Leon owner EG Group eyeing £8bn Subway takeover: The billionaire Issa brothers behind Leon owners EG Group are thought to be eyeing up fast-food giant Subway in a reported £8bn takeover. It is thought Mohsin, 51, and Zuber, 50, are looking to acquire the restaurant chain, which they believe will fit well into their empire. EG Group already has Subway restaurants in some of its estate of more than 6,300 petrol stations around the world, 340 of which are based in the UK. A source told The Sun: “EG Group have felt for a while that Subway treated them the same way as other franchise partners and their massive growth hadn’t been appreciated. So, what better way to show who’s boss than owning them?” The group also owns KFC’s biggest franchise and has a close working relationship with the likes of Greggs, Starbucks, Krispy Kreme and Cinnabon. Earlier this month, EG Group said its foodservice division made “good progress” in 2022 as it reported a 25.1% increase in group revenue and 1.9% rise in group Ebitda. Revenue grew to $33.04bn in the year ending 31 December 2022, while Ebitda was up to $1.46bn for the year. In the fourth quarter, the underlying performance of the group was consistent with 2021. Ebitda of $303m decreased by 15% year on year primarily due to currency movements, but on a constant currency basis, Ebitda of $323m shows a decrease of 9% on last year, with this movement due to non-recurring items in the quarter. EG grew total revenue by 14.2% to $7.99bn on a constant currency basis in the fourth quarter compared with 2021. Ongoing growth in the group’s foodservice business was supported by 23 new openings in the quarter. The group’s network increased to 6,612 sites by the end of the year, of which two thirds are company owned and company operated. The group also this month agreed to the sale and leaseback of a portfolio of its sites on the east coast of the US to Realty Income Corporation for about $1.5bn. The portfolio – which EG America will continue to operate and trade – comprises 415 store assets under the Cumberland Farms, Fastrac, Tom Thumb and Sprint banners.

Three days to go before release of updated Premium Database of Multi-Site Companies, 22 businesses being added: A total of 22 new multi-site companies, operating 92 sites, have been added to the next edition of the Propel Premium Database of Multi-Site Companies, which will be released on Friday (31 March), at midday. The updated Propel Multi-Site Database, which is produced in association with Virgate, includes regional restaurant operators, growing bakery brands, and expanding hotel operators. Premium subscribers will also receive a 2,000-word report on the new additions to the database. The comprehensive database is updated monthly and provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different. The database now features 2,811 companies. Premium subscribers will also receive the next edition of the New Openings Database on Thursday, 6 April, at midday. It focuses on newly announced openings and upcoming launches in the sector and is updated every month. The next edition also includes a 6,000-word report on the new additions to the database. Premium subscribers also receive access to three other databases: the Propel Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; and the Who’s Who of UK Food and Beverage. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Premium subscribers are also to be given exclusive access to the recording and slides to Propel Multi-Club Conferences. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Diageo chief executive to step down: Sir Ivan Menezes has announced he will retire as chief executive officer and depart from the Diageo Board on 30 June following ten years leading the company. Debra Crew, currently chief operating officer, will be appointed in his place and join the Diageo board from 1 July. Menezes joined Diageo through the merger of Guinness and Grand Metropolitan in 1997 and has held a number of senior positions in the business including chief operating officer; president Diageo North America; chairman Diageo Asia Pacific; and chairman Diageo Latin America and Caribbean. He has been an executive director of Diageo since July 2012 and has served as chief executive since July 2013, overseeing an outstanding period of change, growth and high performance. It has grown significantly during this period, now selling over 200 brands in more than 180 markets and is today the number one company by net sales value in Scotch whisky, vodka, gin, rum, Canadian whisky, liqueurs, and also tequila. In December, Guinness also became the number one beer in the on-trade in Great Britain for the first time. Menezes said: “It has been an enormous honour leading Diageo over the past decade, and I am extremely proud of what we have achieved during that time. I am confident that under Debra's leadership, and with our extraordinary portfolio of brands and culture, Diageo will go on to deliver our long-term performance ambition.” Upon Crew’s appointment, women will make up more than 50% of Diageo’s executive committee. Prior to being appointed chief operating officer in October 2022, Crew was president Diageo North America and global supply, leading Diageo’s largest market to 14% organic net sales growth in 2022, following on from 20% organic net sales growth in the prior year. She originally joined the Diageo board as a non-executive director in April 2019 before stepping down from the board when appointed president Diageo North America in July 2020. She was previously with Reynolds American, PepsiCo, Kraft Foods, Nestlé S.A. and Mars. Crew added: “I am focused on continuing Diageo's extraordinary track record of building world-leading brands and enhancing our reputation as one of the most responsible businesses in what I believe to be the most exciting consumer products category. It is an incredible privilege to be leading Diageo through the next phase of its development.”

