Breakthrough in negotiations between the government and train drivers is “crucial step forward for sector”: Two years of rail strikes appeared to be nearing an end last night after ministers offered drivers a 15% pay rise, a move that was described as a “crucial step forward” for the hospitality sector. Union bosses said the offer had “no strings” and recommended it to members in a move that raises hopes of resolving the stoppages that have caused months of misery for commuters. Ministers argue that a rise of thousands of pounds for the average driver is worth paying to end disputes that have cost hundreds of millions. Train drivers have gone on strike for 18 days since July 2022 but the staggered timing of the walkouts meant the railways have been disrupted for about a day a week over the past two years. Michael Kill, chief executive of the Night Time Industries Association, said: “The breakthrough in negotiations between the government and ASLEF is a crucial step forward for our sector. For over two years, industrial action has severely impacted the night-time economy, creating significant barriers for businesses, workers, and patrons alike. The proposed pay deal, which marks a potential end to the long-running rail dispute, is a positive sign that the tide is turning. While there is still much work to be done, particularly in rebuilding the financial stability of our sector, the prospect of renewed stability in rail services is a welcome development. Reliable transport is the lifeblood of the night-time economy, ensuring that millions of people can access our venues and events safely and conveniently. We have endured immense challenges, and this breakthrough offers a glimmer of hope for the future. It is imperative that we continue to engage in constructive dialogue to address the remaining hurdles, ensuring that our sector can thrive once again. This moment is a testament to the power of collaboration and the shared commitment to revitalising our industry.”
Next Who’s Who of UK Hospitality to be released next week featuring 878 companies: The next Who’s Who of UK Hospitality will be released to Premium Club members on Friday, 23 August, at midday. Another seven companies have been added to the database, which now features 878 companies. This month’s edition will also include 85 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 Club members also receive access to five other databases: the
Multi-Site Database, produced in association with Virgate; the
New Openings Database; the
Turnover & Profits Blue Book; the
UK Food and Beverage Franchisor Database and the
UK Food and Beverage Franchisee Database. 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.
Starbucks awards new CEO pay package worth up to $113m: Starbucks has announced that it offered new chief executive Brian Niccol, around $113m (£88m) in total compensation to lure him from his prior role as chief executive at Chipotle. The pay packaged includes a $10m sign-on bonus, a $75m equity grant, and, starting in fiscal 2025, a grant that could be worth $23m per year. That’s on top of Niccol’s annual $1.6m salary and an annual cash bonus that could range from $3.6m to $7.2m, depending on his performance. Niccol’s offer letter also states he won’t be required to relocate to the company’s headquarters in Seattle, although he has agreed to commute from his residence as necessary. Chipotle is headquartered in Newport Beach, California. Until he gets permanent secondary housing in Seattle, Starbucks has agreed to cover the cost of any temporary housing arrangements and a personal chauffeur to drive Niccol around Seattle. Starbucks also promised him it would establish a small remote office in Newport Beach. He can also use Starbucks’ plane to travel between his house and HQ, and his primary office will be in Seattle, the company said. A Starbucks spokesperson said: “Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years. His compensation at Starbucks is tied directly to the company’s performance and the shared success of all our stakeholders. We’re confident in his ability to deliver long-term, enduring value for our partners, customers and shareholders.” Niccol’s pay package is also more generous than that of his predecessor, Laxman Narasimhan. His base salary was $1.3m, with possible cash bonuses of up to $5.85m and equity awards of $13.6m, according to filings. In fiscal 2023, Narasimhan’s compensation was valued at $14.6m, largely from stock awards.
