Exclusive – Lussmanns undergoes pre-pack administration: Lussmanns, the independent brasserie group backed by sector investor Luke Johnson, has undergone a pre-pack administration, after being impacted in the increase in employers’ national insurance contributions, and the failure of its site in London's Highgate, Propel has learned. Lussmanns, which continues to be backed by Johnson, closed the aforementioned Highgate site and its Five Bells by Lussmanns in Berkhamsted, but continues to trade from its restaurants in Hertford, St Albans, Hitchin, Harpenden, and Woburn. The Highgate site, the former Cote in the High Street, opened last summer, and marked the group's return to the capital, more than 20 years since opening in North Kensington. However, a 3% increase in the company's national insurance contributions to around £300,000, alongside the spiralling costs associated with opening the Highgate site and then operating the site on the back of last autumn's Budget meant the company took the decision to restructure the entire business. Staff at the Highgate site were offered roles at the group's other sites, with half transferring. Propel understands Lussmanns continues to work with and support all its suppliers. Lussmanns founder and managing director Andrei Lussmann told Propel: “It is very sad, and very frustrating, but we had to take this step to safeguard the entire company. The Highgate site simply didn't work – the costs associated with opening the site and operating in a market that became depressed very quickly meant we couldn't move ahead with other plans for the business. This was compounded by the impact of last autumn's Budget and also the uncertainty leading up to last week's Budget. The restructure has put the company, in which the existing five restaurants are all profitable, on a firmer footing to combat the challenges the sector continues to face and ready to grow again when the opportunity arises.”

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. 

BII flash survey reveals ‘devastating’ impact of Budget: A flash survey by the British Institute of Innkeeping (BII) has revealed only one-in-three of its members’ pubs are currently profitable as it warned of the “devastating” impact “broken promises” from the government were having on the sector. The survey showed if they don’t make tough decisions around staffing levels, opening hours and reducing the services they offer to their customers, less than one-in-ten will be profitable in April next year. The survey further revealed publicans will have to counter the additional rises in national minimum wage (up 8.5% to £10.85) and national living wage (up 4.1% to £12.71), alcohol duty (up nearly 4%), and the huge rise in business rates bills, with a combination of cost cutting measures. A total of 90% said they will increase drinks prices, 80% will cut staff hours, 71% will increase food prices, 41% will cut services offered in the pub, such as offering food, 45% will cut opening hours and 42% will make staff redundant. BII chief executive Steve Alton said: “We have spent more than a year giving evidence to government about the huge impact the 2024 Budget had on pubs, pushing them to the brink, with ever increasing taxation on employment and the properties they occupy. We have been crystal clear that our pubs are not failing businesses, but that government policy and over taxation is holding back their full potential. Further unfair taxes are devastating viable small pub businesses, threatening their future and that of all the people who rely upon them. We need government to urgently reverse its decision on taxing our pubs out of existence and deliver meaningful change to the unsustainable levels of tax they already face, before it is too late.”