Story of the day:
Howard Schultz – the bulk of Starbucks innovation will be technology-focused amid “seismic change in consumer behaviour”: Starbucks chief executive Howard Schultz has reported that the bulk of Starbucks’ innovation over the next several years will be technology-focused. “We are witnessing a seismic change in consumer behavior,” he said. “That change is being brought about by technology and the access people have to information. How folks pay for their Starbucks coffee could be the nearest-term change with the widest impact.” Starbucks currently sees more than three million mobile payments per week. That, reported Schultz, exceeds the combined mobile payments of the next ten companies closest to Starbucks. “This will result in a much deeper experience with our customers,” he said. For customers, the technology will allow much more one-to-one marketing,’ said Schultz, with specific deals and promotions targeted to individual consumers based on their buying habits. Schultz said Starbucks is working on a store of the future. “It is not only linked to the physical but the digital experience. You’ll know it’s a Starbucks store, but you’ll know that you’ll be walking into a significant evolution. Another key area of innovation will be around a focus on health and well-being products.” Said Schultz: “You’ll see it in many forms. Starbucks has a license to participate in this.” Some of the innovation will be related to the recently acquired Evolution juice brand, which could move into categories beyond juice such as healthy food. “Our history is based on extending the brand to categories within the guardrails of Starbucks,” added Schultz. But the key to success is to remain true to the brand “and not abuse the trust people have by going off and doing things not consistent with the heritage of coffee”.
Industry news:
Punch BDM becomes the first to visit 1,000 Cask Marque pubs: A Punch Taverns businesss development manager, Jean-Paul Russek, has become the first to visit 1,000 pubs as part of Cask Marque’s World’s Biggest Ale Trail. The Ale Trail is one of the features of the Cask Marque phone app, which pinpoints cask ale pubs across the country. Users who ‘scan’ the Cask Marque certificate in pubs across the country are automatically entered onto a leaderboard. Jean-Paul Russek, who resides in Huntingdon and works for Punch Taverns as an area manager covering 40 pubs across the south east, has now hit 1,000 visits. He said: “I scanned my first certificate in 5 May 2012 in Reading and I can’t believe how far I’ve come – and how many pubs I’ve visited – in just under a year. I started visiting pubs on the app, partly out of research for my role at Punch as well as a genuine love of cask ale. From then, it has escalated, taking me across the country to visit so many different types of pubs from Devon to as far north as Edinburgh – I really have scoured the country!” Paul Nunny, director of Cask Marque, said: “The Cask Finder app is a great tool for real-ale lovers, or those who want to try it for the first time, to search for Cask Marque accredited pubs nationwide. The app lists 8,348 pubs and as it is viewed in real-time so users can find their nearest pub.”
Children who eat like their parents have a better diet: Children who eat the same meals as their parents have healthier diets that those who eat “kids meals”. A study of 5,000 five-year-olds found that those who were “indulged” by being served their own meals tended to eat food with more calories and lower nutrients, such as pizza and chips.
Government to tell administrators to pursue mis-selling claims: The government is to tell administrators of companies that have gone bankrupt that they must help to bring claims over interest rate swap mis-selling against their banks. The Insolvency Service is preparing to issue the guidance in response to what has been described as a “huge injustice”. There have been fears that, in some cases, banks that carried out mis-selling may end up compensating themselves as the new owner of the business. Another fear is that administrators may be reluctant to pursue claims because banks are paying their fees and are large clients.
Company news:
Diageo names Ivan Menezes as new chief executive: Diageo has named Ivan Menezes as its new chief executive with effect from 1 July 2013. Current chief executive Paul Walsh, who will step down from the board at the September 2013 Annual General Meeting, will retire from the company on 30 June 2014. Diageo chairman Dr Franz Humer said: “Paul is an outstanding chief executive. He has served our business, its shareholders, employees and partners with enormous imagination and dedication over the past 13 years. I know he is justly proud of Diageo and its people and he leaves a great legacy for his successor. The board is immensely grateful for his ambitious and thoughtful stewardship of the business and its people. The transition process which has been put in place enables Paul to contribute his knowledge and experience during Ivan’s first year as chief executive. We are delighted to have a leader of Ivan’s talents and global experience to succeed Paul. The handover is being made at a time when the business is strong and Ivan takes on the role of chief executive at an exciting stage of the company’s global development. The board is confident that Ivan will inspire our organisation and Diageo will continue to achieve our medium-term performance objectives.”
