Greggs profit falls as first half sales pass £1bn mark, evening remains fastest growing daypart, extending retail reach with Tesco partnership: Greggs suffered a drop in profit the 26 weeks ending 28 June 2025 due to “challenging market footfall” as its sales for the period passed the £1bn mark. The company also said that evening remains its fastest growing daypart and that it is extending its retail reach with a new Tesco partnership. Total sales for the half were £1,027.7m, up from £960.6m in the first half of 2024. This 7% increase in total sales saw managed shop like-for-likes up 2.6% and franchised shops like-for-likes up 4.8%. The company’s pre-tax profit fell from £74.1m in the first half of 2024 to £63.5m as it reported “challenging market footfall, more weather disruption than in 2024 and phasing of cost headwinds”. Greggs said evening remains its fastest growing daypart, accounting for up to 9.3% of company-managed shop sales (H1 2024: 8.4%), driven by strong demand in higher-footfall locations. It said sales through delivery channels represented 6.8% of company-managed shop sales in the first half (H1 2024: 6.7%), while the Greggs app was scanned in 25.7% of company-managed shop transactions (H1 2024: 18.3%), with customers who engage with the app shopping more frequently than previously. In September, the company will extend the availability of its frozen ‘Bake at Home’ range through a new relationship with Tesco. “This builds on our years of success with Iceland Foods, which remains an important partner to Greggs,” the company said. Ongoing menu development has supported growth across all dayparts and channels, with healthier choice range seeing good momentum. The company said breakfast and lunch deals “remain highly competitive and are great value customer favourites, offering quality and affordable choices”, and that it has seen “strong performance in key growth areas such as pizza and iced drinks, where new flavours, expanded availability and compelling value are helping us meet customer needs throughout the day”. Mac & Cheese is one of its fastest growing products, especially in the evenings. Greggs opened 87 new shops in the first half with 56 closures (including 27 relocations), resulting in 31 net openings, growing the estate to 2,649 shops trading as at 28 June 2025. The company remains on track to achieve 140 to 150 net new shop openings in 2025 and continues to see clear opportunity for significantly more than 3,000 UK shops over longer term. Upcoming openings include Legate Hill in London, Tesco Corby, Sainsbury’s Apsley Mills, Romford’s Brewery Retail Park, Glasgow’s Scotstoun, Colchester Retail Park and Uckfield. Chief executive Roisin Currie said: “After a challenging start to 2025, we remain clear on the strategic opportunities that lie ahead. Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers. The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth. The board’s expectations for the full year are consistent with the guidance provided in our last trading update on 2 July.” Meanwhile, Greggs has appointed Robert Moorhead as an independent non-executive director, with effect from 1 October, replacing Kate Ferry, who will retire from the board at the end of August. Moorhead was chief financial officer and chief operating officer of WH Smith until November 2024 and is also a non-executive director of Watches of Switzerland Group. Matt Davies, chair of Greggs, said: “Kate has played a key role on the board of Greggs and I would like to take this moment to thank her for her exceptional contribution over the last six years. While we are very sorry to see her go, we are delighted that Robert has accepted our invitation to join the board. His financial expertise in a listed company environment, together with his significant experience in retail will be of great benefit to our business.”

 

The Revel Collective revenue down 7.9%, some evidence of additional spending from key demographics: The Revel Collective – the operator of 65 venues trading predominantly under the Revolution, Revolución de Cuba and Peach Pubs brands – anticipates full-year trading to be in line with market expectations and said it was encouraged to see “some evidence of additional spending from the key demographics positively impacted in the national minimum wage changes that became effective in April”. Revenue for the year to 28 June 2025 was £117.1m (FY24: £149.5m). On a like-for-like basis, group revenue was £113.2m, which was 7.9% down on the prior year (FY24: £122.9m). The company said that Peach Pubs continued its positive contribution and reported like-for-like revenue growth of 2% versus FY24. As previously announced, the company said the first half of the financial year saw a slower than expected recovery in sales owing to ongoing fragile consumer sentiment and market challenges. It said: “Whilst the second half of the financial year started slowly, it subsequently benefitted from the implementation of various internal initiatives, including the new brand proposition for Revolution which is resonating well with guests.” The group provided a trading update in January 2025 and forecast its IAS 17 adjusted Ebitda outcome to be in the range of £2m-£4m. It said: “The board remain confident with the lower end of this Ebitda forecast. Net debt has been closely managed throughout the year and closed at £22.1m (FY24: £24.4m). It remains a critical focus for the board to keep discretionary spend and capital investment under tight control and this may limit site conversion opportunities in the short term.” Rob Pitcher, chief executive of The Revel Collective, said: “Guests in our bars continue to face cost challenges and the late-night sector remains challenging for many participants. Although the macro environment remains tough, I am pleased that the initiatives and steps taken during the early part of FY25 are starting to generate small improvements for the group. Whilst it is still early days, we are also encouraged to see some evidence of additional spending from the key demographics positively impacted in the national minimum wage changes that became effective in April 2025. Cash and debt management remain a critical focus for the group, but we are looking forward into FY26 with a degree of optimism.”

