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Wed 22nd Oct 2014 - Propel Wednesday News Briefing |
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Story of the Day:Greene King Leisure Spend Tracker finds eating-out beats September dip in general leisure spend: A fall in consumer confidence is likely to be responsible for British households spending 6% less on leisure during September, the latest Greene King Leisure Spend Tracker reports. According to figures out today, household leisure spend was down £13 to £207 in September compared to the same month last year. The report also reveals there was a greater decline in spend among households in London and the South East than households elsewhere in Britain, down 10% and 4% respectively. Increases in living costs in London, combined with weak earnings growth in the capital, will be influencing the trend. Eating out was the only activity to see year-on-year growth, up £5 (7%), driven by family households, who spent 29% more on the activity this year. Steve Jebson, Greene King’s commercial director, said: “We have seen leisure spending dip in September compared to the same month last year, as most people are still not feeling better off as their costs continue to rise faster than their incomes, despite improvements in the economy. With the run-up to Christmas, it will be interesting to see if consumers act more prudently next month. Even though households are still finding it tough, it is interesting to see the continued increase in spend on eating out, indicating it is becoming a more common activity and less of an occasional treat. We have also seen households allocate 5% more of their total leisure spend to eating out compared to this time last year, further highlighting its growing importance.” Other leisure, which includes activities such as bowling, cinema-going and live events, showed the biggest drop, of 18% year-on-year, because of warmer and drier weather giving people more reasons to spend time outside.
Industry News:ALMR National Restaurant Association Study Tour to Chicago open to bookings: The Propel Info and Association of Licensed Multiple Retailers (ALMR) 2015 Chicago Study Tour is now open for bookings. The trip, sponsored by CPL Training, takes place between Thursday 14 May and Monday 18 May. The ALMR launched its first study tour trip to the NRA show in 2012, with the trip led by Propel Info's managing director, Paul Charity. The NRA draws 58,000-plus industry professionals from all 50 US states and 100 countries, all seeking the newest innovations and up-to-the-minute information about trends and issues. The ALMR trip provides insights from industry experts on the rise in fast-casual dining, social media, new and emerging brands, menu development, staff management and a host of other issues, with 70 free education sessions It also involves two tours of Chicago’s hottest concepts and a market overview briefing sessions from American experts. Charity said: “The NRA show is a fantastic opportunity to find fresh inspiration and understand the emerging trends shaping the fast-changing US market.” To get more information or to book, email jo.charity@propelinfo.com.
Market support is encouraging US restaurant IPOs: Investors are putting a hefty price tag on publicly traded restaurants, providing an incentive for the owners of growing restaurant chains in the United States to take them public, Nation’s Restaurant News has reported. "The markets are open," said Damon Chandik, managing director and head of the restaurant investment banking firm Piper Jaffray & Co. "Clearly, we've seen a number of restaurants go public, and go public successfully. Recently we've seen more volatility, with Europe and Ebola and everything else. But the restaurant stocks have held in there quite well." There have been 12 consumer IPOs this year, including Zoe's Kitchen, Papa Murphy's, Dave & Buster's and El Pollo Loco.
Financial Times – Spirit deal would be Greene King chief executive’s most transformational deal: The Financial Times has argued that a successful bid for Spirit by Greene King would be chief executive Rooney Anand’s “most transformational deal”. The newspaper said: “Always smart, engaging and talkative, Rooney Anand’s demeanour masks a steely resolve and a voracious appetite for buying and selling pubs. If it completes, Spirit will be his biggest and, he hopes, most transformational deal since he became Greene King chief executive nine years ago. Not all the deals have been successes. Loch Fyne, the fish restaurant business, was bought in 2007 for £68m, with a promise to add more than 30 premises. Today, it is not much bigger than when it was purchased seven years ago. But Mr Anand has mostly won plaudits for taking Greene King from its Suffolk brewing roots to a national pub institution. He arrived at its Bury St Edmunds headquarters as something of an outsider. Brought up in Walsall and educated at Bristol Polytechnic, his speciality was branded food – first at United Biscuits, then at Sara Lee, where he ran its UK bakery division. But he quickly made his mark and today Mr Anand rules with an iron grip. 'You’ve got to be quite robust to work for him,' said one analyst.”
