McDonald’s accelerates UK reopening plans, only releasing locations on the day to manage anticipated demand: McDonald’s is to accelerate its reopening plans across the UK and Ireland. The company, which has so far reopened 44 of its restaurants for delivery or drive-thru, will have reopened 1,019 outlets by the end of next week. This will include every one of its 924 drive-thrus and the company will also start to expand the availability of delivery as well, starting with 75 sites. To manage the anticipated demand, McDonald’s said it would only release the locations of the restaurants reopening on the day. It comes after the company was forced to shut some drive-thrus last week due to overwhelming demand with huge queues “impacting local communities or the safety of our people or customers”. There is a £25 cap per vehicle on drive-thru orders as the business adjusts to smaller teams and social distancing in its kitchens. Perspex screens are fitted at drive-thru windows and all employees are wearing personal protective equipment. In car parks, dividers will be in place, while security teams will patrol zones to ensure visitors comply with safety laws. A McDonald’s spokeswoman said: “Over the past fortnight, our employees, franchisees and suppliers have worked tirelessly to implement new procedures to enable safe working so we can now help all parts of the UK and Ireland to enjoy our return. In the past week, on occasion, we have taken the decision to close drive-thru lanes where demand has impacted local communities or the safety of our people or customers. We will continue to work with local authorities and the police as we extend our reopening plans. We are continuing to review these measures as we reopen, but for now, these restrictions remain in place to help our employees, customers and delivery partner couriers to remain safe.”

Almost two-thirds of consumers planning return to hospitality outlets but trust an important issue: Almost two-thirds (63%) of British consumers have said they will return to restaurants, bars or cafes in the first month they reopen but trust will be an important issue, according to new analysis by insights firm The NPD Group. The results of its second Covid-19 British Foodservice Sentiment Study showed almost six out of ten (58%) said restaurants and bars are the riskiest places to be infected with coronavirus, and almost two-thirds (64%) said they would only select outlets they trust. Three quarters (76%) stated good hygiene will be a more important factor in choosing a restaurant than before the lock-down. The same percentage said they want to see strict rules to ”prevent contagion” and 74% prefer restaurants that can ”guarantee social distancing”. The clear majority of consumers still approve of the UK’s lock-down of foodservice – with the number slightly increasing to 64% from 62% at the time of the first survey in March. The NPD Group said when lock-down has ended in full, foodservice operators can also encourage people in older age groups to enjoy food and drink prepared outside the home. Delivery is already popular among the 18 to 34 age group, with 59% using this channel, but usage dips to 32% for those aged between 35 and 54, and tumbles to just 13% for over-55s. Dominic Allport, insights director, foodservice at The NPD Group, said: “Our data shows consumers were already acutely aware of cleanliness in eating-out establishments before coronavirus. As the industry moves towards reopening, operators will need to make this a top priority in order to encourage people back into their operations. I’m certain operators will be successful in creating the high level of trust consumers want on-premise. Understandably, there will still be some people who are reluctant to go out. Operators can build this into their channel strategy and encourage more people to try delivery, especially older age groups.” 

Trade bodies urge government to maintain furlough scheme at 80% of wages for sector to avoid thousands of redundancies: The British Beer & Pub Association, British Institute of Innkeeping and UKHospitality have called on the government to maintain the Coronavirus Job Retention Scheme at 80% of wages for hospitality workers until October and increase its flexibility. In a letter to chancellor Rishi Sunak, the trade bodies said it would allow the sector, which is two months behind reopening compared with the rest of the economy, to fully get back up and running while the furlough scheme remains in place to stop thousands of redundancies. They have also asked the chancellor to introduce flexibility into the furlough scheme earlier than the current scheduled date of the start of August, to help fit with the sector reopening from 4 July. The call comes as the trade bodies revealed thousands of furloughed jobs could be lost, unless venues can safely reopen and be operationally and commercially viable businesses by July, so they can afford to pay their staff. The trade bodies are therefore also calling on the government to adopt the advice and guidance of the World Health Organisation from July, which suggests using one metre for social distancing as opposed to two metres. Many venues are already looking at operating plans and preparing additional safety protocols to reassure staff and customers they can create a safe socialising environment. The trade bodies stated: “Hospitality was one of the first sectors to be closed by the government in March, and will be one of the last to reopen after lock-down. For those jobs that cannot yet return, due to being unable to open or having severely limited capacity, full support should remain in place.” Sunak is due to reveal details this week of how the scheme will operate from August. 

