Hey Hot Potatoes,

Welcome to the latest edition of the Hot Potato Newsletter! On a personal level, the past few weeks have been the biggest weeks of my life … I’ve just tied the knot and got married! They say it’s the best day of your life and they’re right, it was magical. Followed by a few days exploring in Iceland, it was epic! A big shoutout too for the food and drink scene in Iceland, I was super impressed with the offering - a few standouts include a burger at Le Kock, hotdog at the famous Bæjarins Beztu Pylsur, small plates at Mat Bar and drinks at Drykk Bar.

This week we're diving into the latest headlines across UK hospitality, shining a spotlight on the Icelandic hot dog stand that stopped me in my tracks, exploring why bakeries are having a serious moment, and I've got a spicy take on franchising that I think will divide the room. Let's get into it.

In today’s email: The World's Most Famous Hot Dog, Bakeries on the Rise & A Franchising Warning

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

🔥 INTERNATIONAL BRANDS BETTING ON THE UK: Turkish café and bar concept Karabatak Coffee makes its UK debut in Twickenham, Swiss-born Bear St Bakery lands at Bicester Village next week with a London flagship to follow, three-Michelin-starred Dubai-based Indian restaurant Trèsind is opening in Mayfair this spring, and US bakery giant Magnolia Bakery says the "time is right" for a measured, city-led UK expansion

🔥 HOMEGROWN CONCEPTS ON THE MOVE: Cambridge institution Fitzbillies steps outside the city for the first time with a fourth site in Harston, Berkshire's Knead Neapolitan Pizza opens its third site, and East Midlands doughnut favourite Doughnotts secures a six-figure loan to fuel its next growth phase

🔥 FRANCHISE & SCALING MOMENTUM: US pretzel brand Auntie Anne's is targeting ten new UK and Ireland openings this year off the back of 14% system sales growth to £15.2m, while Manchester's Michaels Coffee House - founded by a former Starbucks barista - launches a franchise programme with ten new stores targeted over the next two years

🔥 OPENINGS & RETURNS: San Carlo Group makes its US debut with Signor Sassi in Florida, automated robotic Korean fried chicken concept SABA brings theatre to Market Place St Paul's, and café brand Økende makes its return to Nottingham city centre

Brand Spotlight of the Month - Bæjarins Beztu Pylsur

Now I am sure not many of you will have come across this brand, but they are known to produce some of the ‘most famous hot dogs in the world’. I was just in Iceland and among everything the country threw at me, one brand stopped me in my tracks - Bæjarins Beztu Pylsur.

Jón Sveinsson, a retired sailor, set up a single hot dog stand on a street corner in central Reykjavík in 1937. Today, nearly 90 years later, his great-grandchildren are running 4 stands across Reykjavík that have become some of the most famous food stands on earth without a single restaurant, a delivery app or a marketing budget.

The Numbers That Tell The Story:

• Operating continuously since 1937 - through wars, financial crashes and volcanic eruptions

• 4 stands across Reykjavík, including one at Keflavík International Airport

• Named best hot dog stand in Europe by The Guardian (2006)

• 1,000+ hot dogs sold on a single busy day

Here's what they're doing differently:

🌿 Ingredient obsession, Icelandic style - While most hot dogs globally are pork or beef, BBP uses primarily organic, free-range Icelandic lamb - a meat that has grazed on clean volcanic pastures with no hormones or additives. The ketchup is apple-based with and even the remoulade is house-style. Every element is considered.

👑 The Clinton Effect - In 2004, Bill Clinton was in Reykjavík for a UNICEF conference. He stopped at the stand, ordered a hot dog with mustard only and the photo went global. Overnight, a beloved local institution became an international pilgrimage site. That order is now permanently on the menu as "The Clinton." Since then, Metallica, the Kardashians, Charlie Sheen, Ricky Gervais and Anthony Bourdain have all made the trip. A great product and one very well-timed presidential snack.

🌀 Fourth-generation, zero dilution - The business passed from founder Jón through the family to his granddaughter Guðrún, who expanded it significantly. No private equity. No franchise model. No brand refresh. The flagship stand hasn't moved since the 1960s and they intend to keep it that way.

The playbook is almost the opposite of modern brand-building: build slowly with a great product and your following will grow.

Trend to Watch - Bakeries on the rise

Bakeries are on the rise and not in a quiet, under-the-radar way, we’re talking queues around the block.

According to a report from lunch, here's what the data is telling us:

• Waitrose & Partners reported a 15% YoY increase in bakery sales - driven mostly by Gen Z and millennials

• The UK has seen nearly 13% average bakery growth over the last three years

• Sourdough alone is up 46% year on year and it now accounts for 1 in every 13 bread products sold in the UK

That shift has quietly given rise to some incredible bakeries and with many of them now serving exceptional coffee too, they're giving specialist coffee shops a genuine run for their money.

When economic times get tough, the sweet treat economy booms. People are still treating themselves, just at a lower price point. A great coffee and an amazing pastry is the new go to treat.

My Spicy Take 🔥

I've spoken to a lot of growing brands recently and the franchising debate is alive and well - some are adamant it's the only feasible route to profitable growth, others won't let go of control. Here's my take: franchising is only as strong as your weakest franchisee. In this cost environment, you're going to get a lot of weak franchisees. The brand damage when it unravels is brutal and it does unravel. Don't franchise until your systems and processes are watertight. Otherwise you're not scaling a business, you're scaling a problem.

That wraps this edition of Hot Potato. We've got a lot more coming - more brand spotlights, more trends worth watching and more spicy takes that'll hopefully get you thinking. If you found this useful, share it with someone in the industry who'd appreciate it.

Hit reply with any thoughts - I read everything and it genuinely shapes what comes next.

Bon appétit,

Max Shipman, Founder, Hot Potato

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