BHA to partner Sky to innovate the future of guest room experience: The British Hospitality Association (BHA) is to partner Sky, patron sponsor of the 2014 Hospitality and Tourism Summit, to explore themes impacting all aspects of the guest experience. The two organisations will work in collaboration with BHA members, starting by hosting a "thought leadership innovation workshop" early next year, which will aim to explore, define and shape how the ultimate in-room guest experience looks and feels. Alison Dolan, deputy MD of Sky Business said: “Sky prides itself on constantly evolving how and where people enjoy our award-winning content, and the hospitality industry plays a key role in this. By offering high-quality and flexible in-room entertainment, as well as sports and news, hoteliers can drive meaningful customer satisfaction and this partnership provides the perfect platform to share, discuss and explore this potential through the BHA and its respected industry-leading members.”
Camra produces guide to Britain’s ‘Beer revolution': Camra, the Campaign for Real Ale, is celebrating Britain’s thriving beer culture by publishing a book called Britain’s Beer Revolution, a look at the most influential breweries, places and people in the nation’s flourishing beer scene, as well as what makes them so special. Roger Protz, co-author of Britain’s Beer Revolution, said: "The word revolution is not mere hyperbole. The change is dramatic. Brewers used to be content with producing mild and bitter, now drinkers can choose from a vast range of styles that includes the new and highly popular golden ales, beers aged in whisky, Bourbon and Cognac barrels and stunning recreations of India Pale Ale, porter and stout. There are also beers made with such exotic and unusual ingredients as chocolate, coffee, herbs and spices, and more and more beers are being made by women brewers as the ancient craft of 'brewster' is restored." Protz’s co-author is Adrian Tierney-Jones and the book includes a focus on brewers, both new and well-established names, beer destinations and beer trends.
Chipotle reports third quarter like-for-like of 19.8% in the US: The Mexican fast-casual chain brand Chipotle reported third-quarter like-for-like sales up 19.8% in the United States and revenue of $1.08bn, against analysts' expectations for $1.06bn. The chain has said that it expects to open 180 to 195 new stores in 2014, and now says that it expects to open 190 to 205 restaurants in 2015. It projects low to mid-single-digit comp-store sales gains in 2015 at its restaurants open at least one year. Chipotle shares have gained 23% in the year to date. The chain's co-chief executive Steve Ells said: "Millenials are turning away from traditional fast food in favour of better food. They're willing to pay more for something they recognise as better."
Company News:Franco Manca to open three sites before March 2015: The "better pizza" brand Franco Manca has opened its ninth site, in South Kensington, West London, and has three more openings lined up by March 2015. The brand will open in Bermondsey Street, Southwark, take over the site of a closed coffee shop in Ealing and will occupy the basement of a planned Real Greek site in Soho, just off Oxford Street. Nabil Mankarious, who owns 15% of the business, told Propel: “The business is flying at the moment. We opened in South Kensington with a queue at the door. It’s a unique brand with a 50-second cooking time and entirely fresh ingredient. We say that we can prepare a pizza quicker than Starbucks can make your coffee.”
Amber Taverns to open micro-brewery at 100th site today: Amber Taverns, the community pub operator led by James Baer and Bryan Wardman, is recreating a modern take on the 19th century gin palace and unveil a micro-brewery at its 100th site, set to open in Churchgate, Bolton today. The company has converted a former pub, the Capitol, into Hogarths, a which it says is "lavish" bar "styled on the gin houses common in the Victorian era". The bar has an in-house micro-brewery and a bespoke gin distilled for the pub, based on a recipe popular in the 18th century. Gary Roberts, operations director at Amber Taverns said the company’s 100th pub in Bolton is named after the painter William Hogarth. He told the Bolton News: “Hogarth was a superb artist, satirist, and political commentator, and some elements of his work will run through the establishment. We are keen to promote a fantastic community pub spirit in a rather under-invested area of the town centre. We believe customers not only deserve fantastic surroundings to imbibe in their favourite tipple, we believe value for money is increasingly important. The micro-brewery will deliver exceptional session beers and innovative and challenging variations on popular varieties.”