UK footfall sees major pick-up over bank holiday, particularly in London: UK footfall saw a major pick-up over the bank holiday weekend – particularly in London, according to the latest data from Wi-Fi solutions provider Wireless Social. The analysis, which took an aggregated look at footfall in more than 800 venues nationally and focused mainly on major cities, showed footfall in the capital was down about 65% on Sunday (24 May) and Monday (25 May) compared with the February average. There was a marked increase in footfall across all major cities in England, although Birmingham, Leeds, Liverpool Manchester, Newcastle and York are all still down more than 80% compared with the February average. Footfall in Cardiff, Edinburgh and Glasgow – where stricter lock-down restrictions are in force – was down almost 90% compared with the February average. However, all cities saw a marked increase in footfall on Sunday when compared with the previous week, which showed people were clearly beginning to venture out again, Wireless Social said.

Additional support for Scottish businesses does not go far enough, says UKHospitality: UKHospitality has warned additional business support from the Scottish government does not go far enough and will result in business failures and lost jobs. On Tuesday (26 May), Fiona Hyslop, cabinet secretary for economy, fair work and culture, announced further support for Scottish businesses including extending the small business retail, hospitality and leisure grant to businesses that occupy multiple premises with a cumulative value above £51,000. No grant support has yet been extended to those businesses occupying premises with a rateable value above £51,000. Willie Macleod, UKHospitality executive director for Scotland, said: “This is a disappointing move by the Scottish government that will see too many businesses in dire need of support continue to be excluded from the grant scheme. These businesses have been hit just as hard as any other. They are not being shielded from the effects of coronavirus simply because their premises are more highly rated. We hope these businesses will be able to help spearhead the economic recovery of Scotland once the crisis has passed. They will not be able to if they have gone out of business before they have a chance to reopen. Grant support must be extended to these businesses, otherwise we are going to see even more failures and more people unemployed.”

Job of the day: COREcruitment is looking to speak to self-motivated sales directors for a great home-based position. A small, up-and-coming business focusing on quality beverage products is keen to grow its accounts nationally. Knowledge of both on-trade and off-trade sales is desirable while knowledge of food and beverage products in the fast-moving consumer goods sector is required. This position has the unique combination of working with a small, passionate team while being able to work from home full-time. Salaries between £80,000 and £90,000 will be considered with overall earnings of circa £120,000. Anyone interested can email Stuart@corecruitment.com

Bewiched Coffee considers setting up drive-thru coffee ‘pods’ at pubs, plans to reopen 11-strong estate by mid-June: Northampton-based cafe operator Bewiched Coffee is looking to set up drive-thru coffee “pods” as it looks to pivot the business, Propel has learned. Bewiched said in particular it saw a potential opportunity for the “pods” in pubs that had good road frontage and large parking areas. “With a relatively small investment we think there could be a real opportunity for the right partners,” said Bewiched managing director Matt Fountain. The company has reopened one of its 11 sites for takeaway only, which it said has been well received, and given it the confidence to reopen further outlets. Bewiched plans to have a further three sites reopened by Friday (29 May) and have all outlets trading by the middle of June. It has also introduced a click-and-collect option with integrated payment, which is again being tested before being rolled out to all sites by the end of June. While it is early days, Bewiched said it has seen enough traction to suggest it will complement current revenue streams. 

Page – we will take a site-by-site approach on delivery and dine-in: David Page, chairman of Fulham Shore, has said the business will take a site-by-site approach on whether restaurants operating under reopening restrictions will do so purely for dine-in or delivery only. Page told Propel: “At two metres, it doesn’t make financial sense to reopen those that currently have 100-covers or under for dine-in. However, if you take our site in Richmond, which can hold 150 covers, it may be viable to just have dine in there.” Fulham Shore will open a further 19 Franco Manca sites across the UK over the course of the week. Before this week, the company had reopened 12 Franco Manca sites in London for delivery and takeaway, with a further eight reopening in the capital on Tuesday (26 May). On Wednesday (27 May), the company opened regional Franco Manca sites in Manchester, Bristol and Brighton, plus further sites in London in Russell Square, Kilburn and Brixton. On Thursday (28 May), it will reopen its sites in Battersea, Tooting, South Kensington, Richmond and Kings Cross. Page said it may not reopen all of its sites under the 52-strong brand before July, especially those in central London based near office blocks, which would have “little or no trade”. Fulham Shore is to reopen a further two sites under its Real Greek brand on 6 June, in Westfield London and Westfield Stratford City, for delivery and takeaway, to add to the ones it has already reopened in Dulwich, Muswell Hill and Marylebone.

