JD Wetherspoon reports like-for-like sales down 14.6% on 2019 levels between 17 May and 4 July: JD Wetherspoon has reported its like-for-like sales from 17 May to 4 July, when pubs were fully open, were down 14.6% on 2019 levels. The company said between 12 April and 16 May, when only outdoor trading was permitted, about 500 of its pubs were opened, and like-for-like bar and food sales were minus 49.0% compared with the same period in 2019. For the period from 17 May to 10 June, before the UEFA Euro 2020 football tournament started, like-for-like sales were minus 8.1%. From 10 June to 4 July, during the tournament, like-for-like sales were minus 20.8%. Apart from a limited number of exceptions for individual matches, Wetherspoon pubs have not televised UEFA Euro 2020 games. The company said trading had been helped by the addition of outside seating. It added landlords, landowners, and local and licensing authorities have been extremely flexible in accommodating extra outside space, which had helped Wetherspoon and the licensed trade generally. As at 4 July 2021, 850 Wetherspoon pubs were open, out of a total of 860. Most of the closed pubs are at airports. In the past six months, the company has opened two new pubs, in Headingley, a suburb of Leeds, and in Northallerton, North Yorkshire. The company has a pipeline of 75 projects – 18 are new pubs and 57 are extensions and upgrades to existing pubs. The first tranche of new pubs and extensions will be located in towns and cities including Birmingham, Newport Pagnell, Heswall, Sheffield, Felixstowe, Dublin, Haverfordwest, Carmarthen and Glasgow. Once the 75 projects are completed, Wetherspoon said it plans to invest approximately £750m on a similar range of projects, in the following ten years, which may result in the creation of about 20,000 jobs. The company said it remains in a sound financial position. Net debt was £865m on 4 July 2021 and is expected to be around £833m at the end of this financial year. The company has received covenant waivers, up to and including the quarter to July 2021. The normal Ebitda-related covenants have been replaced with a minimum liquidity threshold of £75m. Liquidity was £224m on 4 July 2021 and is expected to be about £253m at the end of the financial year. The company proposes to enter discussions with its lenders regarding waivers for the next financial year in due course. Chairman Tim Martin said: “The company continues to expect to make a loss for the year ending 25 July 2021. In a trading update of 19 January 2021, the company’s principal ‘scenario’ estimated sales in the financial year starting 26 July 2021 to be in line with financial year 2019, which remains our current best estimate, on the basis that restrictions are ended, as the government currently intends.”

18 of 62 new companies added to next edition of Blue Book for Premium subscribers turning over more than £25m: A total of 18 of the 62 new companies added to the updated Turnover & Profits Blue Book, which will be published for Premium subscribers at midday on Friday (9 July), are turning over in excess of £25m. The second edition will feature a total of 280 companies and will provide an overview of the most recent five years, ranking them by turnover and profit conversion. It will also show directors’ earnings over five years and the top-earning director. Total turnover for the 280 companies is £25.8bn. The minimum company turnover to be included will be £4m. The Blue Book is updated each month, with more companies added. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. Premium subscribers also receive access to a second exclusive monthly database, The Propel Multi-Site Database. The updated database of multi-site companies for June includes 63 new companies since its previous update in May – making a total of 1,880 listed businesses. Collectively, the 63 new companies operate 565 venues. Subscribers not only received the database as a PDF and an Excel spreadsheet, they were also sent a 10,389-word report on the businesses added during June. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel insights editor Mark Wingett. Email jo.charity@propelinfo.com to sign up.

Pubs, restaurants and hotels vow to axe masks on ‘Freedom Day’: Pubs, restaurants and hotels employing more than 200,000 people have vowed to scrap compulsory face coverings on Freedom Day, risking a clash with unions who warned the move could put staff at risk. According to The Telegraph, companies including Revolution Bars Group and Young’s have said they will ditch the requirement for customers and employees to wear masks in their English sites from 19 July, just hours after prime minister Boris Johnson announced hospitality businesses will no longer legally have to enforce face coverings past that date. However, the plans are likely to face fierce resistance from trade unions, which are pushing for companies to demand mask-wearing as part of efforts to protect staff. Revolution Bars Group chief executive Rob Pitcher said many of the bar group’s customers are under 30 years of age and therefore at greatly reduced risk of serious illness. He said he expects many staff to also stop wearing masks, although employees and workers who want to keep them on will be free to do so. Pitcher said: “Our belief is that most of our guests want to see our team members’ smiling faces and that most of our team also want to be able to express themselves freely.” The comments were echoed by high-end restaurants and hotels, which said they too were planning to make masks optional in their sites, including Corbin & King, which owns The Wolseley in Mayfair, as well as the bosses of Lympstone Manor in Devon, and The Pig, which owns a host of luxury hotels across the UK. But workers’ groups are calling for a delay. Paddy Lillis, general secretary at shop workers’ union Usdaw, said: “This is too much too soon. The government should not be weakening safety measures in shops at the same time as opening up other venues. There is no reason why requirements to wear face coverings and maintain social distancing in busy public areas like shops cannot continue.” Robin Hutson, boss of The Pig, said the business is to ditch masks in most areas but is weighing up whether to retain them in spa rooms where individuals are in confined spaces for an extended period of time. He said: “The plan is to decide next week, but in any event, we will give staff the choice.”

