Tortilla, Time Out, Restaurant Group, Playtech, inflation, e-gates & other:

A DAY IN THE LIFE:

Using nouns as verbs is useful at times, but it may also perhaps be a slippery slope.

To ‘nuance’ something might make sense, for example. Nuance isn’t the ‘hardest’ or ‘purest’ on nouns in the same way that ‘brick’ or ‘flowerpot’ are but, strangely, ‘shovel’ or ‘pitchfork’ could just about cut it as a verb.

And of course ‘beer me up’ makes perfect sense but elsewhere in the real world, I did baulk a little when I heard somebody saying they wanted to ‘operationalise’ a certain bit of information.

however, as MS Word doesn’t deign to stick a red squiggle under that word, it might be me who’s out of line.

Anyway, on to the news:

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PUBS & RESTAURANTS:

Sharp rise in headline CPI:

The ONS has reported that the Consumer Prices Index (CPI) rose by 3.5% in the 12 months to April 2025, up from 2.6% in the 12 months to March. It says ‘on a monthly basis, CPI rose by 1.2% in April 2025, compared with a rise of 0.3% in April 2024….’

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Disposable incomes:

Research by Wonderwallets suggests that Oasis fans will spend in total around £1bn on Oasis reunion tour tickets, accommodation, food, drink and merchandise this summer. The accommodation, food & drink bit could be of some help to the hospitality industry but this is otherwise cash that would likely have been spent elsewhere in the industry…

Foodservice sales price inflation:

Meaningful Vision reports that ‘overall foodservice inflation surpassed 6%p in the year to April ‘with the burger category, particularly beef, experiencing sharper-than-average increases in the last two months.’ it says that ‘prices for beef burgers in major quick-service restaurant chains increased by 3% between January and April, with year-on-year inflation accelerating from 2% in January to 5% in April….’

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Delivery consolidation:

The MCA reports that, on the back of Deliveroo’s proposed takeover by DoorDash, more consolidation could be on the cards. Deliveroo is to exit at a substantial discount to its earlier valuations. MCA says this ‘follows consolidation elsewhere in the food delivery space, and similar correction in valuations from the peak of the pandemic-era delivery boom.’

Other news:

Employment trends. Construction hires (and unfortunately fires) rapidly on the back of an upturn. This can boost consumption and, with that in mind, it’s interesting to not that ‘the latest Glenigan Construction Review (May 2025) reveals a mixed outlook. Project-starts are up 33% over the last three months, offering a welcome uplift after a tough Q1….’

TORTILLA FULL YEAR RESULTS:

Tortilla reports revenues up to £68.0m from £65.7m in the prior year. The reported loss before tax has increased from £1.1m to £3.3m and the loss per share is 8.6p (FY23: loss 2.8p). The company says the rise in sales is ‘due to the strategic acquisition of Fresh Burritos in France, the addition of one UK company-owned site and a strong contribution from our franchise network.’ It adds that LFL sales in the UK ‘recovered strongly, improving from 6% decline in March to 6% growth by December.’ It says that ‘group LFL sales marginally declined by 0.1% (2023: +3.6%), impacted by a challenging Q1 and Q2; strong rebound in H2 highlights improving momentum.’

MEX reports ‘adjusted EBITDA (pre-IFRS 16) of £4.5m (2023: £4.6m) with an increase in the UK to £5.2m (2023: £4.6m) offset by the expected early-stage losses from our acquisition of £0.7m (2023: nil).’ The gross profit margin was ‘held strong at 76.6% (2023: 77.3%); UK in-store margin improved by 0.5% however France contributed a dilutionary impact as expected prior to the build of our central kitchen in Lille.’ The company reports that the loss before tax was ‘driven by the one-off exceptional cost relating to the acquisition of Fresh Burritos, and an impairment charge recorded in the period in respect of a small number of UK locations.’

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COMPANY NEWS:

Time Out has updated on trading for the year to end-June saying ‘the Markets business continues to grow in line with the Board’s expectations. A positive outlook is supported by ongoing portfolio growth and multiple initiatives to drive like-for-like profitability in future.’ Time Out adds ‘Media revenues now expected to be approximately 20% lower than the prior year, primarily due to local commercial conditions in the USA….’

