Category: Restaurants

Over-expansion, cheap money & fabricated demand

Restaurant Group & Ed’s Easy Diner have said that they are to dispose of units: Restaurant Group has said that it is taking ‘catch up action on underperforming sites’ It is to close 33 units Ed’s has also said that it is to consolidate its position & exit 3 units RTN and Ed’s are unlikely…

Leisure Spending, JDW, Brexit

Barclaycard has updated on Q2 spending, says ‘business as usual’ Barclaycard says consumer spending was +3.1% in Q2 April was +1.9% (known to have been sluggish) & May & June were +3.6% Spending in pubs & restaurants (+12.1% and +11.6%) was impacted by football & by higher contactless limits (£20 to £30). This will annualise…

Leisure & the Brexit vote – Assessing the Impact

The initial financial impact. 52% of voters (38% of the electorate) voted to leave the EU on 23 June The FTSE100 fell then rose. It is now +3% since 23 June. But FTSE100 is an international index. In US$ terms (pound down 13%), it is down 10%. The largely domestic FTSE250 is down 9% in…

Innovation & brand extension in casual dining. Change is the only constant…

Innovation & Brand Extension in Casual Dining… Franco Manca opens in Debenhams Westfield, sharpens click & collect offer… The fast-growing Franco Manca might soon be opening concessions in up to 30 Debenhams sites, as highlighted in the retailer’s latest trading update (see 3rd last para – http://tinyurl.com/hgfqnt5) Debs’ Westfield White City store will shortly house…

Margin watch. Rising costs threaten profitability over the medium term…

Some costs are rising but the CPI isn’t… Labour & commodity prices up, CPI stuck at 0.3% The oil price has doubled in 3mths, sugar is +71% on a year, OJ is +41% Soybeans are +19% & even coffee, corn & pigs (+6%, +9%, +15%) cost more NLW and NMW are jacking labour costs by…