Ten Entertainment Group reports like-for-likes up 46% on pre-covid levels, expects full-year performance ahead of expectations: Ten Entertainment Group, the operator of 47 bowling and family entertainment centres, has reported like-for-like sales for the 26 weeks to 26 June 2022 are up 46% compared with the same period in 2019. Total sales in the period increased 52.6% compared with 2019 and management anticipates full-year performance ahead of current expectations, although it expects sales performance to “temper slightly” for the remainder of 2022 due to the cost-of-living crisis. The company said it has seen 19.5% sales growth in the six weeks since 16 May 2022 compared with the reopening weeks in 2021. The business acquired a new centre in Harlow in May 2022 and a new site in Walsall will open in the third quarter. Three further new centres have been agreed and are expected to open over the next 12 months. The group said cash generation in the first half left the group net cash positive at the end of June. It will repay funds borrowed through the Coronavirus Large Business Interruption Loan Scheme to be repaid in July to allow for resumption of the dividend The company stated: “Like-for-like sales growth in the first half of 2022 was 46% compared with the same period in 2019. This has accelerated from the growth delivered in the first half of 2021 of 30.3%. Record-breaking sales performances during the February half-term; the Easter break; and the May Jubilee bank holiday all contributed to an unprecedented level of sales growth. Customer demand has been consistently in growth throughout the first half of 2022. Our value for money family entertainment model is showing greater appeal than ever before. We have deliberately preserved our entertainment prices at 2019 levels and have managed food and drink prices to maintain the value for money we provide for our customers. We have been rewarded with footfall that is 43% higher than experienced in 2019. The operational gearing of such strong sales growth, with tightly controlled costs, has resulted in a first half of 2022 that has profitability higher than the second half of 2021. The sales performance has generated strong cash flows in the first half of the year. We have invested more than £1.8m in ensuring that our bowling experience is sector-leading, with further rollout of the latest touchscreen scoring; replacing and repairing our lanes and ball returns; and installing the latest in LED lighting technology. Even with this high-returning investment programme, the group had a net cash position at the end of the first half. A continued record-breaking sales performance positions the group extremely well after the first 26 weeks of the year. Despite the uncertainties in the wider economic environment, we have a proven track record of offsetting inflationary pressures and are confident these are manageable within our business model. We are mindful that the increases in cost-of-living will impact our customers in the second half and are determined to keep value for money pricing at the heart of our offer. The work we have done on our business model during the last two years has already demonstrated that our proposition is appealing and fit for today’s marketplace. We do expect this sales performance to temper slightly in the second half of the year but remain very confident that our model is well positioned to continue to deliver record growth ahead of current expectations. The group plans to announce its half-year results on 21 September 2022.” Chief executive Graham Blackwell said: “I am delighted that our teams have stepped up to the mark to deliver this excellent result. Our great value family entertainment proposition continues to deliver for our customers. With more than 50% sales growth in the first half of this year compared with 2019, we have a winning formula in a post-covid market. We have significantly outperformed the leisure and hospitality sector and are confident of delivering a record result this year. Despite challenging times ahead, we have a model that has broad appeal. We offer a place to eat, drink and play for families and friends to enjoy. We provide something for everyone and are committed to keeping the price of our family entertainment centres affordable.”
Sponsored message – join Heineken SmartDispense at the inaugural Energy Well Spent Summit: Join hospitality operators, media, and industry experts at the inaugural Energy Well Spent Summit hosted by Heineken SmartDispense. This free event – on Tuesday, 12 July from 9am to 5pm – will host practical discussions and share useful takeaways around the key issues affecting the sector. Attendees will hear from expert speakers and hosts such as celebrity chef, Candice Brown, and environmental analyst, Roger Harrabin, and many more on the following themes: how to make energy efficiencies and cut rising costs; how to approach and prepare for the upcoming EPC legislation; how to enrich staff well-being to attract and retain talent; and how to use technology to enhance the customer experience. A selection of leading sustainable hospitality suppliers will also be in attendance, showcasing their services and industry expertise in the Energy Well Spent exhibitor zone. A Heineken spokesperson said: “What’s more, you could be in with a chance to win SmartDispense for your venue, including free installation, free line cleaning and services for an entire year, plus free access to a full package of added value benefits. This is going to be a day to remember so don’t miss out – register your interest
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Just Eat Takeaway enters into commercial agreement with Amazon in US: Just Eat Takeaway has entered into a commercial agreement with Amazon in the United States. It means Amazon Prime members in the United States can sign up for a free, one-year Grubhub+ membership and access free delivery from hundreds of thousands of restaurants on Grubhub throughout the year. In addition, Grubhub+ members get access to member-only perks and rewards. Just Eat Takeaway stated: “The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub’s 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards. The commercial agreement automatically renews each year unless terminated by Amazon or Grubhub in accordance with the provisions of the commercial agreement. Under the commercial agreement, a subsidiary of Amazon will receive warrants (exercisable at a de minimis price) over 2% of Grubhub’s fully-diluted common equity. Amazon will also receive warrants (exercisable at a formula-based price) over up to a further 13% of Grubhub’s fully-diluted common equity, the vesting of which is subject to the satisfaction of certain performance conditions, principally the number of new consumers delivered through the commercial agreement. In certain circumstances the warrants can vest on an accelerated basis, in full or in part. Vested warrants may, in certain scenarios, be settled in cash or company shares. The gross assets of Grubhub as at 31 December 2021 were €6,521m and the loss before tax for the 12 months ending 31 December 2021 was €403m.” Adam DeWitt, chief executive of Grubhub, said: “I am excited to announce this collaboration with Amazon that will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants. Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers.” Just Eat Takeaway said it continues to actively explore the partial or full sale of Grubhub.