Demon Leisure to launch new sport bar concept in Leeds: Demon Leisure is to open a sports bar concept, The Brotherhood of Pursuits and Pastimes, on New Briggate in Leeds on 8 November, in the former home of the Gatecrasher nightclub. Demon Leisure has been started by two of the city’s most prominent hospitality specialists, Seema Dhiman of Demon Consultants, who has more than 18 years’ experience in setting up and consulting on some of Leeds’ most prolific bars, and Dirk Mischendahl, founder and former co-managing director of Logistik Group, an award-winning corporate events, brand experience and internal communications agency. Dhiman said: “We’ve created a place where our customers can completely absorb themselves in the enjoyment of sport, in a place that embraces excellence in everything we do and in every little detail.” Mischendahl added: “We pledged an oath when brewing our own-brand beer, promising to deliver the 'three pillars of the Brotherhood – fine food, exquisite drinks and the best of sporting pursuits to gentlemen of character and ladies of substance’ and I think that sums up the idea perfectly.” The venue will feature nine HD screens, which will broadcast a range of sporting fixtures, high-quality surround sound speakers and headphone ports that offer customers the option to tune in and switch between multiple sports channels.
TGI Friday's lines up Edinburgh opening for December: TGI Friday's will open its latest UK restaurant in Fort Kinnaird Shopping Centre in Edinburgh on Monday 1 December. The venue will seat up to 272 guests, making it one of the largest Fridays in Scotland. It will have an open plan kitchen, and cocktails will come from a "shotgun" bar, which will be the focal point of the restaurant. Warwick Preston, general manager for TGI Friday's in Fort Kinnaird, said: “We are delighted to be part of the brilliant Fort Kinnaird Shopping Centre. It has been a mainstay in the city for 25 years and is in a great new location for us as a restaurant. There’s a huge appetite for Friday's in Edinburgh, and we’re extremely excited to be opening another restaurant here. In addition, it’s brilliant to be creating 85 new roles in the area.”
Mitchells & Butlers chairman Bob Ivell to chair Carpetright: The carpet and floor coverings retailer Carpetright has announced that the chairman of Mitchells & Butler, Bob Ivell, is to become its new non-executive chairman after Lord Harris retires from the board at the end of the month. Ivell is also a director on the board of AGA Rangemaster Group and senior independent director at Britvic. Lord Harris said: "I am delighted we have found a very able and experienced chairman who brings tremendous skills and experience from his previous executive and non-executive roles. After 57 years in the carpet business, it is time for me to focus on my other interests and I retire from the board confident that I leave behind a strong leadership team."
Arc Inspirations secures £3m of Santander finance: The Leeds-based bar and restaurant operator Arc Inspirations, is due to open more venues after Santander provided a £3m cash injection. Arc, established in 1999 by Chris Ure and Martin Wolstencroft, now owns and operates 11 bars and mploys more than 500 staff. Turnover is forecast to increase by 65% to £18m this financial year after the success of the Pit sites recently opened in Harrogate, Leeds and Chapel Allerton and Banyan in York. The £3m will fund further expansion with a New York-themed bar, Manahatta, opening in early November on Merrion Street in Leeds. A number of new sites are also planned for 2015 and the group's strategy is to open five to ten new units over the next five years. Andy Whelan, finance director at Arc Inspirations, said: "The business has had a fantastic performance over its first 15 years, growing to 11 units with no external funds. Based on our strong and proven business model, we now believe the time is right to work with Santander to accelerate our expansion.”
Wetherspoon to add hotel bedrooms in Dunfermline: JD Wetherspoon is pursuing its policy on putting spare upstairs space to use by adding hotel bedrooms to its site in Dunfermline. The Guildhall and Linen Exchange, a JD Wetherspoon pub on the High Street, applied for planning permission just over a year ago to turn offices on the upper floors of the building into hotel rooms, combining the basement and ground-floor pub with guest rooms on the first and second floors. After initial planning permission was approved earlier this year, Wetherspoon is now awaiting a decision on further proposals to make alterations to windows. The company indicates the hotel will open its doors as soon as next month, with an expected launch date of 17/18 November. The hotel extension is expected to add around six more jobs to the business. Wetherspoon spokesman Eddie Gershon said: “Our pub in Dunfermline has proven extremely popular and we are looking forward to opening the hotel alongside it very soon. We are confident that the hotel will be a great asset to the pub and the town itself.”
Brunning & Price to open Wirral site on 11 December: Brunning & Price, the gastro-pub brand owned by the Restaurant Group, will open its new pub on the Wirral in Merseyside, the Red Fox, on Thursday 11 December, "if everything flows as it should". The site was previously known as the Grange and until very recently was used for functions at one end of the building and had a nightclub in the basement. The company, which reported that it heard about the site through its wine supplier, said: “As ever, our plans are simple; we just want to be a great pub restaurant. So for now we’ll be moth-balling the function suite and converting the basement nightclub into substantial commercial kitchens and service areas, which should help us deliver fresh, unpretentious, high-quality food to a cohesive pub restaurant.”
