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Mon 15th Nov 2021 - Rolling 12-month sales down 4.5%, Pizza Hut Delivery expands into ‘on-the-go’ travel market
Rolling 12-month sales down 4.5% for managed pubs, bars and restaurants as October shows modest growth: The UK’s leading managed restaurant, pub and bar groups achieved modest sales growth in October despite mounting operational pressures, the latest edition of the Coffer CGA Business Tracker reveals. The Tracker, produced by CGA in partnership with The Coffer Group and RSM, shows total sales were up by 3% on the pre-covid levels of October 2019. Sales were also 64% higher than in October 2020, when trading was subject to severe covid restrictions. October was a slightly better month for pub groups than restaurants, with total sales growth of 3% and 2% respectively, but bars performed best of all with a 13% increase as the recovery of the late-night market continued. The Tracker also highlighted a contrast in trading in London, where a shortage of office workers and tourists meant sales were down by 4% on October 2019, and the regions, where they rose by 6%. Across all sectors and regions, October delivered a third consecutive month of year-on-year increases, although the rate of growth dipped from 8% in September. This indicates the resilience of managed groups, who remain under severe pressure from rising food, drink and energy costs and distribution and recruitment problems. All businesses continue to feel the effects of covid, with rolling 12-month sales to the end of October 2021 down by 4.5% on the previous 12 months. Karl Chessell, director of hospitality operators and food at CGA, said: “Managed groups battled hard to sustain sales in October, but patchy consumer confidence and a host of external challenges are making real-terms growth elusive. Covid has taken a heavy toll on hospitality, and while some businesses have flourished since the end of lockdown, others remain extremely fragile. Hopes are pinned on a strong Christmas trading period, but the sector needs and deserves sustained support in many areas well into 2022 to help fuel its recovery.”

Pizza Hut Delivery expands into ‘on-the-go’ travel market with EG Group franchise partnership: Pizza Hut Delivery is expanding into the “on-the-go” travel market through a new franchise partnership with EG Group, the forecourt and roadside operator, Propel has learned. EG Group will operate eight new Pizza Hut stores in petrol forecourt stations across the UK by the end of 2021. The first EG Group-operated store is due to open in the Hartlepool area in the coming weeks. Pizza Hut Delivery said this will allow the business to further adapt its offerings in line with customer demand and the wider industry trend towards convenience. This is Pizza Hut’s latest partnership to further grow the brand across the UK and Europe following agreements with hotel operator Nine Group and Starboard Dining. A year ago, Pizza Hut announced plans to open 125 new locations over a three-year period – creating around 2,000 additional jobs. EG Group-operated stores will offer five classic flavours – Margherita, Pepperoni, Supreme, Meat Feast, and Veggie Supreme, as well as newer addition the Beyond Meat Supreme pizza. Neil Manhas, general manager at Pizza Hut Delivery in the UK, said: “EG Group has a wealth of experience in forecourt retail, in operating foodservice and its expertise as a global leader in this specific type of retail makes it the ideal partner to lead us into this new market. This partnership demonstrates our commitment to adapting to customer demand by expanding our offerings.” Mohammed Tayab, food and beverage director – Europe at EG Group, added: “We are proud to be partnering with Pizza Hut to bring yet another global foodservice brand to our customers in convenient locations across the UK. We are excited to build on our existing relationship with Yum!, as we already work with KFC and operate a large number of restaurants across the EG Group estate. We look forward to trialling the pizza by the slice proposition and making it a resounding success.” Pizza Hut has operated as a franchiser in the UK since 1973 and now operates 600 Huts across the UK. Pizza Hut Delivery reported double digit year-on-year sales growth in the second half of 2020, with sales continuing to grow throughout 2021.

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