Bone Daddies opens debut delivery-only kitchens: London-based Japanese ramen bar concept Bone Daddies has opened its debut delivery-only kitchens, Propel has learned. Bone Daddies has opened the “dark kitchens” out of the Foodstars facilities in Kentish Town and Wandsworth, with delivery exclusively through Deliveroo. The sites are offering the same “Bone At Home” delivery menu that is available at its reopened Bermondsey, Bond Street, High Street Kensington and Old Street outlets, which also offer click-and-collect. Propel understands Bone Daddies has now decided to go down the dark kitchen route to help keep the business going through the lock-down. It is thought the company is exploring further delivery-only opportunities as well as reopening its other sites for click-and-collect. 

Santa Maria opens in Brentford car showroom for fourth site: Neapolitan pizza concept Santa Maria has opened its fourth site – in a car showroom in Brentford, west London. The outlet has opened within Duke of London, which champion both luxurious and quirky automotive design from its venue in Catherine Wheel Road. Santa Maria is catering for pizza delivery via Deliveroo and collection orders. After lock-down restrictions are lifted, customers will be able to use the 30-cover dining room. Santa Maria, which has run restaurants in west London since 2010, will also be serving its pizza at The Brewery Tap, the live music pub next door to the showroom that is run and owned by the same family as Duke of London. The menu includes an array of Neapolitan-style pizzas named after saints, bites such as bruschetta and burrata, as well as a selection of vegan pizzas. Santa Maria’s Duke of London location is also offering 20% off all food and drink orders for collection to NHS staff who present their ID on arrival.

Tonkotsu co-founder – delivery will become a bigger part of our business: Emma Reynolds, co-founder of ramen restaurant group Tonkotsu, has said delivery is set to come a bigger part of the 12-strong group’s business going forward. The company has reopened three sites for delivery – in Haggerston, Peckham and Notting Hill – in the past few weeks. Speaking to Elliotts chief executive Ann Elliott as part of Propel’s “navigating the coronavirus” series, Reynolds said there were a lot of “unknowns around how we are going to build a business in this new world”. She added: “The one thing we don’t know is how customers are going to feel and respond. We have opened a few sites for delivery and that’s going really well. We think that going forward it will become a bigger part of the business. We were at 20% to 25% of sales and that will grow.” In terms of what measures might come in terms of being able to reopen, Reynolds said she was “kind of second guessing what they will be” and was having a lot of discussions about two-metre spacing. She said: “If we had to do that, some of our sites will remain closed. We can’t do it with galley areas, for example in our busiest restaurant in Soho, it would be very difficult to run it under that basis. We have done a very cautious look at how many covers we could get per restaurant with that spacing going on, and how many turns we think we would do. Ones that heavily depend on office workers, such as Bankside, would be very difficult to operate for lunch. So, it is site-by-site, and literally person by person in terms of what we think they are going to spend and what is the build back in with delivery. That is being realistic and cautious. Delivery also allows us to get some people back off furlough.” Reynolds will share more of her thoughts in the video, which will be released on Thursday (28 May). Meanwhile, readers can support independent sector journalism and get their news 12 hours early (at 7pm each night) with a Propel Premium subscription. It costs £395 plus VAT per annum for operators and £495 plus VAT for suppliers. Email anne.steele@propelinfo.com to sign up.

