Shepherd Neame – business is on a firm footing with a clear strategy, like-for-like sales remain strong but Budgetary headwinds expected to cost £2.6m annually: Kent brewer and retailer Shepherd Neame has said that “after the major challenges of recent years the business is on a firm footing with a clear strategy”, and while like-for-like sales remain strong, Budgetary headwinds are expected to cost it £2.6m annually. The operator of 286 pubs in Kent and the south east reported a 4.6% drop in revenue for the year to 28 June 2025, down from £172.3m reported in the 53-week period to 29 June 2024 to £164.3m. On a 52-week basis, revenue was down 2.7% at £164.3m (2024: £168.8m). Statutory profit before tax was down 7.9% at £6.3m (2024: £6.8m), while underlying profit before tax was down 3.7% at £7.6m (2024: £7.9m). On a 52-week basis, underlying profit before tax was up 0.3% at £7.6m (2024: £7.6m). Underlying Ebitda grew by 1.4% to £25.4m (2024: £25.1m). There was £15m of capital expenditure (2024: £14.6m), including the acquisition of the freehold of one pub. Proposed full year dividends are 21.50p (2024: 20.70p), an increase of 3.9%, while net asset value per share has increased to £12.29 (2024: £12.17). Total like-for-like retail sales (all figures on a 52-week versus 52-week basis) were up 4.4% versus 2024, with drink sales up 5.5%, food sales up 3% and accommodation sales (224 rooms) up 2.3%. The tenanted estate continued to deliver a robust performance, with tenanted like-for-like pub income up 1% and average pub income up 1.2%. In the nine weeks to 30 August 2025, tenanted like-for-like pub income was up 2.4%, while in the 13 weeks to 27 September 2025, like-for-like retail sales were up 3.7%, with total beer volumes down 8.2% and own beer volumes down 12.6%. Chairman Richard Oldfield said: “Performance for the year ended 28 June 2025 was solid. Underlying profits were slightly short of last year's figures, reflecting exceptional levels of cost inflation arising in April 2025, and the fact that we had one fewer trading week than the previous year. We enjoyed buoyant trade in July and August 2024, record Christmas trade, and a strong final quarter in our pub business from Easter 2025. Profits grew strongly in the first half of the financial year, with underlying performance showing good momentum. The full year included the first impact of very unwelcome increases in labour and packaging taxes. These tax increases add to the headwinds and frustrations that all in the hospitality sector and shareholders have had to face in recent years. The annualised cost impact of the changes to national insurance contributions and to the national living wage is estimated at £2.6m, which we expect to absorb through the 2026 financial year. Our pub investments are performing well, and we see considerable further investment potential in our retail and tenanted estate. Consumer demand has remained strong throughout the year, with London particularly so. Our pub business is in good health, with recent investments providing good momentum, and many more opportunities within our existing estate. Our local direct beer business is strong, whilst national demand is soft. We are modernising our portfolio to address weakness in traditional ale categories, and to take advantage of new trends. In the year ahead the company will continue to face inflationary cost headwinds, as the sector meets the challenge of the increased cost of labour, and we meet the specific challenge of higher costs of distribution. Successive above-inflation cost increases are a difficulty for all retail businesses, and in the next financial year we will absorb these increases through a combination of price increases and efficiencies. Whilst this inflation will continue to impact us in the coming year, we expect it to moderate as we move into 2027. The government has confirmed its intention to reduce business rates to give a fairer and more sustainable platform for hospitality businesses. Although at this stage the government's forthcoming budget is creating consumer uncertainty, the recent fall in short-term interest rates should help confidence. After the major challenges of recent years, the business is on a firm footing with a clear strategy for our beer and pubs business. We have many investment opportunities that will drive long-term growth, and we are confident that our premium pubs, hotels and brands will continue to perform well.” During the year, the business disposed of four freehold pubs and surrendered one (2024: six pubs and three parcels of land) for total proceeds of £2.1m (2024: £3.0m). At June 2025, it owned 286 pubs (June 2024: 291), of which 217 (June 2024: 219) are tenanted or leased and 67 (June 2024: 68) are retail pubs. It also owns two pubs (June 2024: four) operated on a free-of-tie basis as investment properties, and 85% of its pubs are owned freehold.

