DESPITE challenging conditions, independent bar and restaurant operator Buzzworks Holdings is pressing on with plans to double the size of its business, and in so doing create 800 new hospitality jobs.
Managing director Kenny Blair said: “The goal is for Scotland to be a place where hospitality businesses thrive rather than survive – communities where jobs and careers are created for local people in venues that can be enjoyed by all.
“This is what will drive us forward and we are confident the good momentum we are seeing will put us in the best possible position to fulfil our ambitious growth plan.”
This week, Buzzworks reported an increase in revenue to £29.9m for the year ending 30th April 2023 – up 19% on the previous year’s £25.2m. Earnings before interest, taxes, depreciation, and amortization, and site opening costs and non-recurring items, were £2.94m compared to £3.95m in 2022, when earnings were supported by the reduced VAT rate on food sales and the payment holiday on business rates.
Buzzworks has also recorded a strong start to 2024, with like-for-like sales growth of 5.3% for the five weeks to 31st December 2023.
The company’s investment in both new and existing venues totalled £4.7m in the year to 30th April 2023, including the opening of Scotts in Greenock as well as further expansion into the east coast with Thirty Knots in South Queensferry followed by the opening of Herringbone Abbeyhill on London Road, Edinburgh.
The company also invested in the refurbishment of its current portfolio, including Lido Troon, Scotts Largs and Herringbone venues in Goldenacre and North Berwick.
In this week’s results statement, Buzzworks revealed that negotiations are now underway on three new venues.
Blair explained: “We have stuck to our plans for expansion, investment in our portfolio and development of our people and despite challenging conditions, we’ve had a successful year. Our formula of investing in great properties in towns and suburbs across the country, introducing our unique blend of food, drink, style and service, is one that is working for us.
“Hospitality is an integral part of life throughout the country and without it, our towns and cities would be pretty miserable places to live,” he said. “We want to continue to invest but we’re not immune to external factors coming our way that will impact the pace for growth.
“Our industry is experiencing pressures from increased property costs, increased rate of pay from National Living Wage and general overhead inflation including energy costs. We’re trying to navigate this and won’t compromise on our high standards.”
The family-owned business maintains what it describes as ‘’industry-leading staff benefits, including competitive rates, ongoing training and development, career progression, flexible working, and health and wellbeing incentives. This year, for the eighth time, Buzzworks has been placed in the top 100 Best Companies to Work For in the UK.
