WFH, High St, labour, Various Eateries, MARS, Nightcap, Deliveroo etc.:

A DAY IN THE LIFE:

We can now add ‘moles’ to the list of animals and birds that seem determined to trash our garden and eat us out of house and home.

And, though they’re fascinating creatures – and they do at least eat slugs and some other pests – they will diligently dig up your lawn and crater your vegetable patch as if their very lives depended on it.

Which they do, I suppose, as moles apparently dig and keep spruced up a network of underground tunnels with the odd airhole thrown in, which they patrol regularly to see if any worms or other invertebrates have dropped in to provide them with a bite to eat. Unfortunately, they live to be about six, they can multiply rapidly and they’re particularly active at this time of year when romance is in the air. 

Still, maybe the newly-engineered molehills will trip up the three deer that are now visiting us regularly. There’s a tough-looking stag and two of his lady friends, who nonchalantly jump over the fence as though it were nothing and then trample everything underfoot before eating our tulips and using the fruit garden as a toilet.

Sigh. On to the news:

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PUBS & RESTAURANTS:

WFH:

Sir James Dyson has written in The Telegraph warning that  the homeworking revolution is damaging productivity and killing collaboration, causing British businesses to fall behind global competitors. Dyson said the economy ‘cannot afford such a lackadaisical approach’. Surveys suggest that employees favour working from home at least part of the week after the pandemic upended office life.

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Cost of living crisis:

National Energy Action has said that the number of households in fuel poverty in the UK will double in a year if higher energy bills result from the invasion of Ukraine. Some analysts are talking of domestic fuel bills in the UK hitting £3,000 in October.

First class stamps will rise in price by 10p to 95p as Royal Mail seeks to cover higher delivery costs while the number of letters being sent falls. Second class stamps will also increase by 2p to 68p, with the new prices coming into effect on 4 April.

The High Street

The Financial Times has said an online sales tax can’t save the high street. Complications of this approach would , however, include identifying when a sale is made ‘online’ and the fact that the value of any new tax is likely to be passed on to consumers. The FT suggested that it might be better to consult now on tax reform that can work to fund reduced business rates for high street retail, instead of levying an online sales tax.

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CGA data shows that total sales of gin have decreased by 38.5% to £1043m compared with the same period in 2019. Flavoured gin saw the smallest drop in sales of 26.6% with total sales value having fallen from £676.5m two years to £496.2m in January 2022. However, total sales in value of standard and premium gin across the entire spirits category grew by 12.7% and 8.5% respectively quarterly. 

CGA reports that ‘hot beverages are an increasingly popular part of the drinks offer in pubs, bars and restaurants.’ It adds that ‘with the right range and price points, suppliers and operators have a great chance to drive more revenue in 2022.’ It says coffee prices per drink rose by 7.1% versus two years ago, with tea up 4.7% and hot chocolate up 4.5%.

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Labour issues:

KAM Media has looked at the implications of short-staffing saying that ‘the cracks are really beginning to show.’ It says 62% of customers have noticed staff shortages, 20% have waited longer to be served, 20% have waited longer to be seated and 15% have noticed dirtier tables. It says in ‘the current climate, with customers’ heightened sensitivity to hygiene and cleanliness, this is incredibly worrying news for the industry.’ It adds that ‘many are really noticing the price increases too… especially over 55 year olds.’

In  the US.

The Bureau of Labour Statistics in the US says that foodservice and drinking venues added about 124,000 jobs in February.

Delivery in the US. Coupon Follow data shows that more than 50% of diners would switch delivery services if fees rose. This suggests that loyalty levels and brand values are still rather low. In terms of menu price markups, Uber Eats is said to be at 75%, followed by Grubhub (66%) and DoorDash (59%).

Doing business in Russia.

The number of companies pulling out or ceasing to do business in Russia continues to grow. Visa and Mastercard have announced they will suspend all operations in Russia, Zara, Paypal and Samsung have said the same thing and French luxury giants LVMH and Hermes have temporarily shut their shops in Russia. Microsoft has stopped selling its products and services in Russia as have Nike, Apple, ExxonMobil and Harley-Davidson. Pressure is growing on companies that have not currently said they will suspend operations. TikTok is to limit operations, Amex is to pull out, PwC & KPMG have ‘severed ties’, Seabourn Cruises will not dock in Russia etc.

Meanwhile, Facebook has hit out at a ban on its platforms in Russia, which was introduced on Friday. Twitter has reportedly been restricted.

Another red day on the market:

The sector fell sharply on Friday on heightened Ukraine worries, higher oil prices & recession & stagflation fears.

