Propel Morning Briefing Mast HeadAccess Banner  
Propel Morning Briefing Mast Head Propel's LinkedIn LinkPaul's Twitter Link Paul's X Link

Krombacher Headline Banner
Morning Briefing for pub, restaurant and food wervice operators

Thu 1st Aug 2013 - Staycation trend accelerates to provide £12bn boost

Story of the day:

The ‘Staycation’ trend accelerates to provide £12bn UK economic boost: The Staycation trend will deliver a £12bn boost to the UK’s top 20 favourite holiday locations this year as 41 million Britons – 65% of the population – opt for a British holiday. This is a massive increase from last year when 41% of Britons opted to holiday in the UK. Budget hotel chain Travelodge surveyed 3,000 Britons to investigate their holiday plans for 2013 and more than 17 million (17.3m) Britons report that they will visit one of the nine rural locations that appear in the UK’s top 20 Staycation destinations this year. The total spend from these visitors will inject an extra £5.2 billion into these rural economies. The most popular rural destination is the Lake District, whose 3.2 million annual holidaymakers will boost the local economy by almost £1bn (£980m). Other popular rural locations are the Scottish Highlands, which will see a boost of £802m from its 2.6 million visitors, and Dorset – a new entrant into the top ten of the Staycation charts – made popular this year by the hit TV show Broadchurch. City locations account for six of the top 20 destinations, with capital cities London and Edinburgh respectively dominating the top places in the 2013 Staycation charts. With more than four million (4.2 million) Britons holidaying in London this year, each visitor will be spending on average £308.20 on accommodation, dining, entertainment and local attractions. This total investment will boost the capital’s economy by £1.3 billion. Edinburgh is the nation’s second most popular Staycation destination this year (up from fifth place in 2012), with four million (4.1 million) Britons holidaying in the city in 2013 – this will boost the local economy by £1.2 billion. Travelodge chief executive Grant Hearn said: “The Staycation trend accelerating to record levels and boosting our economy by £12 billion this year is a welcome sign and hopefully this is the start of our 2012 Olympics legacy gain. However, we cannot sit on our laurels, as one of Britain’s biggest business sectors, the opportunity to grow is still great. We are no way near to unlocking the true potential of our industry. British tourism needs to be treated like a serious business sector and government needs to move our industry from the Department of Culture Media & Sports to the Department for Business, Innovation & Skills. Lack of immediate action is costing jobs, growth and investment.” Top 20 UK holiday destinations in descending order, including City breaks, are: London, Edinburgh, Lake District, Cornwall, Scottish Highlands, Dorset, Devon, North Wales, Blackpool, York, Yorkshire Dales, South Wales, Peak District, Isle of Wight, Newcastle, Somerset, Manchester, Liverpool, Cotswolds, and Bournemouth.

Industry news:

AWP machine trade body – the machine tie needs to be removed: The British Association of Pool Table Operators has called for the removal of the machine tie in tenanted pubs. In written evidence to the Business Innovation and Skills Committee, the trade body’s chairman Michael Dicks argued: “The removal of the machine tie is no nearer now than it was nine years ago, despite four pubcos inquiries stating that the machine tie must be removed. The pubcos will never give up the tie until they are forced to – they have too much money to lose that rightfully belongs to their tenants. Pubcos charging “royalties” or listing fees or admin charges whatever they like to call them and taking a share of the cash box from ancillary equipment (juke boxes, pool tables, SWP’s etc) is a total disgrace. A free of machine tie option for tenants will remain a dream until the machine tie is removed by statutory legislation. History proves that. The removal of the machine tie would be a massive boost to tenants but it would not be catastrophic for the pub industry. I would point out that after the brewers were compelled to sell off many of their pubs these pubs were leased out on long-term leases with no machine tie and that system worked well. It was only when pubcos started to establish themselves that the machine tie stranglehold became the norm.”

