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Tue 5th Mar 2024 - Greggs lfl sales up 8.2% in 2024 following record performance in 2023, targeting 140-160 net openings this year |
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Greggs lfl sales up 8.2% in 2024 as inflationary pressure ease following record performance in 2023, targeting 140-160 net openings this year: Greggs has said its like-for-like sales are up 8.2% in 2024 as “inflationary pressure are reducing” following a record performance in 2023. Speaking after the company’s preliminary results for the year ending 30 December 2023, chief executive Roisin Currie said: “Greggs has started 2024 well, with like-for-like sales in company-managed shops growing by 8.2% in the first nine weeks. As we have previously reported, inflationary pressures are reducing, and we have improved visibility of costs in the coming year. There is no change to management's expectations for 2024, and we are confident that Greggs can deliver another year of good progress as we continue our plans for sustainable growth. I am enormously proud of what we are already achieving and excited about what’s ahead. Back in 2021, we were bold when we set out our ambition to double our sales by 2026 but we are ahead of our plan and have proven that our strategy to open new shops, extend into the evening, and build up our digital presence is a successful one. Our brand is stronger than ever before and our range gets more enticing every year, with more healthy options, more hot food, and new flavours to tempt our customers. That spirit of innovation continues into 2024 with new product trials and roll-outs planned. We now employ 32,000 people across the country, and I credit them with our success.” Currie said the business is also looking to extend its evening trade and roll out a menu suited to later opening hours. “During 2023, we continued to open our shops later into the evening and now have more than 1,200 sites competing for food-on-the-go-sales until 7pm or later,” she said. “Throughout the year, evening (defined as post-4pm sales) was the fastest growing daypart, albeit from a low base. As a result, evening sales were 8.7% of company-managed shop sales in the second half of 2023, and our market share for the evening daypart increased to 1.6% for 2023 (2022: 1.2%). We know many customers stop by our shops on their way home from work, looking for quick and easy evening meals and snacks. Competing for evening sales means having the right products to meet our customers’ preferences. Our existing range is proving popular, with our hot southern fried chicken goujons, southern fried potato wedges, and pizzas all selling well. Our family pizza box (available for delivery) comes with six individual slices and can be customised, meaning that everyone can get the flavour they want. We continue to innovate with new hot food options and expanded our pizza range with a Spicy Veg version this year, as well as trialling new menu ideas such as Mozzarella and Cheddar Bites. Our ongoing focus is on making sure we have the right products in the evening to give people more reasons to visit us and, in 2024, we will continue our trial with a number of items including customisable hot chicken wraps and made-to-order drinks.” It comes after the business reported total sales of £1,810m in 2023, up 19.6% from £1,513m in 2022, with sales in company-managed shops up 13.7%. Its pre-tax profit rose from £148.3m in 2022 to £188.3m. Underlying profit before tax excluding exceptional income (£20.6m exceptional net income primarily related to settlement of business interruption insurance claims made in 2020) was up 13.1% to £167.7m. Market share is at an all-time high, with total share of food-to-go visits 8.2% (2022: 7.7%), while the share of food-to-go breakfast visits increased to 19.6%, taking Greggs to number one in the market. A record 220 new shops opened in 2023 and there were 75 closures (145 net openings), growing the estate to 2,473 shops as at 30 December 2023. The company relocated 42 existing shops and refurbished 122 existing shops. It is targeting 140 to 160 net openings in 2024 as it remains on course for a long-term target of 3,000 UK shops. Its delivery reach was extended, with Greggs now available on Just Eat (1,340 shops) and Uber Eats (930 shops) platforms (1,440 shops in total) with sales up 23.6% in 2023, while the Greggs app scanned in 12.5% of company-managed shop transactions (2022: 6.2%). A fourth production line was installed at Balliol Park in Newcastle upon Tyne, while two new state-of-the-art facilities are planned to facilitate further expansion. The first site, in Derby, has been secured, and second site is planned for the Kettering/Corby area. Currie added: “Reflecting on another year of rapid growth, I am so proud of how our teams have