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Morning Briefing for pub, restaurant and food wervice operators

Mon 8th Jun 2015 - McDonald’s reports global LfLs down 0.3% in May
McDonald’s reports global LfLs down 0.3% in May: McDonald’s has reported global like-for-like sales decreased 0.3% in May. Like-for-like sales were down 2.3% in the US, up 2.3% in Europe and down 3.2% in Asia, the Middle East and Africa. “McDonald’s has embarked on a turnaround plan to reignite our business performance,” said Steve Easterbrook, president and chief executive. “Our talented franchisees, suppliers and employees are placing renewed emphasis on the basics of great-tasting, high-quality food, compelling value and outstanding service. Our goal is to be a modern, progressive burger company that is responsive to consumers’ evolving preferences, provides a contemporary experience for our customers and drives long-term value for our system and our shareholders.” US comparable sales decreased 2.2% in May reflecting negative customer traffic and ongoing competitive activity. To address its current challenges, the US is working to enhance the customer experience with exciting limited-time menu and value options while testing opportunities to expand convenience, personalisation and day-part availability to modernise the business. Europe’s comparable sales rose 2.3% in May as strong results in the UK and slightly positive performance in Germany and France were partly offset by slightly negative results in Russia. Europe’s monthly performance was supported by consistent everyday value offers alongside compelling premium platforms reinforced with effective marketing and promotional execution to drive demand. In the rest of the world, comparable sales declined 3.2% in May as strong performance in Australia was more than offset by continued challenges in Japan and negative performance in China. Strengthening McDonald’s quality and value perceptions remains a top priority for APMEA. Solid comparable sales in McDonald’s Other Countries & Corporate segment, which includes Latin America and Canada, contributed positively to the company’s global comparable sales performance for the month. system-wide sales for the month decreased 7.2%, or increased 1.8% in constant currencies.

Gordon Ramsay to open Bread Street kitchen in Dubai: Gordon Ramsay Group will open a Bread Street Kitchen in Dubai this autumn in partnership with Atlantis, The Palm. Bread Street Kitchen at Atlantis will be Ramsay’s fourth outpost, following locations in London, Hong Kong and Singapore. Ramsay said: “I am incredibly excited to be opening a Bread Street Kitchen at Atlantis, The Palm. The expertise of the team at Atlantis make them ideal partners and I’ll be working closely with them to deliver a first class dining experience that reflects the ethos of the original Bread Street Kitchen in London’s St Paul’s.” Serge Zaalof, president and managing director, Atlantis, The Palm said: “We couldn’t be happier to be partnering with Gordon Ramsay on our latest offering. Bread Street Kitchen will be a fantastic new addition, offering a casual, modern European dining experience that complements our current restaurant and bar portfolio. Working with the Gordon Ramsay Group to bring this restaurant to Dubai is only the beginning of our partnership.” Bread Street Kitchen joins Atlantis, The Palm’s existing 23 restaurants and bars including Nobu Dubai and Giorgio Locatelli’s Ronda Locatelli as well as award-winning outlets such as Yuan, winner of Best Chinese Restaurant, and the underwater-themed restaurant, Ossiano, winner of Time Out Dubai’s Best Seafood Restaurant for three consecutive years. Since opening in 2008, Atlantis, The Palm is considered to be Dubai’s top culinary destination, offering a variety of dining experiences that are exciting and multi-faceted as the resort itself.

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