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Tue 4th Nov 2014 - Propel Tuesday News Briefing |
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Story of the Day:Tim Martin – The Restaurant Group has been an outstanding success because it breached corporate governance rules in favour of experience on the board: JD Wetherspoon founder Tim Martin has argued that The Restaurant Group has been an outstanding success in the past seven years because it ignored corporate governance rules and appointed experienced executives to its board. Writing for Propel Opinion, Martin said the company’s fortunes can be compared favourably with other companies, such as Punch, that were compliant. Martin said: “The Restaurant Group was rocking and rolling in 2007, with sales of £367m and profits of £43m and has continued to shoot the lights out, with sales soaring to £580m and profits to £73m by 2013, a brilliant outcome in a deeply disturbed economic environment. Yet it was a featherweight compared with Punch Taverns, the Giant Haystacks of the pub world. Punch had profits of £282m from its 8,000 or so pubs in 2007 but, like a rocket running out of fuel, it has plummeted earthwards ever since, being rescued from oblivion recently by a last-minute deal with its bondholders, which left shareholders with almost nothing. The multi-billion dollar question for investors, bankers, suppliers and others is whether anyone, apart from Mystic Meg, could have foretold the divergent performances from analysing the board structure of the two companies from their publicly available 2007 annual reports. I believe the answer is undoubtedly yes and the case studies illustrate valuable lessons for analysts on the ingredients of commercial success. The Restaurant Group breached corporate governance rules in several important respects and these breaches gave it an enormous commercial advantage over the hapless Punch board. Its non-executive chairman, Alan Jackson, a veteran of the leisure industry, had worked as an executive for the company for several years, before taking up this role: executives who become chairmen are deeply frowned upon by the guidelines. Yet the elevation of a successful executive to the chair can create a sense of continuity, often valued by employees, and also means that executive directors themselves take a longer-term view, if one or other of them might be involved as chairman in the future. In contrast, the compliant Punch chaps dutifully appointed an outsider as chairman, with a background in planning and strategy, rather than at the pub or restaurant coalface. Although there are no absolutes, the appointment as chairman of someone with little industry experience, and no experience as an executive at the company, has been a common feature of financial catastrophe at many pubcos, banks and supermarkets in recent years. So, advantage number one for investors to note: a successful executive with experience of the company is far more likely to make a successful chairman. What else should you seek as a portent of success? The Restaurant Group board set-up illustrates another important factor: companies with a majority of executives or former executives, in breach of governance guidelines, invariably fare better than those with a majority of 'independent' non-executives. The Restaurant Group had a majority of four executive directors on the board, with immense collective experience of the company, combined with a strong 'operational' bias. Directors Kevin Bacon and Trish Corzine, for example, had joined the Restaurant Group as area managers more than ten years before 2007. This operational experience, personified in a majority of executive directors, is surely a self-evident advantage for a restaurant company.” See the later Propel Opinion Special for the full article.
Industry News:UK living wage rises by 20p to £7.85: The UK living wage, an hourly rate based on the amount needed to cover the basic costs of living, has been raised by 20p to £7.85. The London Living Wage has increased to £9.15, in recognition of how much more expensive it is to live in the capital than elsewhere. For a 40-hour week, it is the equivalent of just over £19,000 a year. The voluntary rate has been adopted by more than 1,000 employers across the country, benefiting 35,000 workers. It is now 21% higher than the compulsory UK minimum wage, set at £6.50 by the government. On Sunday, Citizens UK, the community organisation behind the Living Wage project, said the number of companies paying the rate had more than doubled in the past year. Despite this rise, research published on Monday by the accounting firm KPMG, a supporter of the wage, found 22% of the working population earn less than the 2013 Living Wage, which was set at £7.65 an hour.
