Category: Restaurants
M&B’s tone points to tricky 2017; a tough year might hit some harder than others…
The factors driving capacity: cheap cash and new ways of raising it… Low interest rates have allowed casual dining concepts to flourish. Crowdfunding has also provided an avenue of funding for operators. This has resulted in growth for growth’s sake and the saturation of the restaurant market. Several operators have built substantial estates in as…
60 Seconds on Rising Interest Rates, Inflation, etc.
Inflation is coming – who stands to lose out? Interest rates have been kept at 0.5% since January 2009 (even falling as low as 0.25%), distorting the markets Crowdfunding has also played its part wrt excess funding; AltFi research shows that of the 751 companies that have crowdfunded on the UK’s largest platforms, some 88…
Tread carefully; recent FTSE rally inflates already hard-to-justify valuations
Current trading; who are the winners & losers?
Background – costs: There is little inflation but 0% LfL won’t be enough to hold margin Because what inflation there is, is the ‘wrong sort’ Utilities are OK but wages (esp. National Living Wage) are a problem Occupancy costs & F&B costs are benign – but the latter will rise as Sterling falls Outlook for…
Coffer Peach Tracker: Could have been (much) better…
Tracker headline ‘Britain enjoys summer by still eating & drinking out’ doesn’t tell full story: Says LfL sales +0.6% & frames this as a success But CPI is +0.6% so above implies no growth NLW, NMW etc. mean labour costs +5% & inflation re F&B in the pipeline And c5.6% increase in unit numbers could…