RBG, Heineken, Tasty, YUM, Rekom, FDEV, Barclaycard, sales & other:

A DAY IN THE LIFE:

There are three reasons that I haven’t cut the grass yet.

First, the garden is a fetid, sodden, water-logged swamp where gravity, over time, insists on dumping all of the water that has fallen on the Yorkshire Wolds; second, I’m saving the planet – Mr Attenborough reportedly suggests not cutting your grass till July – and third, I’m lazy.

And, whilst the first of the above is still by far the major reason for inactivity at present, it’s likely that the dial will shift over time until, ultimately, it will be sloth and indolence – and probably the Euros – that will be keeping me away from any hard work.

However, until that moment comes – and until someone has kicked me in the backside enough times – I can bask in a miasmic cloud of inactivity driven by a) genuine inability (maybe 97-98%) and b) planet saving ambition (circa not much).

And Hull City? All there is to say, really, is that that happened. At least no stress over the playoffs.

Anyway, hopefully we all, other than fretting about the weather, the local election results and the football, had a restful weekend. Time for the news:

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PUBS & RESTAURANTS:

Barclaycard spending data:

Barclays has produced spending data for April pointing to sluggish and sub-inflation growth in spending of 1.6% in April after 1.9% in both February and March. Easter disappeared from April this year but it should have buoyed March figures. In summary, Barclaycard reports that ‘a slowdown in food price inflation and cutbacks on food and drink led to a decline for restaurants and the smallest uplift in supermarket spending since June 2022….’

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Service sector output:

The S&P UK Services PMI showed the sector in growth at 55.0 in April, up from 53.1 in March and marking the 6th consecutive month of growth. Improving client confidence and signs of economic recovery supported the sector’s growth, but job creation remained marginal as firms focused on limiting margin pressures….

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WFH:

And now, work-when-you-want. As employers struggle to recruit new talent, they’re exploring unconventional benefits like flexible work hours and the abolition of the traditional 9-5 workday, as seen at Netflix. While such perks may appeal to workers seeking better work-life balance, they also raise concerns about potential downsides, such as increased screen time and blurred boundaries between work and personal life.

Food security:

The FT reports the National Farmers Union as warning that the government cannot import its way to food security. It says that business confidence across UK farmers has hit an all-time low this year. Post Brexit, the government has lauded agreements with food exporters such as Australia as a benefit. Farmers see it differently…

Current sales:

CGA reports that drink sales fell in the week to 21 April compared to last year. Beer and wine sales were down 1% each, cider sales were 5% lower, soft drink sales were down by 7% and spirit sales were down by 19%. CGA says this is a ‘disappointing end to the month after generally solid trading over the Spring….’

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Cost of living issues:

Asda continues to invest in price cuts, reducing products by an average of 11% and extending initiatives like Aldi Lidl Price Match and Mega Event Price Drops….

Ahead of the Bank of England’s interest rate announcement on Thursday, notable that mortgage rates have been rising for the last fortnight. The chance of a rate rise on Thursday is extremely slight but the odds on a rate cut have also lengthened. Homebuyers will be feeling the impact on their monthly payments (for those on floating rates) and on new fixes for those with some rate protection.

Coffee shops:

Lumina Intelligence reports average spend in coffee shops fell by 4% YoY in 2023 despite prices rising by 11%. Coffee remains the most popular drink in the food to go sector with a 60% share of beverage consumption.

Other news:

In 2023, plant-based milk retail sales in the US reached $2.9bn, up 1% YoY and up 9% vs 2021, according to SPINS data cited in the Good Food Institute’s State of the Industry report. Although unit sales declined by 8% from 2022 and 10% from 2021, nearly half of US households purchased plant-based milks, with 79% making repeat purchases.

Single-sex toilets will be a legal requirement for all new bars, restaurants, offices and shopping centres under new laws proposed by the government. Minister Kemi Badenoch says the legislation will provide ‘dignity to both men and women’.

Belfast is reportedly looking for a ‘Night Czar’ to enhance Belfast’s night-time economy. Irish News reports that ‘the role is modelled on London’s Night Czar, and will see the selected individual act as a central point of contact for night-time services including hospitality.’

COMPANY NEWS:

Revolution Bars Group has updated on its proposed restructuring saying that, as previously announced, it has launched an M&A Process in order to explore corporate solutions. The company says that ‘42 parties, including Nightcap plc, were invited to participate in the FSP, of which 32 agreed to participate in the FSP and sign an NDA….’

