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Thu 21st Nov 2024 - Esquires owner reports UK sales up 39.4% in last seven weeks as company returns to profitability
Esquires owner reports UK sales up 39.4% in last seven weeks as company returns to profitability: Cooks Coffee Company, owner of the Esquires brand, has reported UK sales for the seven weeks to 17 November 2024 were up 39.4% and by 17.9% in Ireland as the group maintained the momentum seen over the past six months where it returned to profitability. The company stated: “Store sales trends have been very positive in recent times, with the company benefiting from the ‘working from home’ trend, which we are confident will remain in one form or another as a permanent change in consumer behaviour in the post-covid environment. Esquires UK achieved record daily sales per store in October 2024 and, following a strong performance in the first six months, the directors are confident that the business models are well suited to the current consumer market. These positive results are being achieved despite the concerns being expressed regarding the general economic outlook. The expansion of the successful regional development model will assist in accelerating growth in the network in the UK. The company is seeking regional development partners for Scotland and Northern Ireland. The directors believe the company has turned a corner which is evidenced by its return to profitability. The prospects for the company for the remainder of the financial year and beyond are encouraging as the trading momentum has continued and store sales trends have been very positive. There is a solid pipeline of new stores in both core markets of UK and Ireland. The Cooks Coffee model being operated by Esquires is based on a locally focused franchised network and is very scalable in a capital light manner. With the focus on core markets, we believe that we have critical mass with an ability to grow rapidly in exciting growth markets. In Ireland there is a solid pipeline of new store opportunities that we expect to deliver in the second half of the year. The target of having 300 stores in the UK and Ireland within ten years remains, and the solid base being established in these core markets will enable expansion in other attractive markets and provide the base for potential value enhancing opportunities that will add to shareholder value. The number of stores is expected to grow in the second half of the year, with eight further store openings planned in the UK and two in Ireland. We anticipate that this will take the total number of stores to around 90 in the UK and Ireland by the end of March 2025, with the total store numbers expected to reach 110 across the whole group. With the company now firmly back into growth and encouraged by current trading we remain confident about the future prospects of the group and view the future with optimism.” It comes as the group reported total store sales in the UK for the six months to 30 September 2024 increased 36% to NZ$23.4m (£10.9m) as the development in suburban areas and smaller market towns gained further momentum. Like-for-like sales in the UK were up 6.3%. Company net profit before tax was NZ$0.53m (£0.25m) compared with a loss of NZ$0.32m (£0.15m) last year. The company added a net eight new stores to the franchised network in the UK and Ireland during the six month period. The company said it is continuing its planned transition to relocate the business to the UK where most of the business operates. It added this will improve efficient working practices and focus the business on its growth strategy in the core markets of the UK and Ireland. Chief executive Aiden Keegan said: “The board is very pleased to report a strong period of growth for the group resulting in a profitable performance in the period. This is testament to the hard work of all our franchisees and strong offering that we provide. The group continues to open new stores in desirable locations which will have all performed well to date. We are also delighted that the momentum experienced in the first half has continued and the group expects to deliver a robust set of numbers for the full year.”

Premium Club members to receive next Who's Who of UK Hospitality and videos from Multi-Club Conference tomorrow: The next Who’s Who of UK Hospitality will be released to Premium Club members tomorrow (Friday, 22 November), at midday. Another 11 companies have been added to the database, which now features 874 companies. This month’s edition will also include 61 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members will also receive all the videos from the final Propel Multi-Club Conference of 2024 tomorrow, at 9am. They include Sophia Handschuh, founder of Sourdough Sophia, the London micro bakery concept, on how the business is looking to bring something new to the bakery/café category and plans for further sites. Meanwhile, Ben Lacey, managing director of Insomnia Cookies UK, discusses the late-night bakery brand’s entry into the UK market, creating a highly engaged community on social media – especially with Generation Z consumers, and its ambition to build a nationwide presence. Premium Club members also receive access to five other databases: the Multi-Site Database, the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club 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 Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Interesting Hotels seeking further acquisitions but finding ‘shortage of suitable opportunities’: Interesting Hotels, which is led by West Midlands businessman Roger Hancox, has said it is seeking further acquisitions but finding a “shortage of suitable opportunities”. During the year to 31 December 2023, the previously seven-strong business acquired the Riverside Hotel Kendal off a guide price of £4.5m, giving it 58 further rooms and a presence in the Lake District. The group also acquired a property in Ely to extend its operations at Poet House operations – the hotel, restaurant and wedding venue it operates in the Cambridgeshire city. “The ongoing search for further acquisitions continues, but there still remains a shortage of suitable opportunities,” Hancox said his statement accompanying the accounts for the year. “Our overseas businesses were impacted by the poor performing economies in Australia and New Zealand, with many customers not committing to large projects that remain in the pipeline. However, an increase in profitability made a positive contribution to the group’s performance.” The company’s turnover rose from £18,487,000 to £19,031,000 during the year, with £15,636,000 coming from the UK (2022: £14,615,000) and £3,395,000 from the rest of the world (2022: £3,872,000). Pre-tax profit grew from £2,109,000 to £2,527,000, with income interest of £1,109,000 (2022: £116,000). No government grants were received (2022: £27,000) and no dividends were paid (2022: nil). “The economic climate during 2023 provided a challenging environment as the inflationary pressures continued throughout the year, impacting much of our cost base and the ability of our customers to spend on leisure breaks and corporate events,” Hancox added. “These pressures, together with the government-imposed increase in the national minimum wage, led to decreasing profitability across many of the hotels. Any revenue growth that was achieved was more than overtaken by the increase in costs despite our focus on cost saving initiatives.” The company also operates Llangoed Hall in Powys, Sudbury House in Oxfordshire, The Swan at Hay in Herefordshire, Hawkstone Park in Shropshire, Chateau Rhianfa in Anglesey and Hellidon Lakes in Northamptonshire.

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