Shadow minister for police praises anti-social behaviour plan: The shadow minister for police has praised a radical 12-point plan aimed at tackling crime and anti-social behaviour in Norwich’s night-time economy. Jack Dromey visited Norwich to hear about how the plan, which was approved earlier this year, was helping to tackle long-running problems in the city’s entertainment district, centred on Prince of Wales Road. The plan, which includes experimental road closures, extra CCTV cameras, taxi marshals and new toilets, was drawn up by council officers and police as part of an attempt to cut alcohol-fuelled violence in the heart of the city and help make it safer. Dromey said: “Norwich City Council has to be applauded for a welcome and much-needed initiative. Prince of Wales Road must be a good place to live, a safe place to go out and good for local businesses. The 12-point plan is designed to achieve precisely that. I’ve seen similar initiatives elsewhere but this is one of the best.”
More than 100 premises close early in Nottingham to dodge late night levy: More than 100 premises in Nottingham have chosen to close early in Nottingham rather than pay the late night levy, which came into force on Saturday (1 November). Premises face being charged up to £4,440 to help pay for the cost of policing after midnight. More than a third have decided to shut early, with 117 licensees choosing an early closing time, while another 218 will pay. Nottingham City Council said its share of the money would pay for two new community protection officers, with the rest going to the police. Nottingham BID negotiated exemption for its members. Jeff Allen, chairman of the Nottingham BID, said: “It is the first time anywhere in the country that a BID has succeeded in securing full exemption for its members, which makes it a significant achievement and demonstrates that Nottingham is once again taking the lead. It recognises the contribution that the Nottingham BID already makes to the evening economy through the various schemes and initiatives that it organises and funds and which make a real difference when it comes to people being able to enjoy a safe and enjoyable night out in the city.”
New crowd-funding platform launches with 'more professional approach': A new crowdfunding platform, Fireflock.com, has launched which claims to differentiate itself from other services such as Crowdcube and Seedrs through its “more professional approach”, placing emphasis on high-growth start-ups with a scalable concept, investable management team and realistic valuation. The soft drinks company Thor Drinks, offering 10% of its equity for a £50,000 investment, is one of the first to list on the new platform. Callum Campbell, founder and chief executive of Fireflock.com, said: “Equity crowdfunding has experienced tremendous growth since its inception: growth which has served to validate the model. A more professional approach is now required to ensure that companies not only have access to capital but are able to build the knowledgeable and experienced investor base required to scale.”
Street food moves indoors in Croydon with launch of StrEatery: Seven street food traders will move to a permanent base tomorrow (Wednesday 5 November) with the launch of Surrey StrEatery in Croydon, South London. Funding for the traders has come from the Mayor of London’s regeneration scheme, with each one given a grant of up to £3,000 towards the cost of their stall and running a demo area for teaching, cooking demonstrations and workshops. They will be given six months’ support to help them build their businesses, including a tailored package of free space to trade, with no rent, rates or utility bills. Training and mentoring is also included, as well as the offer of a professional marketing campaign to help promote the area as a destination for lovers of quality street food. Toni Letts, Croydon Council's cabinet member for economic development, said: "What better way to bring a vacant shop into use than by turning it into a vibrant, bustling eatery serving up quality street food which everyone can enjoy?" The seven businesses at the food hub are: Dos Santos Foods, offering Goan food, a blend of Portuguese and Indian street food; Liquid Pod, a "healthy super food" purveyor; Plumbun, which sells cakes and bakery goods; Mum’s the Chef, which offers "healthy nutritious alternatives to greasy breakfast rolls and sandwiches"; Olivier’s Bakery, an existing business, which freshly bakes croissants, Danish pastries, savouries and seasonal pastries; Ro Co Coffee; and La Carreta, selling Mexican and South American food.
