Burger King UK reports 3% rise in FY lfl sales, H1 24 trading has been resilient: Burger King UK, which operates 561 restaurants, 285 of which are directly owned, has reported a 30% rise in revenue to £381.8m in the year to 31 December 2023, with like-for-like sales growth of 3%, which it said reflected the “continued resilience of the QSR market” and strong demand for the brand’s “high-quality and affordable food offering”. The company said that its post year end trading has been “resilient” with total sales growth of 5%. Despite continued macro-economic challenges, Burger King UK said it continued to trade resiliently during 2023, leveraging new store openings and integration of the Karali business acquired in September 2022 to progress its rapid expansion in the UK. Operating profit for Burger King UK significantly improved to £13.4m for the year (2022: loss of £20.7m) due to a combination of factors including the increase in revenue and good cost management. Adjusted Ebitda improved to £23.3m (2022: £15.1m). During 2023, the business opened 18 new restaurants, including new drive thru restaurants in Castleford, Barrhead, Bolton Logistics Park, and Kirkcaldy. It also completed the full integration of 74 Burger King UK restaurants following the acquisition of Karali Group in September 2022. In addition, it upgraded 10 restaurants in 2023 driving an immediate uplift of sales at the locations. The company said this forms part of its strategy to energise its restaurant portfolio, deliver “an improved customer experience and a new visual identity, and diversify its customer proposition through the introduction of pre-order digital kiosks and digital menu screens”. Burger King UK invested in digital transformation by advancing its UK-wide loyalty scheme within its app during the period, with the app now having over 2.8 million users. Burger King UK received an additional £35m of funding from its majority shareholder, Bridgepoint, during the year to support these initiatives. Alasdair Murdoch, chief executive of Burger King UK, said: “I am pleased to announce a strong full-year performance and significant strategic progress in 2023. Our revenue performance and improvement in operating profit reflects the strength of our brand and the continued demand for our high-quality, affordable food offering. Despite ongoing macro-economic challenges, we expanded our footprint by opening 18 new Burger King UK owned restaurants alongside fully integrating the Karali business to bring more of our restaurants under direct ownership. We also continued to invest in our customer proposition through our remodelling programme, advancements in digital transformation and the launch of several new products to cater to all preferences including the successful launch of the Peppercorn Angus and Chimichurri Steakhouse Angus as part of the Gourmet Kings premium offering. We have seen a resilient trading performance in the first half of 2024, with total sales growth of 5% split equally between the existing estate and contribution from new site openings. This was also supported by a significant improvement in profitability from a strong operational cost focus. Looking ahead, we are excited about our ambitious expansion plans and the continued growth of our digital and delivery services, supported by good cost management and a robust pipeline of new openings.”
Premium Club members to receive latest UK Food and Beverage Franchisor Database this week: Premium Club members will receive the latest UK Food and Beverage Franchisor Database on Wednesday (14 August), at midday. It will feature 11 new additions, while one former entry which is no longer trading has been removed. This brings the total number of featured companies to 270, with more than 145,000 words of content. Among the new additions are beverage brands
Cafe Barbera, the Italian coffee house brand that is set to soon make it Scottish debut after recently opening its second UK site; Dubai-based specialty coffee roaster and retailer
Coffee Planet, which made its UK debut in Cardiff in 2018; and Taiwan-based bubble tea brand
Sharetea, which has more than 400 locations globally and is looking to expand to the UK, having exhibited at this year’s International Franchise Show in London. Premium Club members also receive access to five other databases: the
Multi-Site Database, produced in association with Virgate; the
New Openings Database; the
Propel Turnover & Profits Blue Book; the
UK Food and Beverage Franchisee Database and the
Who’s Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including the Talent and Training Conference (1 October), Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 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.
