Propel Newsletter Archive Page

Jamie Oliver’s restaurant and food businesses reports turnover and profit boost as they rebound from covid, pays total dividends of £6.8m: Jamie Oliver’s restaurant and food businesses have reported a boost in turnover and profit as performance rebounded following the covid pandemic. The group saw revenue increase 8.1% to £29.7m for the year ending 31 December 2022 (2021; £27.4m), supported by a doubling of production and franchise income. Cost of sales increased 11.4% in line with the increase in TV programming produced, and administrative expenses were up 9.2% as a result of increased travel costs post covid and on consulting costs for expansion projects. Pre-exceptional Ebitda was up 4.4% to £9.3m (2022: £9.0m) while pre-tax profit rose 17.5% to £7.7m (2022: £6.5m). The business said cash flow remains positive, and the group is well capitalised. The group grew its international restaurant franchise business by 13 new restaurants, taking it to 70 restaurants in 22 countries, serving 35 million people across seven restaurant formats, including Jamie’s Italian, Jamie’s Deli and Jamie Oliver Kitchen. The Jamie Oliver Cookery School increased its revenue by 35%. Jamie Oliver Holdings and Jamie Oliver Licensing represent all the media interests of Jamie Oliver, made up primarily of TV, distribution, digital production and book publishing. It also includes products and partnerships, comprising endorsements, royalty streams derived from licensing the Jamie Oliver brand and the sales and management of branded products, as well as restaurants which include the franchising of international restaurant concepts and the Jamie Oliver cookery school. Jamie Oliver Holdings declared and paid a dividend of £5.0m, while Jamie Oliver Licensing declared and paid a dividend of £1.8m. Chief executive Kevin Styles said: “The Jamie Oliver brand continues to resonate with audiences around the world. The results for 2022 show we have the foundations in place from which to continue to evolve our business, putting our customers first, serving their mealtime needs across a range of relevant media and product solutions as well as restaurant and cooking experiences. Our five-year strategy is focused on creating a global, B Corp certified, integrated food business. We plan to bring together all aspects of our group, including media, restaurants, products and the Ministry of Food, with a strong digital transformation plan. Our goal is to maximise our brand’s commercial and social impact. With a more connected and detail-oriented approach, we plan to enter new markets and activate and scale global propositions and partnerships with local insight. Our team has a combination of rich legacy experience and fresh perspectives across the key categories and specialisms of the business. We have already achieved joint success, and I look forward to even more progress in the future.” Last week, Jamie Oliver confirmed his upcoming restaurant in London’s Covent Garden will be called Jamie Oliver Catherine Street, with an opening scheduled for November. Propel revealed earlier this summer that Oliver had trademarked the Jamie Oliver Catherine Street name, as he geared up to return to London’s restaurant scene with the opening of a new “landmark” site. Oliver closed his UK restaurant business, which included the Jamie’s Italian chain, after its collapse in 2019. Housed in a grade-I listed building in Covent Garden, Jamie Oliver Catherine Street will be an “independent, produce focused restaurant”.

Premium subscribers to receive two databases this week including new UK Food and Beverage Franchisee Database today: Propel Premium subscribers are to receive two databases this week, including the new UK Food and Beverage Franchisee Database. It is the first time that profiles of 100 of the top food and beverage franchisees have been available in one place in the UK. The go-to database – which will be released today (Wednesday, 16 August) and features many of the big franchise operators running Costa Coffee, McDonald’s and Domino’s sites – brings together a wealth of information on an increasingly important part of the market, and the first edition will feature more than 32,000 words of content. The sixth major database exclusive to Premium subscribers, it will be sent out bi-monthly, including new entries and updates to existing entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around the company’s background, site numbers and board make-up. Premium subscribers will also receive the next Who’s Who of UK Food and Beverage on Friday (18 August). A total of 12 companies have been added to the database, which now features 726 companies. This month’s edition also includes 64 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium subscribers also receive access to four other databases: the Propel Multi-Site Database, produced in association with Virgate; the New Openings Database; the Propel Turnover & Profits Blue Book; and the UK Food and Beverage Franchisor Database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier.The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Premium subscribers are also being given exclusive access to the recording and slides to Propel Multi-Club Conferences. They also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Inflation falls to 6.9% but food price rises still seven times higher than year ago: The rate of inflation has fallen sharply, according to official figures, but food price rises are still seven times higher than a year ago. The key, consumer price index measure of inflation fell to 6.8% in the year to July, down from a rate of 7.9% in June, Office of National Statistics data showed. It means prices are still rising but at a slower rate than before. The figure of 6.8% had been predicted by economists. Further falls are expected, with the Bank of England forecasting the rate will drop to 5% by the end of the year, still more than double its 2% inflation target. Another measure of inflation, which does not track items susceptible to sharp rises and falls, such as food and energy, was static. Core inflation remained at 6.9%, likely to be of concern for the people who decide interest rates, the Monetary Policy Committee members. Food price rises are still seven times higher than a year ago at 14.8% despite a significant fall from the June 17.3% rate. For the first time in nearly two years, wage growth in the private sector surpassed the rate of inflation. Chancellor Jeremy Hunt said: “The decisive action we’ve taken to tackle inflation is working, and the rate now stands at its lowest level since February last year. But while price rises are slowing, we’re not at the finish line. We must stick to our plan to halve inflation this year and get it back to the 2% target as soon as possible.” Labour’s shadow chancellor, Rachel Reeves, said: “Inflation in Britain remains high and higher than many other major economies. After 13 years of economic chaos and incompetence under the Conservatives, working people are worse off – with higher energy bills and prices in the shops. Labour’s plan to build a strong economy will make working people better off by boosting growth, improving living standards and cutting household bills.”

Crippling late-summer holiday rail strikes will cost pubs and restaurants more than £150m, industry bosses warn: Crippling late-summer holiday rail strikes will cost already hard-hit pubs and restaurants more than £150m, industry bosses have warned. Thousands of workers represented by the RMT union will walk out next Saturday (26 August) during the busy bank holiday weekend. It will be followed by another 24-hour strike the following Saturday (2 September. Hospitality chiefs told the Daily Mail they expect the two walkouts to inflict a £150m blow on the industry, bringing the total hit to more than £3.5bn since rail strikes started last summer. Kate Nicholls, chief executive of UKHospitality, said: “It’s so frustrating that rail strikes are once again going to cause huge disruption and loss of business to hospitality venues. We estimate that the sector will suffer to the tune of £150m as a result of strikes at the end of the month, bringing the cumulative impact to £3.5bn. In the midst of summer, this will hit the capital hard. Whether it’s businesses trading, tourists or families planning a summer trip or workers looking to get into work, every aspect of society will be hit. With visitor confidence dented with every strike, we need to see government, unions and rail companies urgently negotiate a resolution to avoid even further disruption.” Other estimates put the impact of rail strikes on the industry and wider economy at more than £5bn. The RMT has orchestrated more than 20 walkouts since June last year. The union struck a deal with Network Rail over pay in March this year. But a separate dispute involving workers for the train operators is yet to be resolved. Another dispute with train drivers’ union Aslef is also ongoing.