Story of the day:
Douglas Jack – we’re expecting quoted companies to hit targets in January updates (or better): Numis Securities leisure analyst Douglas Jack has reported that he expects that “trading updates in January to be either in line or slightly ahead”. Referring to yesterday’s Coffer Peach Tracker results for November, he said: “London has traded ahead of the rest of the country for the eight consecutive month, which bodes well for Fuller Smith & Turner (Add/ TP 825p) which generated five per cent like-for-like sales growth over the last four months. Domino’s Pizza’s (Add/ TP 625p) like-for-like sales are cautiously forecast to slow from 5.1 per cent in Quarter One to three per cent for the full year, although we believe there is no reason why they should slow in Quarter Four, when advertising spend should be up circa 90 per cent. Like-for-like comparables should be tougher in 2013, but margin growth should increase and upside from Germany should become more clear. The Restaurant Group (Reduce/ TP 340p) should announce very strong like-for-like sales for Quarter Four, driven by a potential record quarter for cinema box office and discounting. Even in December, when most companies cease discounting, The Restaurant Group’s brand websites offer a plethora of deals including £10 off two main courses (almost two-for-one). Given this, flat margins in the first half and drink price inflation falling from 11.6 per cent in the first half to 7.2 per cent in the Third Quarter, we doubt euphoria over like-for-like sales in January will be matched by margin/profit growth in March’s results or by like-for-like sales thereafter. For the six other licensed retailers due to report in January, we expect, despite tough comps: like-for-like sales to pick up for Greene King (Hold/ TP 650p) and Mitchells & Butlers (Add/ TP 400p); trading to remain ahead at Spirit Pub Company (Buy/ TP 80p) and Marston’s (Add/ TP 145p); like-for-like sales growth and margin declines to slow at JD Wetherspoon (Hold/ TP 525p); and like-for-like net income to remain down circa one per cent at Enterprise Inns (Buy/ TP 110p), held back by distributor disruption.”
ALMR National Restaurant Show Study Tour in Chicago open for bookings: The Association of Licensed Multiple Retailers (ALMR) has opened its study tour to the National Restaurant Association Show in Chicago in May 2013 for bookings. Next year’s visit takes place between Thursday 16 May and Monday 20 May. The ALMR launched its first study tour trip to the NRA show this year, with the trip led by Propel Morning Briefing managing director Paul Charity. The NRA draws 58,000-plus industry professionals from all 50 states and 100 countries, all seeking the newest innovations and up-to-the-minute information about trends and issues. The ALMR trip provides: insights from industry experts on the rise in fast-casual dining, social media, new and emerging brands, menu development, staff management and a host of other issues – with 70 free education sessions; involves a tour of Chicago’s hottest concepts and a market overview briefing sessions from US experts. ALMR chief executive Nick Bish said: “Our first trip in May this year was a tremendous success with our attendees reporting they had benefited enormously from the visit to the Show and the chance to study the key trends in the innovative US market.” Paul Charity, managing director of Propel Info, said: “The NRA show is a fantastic opportunity to find fresh inspiration and understand the emerging trends shaping the fast-changing US market.” To book a place, e-mail Jo Charity on
jo.charity@propelinfo.com or call her on (01444) 810304. Places are limited.
Industry news:
Starbucks tax row a lesson for other brands: The Starbucks tax row serves as a lesson to other brands that are viewed as avoiding their UK tax obligations, a consultant has claimed. Manny Amadi, managing director of ethical business consultancy C&E Advisory Boards, told Marketing Week: “In this climate, in which UK consumers want to believe that “we are all in it together” in terms of facing the tough economic times, any brand that does not align its tax strategies with consumer and stakeholder expectations is exposing itself to strong reputational risks - and that can of course damage even the strongest of brands.”