Business levy ‘puts 17,000 shops at risk’: More than 17,000 shops are at risk of closure over the next decade unless the Labour government overhauls the business rates regime, the boss of Sainsbury’s and the general secretary of the biggest retail union have warned. Writing in The Times, Simon Roberts, chief executive of Sainsbury’s, and Paddy Lillis, the general secretary of the Union of Shop, Distributive and Allied Workers, say that tens of thousands of retail jobs could disappear because of a sharp rise in business rates bills. “The No. 1 barrier to growth in our industry is the outmoded business rates system,” they say, adding that “successive governments have promised reform but have only ever tinkered around the edges. The result? Shops closing, jobs lost, economic growth stunted.” Research shared with The Times carried out by Development Economics has claimed that a 20% reduction in headline business rates would save retailers £1bn in the first year and would safeguard or create more than 17,000 jobs. Although Development Economics says that a headline rate cut of such a magnitude would initially reduce tax revenues for the Treasury, its research has found that, after ten years, the corresponding increase in economic activity would generate net positive returns of £70m per year for the government. Without action from the government on the rates regime, 17,300 stores could close by 2033-34 in a worst-case scenario, amounting to, on average, 15 failures per town in England, Development Economics has found. About 42,000 jobs could be lost. Roberts and Lillis say: “A government that revitalises growth, boosts jobs and secures long-term funding for public services will be able to look back on its achievements with pride. Reforming business rates won’t be a silver bullet to achieving all of this, but it would be a very good place to start.” This multiplier rate was frozen between 2020-21 and 2023-24 at 51.2p for most businesses, but now it has risen to 54.6p. In its general election manifesto, the Labour Party promised to overhaul the business rates system to create a more level playing field between digital and bricks-and-mortar retailers. The Treasury said: “As committed to in the manifesto, we pledged to replace business rates with a fairer system. This new system will level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship.”
Britvic deal ‘risks hundreds of jobs’: The Unite union has sounded the alarm over hundreds of possible job losses from Carlsberg’s bid to acquire Britvic for £3.3bn. The Times reports that the union has demanded urgent talks with the Danish brewer to address concerns about its plan to cut about 1% of jobs in the combined group if shareholders approve the merger. Carlsberg has offered £13.15 per share for the London-listed Britvic as it seeks to increase its sales of non-alcoholic drinks. Britvic is the biggest maker of branded still soft drinks in Britain and Carlsberg is seeking ways to serve a younger, more moderate generation by growing its “Beyond Beer” products. Britvic’s board has recommended that its shareholders accept the deal in a vote planned for 27 August, but Unite has pushed back against plans to cut jobs throughout the group’s combined workforce of 34,500. The union has written to Britvic to express concerns about most of the possible 345 job losses falling in the UK. Carlsberg has pledged to “accelerate commercial and supply chain investments” at Britvic to help the company to grow. Unite also said that “it is vital that the voice of workers is heard” during a review of the combined entity after the deal is completed. Carlsberg has promised to hand cash bonuses worth 175% of annual base salaries to between 130 and 180 senior executives. Unite has said that these retention bonuses should be granted to all staff. The union added: “We note that, according to Carlsberg, soft drinks are highly synergistic with beer throughout the value chain. It is vital that we see detailed proposals relating to investment, details that so far are lacking, including in relation to bottling agreements, as the documents disclosed are highly redacted.” Carlsberg has said in its acquisition documents that any job cuts “will be subject to comprehensive planning and appropriate engagement with stakeholders”, including employees and their representative bodies. Britvic and Carlsberg declined to comment.
Majority in UK want new tax on makers of ultra-processed and junk food: A majority of people in Britain want new taxes imposed on companies that make either junk food or ultra-processed foodstuffs to help tackle the obesity crisis, polling suggests. The Guardian reports the findings have prompted calls for ministers to help people eat healthier diets by putting a sugar tax-style levy on sweets, cereals, pizzas and other products containing too much salt or sugar. In a survey by Ipsos for the Health Foundation thinktank, 58% of those questioned said they backed the introduction of a tax on organisations that produce foods high in sugar or salt, with some of the revenue to be used to buy fresh fruit and vegetables for poor families. Ipsos found that a smaller proportion of people, but still a majority (53%) favoured imposing a tax on companies that produce ultra-processed food, such as ham, biscuits and mass-produced bread, with some of the proceeds raised to be deployed to help low-income households eat better. On taxing junk food producers, only 19% of the representative sample of 2,136 UK adults were opposed to the idea and 20% said they did not know. A larger number (24%) were opposed to ultra-processed food manufacturers facing taxes while 21% did not know. Responding to the 58% backing for taxes on makers of sugary and salty products, Adam Briggs, a senior policy fellow and public health expert at the Health Foundation, said: “The new government should be emboldened by this type of polling and understand that this [idea] is something that does enjoy broad support and is likely to lead to important health benefits. The public are basically saying: it’s time for tough action.” Responding to Ipsos’s findings, the Food and Drink Federation, which represents most food producers, said companies should be allowed to develop healthier products – such as by removing salt, sugar and calories and adding fibre, fruit and vegetables – rather than face taxes. “Manufacturers are committed to continuing to work with government to tackle obesity and poor diets. How we do this hinges on how collectively we ensure that companies are investing in making food healthier,” a spokesperson said. “Rather than taxes, we believe that supporting all sizes of companies to innovate in healthier products would deliver more and at better value for money.”
