Propel Newsletter Archive Page

Greggs Q4 lfls up 9.4%, inflationary pressures reducing: Food-to-go operator Greggs has this morning reported a 9.4% increase in like-for-like sales in its fourth quarter, with continued growth in transaction numbers and reduced contribution from price inflation. It said that company managed like-for-like sales up 13.7% for FY23. The business said the strong like-for-like performance reflects popularity of the Greggs brand as it further develops its range and makes Greggs more accessible through digital channels and extended trading hours. Total sales for FY23 were £1.809bn, an increase of 19.6% compared with 2022. It said the strong finish to the year reflected the favourable Christmas trading pattern and less disruption than the company saw in the same period of 2022. It said that a delivery service had been rolled out to 710 shops with Uber Eats, alongside the existing service offered with Just Eat. It opened a record 220 new shops in the year, with 33 closures and 42 relocations resulting in a net 145 new shop openings, and 2,473 shops trading as at 30 December 2023. It said that pizza continues to perform strongly during the day and into the evening, with pizza boxes and pizza bundle deals continuing to contribute to our growth. Greggs said it ended 2023 with a cash position of £195m (2022: £192m), which it said will support plans to invest further in growing both its shop estate and supply chain capacity in the years ahead. It said the pipeline of new shop opportunities remains strong, and expects to open between 140 and 160 net new shops in 2024. It said: “As expected, inflationary pressures are reducing and with good forward cover on food, packaging and energy we anticipate a more stable cost base in the coming year. Wage inflation remains, although higher rates of pay across the economy will also provide support to consumer incomes. Overall, we are confident that Greggs can deliver another year of good progress in 2024 as we continue our plans for sustainable growth.” Roisin Currie, chief executive, said: “2023 was a year of further progress by Greggs. I am proud of our teams, who did a fantastic job serving more customers as we continue to grow our shop estate and offer greater availability through digital channels and extended trading hours. We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet. Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead.”

Propel’s Multi-Site Database improved for 2024 with unique segmentation: Propel’s leading database, the Multi-Site Database, which provides the details of more than 3,000 multi-site operators, has been redesigned so Premium subscribers will be able to search the data segmented into key industry sectors. This new straightforward segmentation will allow users to search quickly in key categories such as pubs and bars, cafe bakery, quick service restaurants, casual dining, fine dining, hotel and experiential leisure. Subscribers will be able to drill down into the details and updates for these specific areas – so, for example, the circa 640 multi-site operators in the pubs and bars sector and 150 operators in the experiential leisure area can be examined in a stand-alone format. This new functionality will be available later this month when the latest Multi-Site Database is released on Friday, 26 January at midday. An updated Multi-Site Database is published every month, with an average of 50 or so companies added each month. Phil Pemberton, Propel’s director of premium services, said: “The new ability to segment this vital information is unique to the industry and is an element that our Premium subscribers requested. It will provide even more clarity and search capability to each segment of the sector.” A Propel Premium subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. Email kai.kirkman@propelinfo.com today to sign up. The Premium subscription service currently has more than 4,000 subscribers.

Haven announces exclusive partnership with JD Wetherspoon to operate at its parks: Haven, the UK’s leading holiday park operator, has announced it has signed an exclusive agreement with JD Wetherspoon to operate at its parks. Haven said the agreement means it is the first and only UK holiday park operator to enter a commercial partnership with the pub company, which operates over 830 pubs in the UK and Republic of Ireland. The first Wetherspoon pub under the new agreement will open at Haven Primrose Valley Holiday Park in North Yorkshire, this March. Haven has invested over £170m in its 41 parks over the past year and the latest agreement with JD Wetherspoon forms part of an additional £4m investment being made to expand Haven’s food and beverage offering in 2024. Peter Blake, chief operating officer at Haven, said: “We are thrilled to be the first holiday provider to partner with one of the UK’s leading and much-loved pub operators. This new venture underlines our dedication to growing our food and beverage partnerships and offering for our holiday makers and holiday home owners.” Michael Barron, commercial director at JD Wetherspoon, said: “We are delighted to be partnering with Haven and are confident that the pub will prove popular with holidaymakers.” Acquired by Blackstone in 2021, Haven has already invested over £410 million in its parks across 2021, 2022 and 2023, with a commitment to upgrading and modernising all holiday sites to offer guests an unforgettable holiday experience.

Nightcap reports record festive trading and quarter of strong growth: Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of 46 bars – has said it achieved a number of record revenue weeks during the Christmas period, despite the ongoing challenges of train strikes, inflation and the cost of living crisis. Unaudited group revenue for the four-week period ended 31 December 2023 was £7.4m, a 65.7% increase compared to group revenue of £4.5m for the equivalent period in 2022 and a like-for-like increase of 11.9%. As a result, the business said its revenues for December were the largest monthly revenues in its nearly three-year history since IPO, with total December 2023 unaudited group revenue of £9.2m against £5.9m for December 2022, an increase of 55.9% and a like-for-like increase of 4.6%. For the 13 weeks ended 31 December 2023 (Q2 FY2024), the business said that unaudited group revenue was £18m, resulting in a 39% increase compared to group revenue of £12.9m for the equivalent period in FY2023 and a 5.9% like-for-like decrease compared to the same period in FY2023. The company said: “This represents a significant improvement in like-for-like* revenue performance compared to Q1 FY2024, primarily driven by strong Christmas trading alongside: the integration of the Dirty Martini bars; the company’s PianoWorks collaboration; and a number of sites opened in the previous 12 months starting to show improved maturity profiles.” It said that for the 26 weeks ended 31 December 2023 (H1 FY2024) that unaudited group revenue was £32.7m, resulting in a 40.9% increase compared to group revenue of £23.2m for the equivalent period in FY2023. Revenue for this 26-week period represents a 10.0% like-for-like decrease compared to the equivalent period for FY2023. The group’s cash position as at 31 December 2023 was £3.9m (including cash in transit of £0.9m). At the same date, the group had total bank debt of £8.9m resulting in a net debt position of £5m (excluding convertible loan notes). £1m of the group’s total bank debt is scheduled for repayment during FY2024. The company said it has reached agreement with the administrator of DC Bars Limited and Tuttons Brasserie Limited to pay the full £0.5m of deferred consideration on the Dirty Martini acquisition following all conditions being met. With £0.2m paid in December 2023, the remaining £0.3m will be paid during Q3 FY2024. Sarah Willingham, chief executive of Nightcap, said: “I could not be prouder of the entire Nightcap team as we continue to build the UK’s leading premium bar group. To achieve half yearly growth of 40.9% in revenue and 11.9% growth on a like-for-like basis for the important four-week Christmas period is a monumental effort. 2023 has been a volatile year, particularly in terms of the macro-economic impact on the hospitality sector. The cost of living crisis, inflation and rail strikes have significantly impacted our business and therefore it is very welcome news that the majority of rail workers have reached an agreement to end the rail strikes. It is also positive news that inflation is getting under control, which is expected to result in interest rate cuts in 2024. These are elements that should start to positively impact disposable income for our target customers during 2024. During the second half of 2023 we have transformed our management team whilst focussing on the integration of acquisitions and improving our systems. We expect to see the benefits of this integration and the synergies during the coming year. We are a much larger business with the team and foundations in place for the next stage of growth. We have set ourselves up to maximise our long-term potential. I am so proud of what we have achieved and am very excited about the future of Nightcap.”