Greggs third quarter like-for-like sales up 1.5%: Greggs has reported a 1.5% increase in like-for-like sales over its third quarter, as it said it saw improved trading in August and September following a “heat-affected July”. It said that total sales were up 6.1% for the 13 weeks to 27 September 2025, and 6.7% in the year-to-date. Company-managed shop like-for-like sales for the three months were up 1.5%, and 2.2% year-to-date. The company opened 130 new shops in the year-to-date and made 73 closures (including 39 relocations), resulting in 57 net new shops opened. It said it expects to achieve around 120 net shop openings in 2025 with a strong pipeline for the fourth quarter and into 2026. It also said there was a marginally improved outlook for cost inflation in 2025. The company said: “While unusually high temperatures persisted throughout July, which held back performance during the month, trading improved in August and September in more stable conditions. Our autumn menu focuses on quality and value, supported by the ‘Big Deal’, our new meal deal, which offers customers any sandwich or salad, a drink, and a side from just £5.  The menu continues to evolve and, as demand for high-protein options continues to grow, we have introduced new Egg Pots and Protein Shakes as convenient options for customers on the go. We have upgraded our sandwich options and new sourdough toasties enhance Greggs’ appeal across the day. Encouraged by the early success of our Pulled Pork Sandwich trial, this product has now been extended to 350 shops and innovation continues in our iconic savouries, with the flavourful Chicken Fajita Bake and the return of the Vegan Lattice (Steak-Free), catering to flexitarian trends. Seasonal highlights for autumn include the great value Pumpkin Spice Latte, now also available over ice, and sweet additions like the Pumpkin Spice Doughnut and Toffee Fudge Muffin. As previously announced, in September we extended the availability of our frozen Bake at Home range through a new relationship with Tesco, initially launching a selection of five products. Our Bake at Home range is now available in 930 Iceland and 820 Tesco stores across the UK and online.” The group’s openings in the third quarter included further supermarket locations in partnership with Tesco and Sainsburys and the relocation of traditional high street stores that will “benefit from additional space and facilities to support further growth”. The company said that its pipeline remains strong into 2026 as it extends access to Greggs in under-penetrated catchments, while relocating smaller existing shops to better locations. It said: “Greggs continues to make progress despite challenging market conditions, evolving its offer further and making the brand more convenient for a wider range of customers through disciplined estate expansion. Our two new distribution centres in Derby and Kettering are on track to open in 2026 and 2027 respectively and will support the next phase of this growth. Operational costs have been well managed and the outlook for cost inflation in 2025 is marginally improved. The board’s expectation for the full year outcome is unchanged and we remain clear on the strategic opportunities that lie ahead.”

Chipotle losses grow to £18m: Chipotle’s losses grew to £18m in the year to 31 December 2024. The company, which has 19 UK restaurants, reported a pre-tax loss of £18,078,309 for the period, compared to a loss of £12,513,065 in 2023. The company’s costs rose by almost £7m, from £26,476,401 to £36,212,390. It also reported £5,599,766 in exceptional items (2023: nil), relating to two impairment losses. The biggest of these was a £4,728,109 software impairment. “The impairment relates to the impairment of the Windsor software,” the company said. “The app was expected to generate more revenue to the restaurants however, when management conducted an assessment on the app's impact on sales, the change in sales was not significant thus the decision to impair the asset.” The second impairment was for £871,657. The company said: “The impairment relates to the closure of the Watford restaurant. This is because the projected cashflows for the restaurant indicated an overall loss thus leading to management's decision to close the store.” The company’s turnover grew from £26,336,692 in 2023 to £34,589,852. Of this, £32,783,847 came from food (2023: £25,011,000) and £1,806,005 from beverage (2023: £26,336,692). No dividends were paid (2023: nil). Director Aoife Dannatt said: “Refining our long-term supply strategy for our European locations remains an important objective. We also continue to focus on labour costs as we strengthen our teams and become more efficient in serving our customers. Lastly, we are focused on growing our delivery business while effectively managing the costs associated with this sales channel. CMG UK continues to drive operational improvements and develop opportunistically as our brand gains traction, and we create a deep pipeline of future restaurant leaders. We will continue to focus on enhancing the digital capabilities in the UK restaurants to accelerate revenue growth and profitability in the future. We opened three new UK restaurants and we had one store closure in 2024. There has been one store opening in the UK in 2025. No other openings are currently scheduled to be opened in 2025 within the UK.”

