Wages, inflation, Virgin Wines, footfall, BrewDog, holiday restrictions etc.:

A DAY IN THE LIFE:

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PUBS & RESTAURANTS:

Cost of living crisis:

In many ways, this hasn’t yet started. And, though stories of things getting tougher abound, they can in some ways distract from the bigger picture, which maintains that there will be less money to go around. Affirmation bias is a real thing. We know that to a hammer everything’s a nail but would welcome stories (if there are any) of prices falling and of things getting easier. In the meantime: 

City AM points out Spare Room research suggesting that the cost of renting a room in London has risen by £1,000 per year since its low point during the pandemic.

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The AA says that diesel has hit £1.73 a litre. It does say that ‘wild’ pump prices should stabilise and that prices could ease back in the coming days.

Labour is calling on the government to do more to help families cope with the ‘spiralling cost of living crisis’.

The Resolution Foundation says that the cost of living for poorer families could rise by 10% this year if the invasion of Ukraine by Russia has a sustained impact on food prices.

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The New Economics Foundation has suggested that around a third of households – or as many as 23.4m people – will have to cut back on some basics once NIC, food, energy and fuel costs increase and interest rates continue to rise.

Earnings:

The ONS comments this morning on average earnings in the three months to end-Jan saying that, including bonuses, they were up by 4.8% on a year earlier.

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Footfall.

Springboard reports that ‘footfall across UK retail destinations rose by 0.9% last week from the week before, driven by a rise in high streets and shopping centres.’

Ukraine:

UKH says that it has been ‘inundated with offers of help and support’ from hospitality companies offering spare rooms and food parcels. No doubt, given the shortage of labour in the industry, there will be the offer of jobs as well.

Labour:

The ONS has updated on the UK labour market for the quarter to end-Jan saying that the ‘November 2021 to January 2022 estimates show a continuing recovery in the labour market compared with the previous three-month period (August to October 2021), with an increase in the employment rate and a decrease in the unemployment rate, while economic inactivity increased on the quarter.’

City AM reports that the number of whistleblower reports relating to alleged National Minimum Wage breaches in the retail sector saw a 37% increase in the last year. Figures show that 235 complaints were made in the retail sector in 2020 to 2021; hospitality also experienced an increase in whistleblower reports – from 354 to 408.

Other:

The MA reports that some energy companies are refusing to supply pubs with power, claiming hospitality businesses are too ‘risky’ for safe contracts.

The Great Manchester night-time economy adviser Sacha Lord claims the cost of living crisis could usher in a ‘new period of darkness’ for the sector.

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Foodservice analyst Peter Backman has commented on the news that Doordash was said to have made a merger approach to Deliveroo, saying that, as the largest restaurant delivery company in the US with a market share of close to 50%, Doordash was still looking for opportunities to grow its footprint elsewhere.

COMPANY NEWS:

BrewDog CEO James Watt is reported to have hired private investigators to seek out information about people he says were taking part in a smear campaign against him.

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Virgin Wines UK has reported H1 numbers to 31 December 2021 saying that total revenue came in at £40.6m, up 55% on the 6mths to 31 December 2019. PBT is £3.2m, against £3.4m in the 6mths to end-Dec 2020.

State of Play, the operator of Bounce and Hijingo Bingo, has raised $35m, which will support its growth and enable the group to ‘harness structural tailwinds’ in the experiential entertainment sector, and to fulfil the potential of its technology-enabled leisure concepts. It will also enable the acceleration of the roll-out of Flight Club in North America, with two more locations in Atlanta and Las Vegas expected to open by the end of this year, taking its Flight Club estate to six.

Burger King UK has launched its first temporary meat-free restaurant, located at its Leicester Square flagship restaurant between 14th March and 10th April.

The empty Joules on 294 High Street, Lincoln, is set to be turned into a Franco Manca. Chairman of Franco Manca David Page said ‘We will announce our opening date in due course, and we look forward to welcoming guests very soon.’

The latest KAM Media Operator Managed Index has listed Proper Pubs in first place, with an overall satisfaction score of 8.2/10. Proper Pubs is the operator managed platform of Hawthorn, The Community Pub Company.

Nightjar is set to open a second site in London in April, located in Kingly Court, Soho. The 85-cover bar will have ‘all the swagger of Shoreditch with the style and sauce of Soho’.

McColl’s has opened its 200th Morrisons Daily store, with the latest being located in Stockport. The store conversion programme recommenced in early February following a scheduled pause over the Christmas and New Year period.

HOLIDAYS & LEISURE TRAVEL:

Transport secretary Grant Shapps has said that all remaining Covid travel measures will be scrapped as a part of the “Living with Covid” plan.

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STR reports that ‘London’s hotel industry reported month-over-month performance improvement.’

OTHER LEISURE:

The EU has agreed to add Roman Abramovich to the EU list of Russian billionaires sanctioned following Moscow’s invasion of Ukraine.

Sky reports that music industry leaders are urging Chancellor Rishi Sunak to drop plans to put VAT on music tickets back up to 20% next month. Trade body UK Music says the price rise would represent a major obstacle for the industry as it continues to build back after Covid.

FINANCE & MARKETS:

Unemployment – see Pubs & Restaurants above.

Sterling mixed at $1.3047 and €1.1877. Oil price $8 or so lower overnight at $101.41. UK 10yr gilt yield higher at 1.61%. World markets broadly better yesterday but London set to open down by around 58 points as at 7am.

RETAIL WITH NICK BUBB:

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