Hull councillors vote unanimously against late-night levy: Councillors in Hull have voted unanimously against imposing the late night levy on pubs and clubs selling alcohol after midnight. They decided that charging venues was not necessary because of falling crime linked to late-night drinking, particularly in the city centre – and the charge could end up forcing some bars out of business. Coun Sean Chaytor said: “I just don’t believe this would work. At a time when three pubs a week are closing across the country, it would be inappropriate for us to go down this route. Drink-related crime and disorder has gone down dramatically in the past couple of years and that is a tribute to all those in the night-time economy.”
This evening will bring peak party traffic in London: This evening is forecast to be the busiest evening in December for parties in London with pubs, bars and restaurants enjoying their highest single evening take of December. Mini cab firm Addison Lee said it expected this evening to break its record of 18,000 account bookings for journeys in the city. The record, which is nearly double the rate for an average evening, was set on the equivalent Thursday last year. Operators told The London Evening Standard that Londoners are determined to enjoy themselves this year. Ken Wright, managing director of The Phoenix Artist Club in Charing Cross, told the newspaper: “My staff are exhausted as we got absolutely trounced last night. I have never seen anything like it. The double dip recession is not happening here. I think rather than paying bonuses, a lot of businesses are deciding to go for a big party, a really good night-out. I’ve got my suppliers coming in today to discuss how we can up to two deliveries a week instead of one.”
Operators to take part in Hospitality Show panel: A panel of leading operators will provide tips on building a multi-site business at the Hospitality Show on Tuesday 22 January at the Birmingham NEC. The Business Mentor Session will feature Adam Marshall, founder of Grand Union Group, Steve Haslam, founder of TLC Inns and Kevin Charity, founder of Bulldog Hotel Group. The session, to be chaired by Propel managing director Paul Charity, begins at 11.15am and offers the chance to book one-to-one mentoring sessions with the three operators. To register for the show go to:
http://www.hospitalityshow.co.uk/page.cfm/link=40
UK restaurant chains feature in Huffington Post list of foreign brands making headway in the US: UK restaurant chains make up around 50 per cent of the foreign restaurant brands listed by the Huffington Post as making headway in the US – and likely to do even better going forward. Pret A Manger , with 50 US sites, is named alongside Freshii (a Canadian brand with 30 sites) Little Sheep (a Chinese Mongolian hot pot concept with a dozen sites), Pollo Campero (chicken-focused Latin food with 50 locations) and Le Pain Quotidien (with dozens of sites). All three brands given “honourable mentions” have UK antecedents: YO! Sushi, Wagamama and Nando’s Peri Peri.
Host of Westminster operators stop serving rare and medium rare burgers: A host of Westminster operators have stop serving rare and medium rare burgers in the wake of a challenge from the local authority. Lawrence Hartley, owner of Joe Allen in Covent Garden, said rare burgers were now off the menu. He said: “We’ve been advised to serve our burgers medium or well done.” The Byron chain has also stopped serving its burgers rare.
Company news:
Palmer’s of Bridport report turnover and profit increase: Low profile regional family brewer Palmer’s of Bridport has reported turnover rose by three per cent to £8,678,286 in the year to 31 March 2012 with pre-tax profit up to £1,362,769 compared to £1,156,406 the year before. The company stated in its Companies House submission: “We have increased revenues by three per cent which in the current economic climate is good and our pre-tax profits are up. The Chancellor needs to stop the relentless duty increase of RPI plus two per cent and also reduce VAT and by doing so generate employment for the 18-25 age group that have been hit hardest by the recession. We have undertaken a major refurbishment of The New Inn, Cerne Abbas during the year (and) we have exchanged after year end to purchase the freehold of the Swans Nest, Exeter.”
Bramwell re-opens The Gate as craft beer house called the Longroom: Bramwell Pub Company, the company formed out of Barracuda Pub Company in September and headed by Roger Moxham, has re-opened The Gate pub on St John’s Street in London’s Farringdon as The Longroom, which will focus on a large range of draft and bottled craft beer and a ten or so item menu focused on salt beef sandwiches and soup – bread comes from artisan maker Gail’s Bakery. The tagline on the menu is “quality meat and beer” and serves 100 per cent British brisket from nearby Keevil and Keevil, the oldest butcher in Smithfield Market.