Company News:Taylor St Baristas £3m coffee bond raises £179,500 on first half-day: Nine-strong coffee shop chain Taylor St Baristas, led by Richard Shaer, raised £179,500 from 82 investors in the first half-day after launching a coffee bean bond aimed at raising £3m – the bond pays 8% interest over a four-year term. This year, the company’s unaudited accounts show turnover of £3,337,000 from nine shops, with shop pre-central overhead Ebida of £278,000 and actual Ebitda of £110,000, producing an overall loss of £276,000. Like-for-like sales rose by 14% between April and September this year. The company forecasts that 30 sites in 2020 will produce turnover of £19,888,000 and shop Ebitda of £5,284,000, central Ebitda of £4,284,000 and pre-tax profit of £2,721,000. The Tolley siblings currently own circa 60% of the Taylor St business. The business raised £900,000 in equity from MTLS Ventures in 2013 – the investor holds a 9.91% stake in the business. It is expected that three unnamed existing investors will invest circa £214,000 in new equity by 1 December 2014 although there is “no formal commitment”.
PizzaExpress aims for 100 China sites within five years: PizzaExpress is planning to develop 100 restaurants in China over the next five years, Richard Hodgson, the company's chief executive, announced in Shanghai last week. PizzaExpress was bought by the mainland private equity group Hony Capital for £900m in July. Hodgson said PizzaExpress was in the process of identifying appropriate locations in first and second-tier mainland cities to build a "bigger pipeline" for its Chinese businesses. "What we are trying to do is ensure we don't rush. It's not a numbers game," he said. PizzaExpress currently runs 23 outlets in three Chinese cities, Hong Kong, Shanghai and Beijing, and Hodgson predicted its Chinese businesses would contribute 20% of the company's profits in five years’ time. He said PizzaExpress would take a different approach in tapping the Chinese market. "It would be easy for us to use local ingredients, but it would kill us," he said. "We only use premium, imported ingredients from our trusted suppliers." TLC Inns reports storming October trading and X Factor boost as it searches for more Grand Central sites: TLC Inns, the award-wining pub and restaurant operator led by Steve and Jo Haslam, has reported 20.5% like-for-like sales growth in October. The company starts work on its fourth Grand Central bar and grill site in Ipswich this week as it opens a third site in Colchester. Steve Haslam said: “The decent weather in October certainly helped encourage customers to come out but Grand Central is going from strength to strength. We’re now looking for more sites.” The company’s White Horse in Ramsden Heath has also been boosted by formerly employing the X Factor Live finalist Lauren Platt, who worked a runner for six months at the pub before entering the talent competition. Haslam said: “Each week more of the family and friends come down to the White Horse on a Saturday night to watch X Factor.”
Bubbeology secures eighth site on Upper Street in Islington: Bubbleology, the leading bubble tea brand, has agreed a new 10-year lease on a 973 square foot site at 64 Upper Street in Islington, North London with Finscott Investments. This will be the eighth location for Bubbleology, which also has stores in Soho, Westfield Stratford, Notting Hill and South Kensington, together with concessions in Topshop Oxford Circus and Harvey Nichols, all in London, as well as a newly opened kiosk in Bluewater Shopping Centre. Bubbleology operates in a total of seven countries, with 52 locations globally. Peter Flint, an associate in Savills' central London retail team, which acted for Bubbleology, said: “Since opening its first store in Soho in 2011, Bubbleology has successfully expanded in London and is recognised as an established global bubble tea operator. Islington provides a vibrant shopping scene, which ideally complements the brand. We are currently looking for further units in other key London locations to continue the growth of this concept.” Finscott Investments was represented by Copping Joyce.
Carluccio’s to take Cafe Rouge site in Bishop’s Stortford, close to planned Cote and Bill’s outlets: Carluccio's is to open a branch in Bishop's Stortford, Hertfordshire. The business, which has more than 80 restaurants in the UK, is to launch in the spring in the North Street premises currently occupied by Cafe Rouge, which opened in North Street in 2010 in premises formerly occupied by the bookshop and stationer Boardmans. Across North Street, work is ongoing to transform the former Pearsons department store into two restaurants, one to be occupied by the bistro chain Cote and the other by Bill's. Both plan to be open by next summer.
