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Hospitality Industry News – W/c 20th July

ID-100236913Monday 20/7/15

Propelinfonews.com: Norwich’s largest nightclub faces closure in noise row: Norwich’s largest nightclub faces closure over a seven-year-long row which has cost more than a million pounds. The wrangle between Mercy nightclub in Prince of Wales Road and Norwich City Council began in 2008, with a city council planning decision to allow an office block next to the 2,300-capacity nightclub to be turned into homes. Toby Middleton, manager of Mercy nightclub, claims that noise complaints began as soon as residents moved into the new homes, and said he was now instructing solicitors to bring a case against the council. He said the club had closed for nine months for a costly overhaul to improve soundproofing measures, but it was impossible to solve the problem completely as the homes abut the nightclub and bass lines reverberate through the wall. The total spent to date, including lawyers and acoustic consultants, exceeded £1m, he claimed, and it was quickly becoming financially unviable to keep the club open. Since the office block in St Faith’s Lane was turned into homes, the council’s environmental health team has served Mercy with noise abatement notices to the tune of £80,000.

Morningadvertiser.co.uk: London and South East hit hardest by pub closures

By M&C Report, 20-Jul-2015
Regional statistics released by Campaign for Real Ale indicate that London and the South East are hit hardest by pub closures – with an average of 10.2 closing a week.

http://www.morningadvertiser.co.uk/Operators/Other-operators/London-and-South-East-hit-hardest-by-pub-closures

Propelinfonews.com: Itsu opens its fourth regional store: Itsu, led by Pret A Manger founder Julian Metcalfe, has opened its fourth site outside of London, this time located in Cambridge. The brand opened in the former Austin Reed shop on Sidney Street, next door to Jack Wills and Next – just a month after Japanese fast food chain Wasabi came to Cambridge. Said Takhamt, director of development at Itsu, said: “We’re delighted to be opening in Cambridge. We chose to bring our ‘eat beautiful’ menu to Cambridge as the city’s bustling and innovative culture fits perfectly with our own. We’re looking forward to bringing our light, green and good for you food to the people of Cambridge, which is freshly prepared in store each day.”

Tuesday 21/7/15

Propelinfonews.com: House Collection boutique hotels placed in administration: Two boutique hotels in Cambridgeshire – Poets House in Ely and Paddocks House in Six Mile Bottom near Newmarket – owned by House Collection have been placed into administration. In a statement, House Collection said: “On 9 July, Eastern Counties Finance (ECF), the lenders of House Collection, Poets House and Paddocks House, placed House Collection into administration. House Collection had been working with ECF to arrange a re-finance of the properties following on from recent litigation losses made upon the business from contractor issues with the build of the properties. House Collection has worked continually to reduce debt and bring the business model back in line. After being assured of a re-finance deal with ECF, House Collection volunteered its business plans and model showing budgeted profits from May 2015. In June 2015, ECF offered monies for re-finance and in return asked for full control of the business leaving the current owners/majority shareholders with a minority share and employees of ECF. This was refused and since this time the House Collection has sought and secured funds to re-finance the asset and business debt. This offer was made to ECF but was quickly rejected without comment. Immediately BDO were appointed as administrators and have since taken over the day to day running of the hotels. Both directors are working with legal teams to recover their business and carry on the goodwill and profitable business model that they have spent the last three years creating. Within this new finance model all suppliers were to be paid and the businesses trading in profit as demonstrated to ECF. Despite offering this David (Toulson-Burke) and Jonathan (Baker), the directors of House Collection, are shocked that this was not acceptable to ECF thus leaving creditors who were to be paid along with staff employed within the group all at significant risk.”

