Yum shares dive after poor China results: Yum Brands cut its earnings outlook for the year after disappointing quarterly results in its China and India operations, sending shares in the owner of Pizza Hut and KFC down sharply in after-hours trading. While the company on Tuesday reported an increase in overall profit, the results for China were the latest setback in its biggest market, which has bedeviled it repeatedly for the past three years with a series of food-safety controversies. Same-store sales in China for the quarter ended 5 September rose just 2%, well short of the 9.6% analysts expected. Yum shares fell 17% to $69.30 in after-hours trading, erasing some $6 billion from its market value and leaving the stock down nearly 5% for the year. Revenue, which includes franchise and license fees, increased 2.2% to $3.43 billion. Total system sales rose 6%, with Taco Bell reporting a 7% increase, KFC a 6% increase and Pizza Hut a 2% rise.

Fuller’s artisan pizza and cider brand The Stable to open first Gloucestershire site: The Stable, the artisan pizza and cider brand in which Fuller’s holds a 51% stake, is to open its first site in Gloucestershire. The company will open in Clarence Street, Cheltenham, on Friday, 20 November, reports the Gloucestershire Echo. Its pizzas are made 100% from scratch on site by dedicated teams of pizza chefs while there are more than 80 varieties of cider. The Stable, which has 13 sites, was created by Richard and Nikki Cooper and Richard’s brother Andy Briggs.

Cote agrees deal to open restaurant on site of bar in Lincoln: French brasserie Cote is to open a new restaurant in Lincoln. The company has agreed a deal to take over the site of the Craft bar, which opened two years ago and whose owners are also the management behind Home nightclub in the city centre. Cote will invest about £1m refurbishing the High Street site, creating 35 jobs, and aims to open the restaurant in February. Joint managing director Harald Samúelsson told The Lincolnite: “Lincoln is a city steeped in history and culture. Its thriving arts scene and stunning architecture are attracting more and more people from right across the country to visit its sights. We feel extremely proud to be opening a restaurant in Lincoln and we’re looking forward to offering our friendly style and all-day dining to both tourists and locals. It’s great for us to be joining an already flourishing eating out scene while offering something different in terms of value and service. We think that Côte’s classic, but contemporary feel is perfect for Lincoln.” Cote has more than 70 restaurants across the UK.

Shepherd Neame upskills assistant chefs: Assistant chefs at Shepherd Neame’s retail estate in London and the south east are to benefit from an enhanced training programme to ensure structured career development and encourage excellence. Spearheaded by Simon Howlett, Shepherd Neame’s head development chef for managed houses, the programme comprises intensive one-day workshops held twice-yearly, as well as peer-to-peer mentoring by the brewery’s top chefs. Howlett said: “The interactive workshops are jam-packed with information around a central theme. In November, we’ll partner with the Beef and Lamb Agricultural and Horticultural Development Board to train around 50 chefs and assistant chefs in butchering, preparing and cooking different cuts of meat just in time for winter steaks and Sunday roasts. The second half of the day will be dedicated to all aspects of food hygiene and kitchen safety led by an expert independent company. Coupled with the mentoring programme, our goal is to fully equip our assistant chefs with all the tools and knowledge not only to develop their own skills but also to share best practice within their own teams.” Five Shepherd Neame head chefs, who have been handpicked for their longevity of service, experience and outstanding skills, have undergone management training to become mentors. They will be on hand for new chef inductions and ongoing support in menu development.

Five Guys to open new restaurant in Liverpool: Five Guys is to open a new restaurant in Liverpool city centre later this year – its 31st in the UK. The company is moving into the old Rat and Parrot building in Queen Square, which is currently at the centre of a £1m refurbishment to turn it into a retail and leisure hub. Five Guys has secured a 3,850 square foot unit on the ground floor of the 14,500 square foot building and will join Nando’s, La Tasca, the brand acquired by Casual Dining Group last month, and Buffalo Jacks. Five Guys UK chief executive John Eckbert told the Liverpool Echo: “Five Guys is very excited to be launching in Liverpool – one of England’s proudest and most important cities. Queen Square is a hub of activity from playhouses to galleries, attracting the kinds of customers that will be looking for our fresh burgers and fries. We look forward to opening later this year and serving our first burger on Merseyside.” The company, founded by Jerry Murrell in the US in 1986, has two restaurants in the north west of England – both in Manchester.