Domino's Pizza reports 22% like-for-like sales rises in the US: Domino's Pizza has reported a jump in US sales between late-March and mid-May as lock-down orders kept most US residents at home in an effort to curb the spread of coronavirus. Preliminary sales results from the first eight weeks of the second quarter showed a 14% increase in US like-for-like sales, the company said in a business update. Sales “accelerated materially” in the latter part of those eight weeks, Domino's said. Between 20 April and 17 May, US company-owned sites saw 22% like-for-like sales increases. Domino’s stated: “We are seeing a tailwind as consumer behaviour across the restaurant industry has shifted toward delivery and takeout, though we are not sure whether this trend will continue for the remainder of the second quarter or how long this tailwind may last.” International sales, however, “continue to be choppy”, matching or exceeding US sales in some areas and “down materially” in others, depending on local restrictions and store closures, Domino's said. It added at a peak, about 2,400 stores were temporarily closed. “We expect temporary closures, partial-week openings, abbreviated store hours and limited service methods will continue to pressure international like-for-like and retail sales in the near-term,” the company said. Domino's said it has almost $250m of cash on hand “to provide ongoing financial flexibility” during the pandemic.

Hospital Club in Covent Garden consults on closure: Hospital Club, the private members' club in London's Covent Garden, is consulting on closure, Propel has learned. Managing director Rob Seals has written to members and said: “The coronavirus pandemic is having a devastating effect on the hospitality industry and is creating an uncertain future globally. Due to this and other extenuating circumstances within our organisation, we are writing to inform you, we are now entering a period of consultation with all staff at H Club London regarding the possible closure of the business. In addition, we have made the very difficult decision to close H Club Los Angeles. Our founding principle has been to create a social space that connects and supports creatives. We are proud of the incredible community we have built together over this time. We couldn’t have done this without your contribution as a member. We will be in contact with you once we have reached a conclusion to our consultations with the staff, and a final decision regarding closure has been made.” H Club London was founded by Microsoft co-founder Paul Allen through his investment company Vulcan and musician Dave Stewart, formerly of the band Eurythmics. It houses a television studio, screening room, live performance space, restaurant, lounges and gallery over seven floors. The club is at 24 Endell Street on the site of an 18th century hospital.

Thaikhun begins reopening sites for delivery and collection: Thai Leisure Group has started to reopen some of its nine-strong Thaikhun estate for delivery and collection. The group, which is working with Deliveroo, has so far reopened its sites in Manchester and Aberdeen, with its Southampton outlet set to come back online on Friday (29 May). The group said: “The rest of our sites currently remain closed but we are working hard behind the scenes to get these back open for collection and delivery and preparing for when we can reopen our doors.”

Denny’s franchisee permanently closes 15 New York restaurants as a result of coronavirus pandemic: Denny’s franchisee Feast American Diners has permanently closed 15 restaurants in New York due to the impact of the coronavirus pandemic, making 524 staff redundant. It has filed Worker Adjustment and Retraining Notifications citing “unforeseeable business circumstances prompted by covid-19”. Feast American Diners operates 230 Denny's, Jack in the Box, and Corner Bakery Café locations in ten states, reports Business Insider. Denny’s stated: “Denny’s has been working with its franchise owners to assist in helping them through this crisis, but the final decision to close is in the hands of each franchise business owner and their particular circumstances.” At its first-quarter results call earlier this month, Denny’s chief executive John Miller said the company had been working with franchisees to secure rent relief, defer remodels and extend royalty and advertising abatements. He noted 82% of domestic franchise restaurants had received funding under the Paycheck Protection Programme and another 7% had been approved and were awaiting funding.

San Carlo Group reopens two sites: San Carlo Group, the north west-based restaurant business, has reopened two of its sites for delivery and takeaway. The group, which operates 21 sites across the UK, has reopened its Fiorentina site in the Marriott Hotel, at Manchester Airport, and its Flying Pizza site in Leeds for delivery through Deliveroo. Under the banner San Carlo at Home, the two sites are offering what is thought to be close to a full menu for consumers to choose from. 