Samba Swirl cuts investors a better deal: Samba Swirl, the first self-serve frozen yogurt chain in the UK, selling fresh juices, gluten-free crepes, Acai bowls, smoothies and shakes, has increased the amount of equity it is offering in a crowdfunding push on Crowdcube, to 10% from 7.3% in return for £285,000 of investment – so far 32 investors have pledged £80,320. The pitch states: “We have diversified revenue based across four sites and are looking to open an additional three mall sites (one approved) ahead of private equity investment. We launched in October 2010 and have fast-growing revenues, from £350,000 in Year One to £750,000 for the latest financial year (to 30 June 2014). We have already secured £105,000 of funding from Santander Corporate and a £100,000 equity investment stake from the family of Sir Julian Horn-Smith, former chief operating officer of Vodafone. Samba Swirl is seeking £275,000 – £450,000 to open three to five new mall sites across the UK, as part of a strategy to target this lucrative and less weather sensitive area of the sector. Two private equity funds have expressed interest in investing a large sum (>£2m) once the mall concepts are launched in order to complete our UK expansion to 20 sites nationwide, while in parallel for the international franchise to launch up to 50 sites. This will provide us with two key exit points for investors.”
Luke Johnson – crowdfunding is a real breakthrough: Sector investor Luke Johnson has described the rise of crowdfunding as a real breakthrough in investment funding for entrepreneurs. In his Financial Times column, he stated: “Part of the explanation for the sudden expansion of crowdfunding is very low interest rates. Investors are receiving poor returns on bank deposits, so they are searching around for other places to put their savings. Of course, punting money in crowdfunded projects is much more dangerous than leaving it in the bank – but also more exciting. Moreover there is no doubt that this novel form of finance means more new ventures, more job creation and more innovation. The sheer variety and ingenuity of schemes that are seeking backing is inspirational. Crowdfunding enables communities to come together and pursue good causes. Inevitably, crowdfunding was pioneered in the US, but because of a legal logjam, the market there is semi-paralysed. This has enabled London to claim the crown as the world’s crowdfunding capital, thanks to light regulation and tax breaks. Crowdfunding cannot offer the experience, mentorship and connections that veteran investors provide. Weak ideas will still fail to find the necessary backing. And many crowdfunded projects will go broke. But as an alternative to the traditional forms of finance for cash-strapped ventures, it represents a real breakthrough.”
CPL Online launches allergen course ahead of new EU legislation: CPL Online has developed a new e-learning course on food allergens, entitled Allergen Awareness, which will launch this month. The course is designed to introduce learners to the rules and legislation around food labelling and catering in relation to food allergies and allergenic ingredients. It precedes the new EU legislation coming into effect on 13 December, which requires changes to the way food allergen information is communicated to customers in pubs, restaurants and food service operations. The BIIAB accredited course is delivered in five units; ‘Allergies and their effect in the body’, ‘Rules and Legislation’, ‘Labelling’, ‘In the Restaurant’ and ‘Responsibilities’. David Dasher. CPL Online’s managing director said: “This course offers operators a quick and cost effective solution to ensure employees are compliant with all allergen related EU regulations. The course is not only comprehensive and compliant but is delivered using imaginative animation and technology that is engaging for the e-learner.”
