Propel Newsletter Archive Page

Sector warns new Labour government – ‘the real work begins now’: Sector leaders have warned the Labour government: “the real work begins now.” Labour has swept to power with a landslide victory that sees Sir Keir Starmer become prime minister. And industry leaders said immediate attention is needed in several key areas to recover from “years of neglect” through the cost-of-living crisis and the pandemic. Night Time Industries Association chief executive Michael Kill said: “Our sector must rebuild trust with the new government, after years of feeling misunderstood and undervalued, we must work towards changing the narrative around the value of the night-time economy, secure stronger representation at all levels, and create a more integrated regulatory system. We must also address tax disparity, reform business rates, protect independent operators, and align VAT with European standards. We urge the new government to appoint a dedicated minister for the night-time economy. This role will ensure focused attention and strategic direction for our sector at the highest level of government. Additionally, establishing regional representatives will then also facilitate effective strategy, communication and coordination across regions. The new government has a considerable opportunity ahead, with the current majority, there is an opportunity for meaningful and transactional change. We need the new government to prioritise meaningful policy changes, strategic and targeted financial support, and collaborative efforts to shape the future of nightlife. This will ensure a sustainable and thriving future for night-time industries.” UKHospitality chief executive Kate Nicholls will outline what the result will mean for the sector in today’s (Friday, 5 July) Friday Opinion, which will be sent to subscribers at 11am.

Premium Club members to receive new searchable and segmented New Openings Database today: The next Propel New Openings Database will be sent to Premium Club members today (Friday, 5 July). For the first time it will also be delivered in an easy to search Excel sheet and segmented into seven key categories of cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants. The database will show the details of 160 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club members will also receive a 12,356-word report on the 160 new additions to the database. The database includes new openings in the quick service restaurant sector such as burger franchise concept Burger & Sauce, which will soon be opening at Liverpool Central station, US brand Slim Chickens increasing its presence with an opening in Somerset and Burger Drop opening a site in Sunderland this summer. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book; the Multi-Site Database, produced in association with Virgate; the UK Food and Beverage Franchisor Database; the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. Plus, all Premium Club members will be offered a 20% discount on tickets to Propel paid-for events including 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 are also 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.

Bank of England given extra push to cut interest rates: Businesses intend to ease both price increases and pay rises over the next year, strengthening the case for the Bank of England to cut interest rates at its next meeting in August. A survey of businesses conducted by the bank in June revealed that they expected to increase salaries by an average of 4% over the next year, down from 4.1% in the previous month, reports The Times. It suggests underlying wage pressures that have kept inflation high in the services sector are easing. The bank’s monetary policy committee (MPC), the nine-strong group that sets interest rates, pays close attention to the monthly survey. Financial markets think the bank will lower its base interest rate on 1 August, which would represent the first easing in policy since March 2020. The base rate is at 5.25%, a 16-year high, having risen from 0.1%. Services inflation, a measure of domestically generated price dynamics, exceeded the bank’s forecast in May at 5.7%. Headline inflation fell to 2%, hitting the official target for the first time since July 2021. Between two and three quarter-point rate reductions are expected by investors this year. However, there was evidence within the latest survey that inflationary pressures are starting to emerge from businesses’ plans to increase their profit margins. Nearly 50% of companies surveyed by the bank said they planned to lift margins over the next year, compared with 18.2% that expected to reduce them, which could keep consumer prices inflation running higher than wage growth. Businesses now expect inflation to average 2.8% over the next year, down from a forecast of 2.9% the previous month. They think prices are poised to rise by 3.6% over the 12 months to June, the lowest rate since August 2021 and down from 3.8% previously.

Vue eyes flotation: Cinema group Vue International is considering a flotation in London. Chief executive Tim Richards said he was looking at ‘all opportunities’ for the group, which could include an initial public offering. Vue has suffered as it faces a slow comeback from the pandemic, which has been worsened by the Hollywood actors and writers’ strike. Europe’s largest independent cinema operator carried out a debt restructuring in January – its second in less than 18 months. But Richards said it was now in “very good shape” and was focused on “rebuilding and laying down the foundations for the future”. On whether this would mean a listing in the UK in the next two years, he told the Daily Mail: “We will look at all opportunities strategically – which would include a float.” But he added: “The business needs to wait to return to normal before it decides to make the next step.” The company, which employs more than 8,000 people, anticipates the move could take place in 2025. The actors and writers’ strike brought production to a virtual standstill, delaying many big movies into 2025 and 2026 rather than this year. Richards said there were 35% fewer films released in 2022 than before the pandemic and a fifth fewer in 2023. This compared with the period between 2017 and 2019 when there were three consecutive box office world records set. Richards’ comments came after Sky News reported Cineworld was drawing up plans to shut about a quarter of its 100 or so sites in the UK.

Time Out opens Barcelona market: Time Out Group has opened its new Time Out market in Barcelona. This is the company’s ninth food and cultural market and the first to open in Spain. There are further seven signed and due to open by 2027. Located in the Maremagnum shopping and leisure destination in the Port Vell area, the market spans 56,500 square foot. There are 14 award-winning chefs including two Michelin star chefs with four stars between them, up-and-coming restaurateurs and “much-loved local gems”, and a full-service restaurant. The market also features four bars, an event space and a podcast station. Time Out has markets in Lisbon, New York, Boston, Chicago, Montreal, Dubai, Cape Town, Porto and Barcelona. Markets in development are Bahrain (2024); Osaka, Budapest, Vancouver and Abu Dhabi (2025); and Prague and Riyadh (2027).