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Morning Briefing for pub, restaurant and food wervice operators

Thu 21st Apr 2022 - Leon-owner EG Group plans to create 32,000 jobs over next five years, ups average hourly pay to £10.05 in UK
Leon-owner EG Group plans to create 32,000 jobs over next five years, ups average hourly pay to £10.05 in UK: EG Group, the owner of Leon, has announced plans to create more than 32,000 jobs globally over a five-year period, driven by a “sustained investment in its successful foodservice business”. The company said that to supplement this growth strategy, it continues “to enhance the pay and benefits colleagues receive” and this month increased the average hourly pay to £10.05 for UK colleagues, including those at Leon, aged 18 and above. This follows two previous pay rises to more than 10,000 UK colleagues in 2021, in recognition of the cost-of-living pressures they currently face. In the UK, the group said it will deliver many of these jobs from rolling out its proprietary brands – Cooplands, the nation’s second-biggest bakery chain, and Leon, across its forecourt network, new-to-industry (NTI) sites, and EG foodservice concessions at Asda locations. It will also create a large number of new jobs by accelerating openings for its existing third-party brand partners, notably Starbucks and KFC, including drive-thrus on the group’s UK forecourts and on Asda car parks – with these foodservice outlets operated by EG and its colleagues. The group plans to add about 22,700 UK jobs by December 2026, including new roles, both highly skilled and entry level, at its head office in Blackburn, where it currently employs about 900. About 9,700 new jobs will also come from organic growth in EG’s nine additional markets: Ireland, France, Italy, Germany, Belgium, the Netherlands, Luxembourg, Australia and the US over the same five-year period. EG, which purchased Cooplands in October, also unveiled a new growth strategy for the Scarborough-based bakery chain. Cooplands plans to open 30 outlets a year through 2026, including cafes inside NTIs and convenience stores on EG forecourt sites. The group also reaffirmed its plans to roll out at least 50 Leon restaurants a year through 2026, primarily in the UK, alongside ten further openings in the Netherlands, ahead of a wider European expansion. The announcement follows the publication of EG Group’s unaudited FY21 results in March, when the company reported a 16.3% increase in adjusted Ebitda to $1.45bn, primarily driven by a “stand-out performance in foodservice” and the further easing of covid-19 restrictions in many territories. Mohsin Issa and Zuber Issa, co-founders and co-chief executives of EG Group, said: “As EG continues to go from strength to strength, we will be creating a large number of new jobs over the coming years, particularly in our successful foodservice business, which remains a significant growth opportunity globally. We are proud to be a business founded in Britain that invests in job creation worldwide, while focusing heavily on the training and development of colleagues. EG has a strong track record of providing colleagues with long-term opportunities to progress their career at all levels – and we are passionate about continuing this.” Leon features in Propel’s new UK Food and Beverage Franchisor Database, which is exclusively available to Premium subscribers. The database is an exhaustive guide to the companies offering a food and beverage franchise in the UK and will be updated every two months. The first edition features 100 companies, providing insight on the offer, locations, cost and other key details. The first edition provides more than 27,000 words of content. 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 single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email to upgrade your subscription

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