DP Poland, BrewDog, McDonald’s franchisees, food costs & other:

A DAY IN THE LIFE:

Devil Spit on Brambles day is Michaelmas Day, 29 September but, this year, he seems to have been at it early.

Because I’ve been told that our brambles gave up the ghost at the end of August.

I haven’t got near them myself. That’s one of the unforeseen (but eminently foreseeable) consequences of me a) insisting on wearing short trousers for a bit longer than my age and physique warranted and at the same time b) not really relishing the nettle stings and bramble and dog-rose scratches that a trip to the briar patch would have entailed.

Hence, by the time I succumb to wearing longer, thorn-proof trousers, pretty much any time now, the fruit will definitely be gone and the apple and bramble pies that would have kept me going until Christmas will be long the former and short the latter.

Anyway, the Mighty Hull City managed to thrash Swansea 2-2 (courtesy of a 97th minute equaliser) and, away from home, we’ll take that. On to the news:

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PUBS & RESTAURANTS:

Food costs:

Lynx Purchasing reports that spiralling food inflation is causing problems for operators when they come to plan their autumn menus. It says ‘the high level of food inflation, which is causing significant challenges for out-of-home operators, is set to continue across the autumn and into the peak festive trading period…’

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Business costs:

The CBI has cautioned that its latest annual CBI/Pertemps Employment Trends Survey 2025 ’highlights a UK labour market facing mounting pressures as businesses grapple with rising costs, regulatory changes, and an increasingly challenging economic environment….’

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Contactless spending limit:

The BBC reports that ‘spontaneous spending is likely to rise if the limit on contactless cards is increased or scrapped entirely.’ It quotes ‘academics’ as saying that a balance must be struck between removing unnecessary barriers to trade whilst at the same time not encouraging reckless spending.

Food prices:

The Food and Drink Federation has said that food & drink inflation could hit as much as 5.7% by the end of this year due to cost pressures. It says that current price inflation was ‘steeper than anything in recent decades’. It had previously predicted that food inflation could be at 4.9% this month and 4.8% at the end of the year.

Other news:

The High Street: The FT reports that Pret (and other operators) have added to a feeling of gloom by writing down the value of their high street assets.

COMPANY NEWS:

The Guardian suggests that the UK (presumably the consumer and investor) is past ‘peak-BrewDog…’

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MCA reports ‘Byron Burger’s future is in doubt once more after its owner Tristar Foods filed a notice of intention to appoint administrators’. Byron has already been through multiple restructures. Tristar has yet to file accounts for the period since it was incorporated in 2022.

PA Crocker, which operates 20 McDonald’s franchised restaurants in the Kent area, has reported full year numbers to end-December 2024 to Companies’ House saying that revenue slipped by 2.3% to £122.6m. GP% was increased to 67.5% from 65.9% in the prior year and this had the impact of holding GP in absolute terms at around £82.7m (in both years). Admin costs were up by 1.7%, however, and this resulted in PBT falling by 22.3% to £3.9m (FY23: £5.0m)…

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AG Restaurant Ltd, which operates 25 McDonald’s franchised restaurants in the Greater Glasgow area, has reported full year numbers to end-December 2024 to Companies’ House saying that revenue slipped by 3.4% to £130.7m. GP% was increased to 66.0% from 64.3% in the prior year. GP in absolute terms slipped to £86.2m from £87.0m in the prior year. Admin costs were cut by 1.0%, however. This resulted in PBT actually rising by 7.5% to £2.5m (FY23: £2.4m)…

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Sandwich Sandwich is to open its third site, a unit on Tottenham Court Road.

Black Rock Coffee Bar, which last week launched an IPO in the US, has raised $294.1m, exceeding its target of $265m. Shares finished first day trading some 38% above their issue price (of $20).

Distil has reported that it is undertaking a placing to raise £755,000 (before expenses) through the issue of 580,769,230 new Ordinary Shares at 0.13p.

KG Hospitality and Meantime Brewing Company are to launch The Dial – Home of Meantime at Greenwich Peninsula this Autumn. The venue, to be located at Greenwich Peninsula,’will also feature a large outdoor terrace and the 360° Bar, a stunning rooftop space with panoramic views, designed as the perfect setting for corporate events, private parties, and special occasions.’

DP POLAND – H1 NUMBERS:

DPP has reported revenues for the H1 up by 8.7% at £28.7m. Group EBITDA is up by 22.5% at £2.585m and the group has halved its loss before tax to £457k from £1.0m in the prior year. The group reports that system system sales were up 5.6% to £28.8m (H1 2024: £27.3m), excluding Pizzeria 105. It says that newly-acquired Pizzeria 105 generated £0.4m revenue and £0.3m EBITDA in H1 2025 (from the date of acquisition at the end of March 2025). Poland system sales increased by 4.9% ‘driven by new store openings and an increase in average check by 6.8%. Order counts decreased by 1.8% over the same period.’ The group reports that ‘Poland Like-for-Like (LFL) revenue grew by 0.5% in H1 2025 vs H1 2024.’

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HOLIDAYS & LEISURE TRAVEL:

Hostelworld has today announced that Ulrik Bengtsson ‘has now formally stepped down as non-executive Chair of Hostelworld,’

FINANCE & MARKETS:

The ONS reported on Friday that UK GDP did not grow in July. This was in line with expectations, following a 0.4% expansion in June.

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Governor of the Bank of England Andrew Bailey has been urged to slow the pace of quantitative tightening (the government selling back bonds that it had bought in the wake of the Great Financial Crisis) in order to remove at least one point of upward pressure on interest rates.

Rightmove has reported that house prices are now down by 1% on prices a year ago. It says that ‘this year’s 0.4% September price rise is a little lower than the norm, which is an average of 0.6% at this time of year.’ It adds ‘prices have now dipped slightly from where they were at this time last year after a summer of competitive pricing by sellers, and it’s the south of England which is driving this small dip.’

Sterling up slightly at $1.3565 and €1.1565. Oil higher at $67.37. UK 10 year gilt yield up 6 basis points at 4.66%. World markets mostly lower on Friday but Far East better today and London set to open up around 5 points as at 6.30am.

RETAIL WITH NICK BUBB:

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