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Morning Briefing for pub, restaurant and food wervice operators

Thu 1st Jul 2021 - Double-jabbed Brits won’t have to isolate for ten days if they come into contact with covid victim from 19 July
Double-jabbed Brits won’t have to isolate for ten days if they come into contact with covid victim from 19 July: Brits who have had both jabs will no longer have to isolate for ten days if they come into contact with a covid victim from 19 July. Currently, anyone alerted by Test and Trace that they have been near someone who has tested positive must – by law – isolate at home. However, The Sun reports that after a successful pilot scheme running since April, ministers are set to replace that rule for the fully vaccinated with 20-minute lateral flow tests taken each day for the same amount of time. If you are negative, you would be free to leave the house that day – in a major boost for workplaces. It comes as travel bosses, publicans and punters demand clarity from the government about exactly what next month’s Freedom Day will mean. Kate Nicholls, chief executive of UKHospitality said: “Hospitality is desperate for a full lifting of all restrictions on 19 July and we need early clarity and certainty that will be the case. This is not just about social distancing. Scrapping the rule of six, table ordering, bans on standing at the bar, music and capacity caps are all vital to secure the survival of our pubs and restaurants. At best, our businesses are losing money hand over fist every day those restrictions remain in place. At worst, they cannot trade at all. We cannot continue to operate with one hand tied behind our back, constrained by rules meaning pubs and restaurants remain in a fragile state and can’t make enough cash to survive long-term.”

Next edition of Blue Book to contain 62 new companies, total turnover of 280 companies is £28.5bn: Next Friday at midday, 9th July, Propel publishes the updated Turnover & Profits Blue Book, July 2021, for Premium subscribers. The second edition will feature 280 companies, 62 new ones for this month, and will provide an overview of the most recent five years, rank them by turnover and profit conversion. It will also show directors’ earnings over fie years and top-earning director. Total turnover for the 280 companies is £25.8bn. Minimum company turnover is £4m to be included. The Blue Book is updated each month, with more companies added. 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 a second exclusive monthly database, The Propel Multi-Site Database. The updated database of multi-site companies for June, which was sent out yesterday, includes 63 new companies since its previous update in May – making a total of 1,880 listed businesses. Collectively, the 63 new companies operate 565 venues. Subscribers not only receive the database as a PDF and an Excel spreadsheet, they will also be sent a 10,389-word report on the businesses added during June. 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.

Revolution Bar – we continue to see huge pent-up demand: Revolution Bars Group, the operator of 66 premium bars, has reported huge pent-up demand. The company stated: “As previously announced in our re-opening update of 11 May, our bars traded extremely well within the restrictions in place from 12 April, when trading outdoors was permitted. This strong performance has continued since 17 May when indoor trading was permitted and all of our bars have been able to trade, albeit with continuing significant restrictions such as seated table service and the wearing of masks when guests are not at table. Despite the restrictions in place since 17 May when seated capacity in our bars represented only 28% of total capacity, we are delighted to report that trading since that date has improved to 86% against the same period in 2019 when there were no covid restrictions, with revenue for the year therefore expected to be ahead of management’s previous expectations. Following the customer reaction we have seen over the last six weeks, the board is confident that significant further pent up demand exists and therefore further strong trading is anticipated in the coming months as restrictions fall away and we fully open up the estate. However, we remain cautious about the coming financial year as the continuing impact of covid-19 remains unclear and we call upon the government to adhere to the revised Roadmap to allow clarity for all consumer facing businesses. Taking the above into account, together with ongoing excellent cost control and continued support from third parties, we now expect that our full year performance for the year ending 3 July 2021 will be ahead of previous management expectations with an Ebitda loss pre IFRS16 adjustments of c£12.5m, with net bank debt significantly improved to c£5m following this period of trading and after our recent equity raise.” Rob Pitcher, chief executive of Revolution Bars Group, said: “As predicted we have continued to see huge pent up demand and a rapid recovery across the nation in our bars following indoors reopening. We were disappointed to see that the much anticipated ‘Freedom Day’ of 21 June was delayed but the new date of 19 July, when our bars will be able to trade without restrictions, looks more certain than ever. Following sixteen months of government-imposed restrictions on our business our customers are very keen to take advantage of our full guest experience. Whilst we anticipate strong demand for our late night offering, we continue to be cautious about possible restrictions on our business during the winter period.”

C&C Group reports ‘encouraging’ recovery: C&C Group has reported it has been encouraged by the way in which trade has recovered in the UK since the gradual reopening from April 2021 and in Ireland from 7 June 2021 as outdoor hospitality reopened. In an AGM statement, the company added: “However, restrictions in both markets remain, with the timing and nature of further easing still uncertain. The full reopening of hospitality in the UK was recently delayed by four weeks and is now anticipated over July and August 2021, whilst the reopening of indoor hospitality in Ireland has also recently been delayed, with a revised date yet to be announced. In the week ending Sunday 27 June 2021, C&C is pleased to have delivered to 82% of the outlets in the comparative week in 2019. Given social distancing and indoor restrictions remain in place, volume throughput is adversely impacted through the customers that are currently operating. Nevertheless, we are encouraged by trading in recent weeks, with good weather aiding outdoor trading over the period. Following the progressive easing of restrictions since April and the partial recovery in the on-trade, C&C recorded a modest trading profit in May, with this improving further in June.” David Forde, chief executive of C&C Group, said: “Despite restrictions still in place and confirmed delays to full reopening, we remain cautiously optimistic about the gradual recovery of the hospitality sector in our core markets of the UK and Ireland, and we look forward to continuing to support our customers as restrictions are removed. As we navigate through this period, our focus is to continue to build and develop our brand and system strength, which underpins C&C’s position as the leading brand-led distributor in the UK and Irish drinks market. Our recent successful capital raise has strengthened the balance sheet and positions the  group to take advantage of opportunities to strengthen and grow our business as we return to a more normalised trading environment.”

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