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Morning Briefing for pub, restaurant and food wervice operators

Tue 16th Jan 2024 - Update: TGI Fridays parent reports improved trading, London's hospitality sector bounces back
TGI Fridays parent reports improved trading as it makes ‘good progress’ in turnaround strategy: Hostmore, the parent company of TGI Fridays, has reported improved trading as it makes “good progress” in its turnaround strategy. Like-for-like sales in the second half of its financial year ending 31 December 2023 were flat, representing an improvement on the first half of the year, which was 2% below the comparative FY22 period (adjusted for differences in VAT). The company stated: “The board is pleased that the four week December 2023 holiday period generated a further improvement on the second half’s overall trend, with like-for-like revenue up 4% compared with December 2022. This result is particularly encouraging as circa 65% of our estate is located in retail parks or shopping centres, many of which operated on reduced holiday hours resulting in a circa 2% impact to our like-for-like sales in December. It is currently expected that the second half of 2023 generated unadjusted FRS102 Ebitda of £5.4m, with an Ebitda profit being realised in each of the six months of the period. This is the first period to benefit from a significant portion of the restructuring actions announced previously, which were implemented late in the first half of 2023. Pro forma FRS102 Ebitda for the second half of 2023 would have been approximately £7.2m if all currently implemented actions had been in effect for the entire period. The company continues to evaluate further opportunities to improve Ebitda, and will report on these initiatives after they have been implemented. The company maintains an objective of becoming debt free by dedicating all free cash flow towards repayment of borrowings. In furtherance of this, consolidated net bank debt at the year-end was £25.1m, an improvement in line with forecast from £31.3m at 2 July 2023. The company is continuing to engage existing and potential new lenders in the refinancing process, and we remain focused on concluding this in the previously announced timeline. The company expects to publish its 2023 preliminary results in the second half of April.” Chief executive Julie McEwan said: “We have continued making good progress in executing our turnaround strategy, through disciplined capital allocation and the delivery of further cost reductions. Our organic growth initiatives, implemented through a strong and motivated operational platform, have improved the financial outlook of the business and continue into 2024.”

Next Who’s Who of UK Food and Beverage to feature more than 227,000 words of content: The next Who’s Who of UK Food and Beverage will feature more than 227,000 words of content when it is released to Premium subscribers on Friday (19 January). The database now features 838 companies, and this month’s edition includes a record 57 new additions and 142 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 members also receive access to five other databases: the Multi-Site Database, the Turnover & Profits Blue Book, the New Openings Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the UK Food and Beverage Franchisee Database. Propel is evolving its Premium subscription offer by launching Premium Club on Thursday, 1 February. All circa 4,000 existing subscribers automatically become members. The launch of Premium Club comes with even more benefits. All subscribers will be offered a 20% discount on tickets to four Propel paid-for events – The Excellence in Pub Retailing Conference (14 May), Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators will also be able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Propel Premium subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. 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. Email kai.kirkman@propelinfo.com today to sign up.

London’s hospitality industry generates £46bn in 2023 in post-pandemic bounce back: London’s hospitality sector took in more cash last year than pre-pandemic levels, according to data hailed by mayor Sadiq Khan as proof of the industry’s “phenomenal resilience”. The capital’s cafes, restaurants, pubs and clubs generated £46bn in revenue last year, up from £43bn in 2019. However, Khan warned the sector is still struggling with rising costs and “growing challenges with recruitment”. The figures, provided to City Hall by UKHospitality and CGA, also showed sales in London outpaced the rest of the UK. Comparing January to November 2023 with the same 11 months in 2022, the average growth was 7.7% each month in London, and 5.6% nationally, reports The Standard. Khan said: “London’s pubs, clubs, bars and restaurants are unrivalled and I’m delighted that they have helped our capital roar back from the impact of the pandemic. The success of our world-leading hospitality sector over the last 12 months is alongside some incredible live music events that have brought huge crowds to our capital. However, we know much more still needs to be done to protect grassroots live music venues and those hospitality businesses that continue to struggle during the ongoing cost-of-living crisis and growing challenges with recruitment. We need [the] government to step-up and do more to appreciate the crucial cultural, economic and social value of these venues and ensure they have the support they need.” City Hall reported more than 250 new restaurants opened in London last year, a 4% increase on 2022. UKHospitality chief executive Kate Nicholls said: “These figures clearly show that hospitality, leisure and tourism remains absolutely critical to London. Our venues are somewhere that consumers, both from at home and abroad, prioritise and seek out when they visit, meaning our sector is crucial to maintaining London’s recovery and growth. I’m confident this appetite for hospitality and fantastic experiences will continue this year and that it can remain a key driving force behind growth and success in the capital.” In a recent statement responding to concerns about high costs damaging the hospitality industry, a government spokesperson told the Independent: “At the autumn statement, the chancellor announced more than £4bn of support for small businesses and the hospitality sector, including 75% business rates relief and freezing alcohol duty rates. In 2021, we published the UK’s first hospitality strategy to improve the resilience of the sector and established a hospitality sector council to oversee its delivery. We’re working closely with the industry to tackle the challenges it faces, and we’ll continue helping them to grow and thrive in their local communities.”
 
Hotel company owned by late Peter de Savary sells Surrey pub with rooms, reports loss as costs rise: Havana West, the hotel company that was owned by the late Peter de Savary that includes the Beachcroft Arms in Bognor Regis and the Cary Arms and Spa in Torquay, has sold its Surrey pub with rooms, The Merry Harriers. The company’s accounts for the year to 31 December 2022 said post year-end, the property and trade of the Godalming business was sold in November 2023. It comes after the company reported a loss for the period, with a £815,1134 pre-tax profit in 2021 turning into a pre-tax loss of £255,905, as costs rose by more than £1.3m. Turnover rose from £9,911,557 in 2021 to £10,737,438, with the 2021 figure including £884,747 from the sale of The Bradley in Cheltenham. The company received £46,001 in government grants compared with £1,045,148 in 2021. No dividends were paid (2021: nil).

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