Compass Group UK and Ireland acquires Feedr to accelerate digital transformation: Catering company Compass Group UK and Ireland has acquired food and health technology startup Feedr in a move to accelerate its digital transformation. Feedr’s mobile ordering and pre-pay technology will enable Compass to transform the way people interact with on-site restaurants, so employees can browse menus and pay and collect more flexibly. Feedr’s focus on nutrition and health means employees can use the app to track and personalise their daily eating. In addition to adopting Feedr technology, Compass will invest in growing Feedr as an independent brand, which will continue to operate in the delivery market with its Cloud Canteen product, with Feedr leveraging the Compass global platform to accelerate its growth. Robin Mills, Compass UK and Ireland managing director, said: “Compass is eager to embrace the potential of technology to improve the way we serve our clients and customers, and to help people make healthier choices. Feedr will provide the agility we need to meet the changing needs of workplace dining as we emerge from lock-down and adjust to a new normal.” Riya Grover, co-founder and chief executive of Feedr, added: “Operating at new levels of scale will allow us to accelerate our product innovation, and to support our market place of restaurant partners with new opportunities.”

Meadowhall owners halt £300m leisure extension plan: A £300m leisure extension planned for the Meadowhall shopping centre in Sheffield has been halted as its owners look to protect themselves from the threats of online shopping and coronavirus. The Leisure Hall was going to add restaurants, cinema, a cafe court, gym and other leisure space to the complex. This would have added 330,000 square foot to Meadowhall’s existing 1.5 million square foot footprint that currently generates £82m a year in rent. But The Business Desk reported this was “unlikely to progress” in the medium-term, making it unlikely it will re-emerge in its current form. The project has already been in planning for more than four years – and itself replaced a scheme to build 1,300 homes that stalled in the wake of the 2008 global financial crisis. On Wednesday (27 May), British Land, which has an equal share in Meadowhall alongside the Government Pension Fund of Norway, disclosed losses of £1.1bn in the year to March. The was caused by a 10% drop in value of its property portfolio, almost all of which was attributed to its retail sites. Chief executive Chris Grigg said: “We expect the major trends that inform our strategy to accelerate. This includes the shift to online retail, reinforcing our focus on delivering a more focused retail business. Our financial position is robust with debt low, significant covenant headroom and access to £1.3bn of undrawn facilities and cash so we are well placed to weather today’s challenges and succeed in the long term.”

Creams dishes out desserts to front line workers through various initiatives: Dessert parlour operator Creams has recognised and rewarded more than 250 everyday heroes and provided more than 200 dishes to NHS employees after launching a number of initiatives to give back to those on the front line in the fight against coronavirus. The company launched its Creams Heroes campaign to thank and reward the nation’s everyday heroes – including NHS workers, delivery drivers, supermarket staff and other key workers – last month. So far more than 250 specially created indulgence bundles have been delivered and the campaign will continue throughout May. Creams cafes across the country have also been preparing dessert bundles to keep NHS workers fuelled and will continue to offer their support over the coming weeks. Alongside these local and national recognition drives, Creams has partnered with its delivery partners Deliveroo and Just Eat to share its desserts with more workers. The business has joined forces with Deliveroo on its Feed The NHS initiative, which sees Creams commit to providing 200 dishes for NHS employees at London hospitals. Creams is supporting the initiative from its cafes in Dalston, Ealing, Gant’s Hill and Hammersmith. Creams is also supporting Just Eat’s Superhero Sundays campaign. Through the partnership, all operating Creams stores will donate 10% of sales through Just Eat during this month to a number of charities supporting NHS workers and Just Eat has pledged to match the donation.

Britvic hit across the board by coronavirus restrictions: Britvic said it has seen volatile sales across all its channels due to the coronavirus outbreak with out-of-home adversely impacted by trading restrictions and the at-home business affected by changing consumption patterns. The soft drinks producer confirmed the impact on earnings has been £12m to £18m per month as announced in March, but expects this will improve as the economy reopens. The hardest hit areas have been in the UK and Ireland, where exposure to the out-of-home channel is higher than in France or Brazil. The company said all factories are working bar one in Ireland but discretionary spending such as advertising and promotion has been cut. Britvic added the lock-down has had an adverse impact on Fruit Shoot sales as it is widely consumed both out-of-home and for at-home socialising occasions, while J2O and premium brands, London Essence Company and Mathieu Teisseire, are also on-trade focused. “Across all markets we have experienced the closure of hotels, bars and restaurants and we anticipate this will continue to hold back growth for the foreseeable future,” it said. Net debt as of 31 March was £664m and Britvic has since received £150m from refinancing. In the six months to 31 March, revenue rose 1% to £698m with profit before tax up 16% to £53m. An interim dividend was not declared to save cash during the crisis.