risen to the challenge of serving more customers through more channels. Whether in our shops, our manufacturing sites, our distribution network, or in Greggs House, our teams stepped up to make sure that we kept pace with the increased customer demand as we delivered on our strategic growth plan. We are very much on track to deliver our bold five-year growth plan to double sales by 2026. We will open our 2,500th shop in the coming weeks and see the potential for significantly more than 3,000 in the UK in the longer term.” Greggs features in the Premium Club Turnover & Profits Blue Book, the next edition of which will be released next Friday (8 March) and will feature 889 companies. Its turnover of £1,810m for the year to 30 December 2023 is the seventh 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 Premium Club 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 to receive two updated databases this week: Premium subscribers will receive the next edition of the UK Food & Beverage Franchisee Database tomorrow (Wednesday, 6 March), at midday, featuring ten new entries and updates to existing entries. The database is updated every two months, and the latest version features 130 businesses and more than 55,000 words of content. Among the new entries are Freshly Baked, which has grown US pretzel brand Auntie Anne’s to more than 30 stores and recently became the first UK franchisee for Dutch smash burger brand Fat Phill’s. Also included is Domino’s franchisee Full House Restaurants, which operates 46 stores, and Wimpy franchisee GK Burger, which operates three restaurants in Essex and Kent. Following this, the next Turnover & Profits Blue Book will be sent out on Friday (8 March), at midday. A further 18 companies have been added, while 37 have been updated. The database now features 889 companies, with 583 in profit and 306 in loss. Premium Club members also receive access to four other databases: the Multi-Site Database, produced in association with Virgate; the New Openings Database; the UK Food and Beverage Franchisor Database; and the Who’s Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to five 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 that are Premium Club members 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 Premium Club 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 Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Time Out Market shows strong profitability and expands global footprint: Time Out Market has shown strong profitability and expanded its global footprint, the group’s half-year results for the six months to 31 December 2023 have said. Following Cape Town’s successful opening in November 2023, the group has seven Markets open, with a further two under construction (Porto and Barcelona, both scheduled to open in 2024). Bahrain Market signed in the period and is expected to open towards the end of 2024, in addition to five further sites contracted to open FY25-FY27. Market like-for-like gross revenue grew 11% in constant currency to £36.5m (2022: £33.0m) while adjusted Ebitda increased significantly to £6.1m (2022: £2.5m), with improved gross margin and operational productivity gains. Group gross revenues increased by 7% on a like-for-like basis in constant currency, while group adjusted Ebitda increased 151% to £6.0m (2022: £2.4m) and group operating loss narrowed to £0.1m (2022: £6.8m loss). Chris Ohlund, chief executive of Time Out Group, said: “We are making continuing progress in delivering our growth plan. Our trusted brand and ‘best of the city’ content continues to attract more traffic to our Media and more footfall to our Markets as we expand our global presence. By leveraging the growing synergies between Media and Markets, we keep our brand and proposition fresh, unique and suited to customer preferences alongside increasing our profitability. While we made progress on many fronts, I am particularly pleased with two specific milestones: the successful opening and continued popularity of Time Out Market Cape Town, which expands the footprint of our food and cultural markets to four continents - and the launch of our partnership with Coca-Cola which is our first global advertising campaign for a client of its scale. Looking ahead, we will continue to focus on growing our creative campaign solutions for advertisers. We offer access to our global audience through both digital (Time Out Media) and In-Real-Life (Time Out Markets). We believe the synergies created by further increasing our digital audience in combination with the physical audience in our Time Out Markets are unique on a global scale. It is these synergies which make Time Out a differentiated and increasingly attractive partner for international brands and will help us to grow profits further in the future. Our recent progress gives us confidence in our