Hey Hot Potatoes,

Welcome to the latest edition! January's behind us and UK hospitality is showing serious momentum. Before we dive into the numbers, a quick shout-out to the spots that impressed me last month: Vincenzo's pizza in Shoreditch, the newly opened Dim Sum Library, a weekend at the PIG in Bridge Place, and a proper sandwich from Dal Fiorentino.

In today's newsletter we're breaking down the big headlines from the past two weeks, unpacking how a Danish coffee brand quietly built 21+ UK locations, looking at robotic kitchens that cost more than most restaurants, and a take on why most loyalty schemes are missing the point. Let's get into it.

In today’s email: Danish Coffee Domination, £80k Robot Kitchens & Why Loyalty Still Matters

Read Time: Approx 3-4 mins

🔥 Hot Off The Press 🔥

We take a look at some of the hottest headlines happening right now in UK Hospitality.

Sources: Propel Info, MCA Insight, Restaurant Online

🔥 SECTOR-WIDE MOMENTUM: S4labour figures show overall like-for-like sales up 5.5% across UK hospitality in January, with standout performances from GAUCHO (11% LFL growth at regional sites), The Beautiful Pubs Collective (sales up 26% in 2025) and Grind (turnover up c.19% following their £7.5m funding round)

🔥 SERIOUS INVESTMENT: Freight Island is coming to Leeds for their fourth site with a £15m injection expanding Trinity Kitchen, while Federal Cafe & Bar in Manchester secured £3m to support their regional rollout plans

🔥 IMPRESSIVE GROWTH STORIES: Zambrero achieved 30% like-for-like growth amid their franchise push (targeting 100 UK locations by 2030), Bleecker Burger grew sales to £12m with revenue up 15%, and IRO Sushi posted 19% LFL sales growth reaching £18.5m with at least 10 new openings planned for 2026

🔥 INTERNATIONAL BRANDS BETTING ON THE UK: Portugal's VIDA PLENA is launching Dallas Burger, China's second-largest coffee chain Cotti Coffee is opening two London sites, Turin-based Costadoro opened in Clapham Junction and Beckenham, and India Bistro made its UK debut in Leeds

🔥 OPENINGS EVERYWHERE: Regional expansion continues with Manchester's Burgerism opening their first dine-in restaurant in Piccadilly Gardens, Norfolk's Flour & Bean opened their tenth site and Oxfordshire's Missing Bean Coffee Roasters set to open their seventh site next month. London remains strong with Hoppers' fourth site in Shoreditch, Holy Carrot's second in Old Spitalfields Market and new launches from Arôme Bakery (Chinatown), Kokodoo (Fulham flagship), Maza (third Greek restaurant from the Mazi/Suzi Tros team) and Connie's Pizzeria (from 081 Pizzeria team)

Data Bite

New research from Zonal and NIQ CGA (GO Technology report) reveals that 74% of consumers will seek out venues offering experiences beyond standard hospitality in 2026, with tasting menus (31%), games (25%) and bottomless brunches (24%) leading the motivations for visits as technology-driven shifts reshape consumer behaviour.

Brand Spotlight of the Month - Hagen

I'm a huge coffee snob and I love speciality coffee. I’ve been incredibly impressed by one UK brand in particular who have gone under the radar and are quietly building a coffee empire - Hagen Espresso.

Tim Schroeder walked away from 15 years in finance at Goldman Sachs to open a minimalist coffee bar in London in 2017. Today, they've built cult status with zero wall menus and over 20 location.

The Numbers That Tell The Story:

• From 8 to 21 London sites in just 18 months (2023-2025)

• First international location in Amsterdam (2025)

• 1,000+ coffee farmers supported directly in Nepal

Here’s what they’re doing differently:

☕ Deliberately minimal - No menus on walls and no retail fridges. Often minnimal seating too. Just "the coffee machine and nothing else," says Schroeder. It forces interaction. You have to ask what's available, talk to the barista and engage with the coffee.

🌍 Obsessive supply chain control - While competitors outsource roasting, Hagen installed Europe's first Bellwether electric roaster. It eliminates 90% of roasting emissions. They directly trade with 1,000 farmers in Taplejung, Nepal and send 100% of retail bean profits straight back to the farming community.

🇩🇰 Hygge as a business model - Schroeder brought Danish coffee culture to London but made it real. "Hygge isn't a fireplace or cosy blanket – it's conversation." They stripped out everything commercial and what remains feels authentic. They focus on the community aspect and also partnered with EARNT that rewards customers with free coffee for participating in community projects.

The playbook is simple: Focus on a quality experience. Obsess over the entire supply chain, farmer to cup. Build something that feels real, not branded. Make people want to be part of it.

Innovation - Moley Robotics

Moley Robotics created the world's first fully automated robotic kitchen, and it costs £80,000.

Here's how it works: the robot learns recipes by capturing professional chefs' movements (using 3D cameras and wired gloves), then replicates them exactly. Their library has 5,000+ meals from chefs like Tim Anderson. Users prep ingredients, load them in preset positions and press go.

I'll admit it's impressive engineering but hospitality is about people, improvisation and taste. A robot can't adjust seasoning mid-service or pivot when an ingredient isn't right. I'm not convinced this could ever replace the experience of a skilled chef - not in the next 5-10 years anyway.

Where it might work? QSR. Menus designed for simplicity, consistent processes, and less reliance on skilled chefs. That's the sweet spot for this kind of automation.

My Spicy Take 🔥

Loyalty is going to become a key differentiator that influences customer’s decision making. I asked myself the other day, why do I go to Watch House coffee and bar so often? The fact is, it’s great quality, I love their clean aesthetic and they have the most generous loyalty scheme around… buy six coffee’s get one free. Now it’s not just loyalty schemes themselves, but it can be as simple as remembering guests names, sending them personalised emails post visit, or a free unexpected delight. As customers get more and more discerning, giving them value and making them feel special really will become more pivotal.

And that’s the end of this week’s edition of Hot Potato!

What we thinking about the new format? Personally I am enjoying writing the newsletter more and learning more about whats going on in the different areas of UK hospitality. If you’ve got any suggestions or things you’d like to read about let me know.

Until next week’s edition.

Bon appétit,

Max Shipman, Founder, Hot Potato

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