Five Guys names dates for Glasgow openings: The American chain Five Guys Burger and Fries has pencilled in an opening date of 24 November for its first Glasgow restaurant, at 57-61 St Vincent Street in the city centre. The site was formerly home to an Italian restaurant run by the Pesto chain, which accepted "an offer we couldn't refuse" to quit the premises and allow Five Guys in. Five Guys will also be opening a new 3,637 sq ft restaurant inside the Silverburn out-of-town shopping centre in Glasgow on 9 February. It will join Chimichanga, Carluccio’s, TGI Friday’s, Cosmo, PizzaExpress and Zizzi in the leisure extension of Silverburn.
Gusto plans Manchester opening with high-end twist: Gusto, the restaurant company spun out of the Living Ventures group, is to open a site in Manchester, on Jackson’s Row off Deansgate, in December, the first of a planned 15 branches across the UK in the coming years. Sue Crimes, managing director of Gusto, has told local media that it will be a high-end specials menu and wine list unique to Manchester, to cater for the celebrities and big-spending business bosses likely to be attracted to the venue. Dishes being proposed include wood roast lobster with garlic butter; fillet of Angus beef, Valpolicella and balsamic onions; cutlet of veal Viennoise; roast halibut with crispy artichoke and grilled langoustine, garlic and Pernod butter. Crimes said: “We will have the standard a la carte menu that is in all of our branches, but there’ll be an additional menu with high-end specials and in Manchester only, we will have a fine wine list. There are going to be about 20 wines on that which are selected for the restaurant. The idea is if you’ve got a celebrity or corporate customer who wants a high-end experience and to order a lobster dish for £40 or so and a £100 bottle of burgundy or £70 bottle of Cloudy Bay, they can.”
Gupshill Manor owners take on Punch lease: The owners of the Gupshill Manor pub near Tewkesbury in Gloucestershire, have taken on a Punch Taverns lease in Haley Swan, Worcestershire. Barney Reynolds, of Quintus Pubs, who runs the 15th century Gupshill Manor with his sister Naomi, told the Malvern Gazette newspaper: "I'm from the Malvern area, and I think that helps locals feel relaxed about me taking over the pub, as they know I feel the same way about this place as they do. We plan to remain a local for local people, as that's one of the best things about being a village pub. The response from the locals has been fantastic. We are also focusing fully on the quality of food and alcohol we serve, which is hugely important. It shows village pubs are still very popular, as long as they offer the customers what they want and maintain that village feel pubs like this have." A full refurbishment, and an extension to the kitchen area, is planned to take place in January with the project scheduled to take a week to complete.
Study Room team eyes Kendal for brand expansion: The team which turned a derelict Punch Taverns pub in Lancaster into a new concept called the Study Room is eyeing Kendal in Cumbria as the first target for the brand's expansion. Mick Horan, a former director of operations with the Living Room chain and Ha! Ha! Bar and Grill, took over the Nag's Head in Lancaster, which reopened in April after a £450,000 co-investment as “a contemporary bar with a relaxed feel”. Horan and his business partner Tracey Hosker have also taken over the John O'Gaunt in Market Street, Lancaster, but intend keeping it as " a proper city centre boozer". However, Hosker told the Lancaster Gazette, the pair are planning to open two more Study Rooms, with Kendal one of the possible venues. Hosker said the Study Room style was "a nice, airy, modern-looking bar, open in the morning, offering food, but one that’s not too posh or pretentious and that attracts everybody. Yes, we do two-for-one cocktails but we also do ale, coffee and cake, and nice premium lagers.” The target market, Hosker said, was "girls out for cocktails and groups of older lads who want to be entertained," with the Lancaster Study Room hosting live bands, a regular Saturday Northern Soul, funk and Motown night and residences for popular local DJs.
