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Morning Briefing for pub, restaurant and food wervice operators

Tue 27th Jul 2021 - Robinsons now trading profitably after navigating ‘incredibly challenging year’ with turnover down £26m
Robinsons now trading profitably after navigating ‘incredibly challenging year’ with turnover down £26m: North west brewer and retailer Robinsons has said it is now trading profitably after navigating an “incredibly challenging year”. While 2020 trading performance was significantly impacted by pub closures, the business said it has maintained a strong balance sheet and cash position. The company, which operates circa 260 pubs, has continued its strategy to enhance its existing managed and tenanted pubs by investing £4.4m in developments and improvements last year while the 2021 investment plan is also “close” to pre-pandemic levels. Turnover from continued operations for the year ending December 2020 fell £25.9m, from £71.5m to £45.6m. This resulted in an operating loss of £6.8m in 2020, compared with a profit generated from continued operations of £3.9m the year before. This is an overall decline year-on-year in operating profit of £10.7m. While the company said it appreciated the financial support received from the government, Robinsons pointed out that despite being forced to close its pubs, it still paid more to the UK government in taxes than they received – £7.6m versus £5.1m. However, managing directors William and Oliver Robinson acknowledged the reduced taxation burden announced during 2020 through the freeze in beer duty, cancellation of business rates, VAT reduction, the Eat Out to Help Out and furlough scheme were both “timely and appropriate”. They were also appreciative of the increased demand for their contract bottling services and especially the effort and attitude of their packaging centre employees, in meeting the challenges presented in the “most turbulent of years”. The company waived rent to its tenants when pubs were closed and reduced rents as they emerged under restrictions. These concessions were the equivalent of a 77% reduction in normal rent during the year. In addition, the sixth generation family brewer continued to invest in its beer brands with the launch of Hopnik IPA in July 2020, which mitigated some of the cask category decline. William and Oliver Robinson said: “The coronavirus pandemic created a set of circumstances beyond any the business has faced in its 182-year history. The board, working with our executive team, set out a clear strategy when the pandemic hit to support our licensees and employees as best as we could afford to. We have stuck firmly to this commitment throughout the past year. Our business is based on the success of our licensees’ businesses and the dedication of our teams at the brewery, packaging centre and in our managed pubs. We believe by setting out a clear and supportive stance towards them, they were in the best position to be able to survive the pub closures caused by the national and local lockdowns and as such, are able to re-emerge strongly which was our key priority and strategic aim.”

Robinsons features in Propel’s Turnover & Profits Blue Book, which has recently been updated for Premium subscribers. Robinsons has turned over an average of £67.1m in the past five years. The Blue Book provides a five-year overview of turnover and profit, ranks 280 companies according to turnover, pre-tax profit and profit conversion. It also provides details of directors’ earnings and highest paid directors. 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. Email jo.charity@propelinfo.com to sign up.

Number of new burger restaurant operators increasing on updated database of multi-site companies, another new database also released on Friday: The number of new burger restaurant operators is increasing, according to the updated Propel Premium database of multi-site companies, which will be released on Friday (30 July) at midday. The Propel Multi-Site Database, which is produced in association with Virgate, will include 71 additions and is exclusively available to subscribers. The 71 new companies operate 477 sites between them. Among that number is Phat Buns – a Midlands-based burger concept that is looking to open a new site in Coventry. Burger & Sauce has sites in the Midlands and London, and has recently opened another, at the Bullring shopping centre, Birmingham. Bun & Steak is a gourmet burger and steakhouse concept that is set to open a second site, in Coventry, in August. The go-to database 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. Premium subscribers will also receive a new database at exactly the same time this Friday. A Guide To New Openings will focus on the newly announced openings and upcoming launches in the sector and will be updated every month. Meanwhile, subscribers also have access to another database called Turnover & Profits Blue Book. The Blue Book, which is also updated every month, provides an insight into UK operator turnover and profitability over five years, profit conversion and directors’ earnings. 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. 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. Email jo.charity@propelinfo.com to sign up.

Vaccine passports plan ‘railroaded through’ despite ministers’ concerns: The vaccine passports plan for nightclubs was forced through despite a majority of ministers calling for it to be postponed at a meeting just hours before it was announced, it has emerged. The Telegraph reports that widespread concerns have been raised in the cabinet after Boris Johnson last week stated that people attending nightclubs would be required by law to be double jabbed by the end of September. Following the announcement on 19 July, multiple sources have claimed that the policy was “railroaded” through at a cabinet covid subcommittee meeting, which took place earlier that day. Several of those present at the meeting said ministers were taken by surprise, as the proposal, which was the second item on the agenda, was only put to them in official briefing papers just minutes before the meeting began. It is understood that during the discussion, a “majority” of those taking part raised concerns over the timing of the announcement, as well as fears over equalities legislation and the potential risk of legal action against venues. Another source said that “every member of the meeting”, with the exception of Michael Gove, the cabinet office minister, Sajid Javid, the health secretary, and Grant Shapps, the transport secretary – who all reportedly spoke in favour – called for the announcement of the policy to be postponed. Those advocating for the plan are said to have argued that there was a need to drive up vaccine uptake among 18 to 30-year-olds. There are currently three million people in this age group who have failed to take up the offer of a first jab. Gove, who chairs key meetings relating to the pandemic response, is accused of then pushing the plans through, despite the concerns of many involved in the meeting. The plan was later announced by Boris Johnson at a press conference on Monday evening, just hours after nightclubs were allowed to reopen for the first time in 16 months.

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