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Heineken is to spend £39m on refurbishing over 600 pubs across the UK. It says the move will include reopening 62 pubs in 2024, with 94 other sites set for full refurbishments. The company wants to “broaden each pub’s use and appeal.”

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Tasty on Friday updated on its restructuring plans saying ‘there will now be 7 classes of creditors (from the previous 5)…

Yum China, which launched KCOFFEE as an in-store KFC coffee offer in 2015, says it is confident of further growth. Its first standalone KCOFFEE outlet in China opened in Shanghai in October 2022….

BJ’s Restaurants & Brewhouse in the US has reported same-store sales declines of 1.7% in Q1 this year. It says the trend is improving and has moved from negative traffic levels in January to flat in March.

The FT reports that ‘Asda’s owners created nearly £1.5bn of new liabilities that are not counted in the supermarket chain’s headline debt figures to finance a buyout of a petrol stations business that they also control.’

Per MCA, Arc Inspirations, backed by a recent £7m funding round, plans to open 20 to 30 sites in London for its Manahatta and BOX concepts….

Rekom UK, a major nightclub operator, has split from its Scandinavian owner, Rekom Group, and will now be controlled by its main lender, ACG, under the new name Neos Hospitality. Russell Quelch will lead Neos Hospitality as CEO, supported by Chairman Peter Marks and the existing management team….

Wendy’s plans to expand its presence in the UK to 45-50 restaurants by the year’s end, aiming for a long-term estate of 400 across the country….

HOLIDAYS, HOTELS & LEISURE TRAVEL:

Travel Weekly reports the travel industry cannot ignore the issue of overtourism, highlighted by recent protests in the Canary Islands and the introduction of a day tourist tax in Venice reports former Federation of Tour Operators chief Andy Cooper….

Eurostar aims to run its trains entirely on renewable energy by 2030, part of its commitment to carry 30 million passengers annually while minimising environmental impact. CEO Gwendoline Cazenave described the 2030 goal as a ‘deliberately ambitious target’.

Eurotunnel has said that a new EU travel system that starts in October should not cause long queues. CEO Yann Leriche says Le Shuttle journeys would take five-to-seven minutes longer, but extra lanes and technology meant the process will go smoothly.

Avis Budget Group has reported a Q1 loss of $113 million on revenue of nearly $2.6 billion compared with a profit of $312 million in Q1 last year.

OTHER LEISURE:

Games developer Frontier Developments has updated on its year to end-May saying that its ‘portfolio has performed well, with pleasing contributions from all games.’ It reports that ‘CMS titles have performed particularly well, in part due to a strong Frontier publisher sale on leading PC channel Steam from 1 to 15 April. On consoles, Planet Zoo: Console Edition continued to sell well during April following its successful release in March….’

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The Times reports that David Lloyd Leisure will spend the money opening 15 new clubs over the next three to four years and opening 50 new spa resorts over the next six years. The company reports ‘our business has done particularly well post-Covid. People are willing to prioritise health, fitness and wellness in a post-Covid world relatively more than they were beforehand.’

Paramount Global’s shares surged after reports of a $26bn bid from Sony Pictures and Apollo Global Management. The offer comes amid Paramount’s struggles in adapting to streaming and internal power conflicts, including the ousting of CEO Bob Bakish. Paramount has been considering a merger with Skydance Media, a production company led by David Ellison.

FINANCE & MARKETS:

Data produced by the US Labour Department on Friday suggested a cooling in the US jobs market with only 175k jobs added in April. The US unemployment rate rose from 3.8% in March to 3.9%. The apparent cooling has rekindled interest rate cut hopes.

The ONS in the UK has suggested that productivity in the public sector, dominated by education and healthcare, fell between Q3 and Q4 last year.

The CEBR reports that ‘the UK’s economic performance in recent years has largely been described as sluggish’. It says this has been even more pronounced in Scotland and Wales than it has been in England.

A survey undertaken by Lloyds Bank suggests that the UK is likely to have exited recession at the beginning of this year. The Times report Lloyds as saying that ‘more than half of sectors within the UK economy grew in the first three months of this year…’

Property agent Savills believes that house prices will rise by 2.5 per cent this year.

Sterling mixed at $1.2552 and €1.1663. Oil lower at $83.48. UK 10 year gilt yield down 3 basis points at 4.25%. World markets mixed to better on Friday (and Monday) with London set to open up around 28 points as at 6.30am.

RETAIL WITH NICK BUBB:

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