Heathrow starts to distribute restaurant guide: Heathrow Airport has begun handing out hard copies of Food on the Fly to passengers this week to serve as a mini restaurant guide for the airport community, breaking down dining options by terminal and featuring the top-five picks for drinks, sandwiches and healthy food. The booklet also offers tips on the types of foods to eat – and avoid – before boarding a long flight. The guide is part of a larger dining strategy at Heathrow that will emphasise healthier food options, as well as British ingredients, gastronomy and future openings. Terminal 2, for instance, is set to open 17 new food outlets in the coming months. At Heathrow, a kids eat free offer runs until September 1 at Heathrow involving: Est (Terminal 1), Rhubarb and Oriel (Terminal 3), Dining Street Restaurant (Terminal 4) and Huxleys (Terminal 5). Meanwhile at Gatwick, Jamie’s Italian, Frankie and Benny’s and Pret A Manger are offering “grab and go” kids’ lunches to pick up before catching your plane.

Los Angeles Times – shopping centres turn to fine-dining to attract shoppers: US shopping centres are looking to recruit upscale restaurants rather than mid-market or fast food outlets to attract shoppers, with top restaurants now replacing department stores as development anchors, The Los Angeles Times has reported. Industry statistics show that restaurants at malls are outperforming centres’ fast-food outlets. Sales at mall restaurants grew 4.3% in the year that ended in May, while mall fast food chains posted a 0.3% decline, according to data from the International Council of Shopping Centers.

Restaurant quarter at Warwickshire shopping centre to be expanded: Restaurant facilities at a Warwickshire shopping centre are set for expansion in response to increased demand from restaurant operators, owners have said. Regent Court in Leamington Spa will benefit from a series of new restaurants and owner New River said the programme had already begun with the opening a Nando’s outlet. The company, which also owns the Central Square centre in Erdington, said its strategy was to re-position the centre as a prime food and drink destination in response to increased demand from restaurant operators. The company said it was in advanced legal discussions with three other leading national restaurant operators to move into Regent Court alongside the centre’s existing restaurants, which include Wagamama, Strada and Starbucks.

Company news:

Inventive Leisure invests £1m in July: Inventive Leisure completed three Project Evolution refurbishments of its Revolution vodka bar brand in July with Brighton, Swansea and Manchester seeing investments. The Brighton site saw a £300,000 investment that has included the introduction of Rum Attic. This new area offers ‘the ultimate Cuban party experience and will boast the largest selection of rum to be found in the town’. The large courtyard area has been re-designed into a covered space, to allow for al fresco drinking and dining all year round. Walls have been stripped back to their original brickwork to sit alongside exposed steel girders and new booths. The Evolution programme is set to roll through 26 of the 66 Revolution bars operated by Inventive Leisure across England, Scotland and Wales over the next eight months with a total investment spend of £6.6m. To appeal to the 18 – 35 year old customer base, the new scheme introduces a wider range of cocktails, together with a full hosting and meet-and-greet service. It is the intention of the business to ‘create one of the most premium service environments in the UK bar industry’. Chief executive Mark McQuater said: “The feedback from the customers has been astounding – they have been particularly impressed by the luxurious new aesthetic and upscaled customer experience. We predict that in eight months, Inventive Leisure will have one of the best invested bar estates in the UK.”

Gordon Ramsay’s Kitchen Nightmare: All but two of the 21 restaurants that Gordon Ramsay has visited in the US for the first two series of his reality show Kitchen Nightmares have closed. Series three and four Ramsay visited 23 restaurants of which 13 have now closed, which gives him a 43.5% success rate. Series five and six have shown better results with a combined survival rate of 77%.

Punch Taverns launches Finest Cask website: Tenanted operator Punch Taverns has launched a website for its Finest Cask scheme, a guest ale programme that has been running for over ten years. The scheme has grown to include around 800 pubs and being a part of Finest Cask enables the pubs involved to choose from around 16 guest ales every eight weeks.

