Inflation & wages, labour shortages, Jet2, BOWL, Nightcap & other:

A DAY IN THE LIFE:

Although there’s often no real going back after you’ve been self-employed for many years,. I’ve found that, when I’m in the office, it’s getting harder and harder to get out of the building.

Cleaning up, replying to last-minute emails, maybe answering the phone, clearing voicemails, checking share prices, noting down the odd thing for this email and then closing down the computer, setting up the coffee machine for the morning and watering the plants well, there aren’t that many people left around by closing time so that’s me, jobs sorted.

And, at the end of the day, it all of the above takes time meaning that, if I want to leave the office by six or half six or seven, it all tends to intrude and cumulate and add 30 minutes, 45 minutes to the departure time and then I have to find my keys, lock up, turn off the lights, the heaters, the coffee percolator and the rest.

But I wouldn’t really have it any other way. At least that’s what I tell myself but it’s Friday, we’ve made it, the weather’s tolerable and it’s nearly the weekend. Have a good one and let’s move on to the news:

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PUBS & RESTAURANTS:

Inflation & wages.

Bank of England governor Andrew Bailey suggested, after giving up on the idea that inflation was transitory, that workers not push for wage rises. That seems to have fallen on deaf ears. Wages are going up across the economy. Fourth says they are up by 4.9% in pubs, Tesco has just put basics up to £10.10, BT workers are set to strike for more money etc.

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By the end of July Tesco staff will see a pay rise to £10.10 an hour, up 55p.

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BT has announced that it is to award a £1,500 pay rise to ‘front-line’ workers in the UK. The offer has been rejected and union the CWU says ’we have no choice now but to immediately prepare for a statutory industrial action ballot.’ It says ‘we will be sending further communications to members via email and social media later today.’

Tight labour market.

Data from the ONS shows that the percentage of staff working in hospitality that come from the EU has fallen to its lowest levels since 2019.

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UKHospitality warns that ‘chronic’ labour shortages in hospitality will stifle the sector’s pandemic recovery.

Current trading:

The MCA comments on Lumina Intelligence data that suggests that the rising cost of living is behind a fall in average spend on eating and drinking. The latest Lumina Eating & Drinking Out Panel snapshot suggests that ‘while more consumers are eating out, they are spending less when they do.’ Although it will not be strictly comparing apples with apples, this is pretty much the opposite of what we hear from a number of operators.

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COMPANY NEWS:

Irish whiskey brand Proper No. Twelve is anticipated to surge to the number two spot for the Irish whiskey category in the US. According to figures from Impact Data, the Irish Whiskey category is now on track to surpass total Scotch whisky consumption in the US by 2025.

Shaftesbury announce that KERB’s Seven Dials Market is launching a revitalised Cucumber Alley on April 8. This space will be transformed into a ‘grab and go hub’, hosting seven different operators offering snacks and specialising in sweet treats.

Nightcap reports that it is to open a new unit for The Cocktail Club in Birmingham later this year. It says ‘the Cocktail Club’s new opening will be the third brand from within the Group to open in Birmingham, alongside Adventure Bar Group’s Tonight Josephine brand and its large outdoor space, Luna Springs.’ It says ‘this represents the sixth new lease for The Cocktail Club since Nightcap acquired it last year, taking it to a total of sixteen sites.  Nightcap now has 31 sites within its estate and a further 25 premises under offer or in legal negotiations for all of its brands and continues to see favourable market conditions for site acquisitions across the country.’

CEO Sarah Willingham says ‘we are continuing our expansion programme as scheduled and just as with the prime areas of London and Cardiff, we are excited to open multiple formats within prime areas of Birmingham, which is one of our main target cities for all of our brands.’

Clean Kitchen Club, a new plant-based food brand, has raised £1.4m in its first investment round. The company was founded in 2020 by former YouTube personality Mikey Pearce, as well as Made in Chelsea’s Verity Bowditch. Lead investors are reported to include Clive Sharpe, ex-chairman of Quorn, and Grace Beverley, a fitness influencer.

The Co-op reports profit before tax of £57m for 2021, down £70m on the year prior. Total group revenue hit £11.2bn, a slight dip on the previous year, following unprecedented sales during the first lockdown in 2020 when revenue hit £11.5bn. Co-op said the dip also reflected significant supply chain disruption and system transformation in its food division.

BrewDog reports it is to open a ‘brand new bar in Hull – located in the newly refurbished Princes Quay floating shopping centre, with a terrace looking out over the Quay.’ It says ‘this stunning location features our fourth Reds True BBQ x BrewDog food concept, 30 taps of awesome craft beer, a quayside balcony, and shuffleboards, just a stone’s throw from the waters edge.’

