Gail’s sees full-year retail sales nudge £220m as it targets 40 new openings: Fast-growing bakery brand Gail’s has reported sales across its retail arm increased to £219,828,000 in the year to 28 February 2025 (2024: £179,050,000) on the back of 36 new openings and said it was on track to open 40 new sites in its current financial year. Including its wholesale arm, the business reported full-year revenue of £278,045,000 (2024: £231,785,000), with adjusted Ebitda up 20% to £53,553,000. The company’s pre-tax loss stood at £7,845,000 (2024: £7,442,000). A Gail’s spokesperson told Propel: “We are pleased to have delivered strong year-on-year growth. This performance is underpinned by the increasing demand for high-quality, nutrient dense food, and by the support of the communities we serve. We will continue to build on this momentum by growing with purpose and remaining committed to improving access to good food.” The company, which currently operates out of circa 185 sites, said that its retail business continues to be the “faster growing and more profitable part of our group”. The business said: “Over the year, trading was strong, with the group opening 36 new retail bakeries and continuing to see healthy growth in our established locations. In addition, the wholesale part of the business continued to grow its large food service business from its bakeries in London, Manchester and Bath, and due to the continued success of the brands produced and sold through several large UK supermarket businesses. The group continues to invest in new retail openings and will continue to expand in wider geographic areas within the UK. ln addition to the retail space, investments in production capabilities were made in the year, with more production lines continuing to move into the new central bakeries in Milton Keynes. Top line growth in both businesses remain the primary engine of the group’s profit and Ebitda performance and this growth was strong in the year – led by the opening of new space and the continued appeal of our offer. Additionally, profit growth was aided in the year by the expansion in the retail arm. But our operating margin fell year-on-year from 9.5% to 9.2%, and gross profit margin fell year-on-year from 38.8% to 38.2%, because of increases in staff costs and utilities.” Earlier this month, it was reported that the owner of Gail's was exploring a sale of the fast-growing bakery brand with a wider set of suitors after talks with food-focused investor McWin Capital Partners failed to result in a deal. Goldman Sachs has reportedly been retained to guide a renewed formal sale process for Gail’s. A process is in the early stage, two sources said. In the event of a deal, Gail’s is expected to command an enterprise value of around £600m. Speaking at this month’s Propel Multi-Club Conference, co-founder Tom Molnar said that the business is “still early in our growth” and that he never wanted to build “a brand on exclusivity”. Molnar, who founded the business 20 years ago, said: “We have 183 bakeries now, and I would have never thought we would have come even close to that figure when we started. When I got to the third one, somebody said, if you get to five, just stop, because you won’t be able to keep up with your demands for quality. We got to five, and we’re like okay, let’s do two more, and then two or three more. We’re as surprised as anybody that we would have this many. It takes a lot of dedication to go through 20 years, but we believe we’re better than we were on day one. My approach to growth is slow and plodding. We do have a lot of bakeries now, but it took 20 years to get there. It wasn’t easy, and it wasn’t very fast. Twice, we had to stop growing altogether, because we didn’t think that we could be better; we were worried about getting consumed by speed. We’re still early in our growth. You take McDonald’s, Greggs or any other successful food business here in the UK – they operate from thousands of sites, and we’re still below 200.”

 

Propel’s sector-leading guide to the UK’s 500 largest hospitality companies to be made free to Premium subscribers on day of publication: Propel’s sector-leading guide to the UK’s 500 largest hospitality companies is making its return – and will now be available to Premium Club subscribers on the day of publication. The Propel 500 – 2026 report will analyse the companies leading the charge in hospitality, reporting on turnover, number of sites and key staff. The 45,000-word report will feature exclusive analysis to provide a full understanding of the market’s dynamics, as the top companies in the sector shift position after a challenging year. Mark Wingett will review the mergers and acquisitions changing the shape of the Top 500 as size increasingly matters. Katherine Doggrell will examine the key developments in UK hotels and look into one of the sector’s brightest lights, experiential leisure, while Tim Street dissects the UK’s rapidly developing franchise market. Data expert Mark Bentley, business development director at HDI, will look at emerging growth sectors, and Meaningful Vision founder Maria Vanifatova will analyse the latest trends in the quick service restaurant market. Propel 500 – 2026 will be released on Friday, 9 January at 9am and will be available free to Premium Club subscribers. The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up and to pre-order Propel 500 – 2026.

Hakkasan sees full-year loss widen due to impact of subdued consumer confidence: Hakkasan has reported a widening of its pre-tax losses for the year to 29 December 2024, impacted by the closure of its original UK site and macro-economic headwinds including subdued consumer confidence. The company said that overall revenue for the 12-month period ended 29 December 2024 compared adversely to the 18-month period ended 31 December 2023, largely due to the prior period spanning an additional six months. Restaurant revenue for UK-owned operations decreased by £26.3m (42.1 %), from £62.5m to £36.2m. It said: “In 2024, the London hospitality sector continued to face macro-economic headwinds, including subdued consumer confidence and ongoing geopolitical uncertainty, which impacted top line performance. Management fee revenue decreased by £1.3m (16.25%), from £8.0m to £6.7m. Management fees reduced due to the shorter accounting period and the release of certain-accrued and deferred balances in respect of contracts cancelled in the year.  Pre-tax loss for the financial period increased by £2.3m (57.5%), from £4.0m in 2023 to £6.3m in 2024. This was due to the impairment of Hakkasan Hanway Place and our central lab, which closed on 28 February 2025. In addition, the provision held in 2023 was unwound during the year. Subsequent to the balance sheet date, the group completed the closure of Hakkasan Hanway Place and our central laboratory facility on 28 February 2025. Innovation and food preparation functions previously carried out at these sites have been consolidated back into our three remaining UK locations. This strategic move aims to streamline operations, reduce costs, and enhance operational efficiency across our core venues.” On 25 August 2025, the group's ownership was restructured; Hakkasan was sold by Tao Group Hospitality to Hakka UK Holdings, a 100% owned UK subsidiary of Tao Group Hospitality’s ultimate parent company, Mohari Hospitality. The company said: “This change represents a significant milestone in the company's evolution. By removing intermediary US ownership structures, Mohari has strengthened its strategic alignment and oversight of Hakkasan. This streamlined governance is expected to provide greater flexibility, focus and investment capacity as the group continues to grow its premium hospitality offering in the UK and internationally. The board views this as a highly positive development which positions Hakkasan for long-term stability and expansion. With Mohari's strengthened commitment, Hakkasan is well placed to capitalise on new opportunities, further enhance its market presence and deliver continued excellence in the luxury hospitality sector.” Last month, Mohari Hospitality hired Yavuz Pehlivanlar, formerly of Caprice Holdings, as chief executive to lead Hakkasan Group, a newly established entity comprising the Hakkasan, Yauatcha, Ling Ling and Sake No Hana brands. The investment firm said Pehlivanlar will lead the continued expansion and strategic growth of Hakkasan Group’s Asian dining brands.