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Fuller’s current lfl sales up 11.7%, Christmas bookings 11% ahead of last year, headroom for acquisitions to drive long-term growth: Fuller’s has said its current like for like sales, for the 32 weeks to 11 November, are up 11.7% on the same period in 2022, and that it is primed for a strong Christmas, with bookings already 11% ahead of last year. It comes after the business reported a 12% revenue increase in the first half of its financial year, the 26 weeks to 30 September, to £188.8m, from £168.9m in the first half of 2022. This was driven by a strong performance across the estate, the company said, and was substantially ahead of the industry’s Coffer CGA Business Tracker. Adjusted profit before tax increased by 48% to £14.5m (H1 2022: £9.8m), which Fuller’s said demonstrated strong profit conversion despite inflationary challenges. Net debt is at £129.4m (H1 2022: £129.2m) with cash used to enhance the estate and finance shareholder returns. Interim dividend increased in line with earnings to 6.63p (H1 2023: 4.68p), representing a 42% increase on last year. The company has also completed the buy back of one million ‘A’ shares at an average price of 580p and said it now intends to buy back an additional million. Food sales were up 15.5%, drink sales up 10.9% and accommodation sales up 13.4%. Some £9m was invested in the estate, with a further “significant pipeline of investments” planned, and investment in people has included new leadership training programme for all general managers. A total of 21 of 23 pubs earmarked for transfer from managed to tenanted have completed, with the remaining sites due to complete “imminently”, while further strengthening of the balance sheet has led to headroom for acquisitions to drive long-term growth. Chief executive Simon Emeny said: “We have had a strong start to the year – delivering excellent financial results and building a superb platform for future growth. While there are still a number of macro-economic elements to navigate, certain external factors are moving in our favour with office workers continuing to return to their desks and the City becoming a seven day operation with increased leisure spend at the weekend. There has been a welcome return of major events. Customers are increasingly seeking premium experiences when they are spending their money, and we have the benefit of the lucrative international tourist trade to come with inbound tourism still below pre-covid levels. These factors play to our strengths which, combined with our teams’ operational excellence, have resulted in our like for like sales rising 12.7% from the prior year – outperforming the market and well ahead of the industry’s Coffer CGA Business Tracker. There is demonstrable momentum and positivity in the business, we have an amazing group of dedicated team members, excellent leaders, and a keen focus on continuing to grow profitable sales using all the levers available to us. We have continued with our strong progress since the period end, with like for like sales for the first 32 weeks of the year growing by 11.7%. Trading in the City continues to grow and although we cannot rule out further tube or train strikes, we are looking forward to a good Christmas with bookings currently 11% ahead of last year. Our capital investment programme for the year will see us undertaking a number of large projects across the estate during the remainder of this financial year, enhancing our iconic pubs and hotels. We will also continue to invest in further development for our exceptional team members including the roll out of a new online training platform, to support our face-to-face learning, that will increase engagement. Fuller’s has a long-term vision, strong values and a clear strategy – all underpinned by our predominately freehold estate of iconic pubs in fantastic locations. While there is still a challenging economic environment to navigate, we have had a strong first half and with exciting plans in the pipeline, we are looking forward to the second half of the year with confidence.” Fuller’s features in the Propel Turnover & Profits Blue Book, the latest edition of which was sent to Premium subscribers on Friday (10 November). Its turnover of £336,6000,000 in the year to 1 April 2023 is the 30th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. 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 kai.kirkman@propelinfo.com to upgrade your subscription.

Next Who’s Who of UK Food and Beverage to feature 784 companies, released on Friday: The next Who’s Who of UK Food and Beverage will feature 784 companies when it is released to Premium subscribers on Friday (17 November). This month’s edition includes 34 new companies and 83 updated entries as well as more than 211,000 words of content. 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. Meanwhile, for the first time, Propel group editor Mark Wingett has chosen the best videos from the Propel conferences in 2023, picking out a selection of talks and interviews that resonated with delegates from across the breadth of the hospitality sector. The 12 videos will be made available to Propel’s Premium subscribers at 9am on Friday, 24 November. Premium subscribers also receive access to five other databases: the Multi-Site Database, which is produced in association with Virgate; the Propel Turnover & Profits Blue Book; the New Openings Database; the UK Food and Beverage Franchisor Database; and the UK Food and Beverage Franchisee 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 kai.kirkman@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 Mark Wingett.