New TCG menu offers 32 bespoke options across 36 pubs: The managed pub and bar operator TCG is redesigning its "Good Honest Food" mainstream menus, creating more bespoke offers for each site, while also adding several new dishes that reflect the continuing influence of American cuisine on UK casual dining. Each menu has been created to appeal to the individual site’s customer base, resulting in 32 variations across the 36 pubs and bars taking the Good Honest Food menu. Design as well as content is tailored, to ensure that each menu is relevant to its target audience, be it for a High Street pub, community local or student bar. New items include pulled pork dishes, including a jacket potato, wrap and panino. Pulled pork is also available as an option with the newly added macaroni cheese. Other items with an American flavour include a quarter rack of barbecued ribs, a slow-cooked beef and onion club sandwich and "ultimate sharing nachos". At the same time, the burger selection is extended with the addition of chicken, cheese and bacon and spinach and falafel burgers, the last dish widening the choice for vegetarians, as do the new tomato, chilli and mushroom pasta and the "shroomies" – sliced flat mushrooms in breadcrumbs. New desserts are a Jaffa ice cream cake and a banoffee pie. All menus feature strong promotional offers, such as two meals for a fixed price, two for one" on desserts, or the option to add a salad or portion of chips to some dishes for just £1. Ben Levick, TCG's director of operations, said: “We aim to equip our pub and bar teams with the right food and drink to enable them to be the best in their local market. The launch of these new Good Honest Food menus is the most tailored support we’ve created and effectively gives all our sites a bespoke food offer." Wyn Ellis – Whitbread on track for another record year: Numis Securities' leisure analyst Wyn Ellis has issued an 'Add' note on Whitbread shares, with a price target of 4,500 after yesterday’s half year results showed “continued good progress”. Ellis said: "Management says it is on track for 2016 and 2018 growth milestones with its two market leading brands, Premier Inn and Costa, going from strength to strength and continuing to win market share. The outlook statement is positive although management warns of tough Q4 comps. Trading (at Premier Inn) continues to be positive and growth targets have been maintained for Premier Inn, however, there is a change in mix with fewer rooms now expected to open in London (18k by 2018 vs. 20k previously), compensated by faster growth in the regions. A foray is being made in to the German market by Premier Inn, where Whitbread plans to open a half dozen hotels in the next four to five years. There is some tidying up of the Costa portfolio overseas, with some franchise closures in India and China, but the UK continues to do very well and overseas prospects continue to look promising. There are signs of improvement in Poland. Investors can take encouragement from the recently published UK hotels outlook document by PwC. They forecast 5% RevPAR growth in calendar 2015 in London, with the Rugby World Cup expected to have a positive demand impact. The provinces, having languished for some years, are benefiting from an improving economy, says PwC and have set a 'blazing pace' for RevPAR recovery. PwC forecasts 6% RevPAR growth in the provinces in 2015. We currently forecast 3.5% RevPAR growth in FY16 (Feb) and believe that there is upgrade potential. We believe that Whitbread remains on track for another good year as its strong brands continue to win market share and its ambitious organic network expansion gains momentum.”
Jamie Oliver launches brand extension in Australia: The celebrity chef and restaurant entrepreneur Jamie Oliver has launched an "outdoor living" collection in Australia, which will be available exclusively from Masters Home Improvement from November. Designed to cater to Australia's love of outdoor entertaining, the limited-edition range includes barbecues, an outdoor furniture setting complete with a built-in fire pit and ice bucket, and a selection of melamine tableware. Oliver said: "Cooking outside in the sunshine is one of life's great pleasures, and what better excuse to get grilling and enjoy an alfresco feast than the gorgeous Aussie summer."
Award-winning curry chain eyes fifth site: The award-wining South East London curry chain Shampan is eyeing a fifth site as it celebrates 25 years of business. The group has restaurants in Welling, Chatterton Village, Bromley, and Westerham, Kent. The Westerham branch has twice won the British Curry Awards’ Newcomer of the Year, in 2012 and 2013, while the Shampan 3 in Welling won the British Curry Awards’ Best Indian Restaurant in London Suburbs in 2011. All three of the restaurants have been nominated for this year’s British Curry Awards. As well as running a business, the Shampan Group also runs the Shampan Foundation, a charity which helps young people and their families in Bangladesh. Owner Sufian Miah said: “The next 25 years look to be just as exciting as the first. We have some exciting things planned including the announcement of the location for Shampan 5.” McDonald’s opens first two-storey drive-through in Ireland as part of €20m expansion: McDonald’s has opened a new drive-through restaurant in Dublin Airport, in a €2m investment. It is the first two-storey drive-through McDonald’s in Ireland. The interior design is themed "airport lounge", the first time this scheme has been implemented in a McDonald’s drive-through restaurant. It is the latest phase in McDonald’s expansion plans and commitment to create 700 new jobs and open 12 new restaurants in Ireland, at a cost of more than €20m, by the end of 2015. The restaurant will be McDonald’s third new opening in 2014, after those in Carrickmines and Kilkenny earlier in the year. McDonald's arrived in Ireland in 1977, and opened its first restaurant at Dublin Airport in 2000, in Terminal 1. Over the past six years it