Franchised food provides growth for Euro Garages: Growth in grab-and-go food sales has boosted revenues at Blackburn-based Euro Garages, who run service stations and associated franchises. Latest annual trading figures showed sales for the group rose three per cent to £314 million in the 12 months to July 31. It said sales at its Spar convenience store network increased 2.5 per cent while its food franchises, which include Starbucks, Subway and Burger King, were ahead by ten per cent. Non-fuel revenues accounted for £55m of turnover. The business, which operates predominantly BP-branded forecourts, said fuel volumes were marginally behind last year, although remained ahead of the overall market, which is showing a reduction of around ten per cent. Non-fuel sales were also responsible for a rise in profit to £13m.
New nightclub opening in Burnley this Saturday: Leisure operator Posuk is opening a new nightclub in Burnley on Saturday evening (15 December). The company, which operates the Hotshots bar in the town, is re-opening the former iconic Panama Joe’s site in Hammerton Street as Alterego after £250,000 refurbishment. The venue is a Grade Two listed building and now has a new sound system, furniture, dancefloor and a VIP room.
Fifteen Cornwall to close for refurbishment and improvements: The Jamie-Oliver-backed Fifteen Cornwall is to close next month for a month-long refurbishment to improve its restaurant and kitchen. The restaurant, which is funded by the Cornwall Development Company and the county’s Regional Growth Fund, will close in early January for a month-long refurbishment. The improvements will include upgraded interiors featuring a new antipasti bar as well as a redeveloped kitchen offering an enhanced training space for apprentices.
£1m investment planned in north Wales bar and restaurant: The Parry-Jones family, owners of caravan and tourer manufacturer Fifth Wheel Company, are to convert an empty building, The White House in Rhuallt, into a £1 million bar and restaurant. Project manager Ceri Whitely said the scheme should be completed next spring. The new venue will feature a bar/lounge area, a 100-cover restaurant, nine bedrooms and two penthouse suites, a function room and landscaped beer garden. Whitely added: “Our aim is to create a place where people can meet, eat, drink and celebrate in a relaxed, friendly environment. There has been no investment in the infrastructure of the building for the last decade and we’ve had to make extensive repairs as well as demolish certain sections of the building.”
Costa Coffee takes over independent coffee shop in Broomhill, Sheffield: Costa Coffee has acquired the lease on the former coffee shop Cream in Broomhill, Sheffield. Cream’s owner Michael Robinson sold his lease to Costa after business rates increased by seven per cent last year, making the business unsustainable. Originally, Costa was planning to move into three properties on Fulwood Road, opposite Cream. Costa expects to open the new site before Christmas.
Eataly launches online store: Eataly, the 50,000 square foot New York food emporium which takes $80m a year and is New York’s fourth most visited tourist attraction, has launched an online store. The 50,000-square-foot emporium is a celebration of everything Italian, with fresh pasta, a bakery, wood-fired pizza, a butcher and fishmonger, a cooking school, six restaurants, and a sprawling rooftop beer garden. There’s also a large amount of dry goods for sale, including the highest-quality cheese, charcuterie, dried pasta, sauces and olive oils. The online store offers gift baskets, pasta (organised by shape, type, and producer), oils and vinegars (by region and type), sauces, meats, sweets, and other items that are nearly impossible to find elsewhere.
Banwell reports new site “very busy”: Banwell House Pub Company, headed by Toby Brett, has reported that its fourth opening, The Victoria Pub & Kitchen in Bath, has got off to a flying start. Brett said: “The first week has been great we have been very busy and could not be happier with the way things have turned out. We have recruited a great kitchen team led by head chef Nick White, who has many years of experience in similar places around Bath.” The Victoria was previously called the New Westhall.
