Propel Newsletter Archive Page

Papa John’s CEO – I’m proud of the work we have done in the UK over the past year, business set up for long-term success: Todd Penegor, president and chief executive at Papa John’s, has said he is “incredibly proud” of the work that has been done by the business across its UK operation over the past year, which saw it close 43 underperforming sites and refranchise 60 company-owned restaurants. The company, which operates 460 sites in the UK, reported total revenues for its third quarter were $507m, down 3% from last year, primarily reflecting an approximately $10m decrease in international revenues, reflecting the work carried out on its UK business. Penegor, who recently joined the business from Wendy’s, said: “I’ve had the opportunity to travel to the UK this quarter with Ravi (Thanawala – chief financial officer and executive vice president, International) and several others, and we’re incredibly proud of the work that has been done in this market over the past year. This progress is a great example of the power of focus and teamwork. We’ve learned a lot through this process and gained tools that we can use in the future both in the UK and in other markets. Their innovation pipeline is robust, insights driven and consumer led, supported by a strong marketing focus.” He said the work done in the UK has “set it up for long term success”. Thanawala said the brand continues to expect to benefit from three areas going forward. He said: “First, the increase to our fixed commissary margin. Second, our international transformation initiatives, notably the closure and refranchising of the UK restaurants mentioned earlier. And third, continued growth in North America development.” The company said that North America comparable sales were down 6% during the quarter from a year ago. Domestic company-owned restaurants were down 7% and North America franchised restaurants were down 5%. Meanwhile, international comparable sales were down 3% compared to a year ago. Last month, Papa John’s UK managing director Chris Phylactou told Propel the business will return to profitability in 2025, and that its refranchised stores are performing up to 15% better. He said: “We’ve refranchised 60 with good franchisees, and they’re now performing 12%-15% better. The company-owned stores are doing really well too, and we’re using them as testing grounds for new innovations such as ordering screens. We’re comfortable keeping them for now, although other franchisees would love to take them on. Ideally, our growth will come within franchising, but we’re ready and able if the opportunity comes along to take on further company stores.”

Premium Club members to receive new searchable and segmented New Openings Database today, videos from Multi-Club Conference on 22 November: The next Propel New Openings Database will be sent to Premium Club members today (Friday, 8 November), at 12pm. The database will show the details of 196 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 10,553-word report on the 196 new additions to the database. The database is now segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. Premium Club members will also receive all the videos from the final Propel Multi-Club Conference of 2024 on Friday, 22 November, at 9am. They include Ben Fogle, the TV personality who has summited Everest, raced to the South Pole and rowed the Atlantic, talking about overcoming adversity, teamwork and leadership; and Adam Martin, managing director of Tesco Hospitality, talking about evolving the food and beverage offer across circa 500 in-store cafes at the UK’s leading supermarket business, how the company stays on top of consumer trends and its work with sector brands. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, the UK Food and Beverage Franchisor Database, 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 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.

The Coffee House set to open two new sites this month: North west independent coffee shop The Coffee House is set to open two new sites this month as it closes in on 30 stores. Shop number 27 will open on Saturday, 16 November, at the Cherry Tree shopping centre in Liscard, Wallasey. This will be followed on Saturday, 30 November with the launch of store number 28, in a former Costa Coffee unit in Fleet Walk, Burnley. A further site will open in December, in the Port Arcades shopping centre in Ellesmere Port. Last month, The Coffee House opened its first city centre location, at the St Johns shopping centre in Liverpool. Propel revealed exclusively in May that The Coffee House is eyeing an estate of more than 80 sites after securing a £4m cash injection from the founder of investment platform AJ Bell, Andy Bell. The investment will help accelerate the growth of The Coffee House, which was founded in 2011 by brothers Chris and Stephen Shelmerdine.

Yorkshire hotel operator sees profit jump as turnover increases to record £17.6m: Yorkshire operator Cedar Court Hotels, which operates four 100-plus bedroom hotels in the region, has reported turnover increased to a record £17,649,481 for the year ending 31 March 2024 compared with £15,118,082 the year before. Pre-tax profit rose to £1,363,100 from £278,907 the previous year. No dividend was paid (2023: nil). The group employs around 275 staff and has hotels in Bradford, Harrogate, Huddersfield and Wakefield.