towards stock, kitchen equipment and a click-and-collect website feature. Wonderland said it is a cashless business that also offers takeaway and delivery.

KFC UK partners with Uber Direct: KFC UK & Ireland has launched an exclusive partnership with Uber Direct, Uber’s white-label delivery solution, to provide its customers with “fast and accurate” deliveries through its app. The technology provides customers with real-time tracking from their local restaurant to their delivery address and round-the-clock customer support for orders should they need it. The first phase of the rollout of Uber Direct has already begun, and all of KFC’s 916 stores across the UK and Ireland are due to move exclusively to Uber Direct for their KFC app orders by January. Dhiren Karnani, retail director at KFC UK & Ireland, said: “Looking ahead, we have ambitious goals for the growth of our KFC delivery channel, and we are thrilled to be partnering with Uber Direct to achieve these. Our priority is to provide KFC customers and our restaurant teams with the best possible KFC delivery experience, all made possible by reliable in-app functionality and distinctively KFC features, while delivered at a consistently high standard.”  

EG Group opens second London Cinnabon site: Roadside and forecourt operator EG Group has opened the second store in London for US bakery brand Cinnabon. The kiosk, at Westfield White City, follows the opening of one at Westfield Stratford earlier this year. EG Group now operates 24 Cinnabon stores in the UK, having also opened a flagship site in Newcastle in August. “EG Group is thrilled to announce the opening of its latest store in Westfield London shopping centre, its second store in London,” it said. “The new kiosk offers a cosy seating area for up to 15 guests and brings new job opportunities, with up to 15 full and part-time roles created.” Dan Smith, brand manager for Cinnabon in the UK, added: “We are excited to continue our expansion in the capital, bringing our freshly baked bons and other indulgent menu items to more customers.” EG Group signed a deal in late 2020 to roll out 150 sites under the US bakery brand across the UK over the next five years.

Non-alcoholic brand Drop Bear Beer Co seeks £700,000 to fund growth plans: Non-alcoholic craft beer brand Drop Bear Beer Co, which is opening Wales’ first alcohol-free brewery in Swansea, is embarking on a major £700,000 fundraising campaign. The business is looking for investment in a convertible loan note round to fund its growth plans. The round is being led by Wrightwood Investments, the investment vehicle of former Admiral chief executive Henry Engelhardt, marking a pivotal moment for the company, with a total of £2.1m raised to date. Last month, Business Live revealed that Drop Bear is opening its first alcohol-free brewery at the former Tomos Watkins site in Llansamlet after acquiring the Welsh brewery. Due to open in January 2024, it will be Wales’ first alcohol-free brewery and the largest in the UK at 16,000 square feet. Drop Bear Beer Co’s founding directors, Joelle and Sarah Drummond, plan to continue producing Tomos Watkins’ ale at the site alongside Drop Bear’s range of non-alcoholic beer. The acquisition of the brewery and some additional brewing equipment was supported by a £1.9m equity investment raised in 2021, which included £1.5m from Engelhardt. Since taking on the former Tomos Watkins site, the pair are now planning to grow into the brewery as demand for its products increase. They are now looking to raise a further £700,000 to fund that growth and expand capacity, which includes a further £300,000 investment from Engelhardt. He said: “The business is going from strength to strength, winning contracts, gaining sales, and soon it will start manufacturing the beer itself – a big step for the business and a further test of their managerial competence.”

Former UK’s largest McDonald’s franchisee opens his third German Doner Kebab site: Atul Pathak, formerly the UK’s largest McDonald’s franchisee, has opened his third German Doner Kebab (GDK) site. McDonald’s took control of Pathak’s Appt Corporation, which he had grown from a single site in 2003 into an estate of 43, in April last year. He signed a partnership with GDK two months later, with a development plan of up to 30 sites. Pathak’s third site with the brand has now opened, at 31-33 High Street in Maidenhead, Berkshire. “We’ve opened in Maidenhead,” GDK said. “2023 has been a smash hit success for the GDK family so far as we celebrate our 14th new restaurant opening, taking us to 134 restaurants UK wide. Special congratulations to our valued franchise partner Atul Pathak on the Maidenhead opening, which is his third GDK overall.” Pathak has certainly not rested on his laurels since selling his McDonald’s business. Since signing his GDK partnership, he has also partnered with Itsu, Ben & Jerry’s and Burger King. Pathak said he hoped his debut Itsu site, in Wembley Park Boulevard, which opened in November 2022, would be “the first of many”. That same month, he became Ben & Jerry’s first UK franchise partner, with a view to opening stores in London and surrounding areas. And last month, Burger King signed Pathak up as a new franchisee to aid its continued growth.

‘Wine pub’ to open in former Leon unit at Spitalfields Market: A pub focusing predominantly on wine is set to open in the former Leon unit at London’s Spitalfields Market. Ben Hodges and Alex Lewis will open Alfi at 3 Crispin Place on Friday, 1 December, with a restaurant section following in February. The pub will serve wine on tap from across Europe – mostly biodynamic wine from small, organic farms across Italy, Greece, Portugal, Spain and Germany – plus many more by the bottle. There will also be lager and IPA from London breweries, plus bar snacks and small plates such as grilled courgette with goat’s cheese and fried basil and charred Charlotte potatoes with chive crème fraîche. For the restaurant, the duo have brought in chef Lorenzo Brigandi, formerly of The Waterside Inn, the Hind’s Head in Bray and Restaurant Story. He will use a lava stone robata grill to prepare larger dishes like scorched polenta with girolle mushrooms and mornay sauce and cauliflower served with Bagna Cauda and hazelnuts. The bar will seat 68 people, with 108 outside overlooking the market, and when it opens, the restaurant will have 54 covers and another 38 for alfresco dining. “We’re really enjoying turning the wine to beer tap ratio on its head by offering some really great wine in a more casual way,” the duo said. “We are really excited about bringing something different to Spitalfields – and London – somewhere that provides some top-quality wine and food while being a convivial place to meet and hang out.”