Restructure completed

07 February 2012

RCapital, the turnaround specialist, today announces it has completed the restructuring of the Little Chef group.

In January, Little Chef announced plans to close a number of its sites that were trading unprofitably.  The move was part of a broader restructuring strategy that included a detailed review of the lease agreements. Rents on many sites were set well above market levels and today's announcement has been prompted by a deadlock in negotiations with a number of landlords.

RCapital remains the owner of the roadside restaurant chain following the restructuring process. As a result of this move, Little Chef will continue to operate the 95 sites which it identified in January as being consistently profitable. There will be no further job losses or restaurant closures as a result of today's news.

Commenting on this announcement, Jamie Constable founder of RCapital said:

"Any restructuring of lease commitments is always a complex arena and needs a willingness of the landlord to negotiate. Although we have had some great support from some of our landlords, we have taken the business through a formal re-structuring process to complete the planned closures."

Graham Sims, Chairman of Little Chef added:

"Today's announcement represents a final hurdle in long journey to complete our critical rebuilding process. We are profitable and cash generative and will continue to deliver first-rate customer service to our customers. Little Chef is very much open for business."

For further enquiries call Tom Buchanan or Daniel Yea at Maitland on 02073795151.

Little Chef - Latest News

11 January 2012

Little Chef, the roadside restaurant chain, today announces that it will close 67 of its current portfolio of 161 sites.

The sites earmarked for closure have been trading unprofitably for a number of years due to a variety of economic and locational factors.

Little Chef’s remaining sites are all trading profitably. The closures are expected to result in the loss of between 500 and 600 jobs at sites across the country, subject to local consultations. These jobs are a mixture of full and part-time roles. After this action, it is anticipated that the remaining workforce will number approximately 1,500 people.

Although the decision to close the sites was not taken lightly, it was essential to complete this action in order to allow the company to focus its capital resources on developing the remaining portfolio of sites, introducing the New Concept – which has been highly successful– and targeting new sites. Little Chef’s strategic plan is to expand its business by opening and introducing new sites over the coming years.Overall, Little Chef continues to trade strongly.

Commenting on this announcement, Graham Sims, Chairman of Little Chef said:

“When we acquired Little Chef four years ago we inherited a number of sites with leases that were uncompetitive. Despite very hard work from some very committed colleagues we have been unable to lift the performances of these sites to a level where they are viable. Consequently, following a thorough review in which we considered all the options it is with regret that we have had to close a number of sites. This means some people’s jobs are at risk throughout the organisation. We will do everything in our power to help every individual find alternative employment within the Little Chef organisation. I know this will be tough and an uncertain time for many people in our team.

By closing these sites we will be able to focus our attention on protecting over 1500 of our colleagues’ jobs and enabling our investments to be targeted on our remaining strong sites and to develop our brand and our New Concept - towards which the customer response has been very positive.”

Little Chef backs Road Safety Week Campaign

22 November 2011

Little Chef, Britain’s iconic roadside restaurant chain, is backing national Road Safety Week 21-27 November 2011, coordinated by the charity Brake, by offering drivers free water to enjoy inside their restaurants, giving them a place to stop, rest and stay hydrated.

Little Chef will also be offering free Tyre Tread Testers to the first 10 drivers who mention Road Safety Week at its 13 New Concept Restaurant till points each day during the week of the campaign. They will also be giving away free bottles of water and chocolate bars, while stocks last.

To reinforce the importance of road safety and to make sure customers are aware of road safety issues, Brake’s road safety questionnaires will be available for customers to have a go at completing whilst they’re taking a break from the road and relax with a bite to eat.

Little Chef is among thousands of organisations, schools and community groups around the UK taking part in the Week to raise awareness about how we can make roads safer and prevent needless tragedies.

Little Chef’s Chairman Graham Sims, comments “As the UK’s most iconic restaurant chain on the roadside where drivers stop for a break, road safety concerns are paramount to Little Chef. We are committed to bringing the best in quality offering to the roadside and that includes providing local communities and drivers alike, a welcoming place to stop, rest and re-charge their batteries.
In addition to our support of the Road safety Week campaign, at all Little Chef restaurants, customers can pick up a loyalty card, sign up on-line and get free refills on hot drinks”.

Little Chef has 159 restaurants around the country and its New Concept Restaurants are located at:
York
Doncaster
Markham Moor North
Shrewsbury
Kettering West
Black Cat
Fontwell
Weston on the Green North
Wisley South
Ilminster
Podimore
Popham
Amesbury

Road Safety Week is an annual event coordinated by Brake, now in its 15th year, which involves thousands of schools, communities and organisations taking action on road safety. It is supported by headline sponsor QBE Insurance, additional sponsor FedEx, and regional sponsors. See http://www.roadsafetyweek.org.uk/ for more info.

Electric Vehicle (E V) charging points available at Little Chef!

04 October 2011

Little Chef takes the lead with the biggest roll out of electric vehicle charging points of their type worldwide.

Little Chef, the iconic and innovative chain of restaurants, is rolling out high technology electric vehicle (E V) charging points across its UK estate. This will be the biggest deployment of charging points by any restaurant chain worldwide. The project is being carried out in partnership with SSE, the leading generator of renewable energy and Chargemaster Plc, Europe’s most innovative provider of charging technology.

Initially the roll out will see the installation of 29 charging points in Little Chef restaurant car parks and a further 62 by the spring of 2012, meaning that every Little Chef will be equipped with an E V charging point by the end of 2012.

Little Chef’s estate is strategically located on Britain’s A road network across the UK and the new facility will allow fast charging of up to 7 kW allowing electric motorists to top their electric car up whilst enjoying a hot meal or something from the new Good to Go range at their destination. 