City Pub Company buys two more London pubs: City Pub Company, the Enterprise Investment Scheme company headed by David Bruce and Clive Watson, has bought The Lighthouse in Battersea and The Roundhouse in Wandsworth, south London, for an estimated £3m from Peel Hunt co-founder Charles Hunt. The deal follow the acquisition of the The Phene, off Kings Road, Fulham, bought for an estimated £4m. The Phene was the company’s first acquisition in London since it was launched – it has eight other pubs around the UK. City Pub Company has raised around £15.8m in the two years since it was launched.
Ed’s Easy Diner Holdings set to report doubling of underlying earnings: Ed’s Easy Diner is set to report a doubling of underlying earnings to £972,000 in the year to September 2012 from turnover up 58% to £9.4m, according to The Times. The company is set to turnover £19m this year on current run rate. Ed’s Easy Diner has 17 sites and five stands in shopping centres. A five-year plan forecasts the expansion of the company, headed by Andrew Guy, to around 60 to 70 sites across the UK.
JD Wetherspoon sees strong run ahead of trading update tomorrow: JD Wetherspoon has enjoyed a strong share price run, rising seven days out of eight, exceeding the price targets of 12 of 13 analysts, ahead of a trading update due tomorrow (Wednesday). Simon French, leisure analyst at Panmure Gordon, who recommends buying the shares, wrote in a note: “The market will as usual, wrongly in our view, obsess about the margin but we will continue to focus on absolute cash generation.” Wetherspoon saw an eight-day gain of 9% up until the end of last week. The operator is the best performer in the past three months on the nine-member Bloomberg UK Pub Index, with a gain of 17% compared with the index’s gain of 5%.
Carluccio’s turnover near £100m mark: Carluccio’s has reported turnover up 14% to £96,336,000 in the 53 weeks ended 23 September after opening 11 sites in the financial year. Ebitda was up 17% to £10.9m and profit before tax was £6,759,000 (2011: £5,865,000). The company spent £12.7m (2011: £6.9M) on the 12 openings – they were in Glasgow, Marylebone, Liverpool, Reigate, Pinner, Manchester Piccadilly, Teddington, Berkhamsted, Waterloo, Sheffield and Bath. A franchise site was opened in Istanbul, Turkey – the agreement with the franchisee specifies a minimum of six openings in the first three years. The company reported it is debt-free and had a “low average spend per head” which should “prove beneficial” in challenging economic times.
InnBrighton opens JW Lennon’s Ale House and Spirit Grocery: InnBrighton, the south east multiple headed by Gavin George, has drawn inspiration from the Irish/American bars that sprang up in New York at the end of the 19th century to open JW Lennon’s Ale House and Spirit Grocery in Brighton. The pub has been converted from a free-of-tie pub called the Leconfield, which the company has operated since 1999. George describes the Spirit Grocery as “beautifully out of keeping with its surroundings” located as it is next to Brighton’s busiest dual carriageways. He said: “Times may be tough but that isn’t going to stop us having fun. That was the Irish attitude when they got to New York and we hope to recreate some of that austerity-busting spirit at JW’s.” From the sawdust on the floors to the pricing of the products, the pub aims to uphold a no nonsense approach. All pints of beer, 25ml of spirits and 175ml of wine are priced at £3 as standard, and as a special offer throughout May customers can get the JW’s New York deli-style sandwiches – salt beef or cheese & onion – both on crusty bread with generous fillings at an offer price of £3. “We’ve had some brilliant support from Tullamore Dew Irish Whiskey in creating an authentic interior to this pub,” said George. Explaining the pub’s name, he added: “It’s actually Jack William Lennon, but I like to think there’s a little of the attitude of his namesake in this new pub, and indeed in much of what InnBrighton does.” JW Lennon’s Ale House and Spirit Grocery is located at 116 - 118 Edward Street, Brighton and opened last Friday (3 May).