scaling proven models and we are well positioned for sustained growth.” Brakspear reopens second pub with Little & Large: Henley-based pub operator Brakspear has reopened a second pub with award-winning operator Little & Large. The Leicester Arms in Penshurst, Kent, has reopened following a £1.2m refurbishment by Brakspear in partnership with the Little & Large Pub Company, which also runs the award-winning Running Horses, a Brakspear pub at the foot of Box Hill in Surrey. The redevelopment, overseen by Brakspear’s in-house design team, has retained the charm and character of the grade II-listed building, while the pub’s 11 en-suite bedrooms have been upgraded to offer top-quality boutique hotel-style accommodation. Steaks from the Robata grill served with a variety of sauces and sides are the highlight of the à la carte menu, which also features fish, chicken and a selection of interesting starters and desserts. The Sunday menu focuses on roasts, and there are also value-conscious menus including a set lunch every day at £25 for two courses and a Steak Night every Wednesday at £30 for three courses. Brakspear chief executive Tom Davies said: “We were happy to invest in The Leicester Arms and create a pub where Little & Large can work their magic! They've proven themselves to be fantastic operators at The Running Horses, so we look forward to seeing their second Brakspear pub become a similar success. We have many stunning pubs in beautiful locations across the south east, but they are only ever as good as the business partners who run them. Working with talented operators is key to our success, and we are delighted to have extended our relationship with Little & Large.”
Professor who helped solve Pret sandwich tragedy believes plants can help reduce risk of allergies: The professor who helped solve the death of a teenager who ate a Pret A Manger sandwich has said plants can help reduce the risk of allergies. Natasha Ednan-Laperouse died aged 15 in 2016 following a severe allergic reaction to a baguette containing hidden sesame seeds. Professor Monique Simmonds, also known as the “plant detective”, helped clear up what was at the time a mystery by examining the contents of Natasha’s stomach and comparing them against the 8.5 million samples on the plant compounds database at the Royal Botanic Gardens in Kew. This found a match for sesame, to which Natasha was highly allergic but which wasn’t listed on the baguette’s label. Since 2021, Natasha’s Law has required food businesses to include full ingredient labelling on pre-packaged food. And while plants can be the cause of allergies, they may provide a remedy in future, Professor Simmonds told the Daily Mail. “Lipid transfer proteins, for example, occur in a range of fruit, vegetables, nuts and cereals to protect the plant, but they can also cause severe allergic reactions,” she said. “There are other proteins in plants called Gibberellin-regulated proteins (GRPs) associated with multiple fruit allergies. Fruit containing GRPs include peaches, sweet cherries, oranges, pomegranate and strawberries. To prevent these allergies, plant breeders could, in theory, reduce the levels of these proteins.” Looking back at her work on Natasha’s case, Professor Simmonds added: “By analysing remnants from Natasha's brace, we were able to show beyond any doubt that she had eaten sesame, and this triggered fatal anaphylaxis. She thought the baguette was safe for her to eat. It wasn’t. Having that information has led to huge changes for the two to three million people in this country with food allergies.” Fish and chips replaces chicken tikka masala as UK’s favourite dish: Fish and chips has officially regained the crown of Britain’s most loved national dish, dethroning Chicken tikka masala. The popular Indian takeaway dish, believed to have been invented in Glasgow in the 1970s by Pakistani chef Ali Ahmed, regularly comes out on top in the polls. But now the beloved chippy tea is back to rule once again in a wide-ranging poll of 2,000 Brits who voted for it, reports the Daily Mail. The battle for the nation’s taste buds is regularly fought over and the 2024 vote put fish and chips top with 44% followed by a roast dinner with 38%, full English with 23%, pie and mash with 19% and chicken tikka masala with just 9%. Researchers found that tikka masala and fish and chips had been top of the tree more than any other dish over the past 25 years, but they say that fish and chips is now the clear frontrunner. In the past 25 years, fish and chips has come first place six times, beating the five times chicken tikka masala won. Roast dinner has won four titles, with three each for a full English and pie and mash. Shepherd’s pie has also won twice, and sausage and mash and Spaghetti Bolognese once each.
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