There is an increasing number of electric cars on the country’s roads and over the next three years major motor manufacturers including Vauxhall, Ford, Renault, Nissan, BMW, Mercedes and Toyota will have plug in cars on the market.  By the end of this decade it is widely forecast that one in ten new cars will be electric. Little Chef is the first national restaurant chain to recognise the need to provide roadside E V charging facilities to service the requirements of this growing band of ‘electric’ motorists.

The service will be provided free of charge*, courtesy of Little Chef and SSE for the first year, and the high technology Chargemaster units will be supplied with electricity by SSE, the leading generator of renewable energy across the UK and Ireland.

Little Chef’s Managing Director, Tracey Mulligan comments: “This represents an important stage in the brand development of Little Chef, we recently launched a completely new brand identity and introduced a top quality grab and go food offering, designed for today’s motorist. Our approach to ethical sourcing of our food is absolutely in line with offering electric car charging points. This is just the first phase, we want every Little Chef to offer this service for motorists and are working with the best in the market place, Chargemaster and SSE to deliver this.”

David Densley, Head of Sustainable Transport for SSE said: “We’re very pleased to be involved in this major project as we are committed to improving the network of electric vehicle charging points throughout the UK. We also hope it will spark people’s interest in electric transport and the environmental benefits it could bring in the future.”

Norman Baker, Transport Minister said: “I welcome this big thinking from Little Chef, giving a taste of the future in the move towards a first class national recharging network for plug-in cars.The Government has provided £30m of funding for electric car charging infrastructure through the Plugged-In Places programme in cities and regions across the UK.  This private-sector-led initiative is just the kind of ingredient we need to drive the development of our national network of recharging infrastructure.  It is great to see another example of UK enterprise coming forward to make the most of the opportunity”.

 

David Martell, CEO at Chargemaster comments: “It’s exciting to be working alongside Little Chef and SSE to provide this service to Little Chef customers. Undoubtedly Little Chef is leading the way in providing roadside services to the modern motorist and we are delighted that have identified the growing need to specifically cater for the growing number of electric motorists”

* until Dec 2012, subject to a fair usage clause.

TREAT yourself to a new offer!

30 September 2011

Little Chef has today launched a new loyalty card incentive to run alongside the already established free refills offer.

Registered holders of the new TREAT loyalty card, which was launched in July, were emailed a voucher to redeem a free teacake or packet of biscuits to enjoy with their hot drink refills.

Generally, loyalty schemes ask customers to collect points, or make a certain number of visits before redeeming an offer, but registered TREAT cards allow Friends of Little Chef to benefit from two great offers without having to collect a thing.

Apart from the TREAT card of course... which can be picked up at any Little Chef restaurant and activated online. Once customers are registered they can claim their refills when they buy any hot drink at any Little Chef restaurant.

Registering a TREAT card today means that a customer will receive future offers by email, starting with a real winter warmer in November, and in the meantime they can have as many free refills as they like!

For more information go to http://www.littlechef.co.uk/friends/treatcard

It's Tea Time at Little Chef for Taylors of Harrogate

26 August 2011

Taylors of Harrogate - the home of Yorkshire Tea - has recently formed a partnership with the iconic British roadside restaurant chain, Little Chef, to provide 'a proper brew' for its 10 million customers.

The new joint venture unites the two long-established British companies in their commitment to offering customers the highest quality tea on the roadside.

Spokesman for Taylors of Harrogate, Steve Evans, said: "We are working alongside Little Chef to offer their customers a unique new tea experience across their 162 restaurants. We are serving Yorkshire Tea in a white china tea pot accompanied by a jug of milk and bowl of sugar cubes, on a tray. Loose leaf tea will be available in Popham, Kettering West, York and the ten recently opened new concept restaurants. Little Chef has partnered with Taylors because we have a strong, common bond - a passion to provide customers with the best tea possible and a belief in doing traditional things properly."

Little Chef Managing Director, Tracey Mulligan, commented: "We have some really great plans to bring the best tea experience back to the British roadside and we are proud to be partnering with Taylors to develop and deliver them. A pot of tea is already our bestselling beverage with over three million enjoyed last year at our restaurants and we are excited to be introducing loose leaf tea into our 13 new concept Little Chef restaurants."

RCapital Invest 20M to Build on Little Chef Success Story

30 May 2011

Big Changes Ahead for Iconic British Brand

Little Chef, the iconic British roadside restaurant chain, owned by private equity boutique and turnaround specialists RCapital, has opened ten new concept restaurants, creating an additional 70 jobs and seeing sales increase by up to 47% in the first few weeks*. This is the first phase of an exciting investment programme being undertaken across the estate over the coming months and years.

In addition to the three original concept restaurants at Popham, Kettering West & York, the additional ten, which also include a new take away offering, 'Good to go', brings the total of new concept restaurants to 12 currently. Customer satisfaction across the 12 concept restaurants is on the up with over 20,000 covers per week, with average spend per head up by over 14%.

Little Chef's Managing Director, Tracey Mulligan comments: "Together with the new management team I have spent considerable time analysing the DNA of the Little Chef brand, undertaking extensive research into roadside consumer habits and analysed all of our learnings from our current concept restaurants. The team know that if we continue to concentrate on the things that really matter; brand development, fresh new restaurant design, great service and re-focus on quality and provenance of food, tailored around current road user needs, this will make Little Chef more relevant than ever to our 10 million loyal customers and to the new customers we wish to attract."

The latest restaurant update sees the addition of a new 'Good to Go' deli offering, which will provide customers with the highest quality food on the go, better than anywhere else on the roadside. Ethically sourced ingredients include free-range British eggs, free-range chicken, fish caught from sustainable sources and tea and coffee is fair trade and rainforest alliance yet all at an affordable and competitive price in the market place.