Langton Capital – 2023-08-23 – Subway, Itsu, Getir, TUI, Activision, the consumer, contract catering etc.:
Subway, Itsu, Getir, TUI, Activision, the consumer, contract catering etc.:A DAY IN THE LIFE: We’ve been treading the pavements of London this week and, my goodness, it feels rather quiet. That’s in the canyons and crevices of The City, of course. The West End might be – and probably is – heaving with tourists, of course and, if the train down from York on Monday was anything to go by, a large proportion of them will be from my neck of the woods. Anyway, we’ll carry on and hopefully busy up a bit the week after next. LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN THE CONSUMER: Rental payments: Whilst there is a tussle going on between mortgage holders and tenants as to who is paying the most to keep a roof over their heads, The Independent quotes charity Shelter as suggesting that around a third of those in rented accommodation are having to borrow to pay their rent… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Mortgages: The Halifax has reported that housing is coming more into line with incomes compared to a year ago as wage inflation has picked up and the price of houses has dropped. It says the average home in the UK cost 6.7 times average annual earnings of a full-time worker. However, affordability is worse – at least for those without the capital to buy houses for cash – as mortgage rates have risen…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Tax: Good news that public debt is undershooting earlier estimates but bad news, for the consumer at least, in that this is due to higher tax receipts. Taxation represents a cost to the person or corporation paying it and it will have an impact on disposable income levels. Other costs: Amazon Prime is to introduce additional charges on smaller orders. Customers will have to pay £1.99 for same-day delivery on orders under £20 in addition to the £8.99 monthly Prime fee. The cost is avoidable as Amazon says that the default setting will remain the fastest free option. PUBS & RESTAURANTS: Late summer trade: Charles & Dean claims that the August bank holiday will generate £5.8bn in sales for the hospitality sector, with consumers set to spend an average of £138 in restaurants, pubs and bars across the UK. Younger consumers in the 16-24 demographic are expected to spend £171 in restaurants, pubs and bars over the weekend…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. All well and good but the MA reports that 82% of operators claim that wet weather has ruined summer trade as companies faced tough YoY comparatives against last year, when the weather was consistently in the high 20°s…. WFH: On the theme of WFH, research from desk booking app Envoy has found that 80% of bosses regret trying to force in-office attendance via a mixture of bribes and threats… Other news: SSP Group, a leading operator of food and beverage outlets in travel locations worldwide, has released the results of a new study on the needs of the modern F&B customer in the travel sphere saying that time pressure, the need for convenience and the desire to achieve value for money came out as the top concerns of travellers… Fact.MR reports that the global Cognac market is expected to almost double in value between now and 2032, reaching $10.2bn compared to its 2022 valuation of $5.5bn. The report claims that interest in the spirit from millennial consumers is the main driver of this growth. COMPANY NEWS: The Wall Street Journal reports that Roark Capital, owner of Arby’s and Buffalo Wild Wings, is set to acquire Subway for $9.6bn, with the deal potentially being finalised this week. Subway has around 37,000 restaurants in over 100 countries and saw a 9.3% increase in same-store sales in North America in H1 2023. Grocery delivery app Getir has announced that it is cutting more than a tenth of its workforce in order to improve ‘operational efficiency’. The Turkish firm has 23,000 staff in markets such as the UK and Germany and has recently exited its positions in Italy, Spain, France and Portugal. The Artisanal Spirits Company has launched a new subsidiary in Taiwan, home of the third-largest market for Ultra-Premium Scotch Whisky globally with an estimated total addressable market of $593m. The new subsidiary replaces the existing franchise agreement and provides direct sales access to the Taiwanese market. Hofmeister’s Bavarian Helles lager has signed a nationwide distribution deal with Loungers. The brewer says ‘the move catapults Hofmeister back to being a national beer brand again.’ Hofmeister was brought back to the market in 2017 by two beer entrepreneurs, Richard Longhurst and Spencer Chambers. Itsu has updated on trading saying that sales remain below pre-pandemic levels despite a strong recovery last year as more workers have returned to the office and tourism has picked up in a number of markets… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Chef Tom Kerridge has confirmed that he will be opening his The Butcher’s Tap & Grill on Tyron Street, Chelsea towards the end of this year. Huel, which provides energy-packed drinks and bars for those who do not want to prepare a meal, is to invest some £8m and create 30 jobs as it opens a factory in Milton Keynes. HOTELS & LEISURE TRAVEL: Sebastian Ebel, CEO of Tui, has warned that consumer demand could become ‘more challenging’ this winter, saying ‘I would assume we won’t see a tailwind in any European markets [this winter]’…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. The Wall Street Journal reports that a New York City deadline for hosts of short-term rentals to register with the city by 5 September has led many hosts to remove their listings…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. STR reports that global hotel prices have continued to accelerate this summer, driven by higher rates in Europe. Worldwide ADR was +6.3% YoY in July, with Europe’s ADR +13.4% YoY and +47% compared to July 2019. Travel management company CWT is already predicting ‘more moderate’ price rises in 2024. Virgin Hotels’ central Glasgow opening marks its second European property. The brand’s other European hotel is located in Edinburgh and its other sites are located in North America. The World Travel & Tourism Council reports that investment in the travel and tourism sector increased 11.1% YoY to $856bn in 2022, but remained 22.5% below 2019 levels…. OTHER LEISURE: Microsoft, which is proposing to take over video game maker Activision Blizzard, has filed changes to its deal as it tries to win over the UK competition regulator, the CMA… Zoom Video Communications on Monday reported Q2 numbers ahead of expectations and raised estimates for its Q2 revenues. Zoom now says that it expects Q3 revenue between $1.115 billion and $1.120 billion with adjusted profit per share between $1.07 and $1.09. Revenue was $1.14bn in Q2. FINANCE & MARKETS: The latest CVE industrial trends survey suggests that ‘manufacturers reported the sharpest fall in output volumes since September 2020.’ It says ‘motor vehicles & transport equipment, mechanical engineering, paper, printing & media, and chemicals sub-sectors drove the decline in output over the three months to August….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Government borrowing has tracked below earlier expectations on the back of higher taxes in the first four months of this financial year. There have been calls for tax cuts ahead of the next election… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Sterling mixed at $1.2751 and €1.1739. Oil lower at $84.07. UK 10yr gilt yield down 6bps at 4.67%. world markets mixed yesterday with London set to open around 13 points higher as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. |
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