TCG pubs and bars reports sales up 10% in Halloween week: The pub and bar operator TCG has reported sale up 10% in Halloween week thanks to the "perfect storm" of mild weather and half term. Nigel Wright, TCG's chief operating officer, said: "We've seen Hallowe'en grow in popularity, to the point where it is now second only to the festive season in terms of occasions that customers want to celebrate out of the home. It’s a great opportunity for our pubs and bars to add a bit of fun to customers’ experience, whether that's by offering themed cocktails, decorating the place with pumpkin lanterns or putting staff in fancy dress. This Hallowe'en has been an excellent one across the TCG estate, with sales levels on the Friday equivalent to a Saturday, and, importantly, no drop off the following night. We encourage our pubs and bars to turn Hallowe'en into ‘Halloweek’ and many of them had their decorations in place well ahead of the night. We saw sales up by 10% for the week, thanks to the "perfect storm" of Hallowe'en combined with mild weather and the half term holiday.”
Charles Wells nominated in employer awards: Charles Wells has been nominated as a finalist in the Aspire Achieve Advance (3AAA) Employer of the Year 2014. The awards event takes place at the House of Lords on 4 December. The company employs more than 500 people and runs apprentice, graduate and work experience programmes to help nurture local talent. Alex Smart, head of human resources at Charles Wells, said: “Developing talent in business is extremely important to us and apprentice schemes offer an excellent start to a rewarding career path gaining real-life, practical working experience while studying for formal qualifications. Our apprentices work as valued members of a team and so in addition to putting their formal training into practice, we also give them the freedom and opportunity to work on their own initiative, come up with new ideas and take responsibility for their own projects. This is all with the support of a mentor to help them really get the most out of the programme, and their time at Charles Wells. We are absolutely delighted that our commitment to developing apprentices has been formally recognised."
Upham Pub Company to open eleventh site this month: Upham Pub Company will open its eleventh pub site on Friday 28 November – The Plantation (formerly The New Beehive), Canford Cliffs in Poole, Dorset. The Plantation’s seasonal menu is overseen by head chef Darren Beevers, who has experience at Michelin-starred restaurants, including The Capital Hotel, Club Gascon in London, and Le Poussin at Whitley Ridge in Hampshire. The Upham Pub Group’s portfolio includes ten other pubs across Hampshire, Berkshire, West Sussex and Wiltshire. Upham chief executive Chris Phillips said: “Over half of Dorset is designated an Area of Outstanding Natural Beauty and much of its coastline is a World Heritage Site, so we’re delighted to be opening The Plantation right on its coast. There is a thriving community feel mixed with a vibrant tourism trade and we’re excited about offering what we hope will be a distinctive and memorable stay, whether stopping for a swift half of Upham ale, a dinner party with family and friends or a weekend break.” M&B’s Nicholson’s partnered with Eagle Eye Solutions for digital loyalty scheme: Mitchells & Butlers Nicholson’s brand has partnered with the digital consumer engagement specialist Eagle Eye Solutions to launch an application with an in-built digital stamp card. A paper-based loyalty scheme, Hop Circle has been replaced with the new Hop Circle app, developed to give Nicholson’s greater insight and information about its guests, including their preferences, their purchasing behaviour, and the rewards that make them tick. Phillip Blundell, chief executive of Eagle Eye Solutions, said: “People predominantly associate loyalty programmes with coffee-chains. However, loyalty schemes are equally important for the hospitality sector. Nicholson’s new app will enhance their relationship with their customers, while driving footfall to their various individual pubs. The previous paper-based system did not provide them with this level of tangible data insights that could be applied to key business decisions. Knowing the preferences of your customers is critical to staying ahead in this increasingly competitive market.” Giles Codd from Nicholson’s said: “The evolution of the partnership with Eagle Eye Solutions brings great benefit to Nicholson’s. Loyalty is key in the hospitality market and we want to ensure that we are using the very latest technologies to maintain and build a greater understanding of our customer base, and what appeals to them.” The Hop Circle app went live at the launch of Nicholson’s