Eatoutmagazine.co.uk: Prezzo opens £600,000 site in Stowmarket: Prezzo has opened its latest site in the Suffolk town of Stowmarket today. The Italian restaurant has taken the former Dukes Head pub site on Ipswich Street and has cost £600,000 to develop. The 174-cover restaurant, split over a 110-cover indoor space and a 64-cover rear terrace garden, has created 20 new jobs and is managed by Jose Manuel. Manuel said: “The restaurant will serve the highest quality food in comfortable and stylish surroundings. “I am confident that Prezzo will prove popular and be a great addition to the restaurant scene in Stowmarket. Prezzo will be open from 12 noon until 11pm throughout the week and will serve a range of Italian cuisine, such as pizzas, salads, risottos and grills. A children’s menu will be served.

Propelinfonews.com: Derby Brewing Company set to open fourth site in Derbyshire: Chaddesden-based Derby Brewing Company is set to open its fourth site in Derbyshire on 11 August. The company has spent £1.3m converting the historic Grade-II listed Kedleston Country House between Allestree and Kedleston village into a gastro-pub called The Kedleston. It has created what it calls an “upmarket drinking area”, including a hidden study, snug and parlour featuring burnt oak floorboards and painted wooden panelling. A boutique-style hotel will open later in the month, with five individually designed luxury bedrooms. Director Paul Harris told the Ashbourne News Telegraph: “It has been fantastic to see our vision for the building come into reality. There have been some hurdles along the way but we really believe we have created something special which we can’t wait to share with everyone.” The building was originally commissioned in 1761 by Sir Nathan Curzon for the Kedleston estate and was overseen by famous Georgian architect Robert Adam. It was listed in February 1967 and opened as a hotel in 1970 but it has deteriorated in the past five or so years and had been boarded up. The site is the fourth to be opened by Derby Brewing Company in less than eight years.

Wednesday 22/7/15

Propelinfonews.com: Lincolnshire operator buys two Torquay sites: Lincolnshire businessman Chris Ball has bought two co-located. Torquay restaurants – Cotton Eyed Joe’s and Beast Burger in Torwood Street. The sale brings to a close the career of local restaurateur, Betch Muffazer, who has been active in the Bay’s restaurant trade for 35 years. Muffazer has decided to retire after operating five different restaurants over his career. Cotton Eyed Joe’s and Beast specialise in burgers, ribs and steaks. The premises are located in a prime trading area among Torquay’s best-known restaurants, bars and nightclubs and close to the harbourside and marina.

Northamptonshire Telegraph: Nando’s favourite to replace McDonald’s in Wellingborough: The people of Wellingborough want a Nando’s to come to the town centre. McDonald’s in Market Street will close when a bigger branch opens in London Road in October. And chicken restaurant Nando’s is so far the favourite eatery to replace the hamburger restaurant, according to a poll. So far 258 people have voted in an online poll by Wellingborough Chamber of Commerce launched to gauge opinion on what eatery should replace the restaurant. A total of 56 per cent have voted for the popular chicken chain to open in the prime town centre position. A further 27 per cent want another burger restaurant to replace the famous golden arches with the remaining 17 per cent saying there were in a favour of an Italian restaurant. Chamber president David Cross said: “The people of Wellingborough have spoken – they want a Nando’s in the town centre. “The position in Market Street is such a visible location in the town centre, so as a chamber of commerce we are keen to ensure the premises does not remain empty for long, if at all.”

Grantham Journal: Atrium bar in Grantham up for sale as company goes into administration: Grantham’s The Atrium bar has gone up for sale as its operating company has gone into administration. Meanwhile, new owners have already been found for The Atrium bar in Newark, which was operated by the same company, Fairway Investments. FRP Advisory is carrying out the sale after partner Chris Stirland and director Nathan Jones were jointly appointed as administrators. They were called in after a downturn in trading put unsustainable pressure on Fairway under its current financial structure. On June 12, the joint administrators sold the business and assets of The Atrium in Castle Gate, Newark, Nottinghamshire, with the leasehold pub now operated by new tenants, ensuring continuous trading at the Atrium and securing jobs of all the pub’s 15 staff. They continue to market for sale the Atrium, a freehold pub in High Street, Grantham, which continues to trade as normal. Twenty-five people are employed. According to FRP Advisory, Atrium Bars has traditionally enjoyed a loyal local customer base but trading had for several years been impacted by the ban on smoking in all pubs and bars, in line with the effect felt by the whole sector.