Ten Entertainment Group reports like-for-likes up 22.5% on 2019 levels since reopening, returns to profit: Ten Entertainment Group, which operates 46 family entertainment centres in the UK, has reported like-for-like sales were up 22.5% on 2019 levels in the first six weeks of reopening, with total sales increasing 27.4%. All its centres reopened on 17 May with more than 650,000 people visiting. The business has returned to profit and cash generation and said its cash position is secure, with more than £23m of liquidity headroom. In a trading update for the 26 weeks to 27 June 2021, the company stated: “All centres were closed for the first 20 weeks of FY21 because of the covid-19 lockdown. During this time, the business was focused on conserving cash and preparing to welcome our customers safely back to our centres. In addition, we used the closure period to evaluate all areas of the business to ensure that we emerged from the pandemic in a stronger position than we went in. The strong trading since reopening has been driven by several factors. Pent-up demand and foreign travel restrictions have helped contribute to the growth. Longer term factors such as a digitally-enabled marketing strategy; a strong focus on customer experience; our much-loved range of entertainment; and a great value pricing model have been an essential part of this growth, and will continue to be so for the rest of the year. Restrictions such as the ‘rule of six’, table service, venue capacity restrictions, and social distancing all currently remain in place. However, these are not as damaging to trade as the measures imposed during the second half of 2020. In particular, we operated all 1,103 of our bowling lanes thanks to our investment in lane dividers. The encouraging reopening sales performance means the group has already returned to profit and cash generation. The business expects to generate free cash flow in the second half and has recommenced its highly successful investment strategy in order to drive further profit growth, including developing the expansion pipeline. Further detail will be provided at the interim announcement in September. The underlying business model remains highly attractive and strongly cash generative. While the pent-up demand is likely to subside, the business continues to be well positioned for growth with its well-invested estate and focus on customer experience. The removal of the final covid-19 restrictions on 19 July will be the last step in Ten Entertainment Group returning to its full operating potential. Ten Entertainment Group expects to announce its half-year results on 22 September 2021.” Chief executive Graham Blackwell said: “I am delighted with the commitment and hard work of our teams across the UK who have welcomed back our customers with a safe and highly successful reopening programme. We are looking forward to recommencing our investment strategy in the second half of 2021 and to continue developing our family entertainment experience throughout the UK.”

Barburrito acquired out of administration for £25,000: Mexican brand Barburrito was acquired out of administration at the end of last year for a total consideration of £25,000, Propel understands. In December, it was announced Barburrito chairman Graham Turner had led a new investment in the business, alongside other private investors, backing the existing management team of Morgan Davies, founder and chief executive and Steve Herring, finance director. Previous investor BGF exited the business. The deal protected 14 stores and more than 270 jobs via a corporate restructure, which has been led by restructuring specialists RSM. Three stores closed – Aberdeen Union Square, Edinburgh Lothian Road, Manchester Deansgate. Barburrito, which Davies and Paul Kilpatrick founded in Manchester’s Piccadilly Gardens in 2005, had been backed by BGF since 2012, when as a then six-strong business it secured £3.25m of funding to expand. Propel understands that the business was acquired by new entity Barburrito Group, which is backed by north west-based businessmen Peter Cammack and Andrew Milne, who founded the Manchester-based adult social care business Zeno. The existing management team of Davies and Herring are directors of Barburrito Group and have an equity participation. Turner is also an investor in Barburrito Group and continues to hold a non-executive role. To date ten of the 14 leases have been assigned to Barburrito Group. The initial licence period of six months was extended by three months to allow the assignment of the remaining four leases. 

US pizza concept Pieology to make UK debut: Pieology, the US customisable pizza concept, is set to make its debut in the UK, after signing a franchise agreement to launch in Britain. The company, which operates 130 sites in the US, Mexico, Spain and China, has signed an agreement to launch here with Kim Nagpal and Gavin Sutharmasellan, of Camyabco. The first site under the new agreement is set to open in London. Nagpal said the UK opening would provide the company with a “gateway for opening additional restaurants in other parts of the UK and Europe”. Pieology chief executive Gregg Imamoto told Restaurant News: “We are excited to start our journey in the UK and look forward to bringing both Gavin and Kim’s foodservice experience and expertise to the brand. Pieology’s brand promise of ‘Serving Individuality’, along with a custom loyalty programme, unique crust and topping offerings, and a one-of-a-kind store experience will inspire all food lovers to express their individuality on their pizza.” Sutharmasellan added: “Pieology boasts a strong franchising team, a huge fan base and a creative product for sale. The company specialises in custom-made pizza, salads, beverages, sides, and sweets, and is a favourite for diners who like to personalize their own pizza.”