The new big thing in the noodle business?
Could Busaba Eathai, the funky Thai noodle chain founded by Alan Yau, be the next Wagamama? Diary, ever-resourceful, journeyed to Companies House. Accounts for the year to 29 May 2010 indicate that the brand is promising. All three original restaurants are in growth - and it opened a site close to London’s Leicester Square in April and one in August in Hoxton during the calendar year. (Restaurant anoraks will know another site has opened in Bicester designer shopping centre). Turnover, largely derived from the three original restaurants was £10.9m, a 6.9% increase on the year before. Restaurant ebitda rose 10.5% to £2.3m. There’s cash reserves of £1.7m and unused shareholder funds of £4m ready to fund a roll-out over the coming years. There is, though, a lumpy £22.2m in accrued interest owed to the company’s investors.
Ping Pong’s new ballgame abroad
A number of UK restaurant concepts are proving their worth on the international scene. Ping Pong now has three sites trading abroad - in Brazil, Dubai and Washington. The most recent trading year, to 31 March 2010, saw a profit of £920,183 on the sale of trademarks during the year to another group company. Meanwhile, in the UK, its 12 sites saw turnover of £15.5m (up from £14.4m the year before) and adjusted profit before tax of £313,300 compared to £9,995 the year before. It’s got £1.8m of a revolving credit facility in its locker. “The company has continued to resist deep discounting unlike many of our competitors in the casual dining restaurant sector,” Ping Pong notes in its accounts.
Nathan Wall: airside supremo
Word reaches Diary on the impressive Nathan Wall, who was formerly operations director south at JD Wetherspoon. He’s now managing director of SSP’s airside division looking after no fewer than 250 outlets at 20 airports. It’s a bit more varied than life at Wetherspoon with Burger King outlets, Caviar House venues and Champagne bars within his portfolio. Oh, and just to keep his hand in on wet-led bars, there’s even the odd Yates franchise that he looks after.
Ember’s upmarket move
Diary popped into a new-generation Ember Inns site in Banbury at the weekend. The Mitchells & Butlers brand has taken a leap up-market and is now tagged Ember Pub & Dining. But the size of the leap may surprise a few, with a gastro-olive paint scheme and a menu still keenly-priced but featuring 21-day matured steak, sea bass, haddock kedgeree fishcakes, and beer-battered line-caught cod. There’s also a “try before you buy” scheme on cask ale and wine.
Hickman’s way with words
They’re a pretty sanguine bunch, City leisure analysts. A little surprising then to find the highly-regarded veteran Peel Hunt leisure analyst Paul Hickman flirting with effusiveness in the current 128-page sector report. Here’s Enterprise boss Ted Tuppen on the receiving end of some out-and-out compliments: “Tuppen is an industry icon, whose measured approach to the post-credit-crunch environment has many adherents.” Steady, Paul.
Wartime heroics from French industry vet
Diary spent a couple of hours with the stalwart French VAT campaigner and serial hospitality entrepreneur Jacques Borel last week. He’s an extraordinary figure - the founder of the Sofitel hotel chain, the man who introduced hamburgers in France, the brains behind the introduction of the luncheon voucher, and the guy that opened the first motorway service station in France. His campaigning across Europe on VAT has brought concession after VAT concession for the hospitality industry. But who doesn’t love a war story? The 84-year-old studied German armaments build-up as a 12-year-old in the pre-war period - and forecast that the German Army would get to Paris in 60 days. For once he was wrong, it took them just 34 days. Nevertheless, he began to study German. It came in handy during his teenage years in the French resistance when he smuggled communications between Paris and Lyons. He was eventually arrested by the Gestapo and his knowledge of German saved his life - he understood what his interergators were saying to each other as they questioned him - and was released within a day. Borel will be making an appearance at sister publication Publican’s Morning Advertiser business conference for multi-site operators on Wednesday 11 May - he’ll be explaining the best way for the leisure sector in the UK to win a 5% VAT rate.
RIP Simon Milton
Sir Simon Milton died this week far too young at the age of 49. He was Boris Johnson’s right-hand man and a thoroughly decent man. Diary met him for lunch at Villandry once when he ran Westminster City Council and was on the receiving end of criticism from pub and restaurant owners on account of the tough conditions that his authority was imposing on West End operators. He had a terrific sense of humour. One of the frequent complaints from operators was about inordinate delays in processing licensing application. Sir Simon told Diary: “I don’t mind us being called bastards - it’s the claims of inefficiency I object to.” Rest In Peace, Simon.
Breakfasts: the beautiful business booster
Breakfast and takeaway are being trialled at Mitchells & Butlers' under-rated Harvester brand. It has the same brand equity levels as Pizza Express and has been performing exceptionally well since it was evolved into its current “Salad & Grill” format. Diary sources report the brand had a record company-wide take in the week that included Mother’s Day.