Propelinfonews.com:Freehold of Great Yarmouth hotel comes on the market for £860,000: The freehold of the historic Star Hotel, one of Great Yarmouth’s most striking buildings with a distinct black and white façade dating back to the 17th century, is on the market through agent Fleurets, on the instructions of the Mortgagee In Possession, for £860,000. Bob Whittle, of Fleurets, said: “The hotel is still fully operational and is a long-established traditional town centre business catering for corporate meetings, seminars and conferences as well as benefitting from local community trade. The hotel overlooks the harbour and River Yare and is within easy strolling distance of the town’s main retail centre. The property operated for many years under direct management as part of an East Anglia-based hotel chain but it was sold in 2010 to private operators.” Accommodation includes 40 en-suite bedrooms plus two restaurants, function and bar facilities.

Thursday 23/7/15

Golf Club Management: Golf clubs to hear VAT decision in two to three months: Private members’ golf clubs that were expecting a large VAT payout from HMRC this April will find out in two to three months what they will get. A reporter who attended the latest court hearing, this July, says clubs will probably receive between 54 and 95 percent of the entire payment they were expecting. In January HMRC agreed to make substantial payments to hundreds of golf clubs for overpaid VAT by April. This followed the 2013 Court of Justice of the European Union (CJEU) ruling that VAT on green fees at private members’ golf clubs had been incorrectly applied for several years. This meant that scores of ‘not for profit’ clubs were able to claim the VAT back on green fees – believed to be worth several thousands of pounds to many of the venues involved.However, even though the payments were only up to 50 percent of what the recipient golf clubs thought they were owed, no claim was subsequently paid due to what has been described as a ‘lack of compliance’ regarding the claims. A six-day court hearing has taken place at the Royal Courts of Justice in London, dealing with this issue and HMRC’s argument that unjust enrichment would occur should golf clubs receive a refund of VAT charged on non-member green fees that do not intend to pass the refund back to the green fee payer, which is why the organisation is not prepared to settle the claims fully. “HMRC had to prove clubs set a green fee rate, add the VAT and pass the tax onto the consumer,” said David O’Sullivan, chairman of China Fleet Country Club in Cornwall, who attended the hearing and reviews it here. “The clubs argue that green fee prices are set according to the local competitive market and the club absorbs any tax burden. “KPMG are fighting the case on behalf of over 460 clubs with many more queued behind. Three clubs were agreed by both sides to be lead cases and for the first five days had their accounts poured over by expert witnesses for each side appointed by the court. “The sixth day dealt with other associated matters. These being the effect of VAT exemption on input tax reclamation, the treatment of corporate golf days and the Tour Operators Margin Scheme (TOMS). “KPMG claim that input tax is recoverable as taxable supplies are being made in the form of on-course advertising, buggies, trolleys and club hire, and even protective clothing worn by course staff. “HMRC stated there has to be a close link between exempt and taxable supply in order to be able to reclaim VAT and that they believe the link to be tenuous as opposed to closely linked. “Whilst both sides agreed that corporate days are in the main taxable, this turns on who the ultimate beneficiary is. HMRC state it is the company who pay for the day with the intention of getting or retaining business. KPMG point out that a business cannot play golf, only people can. So is it the payer or the player who is the ultimate beneficiary? “As for TOMS, this concerns golf played by non-members organised by a company specialising in golf breaks. HMRC claim these should be treated the same as corporate golf days. KPMG are adamant that HMRC are wrong, as the organiser does not play golf and only benefits from the profit margin achieved for their business, which is taxable. “Finally, golf clubs may have wondered why no interim payments have been made as promised at the previous court hearing in January. This is because the claims had to be compliant, and no one seems to know ‘compliant with what’! “For what it’s worth, it looks like most clubs will eventually receive a sum of between 54 and 95 percent of their claim plus interest. That is for the judge to decide, and this is likely to take two to three months.”