Autumn Beer Festival last week. Pub People Company spends £250,000 to revamp Worksop pub: Pub People Company, the East Midlands multiple headed by Kevin Sammons, is creating 20 jobs as part of a £250,000 refurbishment at the Three Legged Stool pub in Worksop, Nottinghamshire. The pub, on Raymoth Lane, is currently closed while it undergoes an extensive transformation before a reopening in December. In addition to the transformation inside the pub, the Three Legged Stool will also be introducing a brand new menu. The company said: "The concept is to deliver a range of quality and value meals all freshly prepared on site using the freshest ingredients, sourced, wherever possible, from local suppliers.” As part of its promotional efforts in advance of the reopening, the pub is giving away 15 free meals for two as well as one free three-course meal for four on Christmas Day, worth £220. Would-be winners need to email competition@pubpeople.com with their name, contact number and address. Pub People Company currently runs some 44 outlets. Intu reports 20 of 71 new lettings in latest quarter are foodservice operators: The shopping centre operator Intu has reported that 20 of the 71 new long-term lettings in its most recent quarter to 3 November were by foodservice operators. The 71 new long term leases represented £13m of new passing rent, in aggregate 5% above previous passing rent and in line with valuation assumptions. Foodservice signings in the period included Yo! Sushi! and Pret a Manger at Intu Braehead, Coast to Coast at Intu Metrocentre and Wagamama and Chiquito's at Intu Uxbridge. Footfall for the year to date is 1% higher than for the same period of 2013, ahead of Experian's measure of national retail footfall, which is slightly negative year-on-year. The company reported the majority of the steel structural work is finished for the £20m leisure extension to Intu Potteries. The leases for the cinema and five new restaurants are all exchanged, bringing Cineworld, Nando's, Frankie & Benny's, PizzaExpress, GBK and Chiquito's to the centre's line-up. The new leisure scheme is on target for completion in summer 2015. At Intu Victoria Centre in Nottingham, work is ongoing on the £42m mall refreshment and the creation of 12 new restaurants in the catering quarter around the Clock Tower. Handmade Burger Co, Coast to Coast, Tortilla and Ed's Easy Diner have exchanged contracts on the catering development, bringing four new catering names to Nottingham. New Danish concept Snaps & Rye open today: Snaps & Rye, a Danish kitchen and takeaway concept led by Kell and Jacqueline Skött, opens its doors today (Tuesday 4 November) in Golborne Road in North Kensington, West London. The brands takes its name from the main elements of the menu: Snaps, a drink served traditionally with meals and rye, the base of the traditional "Smørrebrød". Chef Trine Vennerstrøm Eriksen-Johnson is spearheading the menu with a strong focus on classic Danish cuisine. There will also be curated collections of Danish books, home accessories and food available to buy, including Anne Black crockery, Flensted mobiles and Lakrids liquorice.
Las Iguanas to open in Norwich next week: Las Iguanas, led by founder Eren Ali and backed by Bowmark Capital, will open on 10 November in the Riverside Leisure Park in Norwich. The 200-plus cover restaurant will create 40 jobs. It will launch with a two-for-one offer on all dishes between Monday 10 November and Thursday 13 November from 12pm to 5pm each day. The first 100 customers over the weekend will also be treated to a free burrito. Customers who book a table on Saturday 15 November will be treated to a selection of cocktail tasters throughout the evening. Last week, Propel reported that Las Iguanas, saw turnover rise 18% to £48.36m in the 52 weeks to 29 March 2014, up from £40.95m the year before. Pre-tax profit was up just 2.2%, at £4m, from £3.92m in 2012/3. Underling pre-tax profit, however, was up 13% to £4.9m, an increase of £600,000 over 2013 and a £900,000 pre-depreciation charge increase.
Frankie & Benny’s and Costa Coffee confirmed for proposed new Exeter retail park: The Restaurant Group’s Frankie & Benny’s brand and Costa Coffee has been confirmed for a major new retail park, the Moor Exchange development in Exeter. PizzaExpress and Nando’s have also expressed “strong interest” in the proposed development. The developer, Consolidated Property Group (CPG), said demand for space in the scheme, which will be at Honiton Road, Sowton, is "overwhelming". Around 400 jobs would be created by the development if it becomes fully operational. CPG hopes the scheme will be granted planning permission when it is discussed by Exeter’s planning committee, possibly at its meeting on 1 December.
