Cabinet revolt brewing over business rates hike as hospitality warned not to protest: A cabinet revolt is brewing over the upcoming business rates increase – as hospitality has been warned not to protest. There is “ongoing cabinet-level opposition” to the hike, and ministers are “not happy about it”, deputy political editor Sam Coates said on the Politics at Sam and Anne’s podcast on Sky News. In November’s budget, chancellor Rachel Reeves announced a shake-up to how business rates are calculated, with a new band for retail, hospitality and leisure – bringing an end to the relief scheme first introduced during the pandemic. Sir Keir Starmer has acknowledged the industry will struggle with the new rates, telling LBC this week: “Obviously, what’s happened is there were reductions in place during covid, which were always going to be unwound. At some point, the overall rates are going to be lower. But I accept that because of revaluation, that means that some will have their bills going up.” Several pubs have already barred Labour MPs in protest at the changes. However, Sky News reports that the government has been warning businesses not to protest over the changes if they want to get any concessions. An industry insider said the government has been telling the business community if they want help, then they should take a cue from farmers, who were given a reprieve just before Christmas when the government raised the threshold for inheritance tax from £1m to £2.5m. The industry insider said the government has been telling them farmers were “good, fair negotiators and didn’t make a big campaign of it, which is why they got what they wanted”. The messaging appears confusing as farmers carried out protests over many months, with tractors blocking Whitehall becoming commonplace. Coates said: “Anybody who spent a second in Whitehall looking at those tractors trundling down and the mass campaign knows that that’s just utter nonsense. What’s really happening here is, despite the facts being completely untrue, this is government basically threatening the industry. The implication – I don’t know which Whitehall department it is – but the implication quite clearly is ‘stop being so aggressive with your briefing if you want anything at all for your industry’. Now, that doesn’\t smack of a government coming at things from a position of strength to my mind.”

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 (Friday, 9 January). 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.

Honi Poke outlines next phase of growth following Island Poke acquisition, promotes Hilary Brett to CEO: Hawaiian poké specialist Honi Poké has set out the next stage of growth for itself and Island Poke, the 18-strong business it acquired last summer. The business, which was founded by Martynov and Kosta Varesko in 2017, said it will continue to scale Honi Poke as the group’s primary in-store brand, expanding its physical footprint across London and beyond. As part of this evolution, Island Poké locations will begin transitioning into Honi Poke stores throughout 2026, starting with Shoreditch, Broadgate and Fenchurch. Alongside this, Island Poké will evolve into a delivery-first brand, focused on evening dining, group occasions and at-home experiences, while retaining Bow Lane as its flagship store. The company said: “The repositioning reflects changing consumer behaviours and clearer distinctions between how and when people choose to eat, with in-store dining increasingly centred around everyday lunch and convenience occasions, and delivery playing a growing role in evening and group dining. This shift will enable Island Poké to focus on what it does best – innovation, collaboration, events and modern dining moments beyond the traditional lunchtime occasion. A new menu, which will be evolving over time, will feature evening bowls and sharing platters, group bundles and sharing sides, as well as the limited-edition guest bowls that Island Poké is known for.” Alongside the repositioning, the group has also confirmed the promotion of Hilary Brett from operations director to chief executive (formerly operations director). With a career spanning JKS Restaurants, MJMK and White Rabbit Projects, the business said that Brett brings extensive experience in hospitality operations and growth-focused leadership. It said: “With a background in scaling multi-site, customer-driven food businesses, Hilary’s thoughtful leadership style empowers teams to deliver the exceptional guest experiences, which underpin long-term commercial success.” Brett said: “I’m excited to step into the role of chief executive at a pivotal moment for the business. What truly sets us apart is the exceptional talent across our teams and the relentless focus on product quality and innovation that continues to push our brands forward. With two distinct brands, each with a strong identity, loyal following, and passionate people behind them, this evolution gives us greater clarity in how we serve customers across different occasions – while remaining firmly rooted in the values that underpin everything we do. Working closely with Honi Poke's founder, Volodymyr Martynov, our focus is on shaping the next phase of growth, including exploring franchise partnerships for Honi Poke in the UK and strengthening our foothold in France.” Honi Poke reported turnover increased to a record £12,420,433 for the year ending 31 December 2024 compared with £11,631,374 the previous year.