Pay rises outstrip inflation by most for two years: Wages have risen faster than inflation by the most for two years, but there are signs the jobs market is starting to weaken. Regular pay rose at an annual rate of 7.7% between July and September, faster than price rises over the same period, reports the BBC. However, official figures showed that wage rises are starting to slow in some industries, and while the UK’s unemployment rate was unchanged at 4.2%, the number of job vacancies has continued to fall. Between August and October, the estimated number of vacancies in the UK fell by 58,000 to 957,000, the Office for National Statistics said. That was the 16th month in row it had fallen, although the total number of vacancies remains well above pre-pandemic levels. The latest figures show regular pay rose by 1% in the three months to September after taking inflation into account, the largest increase since the three months to September 2021. Average weekly earnings were estimated to be £621 for regular pay in September, and £673 for total pay (which includes bonuses). However, the widening gap between pay rises and inflation widens is largely due to slowing price rises rather than big jumps in pay. The Bank of England has warned that higher interest rates are likely to hit companies’ hiring plans next year, driving up unemployment to 5%. Currently, financial markets are not expecting the Bank to push interest rates higher than the current level of 5.25%, and some analysts believe rates could be cut at some point next year. Against this backdrop, the chancellor, Jeremy Hunt, will reveal how much the National Living Wage will rise by next spring at next week’s autumn statement. He has pledged it will be at least £11 per hour for the main rate, an increase of over 5%, or £1,000 per year for a full-time worker. While this will be hugely welcome for the two million workers paid this wage, some employers are already fretting about the impact on costs. Marc Bridgen, owner of The Dog at Wingham gastropub and boutique hotel in Kent, said while he supports the forthcoming rise in the National Living Wage, he says he may need to increase his prices to pay for it. “We’ve been absorbing [cost rises] for a long time, and we recently had to increase our prices,” he said. “If we get to April and our cost base goes up by, say, 10% on the wages, it’s more than £1,000 a week, which is a lot of food and drink to sell.”

Chipotle founder set to open plant-based restaurant run by robots: Chipotle founder Steve Ells is set to open a new plant-based restaurant run by robots – aimed at reducing waste. The new restaurant, Kernel, is scheduled to open in Manhattan soon and will rely on robots to make most of its food, reports The Independent. He plans to make the restaurant into a chain, opening 15 in New York and eventually expanding to other cities, according to reports in the US. Mr Ells told The Wall Street Journal the restaurant will serve meat alternatives that replicate the taste of beef or chicken, and its menu will heavily feature vegetables and legumes. He added that while robots will be used to make the food, the restaurants will also have a skeleton-staff that will be responsible for packaging food and washing dishes. According to draft investor materials, it could operate with as few as three employees, The New York Post reported. Els has also claimed that removing humans from the preparation process will enhance safety. He said he was inspired to start Kernel after reading a Bill Gates book which outlines ways people can reduce their greenhouse gas emissions such as eating less meat. The businessman said he is starting the restaurant chain with $10m of his own money and $36m from investors, the Wall Street Journal reports. “We think we are onto something,” he told the newspaper. Ells founded Chipotle with a single Denver store in 1993 and built the chain into a powerhouse over the next two decades, with more than 2,600 restaurants under his watch. He was replaced as chief executive of the Mexican fast-food chain in 2017 by activist investor Bill Ackman following several outbreaks of food-bone illnesses. He reportedly began pitching Kernel to investors last year as a start-up that “fundamentally rethinks labor, technology, real estate and menu” and uses “automation with a human touch”.

Pound jumps after sharp fall in US inflation: The pound has jumped after US inflation fell more sharply than expected last month, raising hopes that interest rates in America will begin to fall early next year, reports The Telegraph. The consumer prices index fell to 3.2% in October, according to the Labor Department, down from 3.7% the previous month and below predictions of a fall to 3.3%. Core inflation, which strips out volatile food and energy prices, fell from 4.1% to 4% in its lowest reading for two years. Andrew Hunter of consultancy Capital Economics said it suggests underlying inflationary pressures are fading fast. The data sent the value of the dollar sharply downward, with the pound gaining more than 1.4% against the global reserve currency to tip over $1.24. UK and US bond yields fell steeply as markets began pricing in cuts to interest rates next spring, with money markets at one point giving a 0% chance that US interest rates will be increased at the next meeting of Federal Reserve policymakers in December.

Aldi to launch pop-up pigs in blankets restaurant: Supermarket chain Aldi will next week launch a pop-up restaurant dedicated to pigs in blankets. The Bottomless Pigs in Blankets Restaurant will open in North London’s Camden Passage, offering a six-course menu of Aldi’s biggest pigs in blankets range to date. The offering includes limited-edition Specially Selected Brie & Cranberry Candy Cane Pigs in Blankets and Specially Selected Caramelised Onion Chipolatas, while meat-free options include Ultimate Vegan Pigs in Blankets. These are all paired with festive treats, and guests can also grab a glass of Prosecco or a refreshing soft drink. Tickets are on sale for £5, with proceeds going to Neighbourly, a giving platform that connects company funds, surplus and volunteer time with local causes. The restaurant will only be there for two days, between Friday, 24 November and Saturday, 25 November, from 1-8.15pm. Julie Ashfield, managing director of Buying at Aldi UK, said: “Launching a Pigs in Blanket Restaurant is a chance for Aldi fans to enjoy our biggest range yet – and not just on Christmas Day. Focusing on quality, price and innovation, we want to create a memorable experience that allows pig in blanket lovers to enjoy our unique range while celebrating with friends and family.”