• 888 Holdings, Intercontinental Hotels, Nichols, Ten Entertainment & JD Wetherspoon were down 5%.

• C&C, Carnival, Gym Group, Revolution Bars, TUI & Whitbread were 6% lower.

• Flutter was down 7% and Brighton Pier, Cineworld, Jet2 & Nightgcap were down by 8%.

• SSP was 9% lower and Deliveroo, Just Eat & Various Eateries were 10% off.

• Hostmore & Restaurant Group were 11% lower and Hostelworld was 12% down. Saga brought up the rear at 13% off on the day.

COMPANY & OTHER NEWS:

Various Eateries has reported final results for the 53-week period ended 3 October 2021 saying that it has seen ‘a year of solid progress and well-positioned for the future.’

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Marston’s PLC has announced the appointment of Nick Varney as a Non-executive Director to the Board, with effect from 1 July 2022. It says that Nick will also join the Nomination Committee and the Remuneration Committee. Mr Varney has ‘over 30 years’ experience in the Leisure industry and was appointed Chief Executive Officer of Merlin Entertainments in 1999.’ He is a Board member of UK Hospitality, the trade body representing the UK’s hospitality and tourism industry.

Nightcap reports ‘a further opening for The Cocktail Club in Cardiff in early May.’ It also says that it will be removing Russian vodka from sale.

The Times reports that DoorDash and Deliveroo ‘are understood to have met over the summer and discussed a tie-up that would have created a delivery giant with almost £4 billion in annual sales.’

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Gordon Ramsey Street Burger is set to open its first site in Scotland, located in Edinburgh’s St James Quarter. The 5,600 square feet, double height unit will feature a games lounge and DJ booth.

HelloFresh reports revenue of €6bn for FY21, up 61.5% on the year prior. The group served almost one billion meals to customers in 17 markets across four continents. Adjusted EBITDA for the year reached €527.6m, while group revenue for the fourth quarter amounted to €1.58bn.

Nestle-owned Blue Bottle Coffee has opened its first café in China, located in Shanghai. The new two-floor outlet will be called ‘Yutong Cafe’ and will serve espresso and drip coffees, with locally-inspired food, including the exclusive ‘Yutong Dessert Set’.

Papa John’s will roll out new branding across its UK stores, featuring a new logo, the removal of the word ‘pizza’, and the green border around Papa John’s.

Sainsbury’s will stop selling all products that come from Russia amid the war in Ukraine. The supermarket said it would also change the name of chicken Kiev to “chicken Kyiv” to match the Ukrainian spelling of the capital.

Baxter Personnel partners with Vale of Mowbray to offer 35 permanent job opportunities in Leeming Bar, North Yorkshire. Vale of Mowbray have recently expanded their product range to include Premium Pies.

LEISURE TRAVEL & HOTELS:

Club Med welcomes a relaxation of Covid rules in France covering non-jabbed children. From 14th March, France is suspending the health pass, meaning that unvaccinated children and teens will no longer need to test daily. Club Med claimed a ‘very strong start’ to the year with record-breaking sales weeks that saw revenue figures up 245% compared to the same period in pre-pandemic in 2019.

The Times reports that Park Leisure has been sold for £182 million to an American real estate investment trust, Sun Communities. The Times says ‘the price is higher than the market had expected after rumours that the business would fetch about £160 million.’

Ireland has dropped all Covid restrictions for travellers saying ‘there are no post-arrival testing or quarantine requirements for travellers to Ireland.’

Airbnb will suspend all operations in Russia and Belarus. Market research firm AirDNA claimed that Russia currently has 90,000 active short-term rentals available on Airbnb.

Actually Group is turning Penrhos Quarry in Caerleon into a luxury holiday park after acquiring the site for £1.5m. The company has planning permission for four lodges and 24 holiday pods.

OTHER LEISURE:

Hipgnosis Song Management has acquired the music catalogue of the late Leonard Cohen for an undisclosed sum.

FINANCE & MARKETS:

The US Bureau of Labour Statistics reported on Friday that the US economy added 678,000 jobs in February, markedly ahead of expectations. The rate of unemployment also edged down to 3.8%.

Markit on Friday reported the Construction PMI for February saying that it rose to 59.1 from the 56.3 that it registered in January.

Sterling down vs dollar at $1.3211 but up vs Euro at €1.215. Oil price up $18 or so over the weekend at $129.95. UK 10yr gilt yield down 9bps on stagflation fears. Markets sharply lower  on Friday. London set to open down around 122 points at 7am (but indicators pinging around a bit).

RETAIL WITH NICK BUBB:

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