Langton Capital – 2022-09-12 – Bank Holiday, supply, inflation, energy, current trading, BK, Uber etc.:
Bank Holiday, supply, inflation, energy, current trading, BK, Uber etc.:A DAY IN THE LIFE: So, you live and learn and, over the weekend, we learned that, if you want to keep the skin on the roof of your mouth, it’s not a good idea to reheat your coffee, forget you’ve reheated it, reheat it again and then take a huge, refreshing mouthful whilst sitting in company that would not appreciate you spraying it in their faces. As that leaves you with the dilemma as to whether you should a) abandon decorum, b) burn your mouth or c) risk internal injury and, whilst a) may be preferable from a physical point of view, it’s hard not to adopt some mix of b) and c). Anyway, we’re still here and, though it’s not quite Business as Usual, let’s move 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: Death of Queen Elizabeth: The way in which businesses pay tribute to the Queen is up for debate, with some pubcos considering ceasing business for 24 hours, switching off music and postponing events. Friday marked the start of a 10-day national period of mourning following the Queen’s death, but the grieving period holds no specific rules for pubs. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. The government has published guidance on the ten day mourning period for businesses and individuals. The guidance covers the period up to the official State Funeral on Monday, 19 September. It says, in brief, that ‘there is no expectation on the public or organisations to observe specific behaviours during the mourning period.’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Mourners wanting to visit London to pay their respects are being told that they should plan well ahead as rail services could be “extremely busy”. The Queen’s body will lie in state in Westminster Hall for four days before her funeral. Supply and inflation: The government of India on Thursday imposed a 20% export duty on non-Basmati rice to boost domestic supplies. This has implications for both supply and price. There are reports that the size of the breeding herd of pigs in the UK has fallen by 20% in the last year. This will have a similar impact. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Inflation: The CEBR says that the capping of energy bills could reduce peak inflation in the UK by around 5pps by early 2023. It says ‘our new forecasts, taking into account today’s policy announcement, expect CPI inflation of around 11% in October, which then should slow slightly in January… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Energy costs: Emma McClarkin, CEO of the BBPA, has warned that the hospitality industry needs clarity on the Government’s six-month energy support plan for businesses or the industry will face an uncertain future… Current trading: CGA has reported on drink sales (not food), saying that ‘the Bank Holiday weekend and a warm end to the summer holidays helped the On Premise to end the summer on a high—with beer and cider particularly buoyant.’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. UKH CEO Kate Nicholls has told Contract Catering Magazine that cost increases mean that hospitality operators need to trade at 112% of 2019 sales just in order to stand still… Other news: WineGB’s latest figures show that sales of English wine grew by 31% YoY in 2021… COMPANY NEWS: Burger King has said that it will invest over $400 million in the next two years in advertising, restaurant enhancements and remodels… Nightcap has reported that it is to open a further Barrio unit in Watford, northwest of London. It says the venue will open later this year and it takes the total number of Barrio sites within the Group to six… Uber Eats has signed a 10-year partnership with Nuro to use its autonomous, electric vehicles to deliver food orders in the US. Moody’s comments on Brown-Forman Corporation saying that its plans to purchase the Gin Mare brands from Vantguard and MG Destilerías for an undisclosed amount were ‘credit positive because we expect that the deal will be funded with all cash…’ McCafé wants to launch 1,000 new locations in China by the end of 2023 by rolling out in tier 3 cities. In November 2020 McDonald’s China announced it would invest $381m to expand its McCafé concept across more than 4,000 locations in the country. Inception Group will open a new bar in Battersea Power Station’s historic Control Room B on 14 October. The extravagant bar will feature mid-century furniture and glassware, and there will also be a centrepiece bar which is a turbine-inspired radial sculpture. HOLIDAYS & LEISURE TRAVEL: ForwardKeys reports July and August international arrivals for top tourist destinations. Turkey and Greece both exceeded pre-pandemic levels of international visitor arrivals by 9% and 2% respectively… Peter Fankhauser, who was running Thomas Cook Group at the time of its collapse some four years ago, is reportedly returning to the travel sector and will become chairman of German OTA itravel, according to The Times. OTHER LEISURE: The Premier League and English Football League have cancelled last weekend’s fixtures… Festicket, a provider of end-to-end festival experiences and tickets, has filed to appoint administrators. Monitors Christopher Farrington and Ben Woodthorpe – partners at the financial advisory firm ReSolve – have ended the Moratorium, which was supposed to provide struggling businesses with time to investigate rescue and restructuring options. Organisers of the FIFA World Cup in Qatar have confirmed that alcohol will be available for purchase in ‘select areas’ of stadiums. A 40,000 capacity fan zone in capital city Doha, where fans can also purchase alcohol, has been confirmed, the BBC reports. FINANCE & MARKETS: Sterling stronger at $1.1608 and €1.1515. Oil price up at $91.51. UK 10yr gilt yield down 4bps at 3.11. Markets firmer on Friday & London set to open up around 13pts as at 6.30am. FORTHCOMING NEWS: This week remains quiet on the company front with numbers from Fever Tree and Artisinal Spirits. The Bank of England’s MPC announcement has been postponed following the death of the Queen. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. |
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