Rhubarb adds The Brewery to its menu: The Brewery, one of the City of London’s best-known conference and banqueting venues, is set for a new phase in its 274-year history after the sale of the venue to Rhubarb Hospitality Collection. The Times writes that the deal, to be announced today, expands Rhubarb’s footprint in Britain and lifts its workforce to more than 2,500. Rhubarb runs bars and restaurants in several London venues, including Sky Garden, 22 Bishopsgate and the Royal Albert Hall, and operates restaurants and event spaces in New York and Berlin. Rhubarb is backed by Oak View Group, an American property investor, which acquired it in 2023. It is a specialist in running live experiences and premium hospitality services and it recently opened Co-op Live in Manchester, where its opening was plagued by numerous issues. The grade II listed Brewery, which was previously owned by Whitbread and hosts more than 500 events annually, is managed by James Varah, its chief executive, and he will work with his counterpart at Rhubarb, Pieter-Bas Jacobse, to develop a portfolio of premium venues in London. Whitbread continued to operate the London venue as a conference and banqueting centre until 2005, when it was put up for sale for an estimated £45m to £50m. At that point, it still housed the old Whitbread offices. It was sold to EC&O Group, the owner of Earls Court and Olympia at that time, and the undeveloped office space in Chiswell Street was split off separately. The hotel portion of the project was developed and opened in 2011 under the Montcalm hotel brand, owned by Precis Advisory. At present, the two parts of The Brewery site in Chiswell Street are owned and run separately from each other.
Tunnels that inspired Bond author will open to the public with the UK’s deepest licensed bar: A labyrinth built to protect Londoners during the Blitz and later used as a hub for British espionage has become known as the James Bond spy tunnels. About 40m below the capital, Ian Fleming, author of the James Bond novels, worked as part of the Special Operations Executive (SOE), Churchill’s spy organisation. The tunnels are thought to have provided Fleming with the inspiration for the lair of Q-branch in his novels. After the war the subterranean network was expanded to become a secret telephone exchange running a Cold War “hotline” between the Kremlin and the White House during the Cuban Missile Crisis in 1962. The Times reports that the tunnels, to the east of Covent Garden, are now one step closer to becoming a tourist attraction after Camden council moved to grant planning permission, subject to an agreement for the developers to offset any impact on the area. The move paves the way for what developers have described as “a unique and exceptional underground cultural hotspot”. The site beneath High Holborn — officially known as the Kingsway Exchange Tunnels — will feature an underground bar, the deepest licensed bar in the UK, and exhibition spaces that “may be used for medium-term exhibitions on associated themes such as James Bond”. The development is part of a £150 million plan by The London Tunnels company to transform the mile-long underground passageway into “a spectacular underground tourist attraction” for three million visitors a year. Free visits will be offered to London schools. Developers behind the project estimate that the development will bring additional spending of up to £80m to the area. Camden council’s planning committee has recommended that permission be granted to give the scheme the go-ahead. It comes after a move to approve the scheme in the neighbouring City of London authority, where the tunnels start. Angus Murray, chief executive of The London Tunnels, said that approval by Camden council would bring the company “one step closer to realising our plans to develop this historically important tourist attraction at the heart of London”. The company is listed with the Euronext Amsterdam exchange, after plans to float it on the London Stock Exchange were dropped.
