Scottish hospitality group Buzzworks has shown resilience in the face of cost pressures and a business rates system “holding back” the sector, said its managing director.
Kenny Blair, who led a management buy-out of the 22-outlet chain last summer, said it had traded strongly despite rising costs and a rates system that can “disproportionately penalise” hospitality businesses when they invest.
The group reported a rise in annual revenue but a fall in underlying profit, and is expected to show another pre-tax loss.
The Ayrshire-based business reported “resilient” trade across its portfolio of brands which comprises Scotts, Lido, House, Vic’s & The Vine, The Duke, Thirty Knots, The Bridge Inn, The Fox and Herringbone.
Revenue rose 8.4% to £37.3 million for the 53 weeks to 4 May 2025 from £34.4m in the previous 52 week period. Underlying EBITDA fell to £3.32 million from £3.77m previously when it benefited from insurance income.
The company was asked repeatedly to provide a pre-tax figure for 2025, which will be published on receipt. It reported a £418,810 loss for 2024. The company said the 2024 figure was largely the result of one?off, non?recurring items including asset revaluations, rather than operational performance.
A total of £2.4m was invested across new and existing sites, including the opening of Lido Musselburgh and a Herringbone venue in Barnton, Edinburgh. There was further refurbishment investment at Lido Prestwick and The Longhouse in Kilmarnock.
The group continued to invest in its people through its comprehensive training programme, supporting succession planning and the development of future leaders, while also investing in processes and technology to support planned growth.
In June, Mr Blair led a family management buyout, supported with investment from London-based, Alchemy Partners. The new partnership will provide additional financial and strategic support to accelerate new venue development, enhance the existing estate and strengthen the business for future expansion.
Mr Blair said: “Growing revenue in the current business climate is a real credit to our teams and to the loyalty of our guests. We’ve continued to trade strongly while absorbing significant cost pressures.
“We’re operating against a tough backdrop in Scotland, from energy and labour increases to a non-domestic rates system that can disproportionately penalise hospitality businesses when they invest.
“Hospitality is a major economic contributor, supporting jobs, supply chains and thriving town centres. We want to strengthen the fabric of Scottish hospitality overall and help make our country an even better place to visit.
“To do this, we urgently need a rates approach that properly recognises that value and supports investment in our industry, rather than holding it back as it currently does.
“Looking ahead, the investment from Alchemy Partners is a major catalyst for our next phase. This inward investment into Scotland gives us the backing to move further, faster, enhancing our estate, strengthening our platform and accelerating expansion, including venues with accommodation.”
Alongside the rest of the hospitality sector, Buzzworks continues to face significant external cost pressures, including increased property costs and non-domestic rates, alongside rising energy costs and increases to the National Living Wage and National Insurance contributions.
To counter this, the business has implemented measures to help mitigate inflation, including supplier tendering, strengthened cost controls and carefully managed pricing strategies.
The business became Scotland’s first multi-venue hospitality company to achieve B Corp certification, reflecting its commitment to the highest standards of social and environmental performance and responsible business practices.
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