Central London Taverns invest £500,000 in Chertsey pub with Punch Taverns: Award-winning Central London Taverns has co-invested £500,000 in Chertsey’s Golden Grove pub with Punch Taverns. A new menu now boasts a hearty and wholesome food offer that is value for money. There will be regular themed nights and promotions, including a Diners Club on Mondays when customers can enjoy ‘two for one’ on main meals, Steak night on a Tuesday, an international evening on a Thursday and Fish Friday.
Subway targets 100 stores with Euro Garages: Subway is planning to operate 100 sites at Euro Garages by 2016 – Euro Garages already owns and operates 31 Subway stores across the UK. Subway reported that Euro Garages had seen significant success with the brand. Euro Garages acquired 45 forecourt sites from Esso in January and will target these locations as part of expansion plans across the north east, Yorkshire and the north west. Trevor Haynes, area development manager, Subway UK and Ireland, said: “The forecourt and convenience sector is a key area of growth for the Subway brand. We have had a very long and successful relationship with Euro Garages and are looking to build on this with future store roll-outs.”
The Restaurant Group looks set for go-ahead on two sites in Ipswich: The Restaurant Group looks set to receive planning consent for two openings, a Frankie & Benny’s and Chiquito’s, in Ravenswood near Ipswich. Planning officers have indicated it should be approved, and if given the green light by councillors this week, the aim is to open them by December.
Grounded set for fourth opening: Bristol coffee shop café Grounded has opened its fourth site in Bristol. It has opened on Sandy Park Road, Brislington, following on from its successful cafes in Redfield, Bedminster and Horfield. It is headed by Tobie Holbrook, a property developer and owner of Holbrook Moran estate agents. He said: “I didn’t start Grounded to make a quick buck. I wanted something really cool and for it to be the best I could make it. I do it because I love it. If people continue to like what we’re doing we’ll carry on doing it. I think there is definitely potential to open up another one or two in the future.” The first Grounded, in Church Road, Redfield, opened in 2007.
Montpeliers reports on trading in three months to 29 July 2012: Montpeliers, which operates Candy Bar, Indigo Yard, Lulu, Montpeliers, Pal Lounge, Ricks and Tiger Lily in the Edinburgh, has reported turnover of £3,660,632 in the 13 weeks to 29 July 2012, producing a pre-tax profit of £125,000, in line with the year before. Net debt came down by £500,000 to £7.7m.
TGI Friday’s adds sharing dishes in the US: TGI Friday’s in the US has introduced a new Taste & Share menu that features seven small plates designed for sharing. The new dishes include Thai pork tacos, ahi tuna crisps, bacon mac and cheese bites, and corned beef and Swiss sliders. “We absolutely see this as an incremental sales layer,” Friday’s vice president of brand calendar and planning Linda VanGosen stated.
Everards to open second Project Artisan site later this month: Leicestershire brewer and retailer Everards is to open its second Project Artisan site later this month, The Church Inn in Birmingham’s Jewellery Quarter, which will have seen a £400,000 investment. Project Artisan, an evolution of Everards’ Project William venture with microbrewers, looks to install local food and drink businesses – such as bakers, chocolatiers and butchers – in Everards pubs or property. The company’s tenant at The Church will be Soul Food Project, formed in 2010 by Matthew Beck and Carl Finn, who have more than ten years experience in the food, drink, music and hospitality trade. Soul Food Project is based on the pop-up restaurant revolution and has been cooking food “with care and passion” at live events across the Midlands. Everards chief executive Stephen Gould told Propel last year: “The Soul Food Project offer fits in beautifully with that part of Birmingham and also alongside the project in Stirchley. It builds Everards reputation here in Birmingham for supporting food and drink entrepreneurs. At its core, Project Artisan is a recruitment and development initiative around food and drink.”
Dubai firm buys Marco Pierre White branded restaurants: Dubai-based hospitality group has bought the entire portfolio of Marco Pierre White’s brands outside the UK and Ireland. Rmal Hospitality, which is owned by the Abu Dhabi-based Al Fahim Group, bought the brands, including Marco Pierre White Steakhouse, for an undisclosed sum. The company has worked with White for the past seven years to develop venues in the UAE. “I never wanted to be one of those chefs who owned restaurants 100% globally because to be honest, you can’t give your time,” said White. “I am so busy in the UK and in other countries doing my filming or doing whatever I am doing that you have to choose a strategic partner who you trust who has the same beliefs as yourself.” There are currently five Marco Pierre White restaurants in the Emirates, including Wheeler’s of St James in the Dubai International Financial Centre and a Marco Pierre White Steakhouse in Abu Dhabi. A Marco Pierre White Grill is also due to open at the new Conrad Hotel in Dubai this year.