New Diageo chief executive will focus on thinking small: New Diageo chief executive Ivan Menezes has reported that his focus will be on ‘thinking small’ – making sure Diageo remains entrepreneurial in responding to quickly changing trends in its 180 markets around the world. He told his first results meeting: “I’ve been in the consumer business for 30 years and I can’t think of a time where consumer demographics and trends are moving as fast as they are now. What this says is that there are opportunities but also threats. Shifts happen very fast and you need to be able to respond very quickly.”

Lincolnshire brewery launches 617 ale: Batemans Brewery, based in Wainfleet Lincolnshire, has produced a new brew 617 Ale, available in both bottle and on draught, to mark the 70th anniversary of the Dambuster raid. For every bottle sold or pint drunk the brewery will donate 10p to Leonard Cheshire Disability, the official charity of RAF No. 617 Squadron in 2013.

Starbucks upgrades Wi-Fi with Google: Starbucks is partnering Google to provide the next generation of Wi-Fi offering for its customers in the US with ten times faster network and Wi-Fi speeds. Over the next 18 months, Starbucks will convert more than 7,000 US stores to the upgraded store network and Wi-Fi experience. “Every day, our customers rely on the free Wi-Fi at Starbucks to study, work, connect with friends or just relax. We want to make sure that they can access the web effortlessly and quickly, no matter what they’re doing, or what device they are using,” said Adam Brotman, chief digital officer, Starbucks. In addition to providing faster Wi-Fi, Starbucks and Google will also work together to co-develop the next-generation Starbucks digital network.

Sir John Fitzgerald returns to profit: North east pub and bar operator Sir John Fitzgerald has reported a return to profit for the year ended 31 January. The company saw turnover of £17,547,304 (2012: £17,832,004) and pre-tax profit of £1,605,754 compared to a loss of £411,202 the year before. The company added: “Trading in the first 16 weeks of this year is up 1% on last. We intend to carry out a programme of refurbishment and maintenance during the rest of the year. Our results will reflect the impact of both of the above.”

Burger King to switch strategy to fewer but more impactful menu launches: Burger King is to change its strategy in the second half of 2013 to fewer and more impactful menu launches. It is pulling back from a strategy of introducing limited-time products in multi-item, seasonal waves. Burger King has reported global like-for-like growth of +0.6% thanks to a strong Asia/Pacific showing, but US like-for-likes were -0.5%. Chief executive Daniel Schwartz said the numbers were the result, in part, of promotions for premium-price products that were less effective than those pushing value offerings.

Bottega to open second site: Italian restaurant and deli brand Bottega is to open a second site on Wapping Metropolitian Wharf next Monday (5 August). A touch of theatre is promised and chefs will make fresh pasta and bread in front of their customers at a Carrara marble bar. The brand opened its first site, Bottega Prelibato in Shoreditch. The new opening is located on the ground floor in the Grade II listed Metropolitan Wharf.

No Saints director steps down: Andy Marks has stepped down as a director of No Saints, the nightclub company led by Stephen Thomas. Marks has been a partner at No Saints since August 2010 and was previously commercial director at Luminar for almost nine years. No Saints is currently refurbishing the former Oceana in Wolverhampton, which will re-open as Faces in September.

Wagamama opens 100th unit: Wagamama has opened its 100th unit, a site in Hammersmith. The company now operates 95 restaurants across the UK, three restaurants in the US, a central kitchen unit and the Wagamama lounge unit, a dining experience for festival-goers. The new Hammersmith restaurant is located in the old fire station. It is 6,673 square feet and will be the first London branch to feature Wagamama’s new bar concept. The opening has created 43 local jobs bringing the total number of Wagamama’s employees to 3,126. Glyn House, operations director, said: “This is an important milestone for us and we are thrilled to open our 100th unit in London where we opened our first restaurant in 1992 in Bloomsbury. This is an exciting stage for Wagamama’s development, as we recently accelerated the group’s expansion programme, with plans to open 15-20 sites per year in the coming years.” One new opening will be in Aylesbury, where it is currently advertising a number of jobs. Wagamama will be competing with local noodle purveyor Noodle Nation in Bourbon Street.