has invested a total of €64m in its network in the country and created 1,200 new jobs. The new McDonald’s restaurant in Dublin Airport will bring the total number of McDonald’s restaurants in Ireland to 86, with a workforce of around 4,500 employees. BrewDog to host second nationwide craft festival this weekend: The Scottish brewer and retailer BrewDog is hosting its second annual nationwide craft beer festival this Saturday (25 October), unveiling 16 unique collaboration brews made with the UK’s best craft beer breweries. The company said: “Following its successful launch in 2013, this year’s ‘CollabFest’ will be bigger and better, showcasing the most exciting and innovative breweries in the UK, such as Five Points, Brodie’s and Pressure Drop. The UK is home to almost 1,300 breweries, more per head than anywhere else in the world. It has seen over 10% growth in breweries for the last two years running. To instigate the project, teams from each of BrewDog’s 16 participating bars were tasked with joining forces with a local craft brewery to create a limited edition collaboration beer. BrewDog bar staff worked directly with their partner brewery on every aspect of the process from selecting ingredients, to bottling and naming the signature brew. All 16 limited edition beers will be tapped simultaneously during the weekend-long festival and served in UK BrewDog bars while stocks last.” Three Restaurant Group brands sign for Southend scheme: Three restaurant brands owned by the Restaurant Group, have signed up to help create a new leisure park in Southend, Essex, according to the Southend Standard. Chiquito, Coast 2 Coast, and Frankie and Benny’s have all applied for a licence to open up at the Seaway car park redevelopment, off Lucy Road, which could create up to 100 jobs. Local media suggests that Cineworld is the operator chosen to run the multiplex cinema for the planned leisure complex, which would include a multi-storey car park. The complex would be similar to Basildon’s Festival Leisure Park and Southend Council is expecting to sign a deal with a development partner to make the long-awaited scheme a reality next month. If all goes to plan it could open at the end of 2015 or in early 2016. Molson Coors to launch brand redesign for Carling British Cider: Molson Coors is launching a full brand redesign of its Carling British Cider range to boost its positioning as a premium, modern cider. The new packaging for both the Original and Cherry flavours includes an updated brand identity and a redesign of its packaging. Jim Shearer, Carling brand director at Molson Coors, said: “The redesign of Carling British Cider brings the trust and familiarity of Carling and mixes it with a contemporary and dynamic premium cider. We look forward to continuing to bring new thinking to the cider market, which we believe offers a superb opportunity for growth.” Heineken partners community orchard project: Heineken is to partner a scheme called "Helping Britain Blossom" that will restore more than 100 orchards across the country. Launched yesterday on National Apple Day (21 October), the project will support local people to generate and restore 100 community orchards by 2017. By working directly with community groups, Helping Britain Blossom will help up to 4,000 people learn new skills and deliver transformational benefits to their local communities. David Forde, managing director for Heineken, said: “This new project is about bringing people together, in an exciting and practical way, to create lasting change in the areas in which they live. As a cider maker, orchards are hugely important to our business. We also know that they can have real benefits for urban communities. We want to share our passion for orchards with communities across the country. I look forward to seeing the groups, and their orchards, blossom over the next few years.”
Krispy Kreme opens in Cambridge – queues form three hours before opening: Krispy Kreme has opened its doors in the Grand Arcade in Cambridge. Queues started forming at 7am, three hours before the new store opened. Krispy Kreme's arrival, which created 14 jobs, comes after that of its rival Dunkin' Donuts at The Grafton centre earlier this year. Judith Denby, chief marketing officer at Krispy Kreme, said: "We're excited to finally bring Krispy Kreme to Cambridge and it has been fantastic to see the response we have had from people already. Grand Arcade is a great location and we're looking forward to welcoming shoppers in for fresh doughnuts and coffee." John O'Shea, general manager for the Grand Arcade, said: "We are delighted that Krispy Kreme has opened at Grand Arcade. It is a great brand, which adds to the strong store mix at Grand Arcade. We knew that our customers would react positively to today's opening, as could be seen by the queues, which started to form before 7am this morning." Former Soho House US managing director to launch his own version of Soho House: A former Soho House executive who left the private members’ club in 2009 to run a hotel in his native Kenya is back in New York and launching his own version of a Soho House hotel/club in Harlem. Mark Somen, the former managing director of Soho House North America, who oversaw expansion in Miami and LA Soho House clubs, plans to launch Uptown House in the Factory District in West Harlem. Uptown House will be in the Malt House, and have a members’ restaurant, a pool table and bar, a spa, a 45-seat movie screening room and a “roof playground” with a pool, cafe and bar. Other founding partners include Bob Emmett, founder of the private club at Isle de France in St Barthélemy in the French West Indies. The group has “a fairly well-defined growth plan” to roll out other Uptown House clubs in Los Angeles, Atlanta, Washington and London, Emmett said. He said a factor in admission would be that a member must be willing to mentor a child in Harlem or the Bronx. There also will be 40 club/hotel rooms and five suites, event rooms and a recording/digital production studio.
