Molson Coors, Eataly, Dalata, Gregg’s, Tortilla, Tube strikes, wages etc.:

A DAY IN THE LIFE:

We’ve got workmen outside our office, literally outside our door, and they’re making a terrific racket.

I tried to tell one to shut up but he couldn’t hear me.

I bellowed and screamed but still no luck and shaking his ladder, whilst he was tottering around on one leg holding a drill the size of a WW2 bazooka that he was using to grind up concrete, didn’t seem to be a sensible course of action.

Indeed, it could have ended rather badly for both of us.

‘Hospitalised by falling drill’ doesn’t sound too good so it had to wait until later but, when I could make them hear me, they said they’re allowed to generate as much noise as possible before 9am (‘they’, vague wave, had allowed them to do it) and they can be similarly raucous after 12 noon.

It was all agreed with ‘them’but, whilst I could understand the words being used, I didn’t find the answer very satisfactory and my suggestion that they remain quite between six and eight and then make as much noise as they want for the rest of the day, was been knocked back as undemocratic and vaguely against the will of the people.

Hence, if the email starts well but ends in a rather fraught, unintelligible fashion for a week or two, you’ll know the reason. On to the news: 

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

PUBS & RESTAURANTS:

Rail strikes:

Planned strikes on the London Underground for today and Friday have been cancelled. There has, reportedly, been ‘significant progress’ in talks over jobs and conditions. The RMT says ‘the significant progress means that key elements have been settled although there remains wider negotiations to be had in the job, pensions and working agreements dispute….’

• 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.

Speaking of rail rather than Tube strikes, UKH says ‘the repercussions of the fresh rail strikes are staggering, with estimates projecting a sectoral loss of up to £400 million, compounding the £3.5 billion already sacrificed over the past 16 months.’

Higher wages – the flip side, higher costs:

The MA reports that the UK hospitality industry has criticised the government’s announced increase to the National Living Wage as poorly timed and damaging, calling for more consultation and a phased approach to wage increases as the sector struggles financially post-pandemic….

• 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 MA points out that increasing the NLW to ‘at least £11’ will mean it has increased by 40.5% in the past five years.

Labour accessibility:

UK Hospitality is calling on the Government to implement the recommendation from the Migration Advisory Committee and expand the Youth Mobility Scheme to more countries. The MAC did not recommend chefs, or other hospitality roles, to be included on the Shortage Occupation List in its latest review.

UKH CEO Kate Nicholls says ‘expanding the Youth Mobility Scheme has been a long-standing ask to help the sector recruit and I’m pleased the Migration Advisory Committee continue to make this recommendation.’ She adds that it is ‘imperative that the Government implements this recommendation from its own advisory body, in order to help hospitality businesses recruit. This is particularly important in light of the Committee’s refusal to add chefs to the Shortage Occupation List….’

• 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.

Trading:

CGA’s latest Brand Track Plus research suggests that ‘consumer spending in hospitality is holding up well despite the cost of living crisis.’ It says ‘6.5 pence in every pound of consumers’ spending between January and July 2023 went on out-of-home eating and drinking—an increase from 6.2 pence in the same period last year….’

• 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.

Elsewhere, Lumina Intelligence reports that eating out participation increased by 6% in the four weeks to 3 September…

S4Labour reports that the hospitality industry has seen ‘strong year-on-year growth for September.’ It says there has been an ‘impressive surge in like-for-like sales for the month of September.’ S4labour says ‘overall, the sector experienced a remarkable 9.6% increase in year-on-year sales….’

• 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.

Other news:

The consumer: The RAC reports that petrol prices rose in September for the fourth month in a row, up by around 4.5p a litre on average to £1.57 per litre. The RAC says that drivers are “sadly really starting to suffer again at the pumps.”

The English grape harvest is reported to be both “amazing” and “unbelievable.” Yields, presumably, are rather high….

Politics: UKH tweets ‘fantastic to welcome hear the PM @RishiSunak at our sponsored event yesterday, where he spoke of the Government’s commitment to improving the economy. Hospitality is crucial to our economic recovery – driving growth, creating jobs and supporting local communities…’

• 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 London Chamber of Commerce and Industry has reported that only a quarter of firms in the capital anticipate London’s economy improving over the next year….