Filmore & Union invests £250,000 in expanding Harrogate site: Healthy eating cafe and restaurant company Filmore & Union has invested £250,000 relocating its Harrogate cafe to bigger premises, creating 30 jobs for the area. The new two-floor restaurant and cocktail bar has undergone extensive renovation before it opens on Station Parade on 26 October, replacing Filmore & Union’s current café at Station Square. Since moving to Harrogate in July 2012, the 16-cover healthy eating cafe has struggled to meet high customer demand, which has led to the company’s decision to move. Founder and director of Filmore & Union, Adele Ashley, said: “It’s such an exciting move for the company and we can’t wait to get in our new premises. Deciding which building to relocate to was so important to us so it’s been tough, but we’re confident we’ve made the right choice and our loyal customers will follow us there as well as acquiring new customers too. We’ve completely outgrown our current café so it’s been a long time coming! It’s a great start to what we hope will be a very successful 2016.” The company, which has eight sites, is expected to announce more plans to expand across the country early next year.

Rye River Brewing plans €4m brewery investment: Rye River Brewing Company is to invest €4m to build a new brewery and visitor centre in Celbridge in County Kildare. The business said the facility would employ 150 staff within three years during which its construction would create 100 jobs. Rye River produces its own beer brand McGargles, as well as supplying private label contracts with Lidl. It also supplies some exclusive brands to Tesco and Dunnes. Co-founder Niall Phelan said: “This is a really exciting time for the Rye River Brewing Company as we reach this significant milestone in our expansion and development and we have strong plans and targets now in place to increase production to meet our growing export markets.” The Rye River Brewing Company was established in 2013 by Phelan, Alan Wolfe and Tom Cronin. It now employs 60 staff. Phelan added: “We have been lucky in that we have been profitable from 2014 and we’ve been able to use these profits, our own reserves and some borrowing to fund our existing successful operations and capex. The new development will be funded from cash and some investment and we will be seeking further investment over the coming six months.”

Robinsons reports 9% increase in pub standard in three years: Pubs operated across the north west, Cumbria and north Wales by Robinsons have increased standards by 9% in just over three years, according to data from the brewery’s “Perfect Pub” mystery visitor programme. The programme, which is monitored by Robinsons’ third party partner Mystery Eyes, has shown the average score across Robinsons 300-strong pub estate has increased from 75% in 2012 to 84% in 2015. “An increase of 9% across an entire estate is no easy feat,” said Sarah Rogers, retail marketing manager for Robinsons Brewery. “The clear upward trend is confirmation that the programme is working well and our customers are helping to drive excellent standards along with our licensees and their staff.” Since the launch of Robinsons’ “Perfect Pub” in June 2012, over 2,200 secret visits have taken place by “agents” who have signed up via the “Perfect Pub” website. Tasked with completing ten different categories ranging from roadside appeal to bar service, “agents” who partake receive payment for visiting the pub, which in turn has given Robinsons invaluable information.

Simon French – new M&B boss has the chance to stamp his authority: Cenkos Securities leisure analyst Simon French has issued a ‘Buy’ note on Mitchells & Butlers (M&B) shares, with a 320p guide price, arguing there is little downside to its current position and new chief executive Phil Urban has the opportunity to stamp his authority. French stated: “New chief executive Phil Urban has the chance to stamp his authority on the lacklustre Mitchells & Butlers. We have cut our earnings per share forecasts by 3% for FY 2015E and 8-11% over FY 2016-17E to reflect weaker trading and National Living Wage pressures. However, the stock remains exceptionally good value trading on a CY 2016E adjusted EV/Ebitdar of 6.7x, a discount to all of its peers. We see scope for a re-rating when trading trends improve but if they do not then we would expect management to revisit a merger or major shareholders a take-private. Either way we see very limited downside and reiterate our ‘Buy’ recommendation. It was the best of times, it was the worst of times. Whilst macro-economic data has provided highly favourable conditions for growth – with consumer confidence, disposable income, unemployment and food price deflation all supportive – industry data has been disappointing and M&B has underperformed the industry. It should not be forgotten the group has the best real estate and arguably the best invested assets in the sector so it is doubly disappointing that the share price has fallen circa 34% since 22 June. However, this presents a compelling entry point. M&B has too many brands and too few shareholders. M&B has at least 14 brands/formats and three investors account for circa 54% of the shares. Addressing the first point should help drive superior financial performance, which should increase demand for shares potentially helping solve the second point. At the very least we would encourage phasing out the Crown Carveries brand through conversion to other brands and selling Browns given the lack of sale (25 units) despite repeated attempts to significantly increase its size which have proved only to be a distraction. The Heartland division (circa 520 units) remains challenging but we think Mr Urban acknowledges price cuts are of limited use and investment in amenity is as, if not, more important at the value end of the market. Forecasts cut; valuation compelling. We have reduced our earnings per share forecasts by 3%, 8% and 11% over FY 2015-17E to reflect slower top-line growth and the introduction of the National Living Wage. However, the stock remains the cheapest in the sector trading on a CY 2016E adjusted EV/Ebitdar of 6.7x, against the sector average of 7.9x. We have pushed out our expectation of dividend payments resuming until FY 2016E when we estimate the stock will yield 3.3% on the payment of a final dividend alone.”