Patisserie Valerie to follow YO! Sushi into Cheltenham: Patisserie Valerie has applied to open a site in Cheltenham, occupying the site of a shop, The Famous, that traded in the town for 127 years but closed in January. The company has asked the borough council for permission to change the shop’s use. If Cheltenham Borough Council gives the go-ahead, the shop will be split in half, with one section being used as a sales area and the other part as a restaurant and cafe. Patisserie Valerie already has an outlet in Gloucester’s Southgate Street that opened in December. YO! Sushi is refurbishing the former Pizza Hut in Cheltenham town centre and is due to open this month.

Antic Pub Company loses award-winning Catford Bridge Tavern: London operator Antic has been displaced from the Catford Bridge Tavern pub – saved from being turned into a supermarket and later voted the best in south east London. Antic reports that the landlord has agreed to sell the building to another pub company. Max Alderman from Antic told a newspaper: “The building was always for sale and we were trying to buy it. We thought we had an agreement but the landlord has decided to sell it to someone else.” Meanwhile, Antic will open its Leyton Technical pub on 8 August.

Luminar sets waste reduction target: Nightclub company Luminar has unveiled plans to halve its landfill by 2014. Luminar operates 53 nightclubs across the UK, attracting seven million customers every year and handles a huge amount of waste material, amounting to 3,000 tonnes. Phil Cooke, Luminar’s head of procurement, said: “Since Luminar was formed 18 months ago, we have made great strides in improving our recycling and we’re now on track to achieve our target of recycling 80% of our waste this year. Our ultimate aim is to ensure that we recycle over 90% of our waste by the end of 2014.”

Marston’s downgraded from ‘Buy’ to ‘Hold’ by broker: Marston’s has received a downgrade to ‘Hold’ from ‘Buy’ from US broker Jefferies on valuation grounds. Analyst James Wheatcroft notes shares in the group have risen 33% so far this year and its valuation is at the “upper end of the peer group and close to recent valuation multiple highs”. A sunny July and investments in gardens boosted sales and last week the chain said like-for-like sales in destination and premium pubs was up 6% in the ten weeks July 20, compared to an increase of 1.6% last year. Wheatcroft added: “We have increased the number of new pub openings from 20 to 25, although this number could be light too.” The broker did edge its target price for the stock up to 155p from 150p previously.

Polpo expands with Funding for Lending Scheme: Polpo will open its first pub site, The Ape & Bird on Shaftesbury Avenue, thanks to a £540,000 Enterprise Funding Guarantee Scheme loan backed by the government’s Funding for Lending Scheme, secured through NatWest. Co-founder Richard Beatty said: “We wanted to expand the business, but we did not want to take funding from an independent source. We were delighted when NatWest agreed to support our plans to open another restaurant. The funding has enabled us to retain our entrepreneurial spirit and build the business effectively and quickly without having to sell ourselves short.”

Pizza Hut launches digital flagship website: Pizza Hut Restaurants has launched a new website for its customers, providing a ‘connected and personalised experience’ for its users. The website has been designed to be fully responsive and accessible on all devices. It delivers personalised content based on the device used and locality of the user, as well as previous interactions with the site, via the Pizza Hut Restaurants CRM system. The site takes into account users’ history and pre-loaded selections depending on usage. The site is integrated with a number of data systems including sales statistics – for example, the ‘top five pizza’ choices are displayed by each restaurant, city and region. Marketing director Kathryn Austin said: “The new website acts as our digital flagship restaurant, with a unique personalised feel for our users, which supports our business needs. The team at Amaze has captured the very essence of our approach to casual dining and translated the importance of locality into a clever and very personal user journey.”

