Greggs – delivery now at 800 shops and 8.2% of sales: Greggs has reported positive like-for-like sales since non-essential retail reopened and delivery service is now available from 800 shops – delivery sales represented 8.2% of company-managed shop sales in the most recent eight weeks. A total of 34 new shops opened in first 18 weeks, with 11 closures. The company stated: “Considerable uncertainty remains but profits for the year could be around 2019 levels, materially higher than the board’s previous expectation In recent weeks, following the easing of restrictions across the UK, we have seen a strong recovery in sales levels. With trading in 2020 having been severely impacted by the temporary closure of our shops we are now reporting like-for-like sales performance on a two-year basis, against the comparable period in 2019. We saw a significant pick up in sales with the reopening of non-essential retail from 12 April, in part reflecting the pent-up demand for retail which has boosted High Street footfall. Our two-year like-for-like growth since 12 April has been positive. Total sales in the 18 weeks to 8 May 2021 were £352 million (2020: £280 million, 2019: £373 million). Delivery sales continue to contribute positively to performance, representing 8.2% of company-managed shop sales in the most recent eight weeks. We have now successfully rolled out delivery services to 800 of our shops. The current trading environment is clearly highly unusual, making it difficult to predict how sales will develop. In the coming weeks the government’s roadmap is likely to lead to further relaxation of restrictions and we will see increased competition as cafes and restaurants are able to compete more effectively with our largely take-out offer. Nonetheless we are pleased with the progress that we have made so far this year in both the walk-in and delivery channels. In the first 18 weeks of 2021 we opened 34 new shops, including 13 with our franchise partners. The emphasis of our estate expansion continues to be in those locations where performance has proved to be most robust, such as Retail Parks, Roadside and Petrol Filling Stations. In the year to date we closed 11 shops, giving a total of 2,101 shops trading at 8 May (comprising 1,761 company-managed shops and 340 franchised units). Sales have recovered well in recent weeks as out-of-home activity levels have increased, albeit in the absence of competition from indoor seated catering operators. If restrictions continue to ease in line with current plans then we now expect our overall sales performance for the year to be stronger than we had previously anticipated. Costs have been well-controlled and the rate of cost inflation we are experiencing is in line with our plans for the year.”

Propel Premium subscribers to receive next updated multi-site database on 28 May: Propel Premium subscribers will receive the next updated multi-site database on Friday, 28 May at midday. The latest database, released at the end of April, saw an additional 84 companies added with subscribers also receiving a 5,000-word report on the 84 new brands, concepts and growth companies, many of which have big growth ambitions in Britain. The exhaustive database now holds the details of 1,713 companies – and is only available to Propel Premium subscribers. The go-to database has the most comprehensive multi-site operator information in the sector – it provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different, and what each business specialises in. In a new feature this year, there is a synopsis of what the business does and significant news associated with it. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. Premium subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel insights editor Mark Wingett. Email jo.charity@propelinfo.com to sign up.

Hotel Chocolat to repay £3.1m furlough money after strong trading: Hotel Chocolat, the premium British chocolatier, has reported sales are 19% higher for the eight-week period ended 25 April 2021 than two years ago. It stated: “Despite physical retail locations in England being closed for six weeks during the period, including for both Mother’s Day and Easter, the group’s revenue increased 60% compared to the prior year (during which physical retail locations were closed for five weeks, however, were open for Mother’s Day). The group’s revenue for the eight-week period is also 19% higher than the comparative eight-week period in 2019, being the most recent comparable pre-covid trading period during which all physical retail locations in England were open. The group’s revenue growth during the eight-week period ended 25 April 2021 was driven largely by its digital channels and subscription products which further demonstrates the strength of the company’s omni-channel sales model. Since the re-opening of physical retail locations in England on 12 April 2021, sales across all the company’s channels have been encouraging. The board now expects trading for the full year ending 27 June 2021 to be significantly ahead of expectations. Recognising the resilience of the group’s performance, the board has committed to repay the Coronavirus Job Retention Scheme (furlough) funding received from the UK government this financial year. The circa £3.1 million cost of the repayment will be accrued in the 2021 results.” Angus Thirlwell, co-founder and chief executive of Hotel Chocolat, said: “In the past year, we have added over one million customers to our database, an increase of 47%. Our strong Easter is entirely thanks to them. It feels great to have our physical locations back open again and we have a strong pipeline of exciting new products to launch over the summer, including our Rabot Estate Coffee brand, Strawberries & Cream iced chocolate drinks for our Velvetiser system, and Neapolitan chocolate macarons for al-fresco dining. I’m pleased we are able to look forward to further growth and significant investment this year with strong job creation, particularly in our UK chocolate making and supply teams as we turn on extra capacity for our creamy tasting vegan Nutmilk chocolate, our globally popular chocolate macarons, and our Velvetiser flakes for drinking chocolate. I would like to commend our team on the commitment, dynamism and creativity they have all shown during the pandemic. They have not only adapted the business to the challenges we faced but have strengthened the brand and accelerated our business model and future growth prospects.”

Whitbread on hunt for more Manchester sites as it launches fifth Premier Inn in city centre: Whitbread is on the hunt for further Premier Inn sites in Manchester as it launches its fifth hotel in the city centre. The 157-bedroom hotel is in Princess Street within the £750m Circle Square development and constructed above a multi-storey car park. Whitbread said the hotel brings Premier Inn’s latest format bedrooms to the Oxford Road area and increases its network in the city to more than 960 rooms. Kevin Murray, senior acquisition manager for Whitbread, said: “Manchester is a hugely popular and thriving market for Premier Inn guests travelling for business and leisure. It is also a city where we are seeking to redefine, improve and expand our presence in key destination locations.” Whitbread is proposing to redevelop the site of its nearby Deansgate Locks Premier Inn into a mixed-use development consisting of 370 apartments and “high-quality” workspace. The business is also seeking out new locations for Premier Inn and its Hub by Premier Inn brand in the Piccadilly area of the city and at Eastlands near Manchester City’s Etihad stadium and Sportcity. Development opportunities of between 100 and 200 bedrooms are sought at both locations.