McDonald’s to 'change fundamentally' after 3.3% lfl decline: McDonald's has reported global like-for-likes down 3.3% across its 34,000 restaurants in its third quarter to September 30, 2014. The company’s European division saw like-for-likes fall 1.4%, with the UK the one bright spot showing positive like-for-like sales. The company has now promised to simplify menus and respond to the “depth of its challenges” with a “sense of urgency” and fundamentally change the way it does business. Chief executive Don Thompson said: "McDonald's third quarter results reflect a significant decline versus a year ago, with our business and financial performance pressured by a variety of factors, from a higher effective tax rate, to unusual events in the operating environments in [Asia, Africa and the Pacific] and Europe, to under-performance in the US, our largest geographic segment. While our ability to withstand these factors is a testament to the company's enduring brand and strong financial foundation, by all measures our performance fell short of our expectations. We recognise that we must demonstrate to our customers and the entire McDonald's system that we understand the problems we face and are taking decisive action to fundamentally change the way we approach our business." The company is implementing a new global approach designed to increase its relevance with customers and drive guest traffic. It said: “This is focused on three specific areas: McDonald's Experience of the Future, a comprehensive restaurant execution concept that elevates the menu and customer experience elements that are hallmarks of the McDonald's brand, and capitalises on investments in reimaging, service and technology enhancements to improve the look, feel and convenience of the McDonald's experience in ways that are in-tune with today's consumer needs; Digital Strategy, a global strategy built around simplifying the customer journey across ordering, payment and mobile offers, beginning with the implementation of exciting and relevant new options, such as Apple Pay; Resourcing for Growth, a diligent review of the organisation's structure and use of resources in order to redirect spending toward those initiatives, such as the digital strategy and the McDonald's Experience of the Future, that will support the company's key long-term growth initiatives.” Global comparable sales decreased 3.3%, reflecting falling customer numbers in all major segments and the impact of supplier issues in certain markets in Asia. In the US, third quarter comparable sales decreased 3.3%, driven by falling customer numbers amid sustained competitive activity, McDonald's said. Operating income for the quarter fell 10% as initiatives to address the difficulties the company was facing did not translate into improved financial results. However, it said, under the leadership of the division's recently elected president, Mike Andres, McDonald's US "is moving quickly to implement new initiatives designed to deliver a flatter, more nimble organisation that ensures key business decisions are made closer to the customer, by people with local market expertise; a revamped marketing approach that links national messaging around our food quality, brand transparency and people initiatives, complemented by local ad campaigns that are responsive to individual market preferences, and a simplified menu that showcases the company's core products and features locally relevant menu options, available in new, customisable ways.” In Europe, third-quarter comparable sales fell 1.4% and operating income dropped 2%. The company said: “While consumer confidence and other issues related to the operating environment in Russia and Ukraine and ongoing weakness in Germany negatively impacted the segment's quarterly results, the UK delivered positive comparable sales and operating income performance. Looking ahead, McDonald's Europe will work to build guest traffic by pursuing targeted opportunities that leverage everyday value, classic core favourites, blended-ice beverages and key daypart initiatives." In Asia, the Pacific, Africa and the Middle East, third quarter comparable sales fell 9.9% and operating income dropped 55% (56% in constant currencies), primarily because of the impact of supplier scandals on sales and profitability in China, Japan and certain other markets. The division "is diligently working to restore consumer trust and confidence in McDonald's brand and strengthen the segment's financial results to continue driving the long-term potential of this segment.” Thompson added: "We began 2014 mindful of the challenges we faced in driving sales and profitability. The internal factors and external headwinds have proven more formidable than expected and will continue into the fourth quarter, with global comparable sales for October expected to be negative. These significant challenges call for equally significant changes in the way we do business. In the US, we are driving decision making from headquarters back into the field, where our restaurants serve the daily needs of our customers in their local communities. In our international markets, we are taking action to restore customer trust and regain business momentum. We understand the depth of the challenges and we are responding with the sense of urgency required to improve our performance."
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