Robin Barr steps down from AG Barr board: Robin Barr has stepped down from the board at AG Barr after 62 years with the business. Barr, who was appointed a non-executive director after retiring as chairman in 2009, will not seek re-election at the company’s annual general meeting (AGM) in May. He has served on the board for 58 years and “provided a great source of experience, guidance and leadership over almost six decades”. Julie Barr will also step down as company secretary and, subject to shareholder approval, join the board as a non-executive director. She has been with the company for 19 years and will stand for election at the AGM. Chairman Mark Allen said: “We are hugely indebted to Robin for all his years of service, not to mention the balanced and insightful guidance he has provided to the board as the business has developed across the last 60 years or so. I am delighted that Julie will join the board in due course and am certain her experience and skills will complement and further strengthen our board capabilities.”

Bank of England boss predicts cost-of-living crisis easement but delivers warning on early retirements: The cost-of-living crisis should start to ease within weeks, the Bank of England governor predicted last night. Latest figures show inflation remains above 10%, with prime minister Rishi Sunak saying yesterday his plan was to win the fight against inflation. He was backed by Andrew Bailey, who last night told the London School of Economics: “We expect to see a sharp fall in inflation during the course of this year, starting probably in a couple of months or so from now.” Mr Bailey said the latest evidence pointed to “more resilient activity” in the economy and jobs market. This despite a setback last week when inflation unexpectedly rose to 10.4% – which he said shows the path “will not be entirely smooth” and that pressures on prices “remain elevated”. The Bank is also concerned about growing numbers of workers opting for early retirement – adding to the level of “economically inactive” people. Bailey said the phenomenon was “part of the reason” why it has had to hike interest rates as much as it has. He said if workers who retired early built up enough savings to keep spending at the same level as before they stopped working, demand in the economy would stay the same even as the supply of labour falls – upsetting the balance between supply and demand needed to keep inflation in check. “We should expect this to put upward pressure on inflation in a way that would call for a higher level of interest rates to dampen demand,” he added.

Two-thirds of workers in favour of four-day week: Almost two-thirds of workers would prefer working a four-day week, a new poll has found. A survey of 12,000 people, carried out by employment firm Hays, found that nearly two in three workers would favour the switch to an office-based four-day week. One in three employers said they would be more likely to accommodate the switch if staff spent all four days on-site. Just under two in three workers said they would consider switching jobs if another company offered a shorter working week. This has increased from a little over 50% compared to a similar poll that was recorded last year, reports The Daily Mail. The findings follow a recent trial where 61 UK companies reduced their employees’ working hours by 20% with no changes made to their salary. The trial saw around 2,900 employees work a four-day week for six months from June 2022. Subsequent surveys found that 39% of staff felt less stressed thanks to reduced hours, with bosses even reporting an increase in revenue while productivity was constant. Gaelle Blake, of Hays UK and Ireland, said: “It’s clear from our research that the appetite for a four-day working week has increased from both professionals and employers. However, in reality, only 5% of respondents to our survey are working for an organisation where this is actually happening.”

Food prices inflation up to new high: Food prices inflation has risen by 15% in a year, causing prices in Britain’s shops to climb faster than ever before. The Times reports average shop prices are now 8.9% higher than they were at this time a year ago, the highest rate of annual inflation that the British Retail Consortium (BRC), which collects the data, has recorded. It marks an acceleration from the 8.4% noted in February. Overall, the cost of food in shops is 15% higher than it was 12 months ago, another record annual rate of prices inflation, the BRC said, and one that compares with a year-on-year rise of 14.5% in February. Within that, fresh food inflation has accelerated to 17% this month, from 16.3% in February. “Shop price inflation has yet to peak,” Helen Dickinson, chief executive of the consortium, said. “As Easter approaches, the rising cost of sugar coupled with high manufacturing costs left some customers with a sour taste, as price rises for chocolate, sweets and fizzy drinks increased in March. Fruit and vegetable prices also rose as poor harvests in Europe and north Africa worsened availability and imports became more expensive due to the weakening pound.” The BRC expects food prices inflation to start to fall back as summer nears and the UK growing season begins.

London independent Mexican restaurant set to double up: A London independent Mexican restaurant is set to open its second site in the capital. 1910 Cantina will launch at 227 New Kings Road in parsons Green on Monday, 10 April. It follows the first 1910 Cantina in Balham, which “faced a challenging start when the launch coincided with the pandemic”, but due to “overwhelming support from the community, became a huge success, enabling the team to open their second restaurant just three years later”. The menu is built around dishes inspired by owner and chef Mauricio Rico’s original family recipes and offers an almost-entirely gluten-free menu, by using corn wherever possible. The owners have also so far sourced more than 160 individual brands of Agave spirits for their collection. Owners Mauricio Rico and Jose Chacon said: “1910 was the year of the Mexican Revolution. Our aim today is to revolutionise the way Mexican cuisine and culture is perceived in London.”