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Artisanal Spirits has updated on trading via an AGM statement saying that ‘the positive start to the year has continued over the first four months. The Group achieved double-digit revenue growth, resulting in year-on-year profitability improvement in the period, more than offsetting the previously announced one-off £0.5m investment in SMWS America…’

The Restaurant Group has confirmed that it has purchased 10 freehold pubs from Oakman Group to be run as a part of the group’s Brunning & Price pubs business. The additional sites will take the estate to 89 pubs. Six of the 10 pubs offer accommodation…

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Pret A Manger MD Clare Clough has told City AM that further price rises are “inevitable” due to challenging market conditions. She says additional costs were having a “significant impact” on the coffee and food to go chain….

Arc Inspirations is reported set to invest some £4m in what will become its first major site in London, located off Shaftesbury Avenue. CEO Martin Wolstencroft says ‘announcing our presence in London is a huge step for Arc Inspirations.’ He says ‘after achieving success across our existing locations, having the opportunity to open our first venue in London is a milestone moment for the group.’

Maven Leisure, which operates five rooftop bars and which includes ETM’s Ed Martin and Graham Turner amongst its directors, appointed administrators on 9 May. Interpath reports that Sam Birchall and Chris Pole were appointed Joint Administrators on 9 May 2025. It advises creditors ‘if you have amounts due to you from the Company as at the date of appointment, you can register a claim by completing a proof of debt form….’

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And in Newcastle, brewer Northern Alchemy has ceased trading and has entered liquidation with Connect Insolvency Limited acting as liquidator for the business. Northern Alchemy says ‘it is with great sadness that at the end of our 10th year of trading we have to share some sad news about Northern Alchemy. As with many others in our industry we are no longer able to continue creating the innovative and popular beers that we have made over the last decade….’

South African restaurant conglomerate Famous Brands, which owns the Debonairs Pizza, Steers and Wimpy chains of outlets, has reported profit up 12,6% for the year to end February 2025.

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Companies reporting yesterday generally saw their share prices move higher. Gregg’s shares rose by 9.2p or 183p whilst SSP Group’s shares finished the day up 5.6%. Shares in Comptoir ended unchanged.

HOLIDAYS & LEISURE TRAVEL:

The BBC reports there are doubts over whether UK passport holders will be able to use e-gates at EU airports this summer. It has been told by the EU Commission that UK citizens will not have access to them until a new scheme to enhance border security comes into force in October, and even then it is up to individual countries….

easyHotel reports it is adding ‘three new hotels to its Spanish footprint, marking significant progress in its rapid expansion across Spain.’ It says ‘with the new openings in Madrid, Barcelona, and Valencia, easyHotel’s Spanish portfolio now totals five hotels, including its existing properties, Barcelona Fira and Málaga…’

Union the RMT reports that it ‘has welcomed a new pay agreement at Eurostar after members voted to accept the final offer from the company.’ It says ‘the deal includes a 3.8% pay rise, a matching 3.8% increase in home-to-work travel allowances, and key improvements to family-friendly policies, all negotiated by RMT.’

OTHER LEISURE:

Playtech has updated on trading in the first four months of its financial year saying that it has ‘delivered a solid performance…with trading in line with expectations.’ It adds that it ‘has also made good progress against its strategic objectives as it transitions to a predominantly pure-play B2B business….’

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FINANCE & MARKETS:

CBI Rupert Soames, in a speech at Singer Capital Markets later today, will ‘highlight the urgency of delivering a fresh regulatory landscape in the UK, “one which drives our international competitiveness and embeds both innovation and compliance.”’

The Bank of England’s chief economist Huw Pill has warned that interest rate cuts are fuelling inflation and should be slowed down. He voted earlier this month to hold rather than cut rates…

The European Commission has cut growth estimates as a result of uncertainty emanating from President Trump’s tariff flip-flopping. It says growth this year across the 20 countries in the Eurozone should be 0/9%, down from the previous forecast (made in November) of 1.3%.

Eurozone inflation should fall below 2% next year reports the EU. European economy commissioner Valdis Dombrovskis says ‘inflation is declining faster than previously forecast and is on track to reach the 2% target this year.’ He adds ‘but we cannot be complacent. The risks to the outlook remain tilted to the downside, so the EU must take decisive action to boost our competitiveness.’

The EU is proposing a two-euro flat fee on billions of small parcels sent directly to homes, most of which come from China at the moment. This would effectively mean that packages worth less than 150 euros are no longer customs-free.

For comment on UK CPI, see Pubs & Restaurants above.

Sterling mixed at $1.3431 and €1.1857. Oil higher at $66.46. UK 10 year gilt yield up 5 basis points at 4.70%. World markets mixed but heading lower yesterday. London set to open around 9 points higher as at 6.30am.

RETAIL WITH NICK BUBB:

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