Jamie Oliver praises Brighton’s Sugar Smart City initiative: Jamie Oliver has praised Brighton & Hove City Council for launching Sugar Smart City, aiming to tackle sugar levels at schools, food outlets, supermarkets and vending machines at leisure centres and health care settings. The celebrity chef wants restaurants and cafes to charge customers an extra 10p on sugary drinks to tackle obesity as the city strives to become the first in the country to tackle sugar addiction. Across the city last year there were 180 obese reception children and another 294 obese year six pupils. Oliver said: “I am delighted that Brighton & Hove City Council is launching a city-wide initiative to raise awareness around the dangers of consuming too much sugar and the link to obesity and diet related diseases. This is exactly what we need to try to tackle the rise in obesity and diet related disease. Today, studies show, that one in three of our children are leaving primary school overweight or obese and these children are likely to be the first generation that will have a shorter lifespan than their parents. I have recently launched a voluntary levy on sugary drinks in my own restaurants to help raise funds for the Children’s Health Fund, which will be used to support health and educational programmes across the UK. I believe it’s every child’s human right to understand where their food comes from, how to cook it and what effect it has on their bodies. Only through this knowledge will they be able to make the right choices to lead healthier, happier lives. Brighton & Hove City Council is leading the way with Sugar Smart and I hope that we can see real and significant change across the city, giving the children of Brighton & Hove a healthier future. I also hope this inspires other councils around the UK to follow Brighton & Hove’s lead.” Money from the 10p levy at Jamie’s Italian is going to Sustain, a charity working in health and food education.

Speaker programme for Propel Multi Club Conference unveiled: The full speaker programme for the Propel Multi Club Conference on Thursday, 5 November at the Lancaster, London, the best-attended conference series in the sector, has been unveiled. Ian King, presenter of the Sky News show, Ian King Live, and former Business and City editor of The Times, looks at the key economic trends over the past 12 months and the 12 months ahead and gives his views on their impact on the hospitality sector. Peter Hansen, founder of leading mergers and acquisitions advisory Sapient Corporate Finance, which has advised on sector transactions worth more than £2bn in the past five years, looks at the key sector trends in 2015 for those buying and selling businesses. Andrew Ball, of accountancy firm haysmacintyre, offers his top tips on tax minimisation for multi-site operators. Paul Harbottle, commercial director of Enterprise Inns, talks about building an 800-strong managed pub estate and investment and progress in the leased and tenanted part of the business. Toby Smith, chief executive of Novus Leisure, explains how the company is evolving its food, drink and entertainment offer, along with digital capability, to stay at the forefront of the late-night market in London and the regions. Martin Wolstencroft, founder of Arc Inspirations, arguably Yorkshire’s most successful independent bar and restaurant operator, talks about running multiple concepts, overcoming challenges, best-in-class profit conversion, innovation and expanding over the Pennines in the company’s 15th year. Scott Shaw, founder and chairman of marketing and information analysis business Fishbowl, explains how US restaurant businesses are using guest information to drive marketing and sales. He is joined by data expert Mike Lukianoff, founder of Czar Metrics, now owned by Fishbowl, who will talk about the ground-breaking work his company is doing in the US with a host of well-known restaurant brands, using data to shape menu and price engineering, media efficiency and trade area analytics. Nick Collins, managing director of Loungers, talks about evolving the brand, maintaining company culture, fulfilling growth ambitions, new trading locations and stepping into the shoes of founder Alex Reilley. Kris Gumbrell and Simon Bunn, co-founders of Brewhouse & Kitchen, talk about how they have developed the UK’s largest brewpub chain, food quality, recruiting brewers, brewing experiences, EIS funding and the market potential for the company. Ann Elliott, chief executive of leading sector public relations and marketing firm Elliotts, presents the findings of a survey of senior industry executives on the subject of “outstanding leadership”. Elliotts strategy director James Hacon talks to former Spirit chief executive Mike Tye, Thorley Taverns operations director Phil Thorley, Ego Restaurants chief executive James Horler and Ann Elliott about the principles of high quality leadership. Multi-site pub, restaurant and foodservice operators can claim up to two free places by emailing Adam Dickinson on adam.dickinson@propelinfo.com