Starbucks launches first LGBT-inclusive TV ad: Starbucks has launched a new ad campaign featuring two drag artists which is showing on the LGBT network OUTtv in the United States. The new ad features the former American Idol star Adore Delano, and Bianca Del Rio, who won the latest series of RuPaul’s Drag Race, an American reality competition television series which details RuPaul's search for "America's next drag superstar". OutTV said: “The spot, titled Coffee Frenemies, is Starbucks’ first foray into queer representation! We were surprised they let us make it!” In 2012 the anti-gay National Organisation for Marriage in the United States launched a "Dump Starbucks" campaign after the coffee giant backed draft legislation which eventually led to equal marriage becoming legal in the state of Washington. The group’s president, Brian Brown, recently claimed the boycott had single-handedly halted the global expansion of the Starbucks brand. In fact, Starbucks' sales have grown by 5% or more for 18 consecutive quarters in the US. The company’s chief executive, Howard Schultz defended criticism of his brand at the time, saying that “not every decision is an economic decision”, and suggesting that unhappy shareholders could sell their shares.
Wetherspoon sets March 2015 date for opening of new Hitchin pub: JD Wetherspoon has announced 10 March 2015 as the opening date for its new pub in Sun Street, Hitchin, Herts, the Angel Vaults. The £1.8m development on the site of the former Conservative Club is expected to create around 50 new jobs. It takes its name from a former inn in the town.
Nick Batram – Q3 strong as expected at Just Eat but long-term concerns remain: Peel Hunt's leisure analyst Nick Batram has hailed the third quarter results from the online takeaway business Just East as “strong”. But he reiterated concerns about the long-term viability of the business model. Batram said: "Q3 order growth was an impressive 56% (51% underlying) and the risk to forecasts in the short term continues to be on the upside. Q4 is an important period and comparatives get tougher. However, while we see positive momentum continuing in the short/medium term, it is the sustainability of the pricing model in the long term that concerns us. We do have concerns about the long-term sustainability of a pricing structure that we believe is vulnerable to both new competition and B2B customers looking to divert orders off platform.”
Weight Watchers Lifestyle Centre trials site selling food and drink to become a restaurant: A Weight Watchers pilot site in Reading town centre, the first in the UK to sell Weight Watchers food and drink, looks set to be converted to a restaurant when it closes later this month. The first Weight Watchers store of its kind in the country opened in 2012 and hosted support sessions for clients and sold a selection of the company’s range of food and drink products. A statement from Weight Watchers said: “The Weight Watchers Lifestyle Centre was opened as a pilot in May 2012 and since then has helped Reading residents to lose over 2,000 stone. Weight Watchers Lifestyle Centre members will be directed to their nearest local meeting so they can continue to be supported throughout their weight loss journey and they will be informed of any new venues opening.” The restaurant plan is subject to a planning application.
Orderella launches in Ireland after research shows extent of queuing: The mobile ordering app Orderella has launched into the Irish market after research found 21% of adults in Ireland spend over an hour waiting at the bar on an average night out. Saturday night between 8pm and 9pm is peak queuing time in Irish bars. The study, which polled 500 people in the Republic of Ireland, revealed that a further one in five (19 %) spend at least half an hour waiting to get served at the bar. Over a third of people claim to have missed the biggest night with of the year as 37% said they had missed midnight on New Year’s Eve because they were queuing for a drink. The research also reveals that 19 % have missed out on chatting someone up and 18% of football fans have missed a goal. Almost nine out of ten (86%) of respondents claimed they would walk out of a bar if they thought the queue was too long. Even more – 92% – would pay to skip a long queue in the pub, with 84% saying they would be prepared to pay up to €5 (£4). Dennis Collet, co-founder and chief executive of Orderella, said: “That 92% of those surveyed would pay to skip the queue is interesting to us because they don’t have to, our app is completely free. People go to the pub to socialise and catch up with friends and family, not stand in long queues with strangers."
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