Friday 24/7/15

Propelinfonews.com: Operator plans six-strong restaurant complex in Northampton: A restaurant complex in Northampton is set for an autumn open date offering six choices over three floors. Chilli Village, in Wellingborough Road, is offering a choice of six individual restaurants, live entertainment and a shisha lounge, all within the same roof, when it opens. A spokesperson for the restaurant owner said: “All of the restaurants are going to be quite different. People will have the opportunity to visit each one and feel like they are in a different place each time. We don’t want it just to be a place where you go for a meal, it is a place to relax and enjoy and be entertained.” Chilli Village is set to offer a range of cuisine including Moroccan and Arabic-inspired dishes, a barbecue grill and a buffet. “People don’t often know where to go on a night out,” the spokesperson added. “But people will be spoiled for choice here.”

Golf Club Management: Golf club dealing with media storm over breastfeeding comments: A golf club in Leicestershire has become the latest to deal with a national media storm after three members resigned and another has been suspended because of comments about a breastfeeding mother. The story, which has been widely reported across the national media and has, for example, received more than 500 comments alone on the MailOnline website, is that an unnamed woman at Whetstone Golf Club complained to a member of staff when she heard a female member say ‘that’s put me right off my food’ as she breastfed her baby in the clubhouse. The club’s committee then investigated the issue, which led to two female members resigning in protest. A third woman has been suspended and is facing a disciplinary hearing while her husband, who is also a member, has resigned. One of the women who resigned said: “It was a storm in a teacup really. The comment was not directed at the mother with the child or her group. She got very upset. “I am a mother and grandmother and have nothing against breastfeeding. “It is about decorum. She could have turned her back to us or gone in the locker room for some privacy. The mother was just yards away and facing everyone in the clubhouse. It was almost a deliberately provocative move.” She admitted to saying “gosh, are we running a creche?” when the three women returned to the clubhouse after playing a round of golf and saw a group of six women with children inside, but it has not been confirmed who made the food comment. The suspended woman said: “The woman who breastfed her child did not have a bra on. She just lifted her t-shirt. The women complained to the club and we were suspended. “I am fighting this action by the club as I did not speak to any of these women at all. I am not resigning. I am going to fight this. I have done nothing wrong.” Under the Equality Act, which came into force in 2010, women cannot be discriminated against for breastfeeding in public. The story comes as the BBC has apologised for Peter Alliss’ comments about Zach Johnson’s wife, which many perceived as sexist, during the Open Championship. He stated: “She is probably thinking, if this goes in I get a new kitchen,” regarding the prize money that Johnson secured when he holed his winning putt. It also comes as Scotland’s first minister, Nicola Sturgeon, has called for a sustained drive towards prize-money parity at the country’s two Aberdeen Asset Management Scottish Opens. Whetstone is not the first golf club to deal with a media storm this year. Chelsfield Lakes Golf Centre in Kent had a sensation on its hands when the media revealed it had suspended one of its greenkeepers after he allowed a neighbouring animal sanctuary to take some of its irrigation water in an emergency.

Propelinfonews.com: Kodogoda promoted to operations director at Anglian Country Inns: Harry Kodogoda has been promoted to operations director of award-winning pub and restaurant operator Anglian Country Inns, led by James Nye. Kodogoda’s promotion comes after working as the company’s executive chef – he also became a director of the company last year. He has been replaced as executive chef by Kumour Uddin. James Nye said: “I’m really happy to see Harry take on the new role as operations director. He has seen the company grow significantly over the last ten years and has been an integral part of the success of Anglian Country Inns. With his experience in the company, passion and food background it will add a lot of strength to the company. He will be working alongside Howard Nye in the operations role to prepare for further growth. I’m also really excited to see Kumour take on the executive chef role. He is the mastermind behind the food at Hermitage Rd Bar & Restaurant and has a huge amount to bring to the company.”

 

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