Carluccio’s opens in Newcastle: Carluccio’s has opened its most northerly site in England, opening a branch in Newcastle at the former NatWest bank on Grey Street. Antonio Carluccio told The Newcastle Chronicle: “We have wanted to open a restaurant in Newcastle for some time. We visited a while ago and saw the old bank building, which was in a great location, so we bought it.”

Master brewer joins Joule’s Brewery: Shropshire-based Joule’s Brewery has recruited master brewer Mark Leedham from Molson Coors. Leedham will become Joule’s new head brewer and sit on the company’s executive taking charge of all brewing operations, quality control and new product development including both the seasonal beer range and also the company’s planned development of a craft keg beer in 2014.

Prezzo to open four sites in August: Italian restaurant group Prezzo is opening four new restaurants in August. The Prezzo restaurants will open in Glasgow, Felixstowe, Leeds and Witham (Essex). It is investing more than £2 million on the new outlets and creating 80 jobs. It will take the number of Prezzo restaurants to 187 and the number within the group to 223 (inclusive of Chimichanga, Caffe Uno and Cleaver restaurants). Prezzo chief executive Jonathan Kaye said: “We are delighted to be opening four new restaurants in one month and look forward to opening many more in the coming months and years.”

1,000 capacity Eastleigh nightclub set to re-open: A newly refurbished nightclub that closed after just a month in business has reopened under new management. JKS Club Regal was unveiled in June promising an “upmarket late night venue” for Eastleigh capable of hosting up to 1,000 revellers and creating up to 40 new jobs. But the doors were closed by owner Sean Patterson fewer than 30 days later and he has now sold the club, in Market Street, claiming the venture was becoming “too stressful” for him. The three-storey building has since been reopened as ‘Club Regal’ under the ownership of local businessmen Ryan Smith and Menzie Matthews. They hope the first night could be as early as next weekend.

Costa Coffee plans to convert former hotel in Wisbech: Costa Coffee has applied to turn a landmark town centre shop in Wisbech, Cambridgeshire, which was once a hotel, into a new outlet. NewRiver Retail, who bought the Horsefair Shopping Centre in the town two years ago from Zurich Insurance, has presented its proposals to Fenland District Council.

Tragus forms partnership with People 1st: Sector skills council People 1st and Café Rouge operator Tragus Group have unveiled a partnership that will help unemployed people find work. The partnership will see People 1st work with the Tragus team to run ‘employment academies’, which will provide job seekers with the skills they need to work in the hospitality industry. Sara Edwards, group human resources director at Tragus, said: “The new partnership will provide fantastic opportunities both for Tragus and all programme participants. We know that people who are trained through the programme People 1st uses – Employment 1st – have the skills we want and need, so we will guarantee an interview to anyone who completes it. The employment academies are in the best interests of the company, but we’re also really happy that we’ll be giving something back to the industry and local communities. By supporting a programme that gives people the skills to work in hospitality, we’re helping make sure that the industry as a whole benefits from a better trained workforce.”

Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Pepper Banner
 
Butcombe Banner
 
Contract Furniture Group Banner
 
UCC Coffee Banner
 
Heinz Banner
 
Alcumus Banner
 
St Austell Brewery Banner
 
Small Beer Banner
 
Kronenberg Banner
 
Cruzcampo Banner
 
Adnams Banner
 
Meaningful Vision Banner
 
Mccain Banner
 
Pringles Banner
 
Propel Banner
 
Christie & Co Banner
 
Sideways Banner
 
Kurve Banner
 
CACI Banner
 
Airship – Toggle Banner
 
Wireless Social Banner
 
Payments Managed Banner
 
Deliverect Banner
 
Zonal Banner
 
HGEM Banner
 
Venners Banner
 
Zonal Banner
 
Access Banner
 
Propel Banner
 
Pepper Banner