Langton Capital – 2022-09-07 – Energy cost support, reaction, trading, IHG, Rekom, ROO & other:
Energy cost support, reaction, trading, IHG, Rekom, ROO & other:A DAY IN THE LIFE: Well, one thing we share with the UK’s current PM is that we got caught in the rain yesterday and, after chancing our arm once too often and going out without hat, coat or umbrella, that was a rather dampening experience. Or, if you’re still into boosterism, then maybe, in the same way that a dead person is very ‘relaxed’, it was ‘refreshing’. Anyway, after a drenching, a sustained sulk about it and another emergency visit to a couple of pubs on Bow Lane and Watling Street, we find ourselves once again short of time. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium at time of writing are £345 for one subscription, £595 for multiple, both plus VAT. Or sign up for easy in, easy out monthly option HERE PUBS & RESTAURANTS: Energy cost relief: The government is reportedly finalising a cap on wholesale gas costs to effectively freeze current energy bills, set to be the first major policy initiative of Liz Truss’s premiership. Some big numbers being bandied around. We should have some detail within the next 24-48hrs or so. Costs being mentioned range from £40bn to £130bn (admittedly we may be comparing apples with pears and the latter figure is for more than a year). Thankfully, zero is off the table… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Reaction: UK pub & restaurant stocks rose yesterday on hopes that an energy package, expected to be announced shortly, will include substantial help for business users. Young & Co and Fuller’s were little-moved, Restaurant Group was up around 2%, Revolution Bars 4%, JD Wetherspoon & Marston’s around 5% and Mitchell’s & Butler’s and Gregg’s were some 7% higher… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. SIBA yesterday highlighted that MPs were due to ‘debate the future for small breweries as a tax system that defined the modern craft beer industry in the UK comes to its end and the sector comes under increasing pressure from the energy crisis.’ Small Breweries’ Relief (SBR) has now been in place for some 20yrs. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Trading: August finished on a perhaps satisfactory note. September may be soggy. October is an unknown. But worth remembering that p Pubs are set to benefit from the World Cup, other sporting events and more people holidaying in the UK this Halloween and Christmas, according to a recent Star Pubs & Bars ‘Stars of the Future’ masterclass. CGA reports that ‘fish and chips remains Britain’s favourite pub and bar meal’ adding that its ‘Food Insights 22’ report ‘shows that more than a quarter (28%) of consumers pick fish and chips as one of their three top dishes when eating out in pubs and bars.’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Access to labour: The government has dismissed a petition calling for EU nationals to be permitted to come to the UK to work in hospitality, telling businesses to invest in the UK’s domestic labour force instead… Other news: As others see us: From the New York Times, British pubs face widespread closings this winter due to the ongoing energy crisis. One operator in Washington in the North East, said that their electricity bills have jumped from £27k pa to £118k pa. Restaurant Dive in the US has reported that 88% of operators have a neutral or positive outlook for 2023… COMPANY NEWS: Deliveroo. As reported in the FT, the IWGB union is taking Deliveroo to the high court over the rights of its riders, just months after the delivery app signed a voluntary agreement with the GMB union that granted self-employed members collective bargaining on pay… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. REKOM UK has updated on trading and says consumers are still keen to enjoy a night out as business booms post-Covid, with performance across its 47 clubs being strong. Spend per head increased 23% to £21.82, alongside an increase in total dwell time, with guests arriving earlier and staying longer… Sainsbury’s has opened a new Restaurant Hub in Sydenham… UK Coffee chain Grind is to open its first store in the US… Youtuber “MrBeast” opened his first burger restaurant on Sunday, located at the American Dream mall, in East Rutherford, New Jersey. MrBeast Burger originally launched in 2020, delivering to 1,000 locations worldwide, with the YouTuber now moving to physical sites. HOLIDAYS & LEISURE TRAVEL: PM Liz Truss has sacked Grant Shapps and named Anne-Marie Trevelyan as transport secretary… InterContinental Hotels Group has announced a breach of its technology systems, saying that its ‘booking channels and other applications have been significantly disrupted since yesterday, and this is ongoing.’ The company adds that it ‘has implemented its response plans, is notifying relevant regulatory authorities and is working closely with its technology suppliers. External specialists have also been engaged to investigate the incident…’ The UK fell from fifth on the world tourism rankings to ninth in 2021, making it the biggest faller of the top ten countries… Travel Weekly reports that demand for 2023 Princess Cruises sailings is ‘well outstripping’ previous years. Eithne Williamson, VP of UK & Europe, said there was ‘great interest’ from UK passengers for fly-cruises in the Mediterranean and that demand was returning to the Caribbean and Alaska. OTHER LEISURE: Cineworld is set to open its latest cinema at The Glass Works in Barnsley on 23 September, despite well publicised concerns about the company’s financial situation. The new cinema will feature 13 screens, including IMAX with Laser. Camelot has dropped its legal challenge against the handover of the National Lottery to rival Allwyn… FINANCE & MARKETS: S&P Markit has released construction PMI numbers for the UK in August saying that ‘construction activity in the UK dipped for the second successive month in August as customer demand moved closer to stagnation amid cost pressures and economic uncertainty.’ The number came in at 49.2, up on July’s 48.9 but still in contraction territory… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Interesting reaction to PM Liz Truss’s first comments on the international markets with Sterling weak and interest rates rising, presumably in the belief that UK debt will shortly be sharply on the rise. Sterling down at $1.1477 and €1.1595. Oil lower at $91.36. UK 10yr gilt yield through 3% for the first time in more than a decade (up 11bps) at 3.05%. World markets mixed but heading down yesterday and London set to open some 59pts lower as at 6.30am. FORTHCOMING NEWS: A gentle run in before it becomes noticeably busier later in the month. Amidst a smattering of economic announcements and an updated from the ECB on Thursday, Restaurant Group reports H1 results to end June on Thursday and Gear 4 Music hosts its AGM on Friday. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. |
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