Just Eat, inflation data, Netflix, labour, Bottle Deposit Scheme & other:

A DAY IN THE LIFE:

On getting into the office this week after a period of WFH and WF Durham it became obvious that I hadn’t put the two mantelpiece clocks forward.

But when I say ‘it became obvious’, that isn’t the whole story as I’d spent some considerable period thinking I had time on my side when it came to preparing a presentation only to find that my own sloth and indolence had put me into a tight spot and that I had to do an hour and ten minutes’ work in, well, ten minutes.

Which is good for neither one’s blood pressure nor the accuracy of one’s typing. Hence, when I said ‘find growth through own resources’ I actually meant fund growth.

Which isn’t too bad but using the wrong vowel when you refer to shut pubs is somewhat more noteworthy and, similarly, shutting pubs the way that I typed it is a physical impossibility. On to the news:

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JUST EAT Q1 TRADING UPDATE:

Just Eat Takeaway has this morning reported Q1 numbers and our comments thereon update are set out below:

The numbers: Just Eat Takeaway reports total orders running down 14% in Q1 this year vs the same quarter last year (at 227.8m). The company reports Gross Transaction Values (GTV) down 8% (showing the impact of inflation on reduced order numbers) at €6.7bn.

Outlook: JET says ‘GTV growth to be in a range of minus 4% to plus 2% year-on-year in 2023, with a return to growth skewed towards the end of the year, given the lower absolute Order level of H2 2022 versus H1 2022.’ It adds that it ‘expects to deliver a positive Adjusted EBITDA of approximately €275 million in 2023 (previously approximately €225 million in 2023).’

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PUBS & RESTAURANTS:

Labour – availability and cost:

The ONS yesterday seemed to say that labour remains hard to source and it has become (even) more expensive. Specifically, the number of job vacancies had fallen and average wages, excluding bonuses and hence more of a ‘core’ rate, rose by 6.6% in the three months to end-February. Responses and comments from the industry were not slow in coming…

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Working from home, hot desking

Whilst working from home and hot-desking go hand-in-hand and both imply fewer people (i.e. customers) in city centres and office-heavy locations during the working week. Business Name Generator (BNG) analysed 53 locations across the world and concluded that London was the top location for coworking….

General inflation:

The ONS has this morning reported that the Consumer Prices Index rose by 10.1% in the 12 months to March 2023, down from 10.4% in February. This is ahead of expectations of a fall to around 9.8%…

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Costs, specifically food.

Consumer magazine Which has reported that the price of a basket of staple foods such as cheese, white bread and pork sausages has risen by up to 80% in some shops over the past year…

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Trains and transport:

Whilst strikes are having a more immediate impact, it was unhelpful to note that a leaked Network Rail presentation suggests that train delays will worsen over the next five years due to rising costs and a lack of funding.

Scottish bottle deposit scheme:

SNP leader Humza Yousaf announced yesterday that the controversial deposit return scheme proposed North of the Border will now not begin until March next year…

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COMPANY NEWS:

Tao Group, which bought Hakkasan in 2021, has in turn been acquired by an investment firm owned by Mark Scheinberg for $550m.

BrewDog’s James Watt remains in the news saying that his concept The Next Unicorn has attracted 400+ applications for funding.

McDonald’s is to change some of its menu items, including its Big Mac, McDouble burger, classic cheeseburger, double cheeseburger, and hamburger,

The MCA reports Boxpark CEO Simon Champion as saying that the firm’s new BoxHall concept will have a more premium offer with a food hall focus as opposed to the leisure focus of its parent concept.

Yum Brands is reported to have completed its exit from Russia with the sale of its KFC business to Smart Service Ltd.

Gregg’s is reported to be appealing the decision by Westminster Council to refuse it permission to sell hot food late at night from its Leicester Square outlet. Greggs is currently in “mediation talks” with the council. Westminster Council at the time of its refusal said ‘there are worries that businesses serving 24/7 in the city centre creates challenges, and that the bakery could become a hot spot for late-night disturbances and anti-social behaviour.’

SL6 Ltd, the parent company of Heston Blumenthal’s The Fat Duck restaurant in Berkshire, has reported that revenues for the year to 29 May 2022 of £11.5m were more than double the £5.3m of the prior year. The company reports a pre-tax profit of £2m…

The MA reports that JD Wetherspoon pub, the World’s Inn, in Romford, Essex, remains on the market after closing its doors for the last time over the weekend. JDW’s the Moon and Stars in South Street, Romford, remains open.

HOLIDAYS & LEISURE TRAVEL:

TUI yesterday reported that 90.9% of the shares offered under its recent rights issue had been taken up. It added later in the day that its brokers had placed all 29.98m rump shares at a price of €5.60 per New Share.

EasyJet yesterday reported strong summer booking momentum with winter seasonal losses reduced. It says Easter business was ‘robust’…

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OTHER LEISURE:

Netflix last night reported Q1 numbers that missed estimates on subscriber numbers but exceeded EPS expectations. The shares were down 12% at one point…

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The British Phonographic Industry has reported that cassette sales have hit their highest level since 2003. These are still small numbers compared to vinyl.

Google CEO Sundar Pichai says that concerns about artificial intelligence keep him awake at night.

FINANCE & MARKETS:

For today’s inflation stats, see Pubs & Restaurants above.

A poll of City economists undertaken by Bloomberg suggests that the Bank of England will keep interest rates unchanged at its next meeting on 11 May. This would be the first time the Bank had not raised rates since November 2021.

Sterling mixed at $1.2417 and €1.1318. Oil lower at $84.52. UK 10yr gilt yield up 5bps at 3.75%. World markets mixed yesterday and London set to open little changed as at 6.30am.

RETAIL WITH NICK BUBB:

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