Pasta Evangelists full-year turnover increases by 3%: Pasta Evangelists has reported that its turnover for the year to 31 December 2024, increased 3% from £32.2m to £33.2m. The company, which earlier this summer said it will invest more than £30m in new restaurants as it looks to build its dine-in estate and eyes a global estate of 300, saw its pre-tax loss for the period widen from £14.7m in 2023, to £16.4m. The company said it continued to execute its strategy of being the “authority in fresh pasta and sauces by designing and opening new high street and travel hub restaurant concepts in the UK”. In 2024, the company expanded from its established locations in Farringdon and the Pasta Bar in Harrods with the opening of four new restaurants – in Chiswick, Greenwich, Manchester airport and Richmond. This includes two restaurants which are owned and operated by the brand’s first franchise partner. In total the company operates from 51 restaurant and local food delivery locations across the UK, and in 2024, it sold almost three million fresh pasta and sauce meals to customers in the UK. The company said: “The directors are pleased with the performance of the company for the year ended 31 December 2024 and its success in helping to drive more customers to a great experience in fresh pasta.” Pasta Evangelists opened its first restaurant site last summer, in Richmond, south west London, after initially launching as a takeaway service and building an estate of 47 takeaway units. In August, the business said it was aiming to have 15 franchise locations open by the end of 2025. 

Co-CEO of Loungers and Punch Pubs owner passes away unexpectedly: Josh Pack, the co-chief executive and managing partner of Loungers and Punch Pubs owner Fortress Investment Group, has died unexpectedly, aged 51. The US private equity firm, which is majority-owned by Abu Dhabi’s Mubadala investment arm and also counts Curzon Cinemas and Majestic Wine among its portfolio, announced Pack’s death in a statement in which no cause of death was given, reports The Financial Times. “We are devastated by this loss,” said the group, which manages assets worth $53bn. “Josh was a gifted investor, a thoughtful strategist, a compassionate leader – and a deeply cherished friend to many. Josh left an indelible mark on our institution. He cared deeply for his team, and that care was returned in kind.” Pack had been with Fortress for more than 23 years and had recently moved from Dallas to London as part of the company’s European expansion plans. He had held leadership and chief investment officer roles at Fortress across its private credit, private equity, real estate and distressed investing operations. Before joining Fortress, he was a vice-president at Wells Fargo and previously attended the US Air Force Academy. The firm said co-chief executive Drew McKnight would continue to lead the group and share that role with president Jack Neumark, while executive chair Pete Briger would “deepen his engagement” in the short term. Founded in 1998, Fortress has headquarters in New York and Dallas. The group completed a £354.4m acquisition of Loungers, the café bar operator of the Lounge, Cosy Club and Brightside brands, in February.

Ralph Lauren to open The Polo Bar site in London: Fashion brand Ralph Lauren has announced that it will open a new restaurant in London as part of its hospitality portfolio. The Polo Bar Ralph Lauren in London will be located at 1 Hanover Square and is set to open in 2028. Building on the first The Polo Bar, which opened in New York in 2015, the company said the London location will showcase the brand's “signature charm and timeless elegance with a refined, yet welcoming dining experience”. Ralph Lauren, executive chairman and chief creative officer of the Ralph Lauren Corporation, said: “I have always been inspired by the special charm and heritage of the British way of living. There is an effortless grace that is rooted in centuries of tradition — a blend of timeless sophistication, understated ease and natural elegance. That perfect balance of refinement and warmth, and the comfort of sitting around a table enjoying a meal with loved ones, are what my restaurants have always meant to me.” Ralph Lauren’s global hospitality portfolio includes five restaurants – in New York, Paris, Chicago, Milan and Chengdu – and more than 40 Ralph’s Coffee locations around the world.

Business confidence hits record low over fears of more tax rises: Fears that Rachel Reeves will land businesses with further tax increases in the November budget have driven confidence in the UK economy to the lowest level in almost a decade. The Times reports that an index of economic sentiment among business leaders produced by the Institute of Directors, a lobby group, fell to -74 in September from -61 in the previous month, the lowest reading since the survey began in 2016. The drop was fuelled by widespread anxieties about the higher cost of employing staff after the £25bn rise in employers’ national insurance contributions announced in the chancellor’s maiden budget, which took effect in the spring. Reeves may have to raise taxes by up to £40bn on 26 November to offset an erosion in her fiscal headroom caused by a rise in government borrowing costs and an expected downgrade to medium-term economic growth. The chancellor increased taxes by the same degree last October, the bulk of which was shouldered by private companies via the higher national insurance payments. Firms have responded by laying off staff, freezing recruitment and raising prices. Anna Leach, chief economist at the Institute of Directors, said: “Persistent fears that taxes on business and assets will rise are stifling confidence, holding back investment, and threatening growth and living standards.” Some 83% of the 588 chief financial officers surveyed by the institute said they expected staff to be the main factor driving costs higher in the coming year, by far the most common complaint. Nearly a third of respondents said that they would sack workers over the coming year.