Don’t rush workers’ rights reforms, business warns Labour: Business leaders have warned the government that it risks doing “real damage” to the economy if it pushes ahead too quickly with the biggest overhaul of workers’ rights for a generation. The Times reports that Angela Rayner, the deputy prime minister, and Jonathan Reynolds, the business secretary, hailed a “new era of partnership” as they met business groups yesterday (14 August). But they were warned that rushing new legislation would lead to a slowdown in the economy and hit small businesses hard when they were “already overwhelmed’ with high inflation and interest rates. Labour plans sweeping reforms to workers’ rights including a right to switch off, a ban on exploitative zero-hour contracts and the introduction of rights such as sick pay and protection against unfair dismissal from the first day after the expiry of a probation period. Employees will also have new rights relating to parental leave and flexible working. Employers have been told to ignore laws that could force those on strike to work and the government confirmed it would repeal legislation limiting strike disruption. The Employment Rights Bill is set to be tabled when parliament returns in September. The government said the meeting was a chance to “wipe the slate clean and begin a new relationship of respect and collaboration”. However, businesses are concerned about the cost and regulatory burden that the new measures will bring. One source described the measures as “using a sledgehammer to crack a nut”. Martin McTague, the national chairman of the Federation of Small Businesses (FSB), said the changes would hit smaller companies, which employ about 60% of the workforce, the hardest. He said: “The biggest harms will come from ramping up risk and cost when weighing up who and whether to recruit. Formal dismissal process from day one would add to your risk and could cause real damage to the economy. Anyone looking at sky-high economic inactivity and not thinking about how small employers recruit is thinking about the problem in the wrong way.” Tina McKenzie, the FSB’s chairwoman of policy and advocacy, said: “There are around 30 different pieces of legislation that potentially could hit employers. For SMEs [small and medium-sized enterprises] that’s a lot of things heading their way at once. We need to do it properly and we need to have proper consultations, and they heard that loud and clear in there today.”
C&C – group earnings in line with expectations, appoints new non-exec director: C&C Group, owner of the Tennent’s, Magners and Bulmers Ireland brands, and Matthew Clark, Bibendum Wine and Walker & Wodehouse, has this morning reported that its group earnings have been in line with expectations in the financial year-to-date, despite the well-documented poor weather in June, and that it has appointed Feargal O’Rourke as an independent, non-executive director. The company said: “We remain confident of achieving our earnings expectations for the full year, reflecting significant growth relative to FY2024, and reaffirm our commitment to recommence our second €15m tranche of our share buyback programme from 1 September.” The group previously communicated its intention to deliver at least €150m to shareholders over the next three years ending in February 2025, 2026, and 2027 through an appropriate mix of share buybacks, dividends and special dividends depending on prevailing circumstances. C&C commenced a €15m share buyback programme on 1 March 2024 which has been completed. The company said it will commence the second tranche shortly. It said: “Subject to shareholder approval today, the directors have also proposed a final dividend of 3.97 cent per share. An interim dividend of 1.89 cent per share was paid in December, making a full year dividend of 5.86 cent per share.” It said that O’Rourke will join its board as an independent, non-executive director with effect from the conclusion of today’s AGM. Upon his appointment, O’Rourke will also become a member of its Audit Committee. O’Rourke retired from professional services firm PwC in October 2023 where he had worked in a variety of roles over a 37-year career with the firm. He served as the PwC Managing Partner in Ireland for his last eight years. In January 2024, he was appointed by Ireland’s Minister for Enterprise, Trade and Employment as chair of IDA Ireland. The company said that the appointment of O’Rourke follows a rigorous process to recruit a new non-executive director led by the nomination committee with the support of an independent executive search firm. Ralph Findlay, C&C Group chair and chief executive, said: “Feargal brings valuable expertise to C&C having advised companies on a broad range of corporate, financial and taxation considerations over a long and esteemed career in PwC. We look forward to the contribution he will make to the C&C Board in the period ahead as we pursue our strategic, financial and ESG ambitions.” O’Rourke said: “With its iconic brands and leading distribution platform, I am delighted to join C&C and support the Board deliver its ambitious medium and long-term targets.” The company said that the appointment of O’Rourke is part of the Board’s ongoing programme of refreshment and renewal. It said: “The process pre-dates recent engagement with Engine Capital and does not impact the recently announced agreement to appoint a new non-executive director to the Board.” Earlier this month, C&C said it had reached an agreement with activist investor Engine Capital. It came after Engine again urged the need for boardroom change at C&C after “years of underperformance” and put forward two of its “highly qualified” directors to join the board. That came after Engine, which owns just under 5% of C&C’s shares, previously demanded a strategic review process that could lead to the drinks business going private.