SSP reports profits surge: UK-based airport and transport hub foodservice specialist SSP has reported sales of £1.74 billion for the year ended 30 September, up by 3.2 per cent with operating profit rising 23.7 per cent to £61.5 million. SSP chief executive Andrew Lynch said: “We have continued to benefit from a broad geographic presence, an outstanding portfolio of brands, and the ongoing resilience of the core airport and railway travel markets in which we operate. The business continues to trade well and the current performance is in line with our expectations. We see a strong pipeline of opportunities, particularly in Asia and the USA, that should help offset the continuing economic uncertainty in the Eurozone.” Contract wins included Phoenix and New York JFK airports in the USA, Xian and Hangzhou airports in China, and Nantes airport, Bordeaux railway station and Grenoble railway station in France. SSP opened the first ever YO! Sushi in Norway and the first ever Starbucks outlets in both Norway and Finland during the year.
Burger King adds another four sites: Burger King has signed to open four more restaurants across the UK as part of an “aggressive” expansion strategy. Restaurants will be opened at the Rock, Bury (2,695 sq ft), the Queensgate Centre, Peterborough (3,567 sq ft), Freeport Talke Outlet Village, Staffordshire (2,500 sq ft) and Meridian Leisure Park, Leicester (2,500 sq ft). The company aims to add 200 locations to its restaurant portfolio in the next five years.
Cardiff seen “biggest group of new openings in many years”: Cardiff has seen the biggest glut of new pub, bar and restaurant openings in many years this autumn. Among the new openings in recent months have been Double Super Happy, Chapel 1877, Viva Brazil, La Cuina, Hide ‘N’ Sea, The Lansdowne, Cosy Club, Bill’s, La Cha Cha and Bar 44 Penarth. Perhaps the opening receiving most attention is Fire Ireland, a two-storey bar and restaurant serving burgers and ribs and offering 18 handpulls, located in Cardiff’s Castle Quarter. It is operated by independent pub and restaurant group Beatbox Bars, which also runs Undertone, Buffalo and 10 Feet Tall in Cardiff. The What’s on in Cardiff website states: “This beautiful but previously neglected heritage landmark has been revived to bring a unique bar and restaurant specialising in craft beer, barrel-aged cocktails and home-smoked and grilled barbecue-style food.”
Harveys of Lewes opens latest pub: Lewes-based brewer and retailer Harvey’s has re-opened The Lincoln pub it acquired in its home town earlier this autumn, located at the top of The High Street next to Lewes Crown Court, as The Rights of Man in honour of Lewes area resident and philosopher Tom Paine. One blogger states: “Congratulations, Harveys. The exterior does The High Street justice and I love the name, very fitting for Lewes.”
JD Wetherspoon to open in Rutherglen next Tuesday: JD Wetherspoon is to open a new £1.5m pub on Rutherglen High Street next Tuesday (18 December). The pub is called An Ruadh Ghleann, a name that derives from the Gaelic origins of the name ‘Rutherglen’ and will create 42 jobs. Rutherglen has a population of 25,000.
Costa Coffee had record week last week: Whitbread chief executive Andy Harrison has told The Guardian that Costa Coffee had a record week last week, attracting 3.8 million customers and taking £10m, excluding franchised stores. Harrison also told The Guardian he had seen the results of a YouGov brand preference survey, conducted at the end of October, shortly after a Reuters report highlighted Starbucks low tax payments in the UK. “They show Starbucks have taken a bit of a knock as a result (of public outrage),” he said, declining to provide the precise figures.
Marston’s opens new-build pub restaurant in Leigh: Midlands-based Marston’s has opened a new-build pub restaurant at the Leigh Sports Village. The Whistling Wren has opened its doors near the home ground of the Leigh Centurions rugby league club. The pub and restaurant will cater for up to 180 diners.
Technomic tips Elevation Burger as one-to-watch in US better burger segment: Foodservice insights firm Technomic has tipped Elevation Burger as a concept worth watching. Technomic stated: “The concept is known for serving “elevated products” with an “elevated experience.” With the motto “Ingredients Matter,” Elevation Burger differentiates itself by only offering USDA-certified organic, grass-fed, free-range, ground-on-premises beef. With 2011 sales of $14.5 million, the Arlington, Virginia-based chain saw an increase of 95 percent over the prior year; it also doubled its unit count to 21.”
