Propel Newsletter Archive Page

Starbucks raises full-year outlook following sharp sales rise in second quarter: Starbucks has raised its full-year outlook after reporting a sharp rise in sales in its second quarter. “This quarter marked a milestone for Starbucks – and the turn in our turnaround,” chief executive Brian Niccol said in a video posted alongside the results. For the full year, Starbucks said global and US like-for-like sales are now expected to increase by at least 5%, up from its prior projection of an increase of 3%. Niccol said higher gas prices haven’t changed the behaviour of Starbucks customers yet, although he acknowledged even the company’s higher forecast raise is cautious – relative to its outperformance this quarter. Shares of Starbucks rose about 5% in extended trading. The company said net sales rose roughly 9% to $9.53bn. Global like-for-like sales increased 6.2%, fuelled by more visits to its locations, and beating analysts’ estimates of 4%. The company has continued to see similar like-for-like sales growth into April, Niccol said on the company’s earnings conference call. North America drove most of the quarter’s like-for-like sales growth – climbing 7.1%, driven by a 4.3% jump in transactions. Under Niccol, Starbucks has cut back on discounts and focused instead on luring customers back by improving cafe operations, adding new menu items and reintroducing seating to its locations. “We haven’t seen this transaction strength in years,” Niccol said during the company’s earnings call. Starbucks’ US sales growth came from across its menu, from its new artisanal bakery items to the increasing popularity of protein cold foam, chief financial officer Cathy Smith said. Outside the US, international like-for-like sales rose 2.6%. China, the company’s second-largest market, saw like-for-like sales growth of 0.5%. Starbucks has been leaning on more discounts in China to drive more visits, resulting in 2.1% higher traffic but a 1.6% decline in average spend. Boyu Capital closed its deal for a majority stake of Starbucks’ China business at the beginning of the fiscal third quarter, Smith said on the call. The alternative asset management firm now holds a 60% interest in a joint venture with Starbucks in the region.

Premium Club subscribers to receive updated searchable and segmented New Openings Database on Friday: The next Propel New Openings Database will be sent to Premium Club subscribers on Friday (1 May), at 12pm. The database will show the details of 133 site openings, including which company has opened a site or its plans to open one in the future. The database will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published monthly, and Premium Club subscribers will also receive an 8,977-word report on the 136 new additions to the database. It is segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. The database includes new openings in the cafe bakery sector such as Brew, the West Yorkshire tearoom and brunch bar concept opening in Leeds, Rosslyn Coffee adding to its London estate, and Sheffield coffee shop concept Scrannery, launching Discovery in the city. Premium Club subscribers also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel chief operating officer – editorial, Mark Wingett, and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. A new Premium Unlimited Plus option, which costs £1,995 plus VAT per annum, has some amazing additional benefits including four free tickets to Propel’s paid-for conferences – Excellence in Pub & Bar (19 May), Operational Excellence (9 July) and Talent & Training (15 October) – and the opportunity to run one free sponsored message or situation vacant notice during the year on the newsletter. Email kai.kirkman@propelinfo.com today to sign up.

Flight Club gears up for billionth-dart milestone as it prepares to launch Reading site: Red Engine, the group behind Flight Club, has announced it is approaching the one billion darts thrown across its global estate as it prepares to launch its Reading site on Friday (1 May). Since launching in 2015, Flight Club has expanded to 32 sites worldwide and welcomed more than 14.4 million unique guests in the UK alone. Flight Club Reading is the 16th UK Flight Club opening for Red Engine. The venue, in the Station Hill development, has a capacity of 250 and features a bar, ten semi-private oche playing areas, and an outdoor terrace seating area. Beyond the UK, with the support of Red Engine’s partners, Flight Club is also continuing to expand in the United States, Australia and Ireland. In addition, Red Engine recently announced that it is actively seeking partners to expand Flight Club into new markets in Europe. Red Engine is also behind competitive socialising bar, Electric Shuffle – a similar concept to Flight Club, which instead spotlights the game of shuffleboard. Since its launch in 2019, it has expanded to nine venues across the UK and the United States. Steve Moore, chief executive and founder of Flight Club, said: “A billion darts. Just saying it out loud feels slightly ridiculous. When we first built the Flight Club technology, a number that huge wasn’t even on our radar. We never imagined we’d see the Dartometer get there. Reaching a billion darts is honestly mind-blowing, and we’re so grateful to everyone who has been part of the journey. Opening Flight Club Reading this Friday, just as we approach this incredible milestone, feels like the perfect way to kick off our next chapter of growth.”

Everyman boss hopes new film releases and Generation Z will revive business: Everyman, the independent, premium cinema group, is pinning its hopes on new releases, including Devil Wears Prada 2 and the Michael Jackson biopic, after reporting a £10m loss. Chief executive Farah Golant said the business had “beaten our own expectations” in recent weeks, with children’s films including The Super Mario Galaxy Movie and The Magic Faraway Tree doing well. She told The Mail that Everyman, which has 49 cinemas, was “encouraged by a strong film slate this year”, with a variety of genres ranging from sequels, such as Spider-Man: Brand New Day, to book adaptations like Wuthering Heights. In her bid to revive the business, Golant said it was “never going to compromise” on its signature features, such as its “iconic” sofas. Her optimism for a turnaround came as sales rose 8.8% to £116m in the year to 1 January 2026. Admissions rose 2.3% from 4.3 million to 4.4 million. But the group posted a £10.2m loss, the same as the previous year, after warning of “weaker than anticipated” trading at the end of last year. Despite worries over a fresh cost of living crisis for households triggered by the war in the Middle East, Golant insisted consumers “won’t compromise” on their social lives. But they may hold off on buying cars, moving homes or booking expensive holidays, she said. The business is seeing its Generation Z audience “leading a rebound to the box office”, she said. Everyman is offering drinks including mocktails and 0% Guinness to target a “zebra striping” trend among young people, where they swap between alcoholic and soft drinks. She said she was applying a “test and learn ethos” to appeal to growing segments, including students and families. This includes trialling “student bundles” on Mondays and Tuesdays at its Leeds cinema as well as introducing a children’s menu across its sites. Everyman has also curtailed plans to open new venues this year to reduce its debt pile, which has increased from £18.1m to £22m over the past year.