McDonald’s franchisee Jake Restaurants reports a drop in profit: Jake Restaurants, the McDonald's franchise owned by John Kiely, a former construction executive, has reported a drop of profits after a slight fall in turnover. The company, which has seven sites, saw turnover erode to £34,667,707 in the year to 31 March 2025 (2024: £35,413,181). Pre-tax profit dropped to £149,000 from £879,000 the year before. The company stated: “Turnover declined compared to the prior year, primarily due to the temporary closure of a store for refurbishment and operating profit saw a decrease of £722,878 due to an increase in administrative costs.” Gross profit was 67% compared to 66% the year before.

City & County Hotels returns to profit, London hotels ‘continue to trade well’: City & County Hotels swung back into profit in the year to 31 March 2025 and said its London hotels “continue to trade well”. In the capital, the company operates the four-star Ten Manchester Street Hotel in Marylebone and the five-star The Wellesey in Knightsbridge. Outside of London, it operates The Royal Hotel in Cardiff and The Langley in Buckinghamshire. The company said “a healthy growth in occupancy levels drove revenues up year on year” at Ten Manchester Street, and while the recently opened The Langley “is still within its growth phase”, it recorded a £450,000 increase in revenue year on year. Overall, turnover was up £18,066,881 in 2024 to £18,424,820, while a pre-tax loss of £621,578 turned into a profit of £217,875. No dividend was paid (2024: nil). Director Khalid Mohammed Affara said: “Our London hotels, having a large international business pool, continue to trade well, with revenues consistently up year on year. Marriott delivers good levels of business into our five-star hotels from outside the UK. Since joining The Marriott Luxury Collection, we have seen an overall increase in occupancy levels, driven by a wider international market at The Wellesley Hotel.”

Costa franchisee Cuppacoff sees dip in turnover and profit: Costa franchisee Cuppacoff, which operates more than 20 sites, saw its profit decrease in the year to 31 March 2025. The London-based company’s pre-tax profit fell from £703,074 in 2024 to £516,809. Turnover decreased 5.4%, from £13,251,908 to £12,530,467 while Ebitda declined from £971,413 to £790,867. No dividends were paid (2023: nil). Director Raja Adil said: “The group recorded a net cash outflow from operating activities of £162,612 (2024 outflow: £500,126) due to the impact of the tighter margins in the period and investment into store refreshers following the strong profits generated in prior years. Net assets at the balance sheet date amounted to £5,633,278 (2024: £5,249,590).” Founded in 2006, Cuppacoff is part of Adil Group, which is led by Mohammed Adil and operates 113 KFC restaurants. The group, which was founded in 1969 when Mohammed Adil opened his first Wimpy restaurant, also operates circa 30 Taco Bells and circa 20 Burger Kings, plus circa 30 more Costa sites listed under different companies.

Rileys Sports Bars reports increased sales: Rileys, the American and UK sports bar brand that is registered as WPC7 at Companies House, has reported turnover rose to £7,430,000 in the year to the end of 29 December 2024 (2023: £5,820,000). The company operates seven sites and like-for-like sales were up 6.4%. It links sales growth to proactive management of club sales plans and the success of pricing changes including the removal of universal discounts. Capital expenditure on both new clubs and existing clubs is expected to pay back within three years. Major schemes in Chester (new site), Nottingham (existing site) and Cardiff (new site) are on target to meet this payback period or beat it. Loss pre-tax reduced to £184,000 from £395,000 the year before. The company said underlying Ebitdam (earnings before interest, tax, depreciation, amortisation and maintenance expenditure) rose by 33% to £1,429,000.