HOLIDAYS & LEISURE TRAVEL:

Holiday delays:

Travel Weekly comments on the start of the Easter holiday, saying it was ‘marred by lengthy queues and delays at Heathrow and Manchester airports and flight cancellations across the country.’ Miles Morgan Travel chairman Miles Morgan said ‘It’s worrying it’s only April and airports are creaking.’

Leeds Bradford cautions over delays as it anticipates 37,000 passengers over the Easter weekend.  Leeds Bradford airport (LBA) said ‘This disruption is not as severe as that which other UK airports are currently experiencing but can unfortunately be unpredictable’.

The CAA has suggested that airports and airlines should come together to “manage resourcing challenges” to make sure disruption is “kept to a minimum”.

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EasyJet is reported to be cancelling flights from Bristol airport as problems with staffing levels continue.

Jet2 trading update:

Jet2 plc has updated on trading for its year ended 31 March 2022 saying that ‘passenger sectors flown and average load factors in October and November 2021 increased markedly following the dropping of the UK Government traffic light system in early October 2021. However, the improving conditions were adversely affected in December 2021 and January 2022 as a result of the new Omicron Covid variant and the reimposition of international travel restrictions, both of which served to dampen customer confidence.’

It says ‘pleasingly, progressive relaxation of UK travel restrictions in early 2022 – firstly, with the removal of pre-departure tests for vaccinated people travelling to the UK; and subsequently no longer having to take a post-arrival lateral flow test – resulted in bookings increasing materially with average load factors for February and March 2022 approaching seasonal norms as customer confidence in travelling internationally rallied.’

The group concludes ‘as a result, the Board expects to report a Group loss before foreign exchange revaluation and taxation for the year of between £378m and £383m. Total cash at 31 March 2022 was £2.23bn with an ‘Own Cash’ balance (excluding customer advance deposits) of £1.08bn.’

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Other travel news:

IATA reports that air travel has rebounded strongly followed by a dip over the worst of the Omicron variant. This is a) good news but b) is not so good if airports fall over in security or baggage handling and / or if airline staff absences cause flights to be cancelled. The biggest test to date will come over Easter.

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City AM reports that passengers are facing two months of disruption at UK airports because of the above. Crew rotas on flights have also been thrown into disarray with staff off sick with Covid.

The Spanish tourist board in London has withdrawn the promise of opening up to unvaccinated British visitors. UK travellers aged 12 and above are still required to show proof of being fully vaccinated or a certificate of recovery (dated no more than 180 days previously).

Travel Weekly reports that Travel Counsellors’ UK leisure bookings are now 50% up on the same time in 2019, with average spend up by 20% on three years ago. As well as leisure, corporate sales have also risen and are up by 20% on the same time in 2019. UK holidaymakers were now spending more on upgrading their trips and planning slightly further ahead, with bookings coming in for around 100 days ahead of departure.

Tourism spending in China plunged during this week’s Qingming festival, as the world’s second largest economy battles a rise in infections. It comes as travel restrictions in China continue, and Shanghai and other cities remain locked down.

Sykes Holiday Cottages has acquired a controlling stake in Forest Holidays for an undisclosed sum. Forest Holidays has 12 locations, with many in National Parks and areas of outstanding natural beauty.

OTHER LEISURE:

Hollywood Bowl Group has updated on its first half trading saying that it has seen ‘exceptionally strong revenue growth continuing in [the] first half.’ It says revenues for H1 were a record £91.3m and says that ‘strong trading has further strengthened the Group’s cash position’. The group has net cash at 31 March 2022 of £49.6m. It says its dividend will be reinstated in H1. It says it ‘anticipates that its full year performance will be ahead of current market expectations.’

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India’s VerSe Innovation has raised $805 million in a funding round led by Canada’s top pension fund, putting a $5 billion valuation on the Google-backed (GOOGL.O) parent of short-video app Josh and news aggregator Dailyhunt.

FINANCE & MARKETS:

Dover District Council has said it may have to declare “a major incident” if traffic gridlocks around the town continue into this weekend. A 23-mile length of the M20 is closed to allow queuing lorries to wait for the disruption to clear.

The Halifax yesterday said that house prices rose by 1.4% in March and by 11.0% in the year to March.

Sterling mixed at $1.3059 and €1.2028. Oil a little lower at $100.58. UK 10yr gilt yield unchanged at 1.73%. World markets mixed yesterday and London set to open up around 46pts as at 6.45am.

RETAIL WITH NICK BUBB:

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