COMPANY NEWS:

Further to yesterday’s update, Greggs has suggested that it is considering expanding abroad again after a failed attempt 15 years ago, with the CEO saying it would start with small trials outside the UK where it currently focuses. The update came as the food-to-go chain reported strong sales growth amid demand for value offerings given cost pressures on consumers.

Tortilla, the largest European fast-casual Californian-inspired Mexican chain, remains committed to European expansion, seeing opportunities to grow via franchising and acquisitions given the brand’s suitability and strong position against competitors.

Molson Coors Beverage Company yesterday announced the introduction of a new plan to accelerate its growth. It also updated on its long-term financial outlook and its new capital deployment plans….

• 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.

Eataly’s UK subsidiary has reported its FY numbers for the year ended 31 December 2022 to companies house. The company’s principal activity is that of retail sales and restaurant sales in a specialised store which predominantly sells food, beverages and other food-based products.

The company, which was founded in Italy in 2007 by Oscar Farinetti and has since expanded to 45 locations worldwide, reports that UK revenue increased by 45.3% YoY to £25.0m. This increase was driven by a full year’s trading, as the location only opened for retail sales & takeaway on 29 April 2021…

• 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.

Restaurant operator Sticks’n’Sushi is to open its biggest UK restaurant to date next week with the launch of a 220 cover site in Kingston.

Salford-based independent brewer and pub operator Hydes reported record turnover of £34.1m for 2022-2023 despite difficult economic conditions, with long-term contracts and close supplier relationships helping shield it from the worst inflationary impacts.

The MCA reports Arkell’s Brewery celebrates 180 years of brewing in 2023. The brewery has balanced innovation with honouring its local history and modest aspirations, crediting its Swindon roots and adaptability across six generations for enabling it to embrace change while remaining focused on its core local market.

UK hospitality group Heartwood Collection, backed by Alchemy Partners, has acquired two new freehold pubs with rooms totalling 69 bedrooms. The acquisitions of The Rope & Anchor in Emsworth, Hampshire and The Coat & Bear in Newbury, Berkshire expand Heartwood’s ‘pub with rooms’ proposition to over 60 inns and 500 bedrooms by 2027.

HOLIDAYS, HOTELS & LEISURE TRAVEL:

Hotel operator Dalata has announced that it is ‘expanding its presence in Scotland with the acquisition of a development site at 28 St. Andrew’s Square, Edinburgh.’ It says it ‘has also completed the transaction to enter the hotel market in the Netherlands with the acquisition of the leasehold interest in Hard Rock Hotel Amsterdam American, as announced on 21 September 2023….’

Gatwick airport has extended its daily flight cap for two more weeks. It has had discussions with the UK’s air traffic control operator NATS. The airport is limiting flight numbers to 800 per day. it says it does not see there being a major impact on operations as the summer season is now drawing to a close.

Travel Trade Gazette reports that Jet2holidays has extended its ATOL license by more than 850,000 seats next year to around 6.7 million authorisations. It reports that TUI has added another 522,000 to grow its ATOL to nearly 5.9 million.

Per City AM, Ryanair and Wizz Air reported ongoing strong passenger growth in September 2022 despite industry fears of slowing demand, with Ryanair at 17.4 million passengers and Wizz Air at 5.5 million. Both maintained high load factors over 90%, defying concerns of an aviation slowdown after a busy pandemic recovery summer.

OTHER LEISURE:

Meta (Facebook, WhatsApp, Instagram) is reported set to charge users in the EU €13 (£11) a month to access an ad-free version of Instagram or Facebook on their phones. It is proposing a €17 charge to use Instagram and Facebook without adverts on desktop. Meta says it ‘believes in the value of free services which are supported by personalised ads. However, we continue to explore options to ensure we comply with evolving regulatory requirements.’

FINANCE & MARKETS:

The UK’s Services PMI for September is due out at 9.30am.

The cost of servicing the UK’s national debt has reached a 20-year high as the rate on 30-year bonds has breached 5%. The UK government currently owes around £2.59 trillion.

Sterling slightly higher at $1.2072 and €1.1531. Oil up a little at $90.85. UK 10yr gilt yield up 2bps at 4.58%. World markets weak yesterday and London set to open down around 10pts 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.