Nando’s confirms Leamington Spa opening: Nando’s has confirmed that it will open a site in Leamington Spa in June. The new restaurant will be located in Regent Court, in the middle of the town centre, seating up to 100 people at a time and bringing 30 new jobs to the area. Dean Boiles, regional managing director of Nando’s, told the local newspaper: “The Regent Court site is a fantastic location, and will offer shoppers, locals and visitors a great experience.”
Charles Wells to open ninth French pub next month: Bedfordshire-based Charles Wells expects to open its ninth pub in France next month. The pub will be called The Elephant & Castle and will be the company’s second pub in Lyon – it already operates The King Arthur pub in the city, which opened last July. The Elephant & Castle will be Charles Wells’ biggest pub so far and occupies a prime corner spot over two storeys and has a terrace. Anthony Wallis, managing director of the Wells’ offshoot John Bull Pub Company, said: “We are looking to add a kitchen at The Elephant & Castle so we can offer the best of British cuisine to customers as well a great selection of cask ales, a trading model that has already worked well at The Bombardier in Paris.”
Prezzo introduces a trio of tasting wines: Prezzo, the 200-site operator headed by Jonathan Kaye, is introducing a trio of tasting wines at its restaurants from 7 May to 3 June inclusive. The wines, three red, three white and three rose and sparkling, have been matched with new dishes from its Spring menu. Each of the three wines will be served in 125ml glasses and be accompanied with mixed olives and ciabatta. Diners will be able to choose the three wines for £10.95, with nibbles thrown in. The three red wines; Prezzo Sangiovese, Valle Antia Chianti and Morellino di Scansano are all made from the same grape variety at the heart of Italian reds. The three white, all new Pinot Grigios are described as “wonderfully fruity and aromatic.” They are Verdicchio, Fiano and Chenin Blanc. There are also two roses and one sparkling wine - Rosato Veronese, Pinot Grigio Rose and Prosecco. Kaye said: “We believe diners will enjoy the opportunity to sample a selection of excellent wines, which have all been matched to our spring menu.”
Adnams multi-siters appoint insolvency practitioner: A couple who ran two high profile Adnams pubs have appointed an insolvency practitioner. The Ship Inn, in Levington, near Ipswich, and The King’s Head, at Orford, near Woodbridge, had temporarily shut their doors. Both pubs were leased to Adrian and Susan Searing. “We were shocked and saddened to discover this week that both pubs had closed without warning,” an Adnams spokeswoman said. “It is regrettable that their intentions were not discussed with Adnams at any point. We have been advised that the Searings have appointed an insolvency practitioner and we are currently in negotiations with them. We are acutely aware and concerned about the impact the temporary closure has on local residents, customers and members of staff and are working towards re-opening the pubs as soon as possible once the legal process has concluded.”
49% of Americans over 14 ate at McDonald’s in March: A survey of 70,000 Americans by Placed Insights found 49% of those over 14 ate at McDonald’s and the brand beat Wal-Mart, Walgreen’s, and Target to stake its claim as the country’s most visited retail business. The same study showed that half as many Americans, 25% of those over 14, made purchases at Burger King in March.
Starbucks UK begins the search for new managing director: Starbucks UK has started a search for a new managing director after Kris Engskov was promoted to president of Europe, Middle East and Africa (EMEA). Engskov was appointed UK managing director in July 2011, leaving his role as regional vice president of its US Pacific Northwest region to replace Darcy Willson-Rymer. Engskov has overseen the re-shaping of the UK business, which has included moving away from the high rent sites the company took when it was seeking to establish itself. In his new position, he will report to Cliff Burrows who has been promoted to group president, Americas and US, EMEA and Teavana.
Orchid launches All Inns family dining sub-brand: Orchid Pub Company has launched a new sub-brand called ‘All Inns’ focused on the family market. Set to roll out across all of Orchid’s Free House Dining division over the next 18 months, the inclusive concept is designed “to be welcoming to one and all”. Four investments – Hare and Hounds in Minworth, Church Tavern in Perry Barr, Lock Keeper in Radcliffe and Priory in Wellingborough - have already been signed off, with a further eight in the pipeline. A new website, www.all-inns.co.uk, will showcase all that the pubs have to offer, from the pub and staff to food and drink. “We’re really excited about the new concept and looking forward to welcoming our customers to our All Inns pubs,” said Simon Dodd, commercial & people director at Orchid Group. “All Inns are a call to everyone to join us for a high quality, enjoyable dining-out experience that is truly rewarding. The focus for these pubs on being family-friendly is taken a step further with this new concept and is clearly communicated in the ‘All Inns - We’re a family pub co’ sub-branding.” In the family and children’s areas investment focuses keenly on “the little things” and the little ones. For example, ‘Ed-Chefs’ self-service ice cream station offers a quick and refreshing dessert; toilets are lower for little legs; booster seats come in varying sizes and the games zone features everything from favourite board games to the latest computer consoles. “We have a lot of competition in the family dining segment but we believe that our new All Inns pubs will go above and beyond what others can offer to create a truly unique and exciting experience,” Dodd added. “Throughout these pubs we will work hard to make all customers welcome and ensure they leave happy and wanting to come back again and again. Quality and value for money food and drink offers, a warm atmosphere and excellent service levels will set All Inns apart.”
Shore Leisure opens third Italian restaurant: Shore Leisure has opened its third Italian restaurant. It has opened a Martino’s at historic Jarrow Civic Hall, taking over from the former Sir Charlie’s Italian restaurant in the Victorian complex, in Ellison Street. Shore Leisure already operates Martino’s at Seaburn and Seaham. Co-owner Wendy Donkin said: “We have many loyal customers who travel across the water to dine with us, so we’re over the moon to be able to bring Martino’s to them.”
Yates’s launches new menu and a “burger for heroes”: Stone Pub Company’s Yates’s brand has launched a new menu that features eight healthy dishes all under 500 calories and a Hero burger where 50p from every burger sold goes to Help for Heroes. It also sees the introduction of children’s meals to the menu where, for just £1.99, children can get a meal and a drink. The new menu also features a range of “two meals for £6.45” options. A new section of Yates’s all-time classics has also been introduced to the menu giving customers the chance to “indulge in the dishes that have stood the test of time”. Jonathan Royle, marketing manager at Yates’s said: “We are incredibly proud of our award-winning menus and believe this is our best-ever in terms of offering our customers quality food and drink at great value for money prices. We’ve worked on a number of areas of the menu and improved them even further, including the presentation of the dishes, offering the best deals in town. Our burger range is one of the best-selling sections on the menu so I’m sure that Yates’s will raise a significant amount of money for Help for Heroes via our 50p donation through every Hero burger sold. It’s a great cause and one that we are delighted to support.”
Red Hot World Buffet – Luke Johnson’s new growth brand? Luke Johnson, who sold Giraffe to Tesco in March for £48.6m, earning an eight times return on his investment, is set to take a minority stake in Red Hot World Buffet, according to The Sunday Times. The company was founded by Helen and Parmjit Dhaliwal in 2004 and its latest opening at Nottingham Cornerhouse is serving 8,000 customers a week. It wants to expand to 25 sites within the next three years. Talks about an investment are “well-advanced”, according The Sunday Times. Red Hot World Buffet serves a fixed price buffet featuring cuisines from around the world, including China, Mexico, India, Italy and the US. Red Hot World Buffet operates seven restaurants, four under a company called Helen’s Cuisines and three are operated by a sister company, Passepartouts. Passepartouts reported turnover up 117% to £14,073,957 in the year ended 31 January 2012 and pre-tax profit of £926,557 (2011: £388,856) due to the opening of a new restaurant in Manchester and the full-year effect of a Leeds restaurant which opened in October 2010. Helen’s Cuisines saw turnover rise 10% to £6,484,171 in the year ending 31 January 2012. There was an exceptional item of £742,488 related to the closure of its original Nottingham site, which had traded well but had ended up “off-pitch” as Nottingham city centre developed and was producing small operational losses. The company reported a loss before tax of £1,119,670. In 2011, Helen’s Cuisines reported a pre-tax profit of £435,307 on turnover of £5,871,654.