 

SSP UK third quarter sales up 7%: SSP Group, the UK operator of food and beverage outlets in travel locations worldwide, has said its UK sales were up 7% in the third quarter of its financial year. In a trading update, the company said: “In the UK, sales rose by 7%, driven by strong like-for-like sales at the beginning of the quarter, helped by the timing of Easter. The M&S systems issues, following its cyber incident in mid-April, affected UK like-for-like sales during the quarter, however sales have since recovered.” Group sales in the period from 1 April to 30 June were up 6% year-on- year, on a constant currency basis, with like-for-like sales growth of 3%, net contract gains of 4% and a 1% contribution from acquisitions. Group sales also included a combined impact of (2)% from the staged exit of its German motorway services business and the deconsolidation of its AAHL joint venture in India. Like-for-like sales growth in the first six weeks of the quarter was 5%, including a seasonal benefit from the timing of Easter, whereas like-for-like sales growth in the last seven weeks of the quarter moderated to 1%, reflecting a softening of like-for-like sales in the UK and Asia PAC & EEME. More recently, like-for-like sales growth improved to circa 3% in the first three weeks of the fourth quarter. For the nine-month period from 1 October 2024 to 30 June 2025, total group revenues increased by 10%, including like-for-like sales growth of 4%, net contract gains of 5%, a benefit from acquisitions of 3% and other impacts1 of (2)%. At actual exchange rates, total group revenues increased by 7% year on year. The company said: “As outlined at our interim results on 20 May 2025, we had planned for a degree of uncertainty in demand for the second half and have accelerated our programme of cost efficiencies and other initiatives to drive improved margins, cash conversion and investment returns. As a result, and with an improved trading momentum at the start of the fourth quarter, we remain on track to deliver results within our planning assumption ranges for the year at constant currency. The currency impact on our planning assumptions, if current spot rates were to continue through the remainder of 2025, would be broadly unchanged since our interim results and would represent a translation impact only.”

 

Shaftesbury – entered the second half of the year with positive momentum: Central London landlord Shaftesbury Capital has said it has entered the second half of the year with “positive momentum”, with its F&B leasing transactions 18.8% ahead of December 2024, and its F&B trading performance led by bars, pubs and clubs. The company said: “Our food and beverage portfolio extends to 391 units and offers a diverse range of concepts, from accessible casual to premium dining. Despite the macro-economic uncertainty, demand continues to polarise to our vibrant, predominantly pedestrian-friendly destinations. There have been a small number of failures and some sales moderation for certain restaurants, however positive leasing demand has resulted in available space being filled quickly. 0.5% of the F&B portfolio is available, and over the period, our West End portfolio welcomed 10 new food and beverage offerings. Trading performance has been led by bars, pubs and clubs. 21 food and beverage leasing transactions completed with a rental value of £4.8m, 18.8% ahead of December 2024 ERV. 18 rent reviews totalled £7.4m, 5.9% above previous passing rents. In Covent Garden, Italian restaurant and bar, Harry's has signed for a flagship site with a large terrace on the Piazza for guests to dine al fresco serving a menu of authentic Italian dishes. Vietnamese restaurant Co Thanh is set to open on Henrietta Street, whilst ADOH!, a new Sri Lankan, street food concept will open on Maiden Lane, which is founded by the team behind Kolamba. Interactive museum and social gaming experience Spyscape has opened its debut UK location on Wellington Street. Modern Indian restaurant Kricket has signed for a new site in Neal's Yard, joining Café Kitsuné in Seven Dials. Refurbishment of the heritage building anchoring King Street is set to complete and will be handed over to Greek boutique hotel, Ergon House shortly. There continues to be strong performance from our Soho portfolio. Founder-led Soho restaurant, Heard, created by two-Michelin starred chef Jordan Bailey will open at Foubert's Place providing an offer for office workers, local residents and visitors. French restaurant and wine bar, Marjorie's, opened at Foubert's Place with a modern French menu and complementary wines. Breadstall Pizza, which takes the best elements from both NY and Neapolitan-style pizzas, has opened on Berwick Street, marking its debut permanent restaurant space. Boutique pastry specialists Donutelier opened late last year on Carnaby Street, located at the entrance into Kingly Court. New restaurant, ALTA, will bring northern Spanish cuisine to Kingly Court, over two floors with private dining rooms and an outdoor terrace. Chinatown London is renowned for the strength of its authentic East and South East Asian ("ESEA") culture. Interest in Chinatown, especially from new international entrants with UK operating partners is healthy and active demand from existing customers. Recent openings include pastry concept Mrs Bakery, and quick service vendor Sushi Joy. Songhelou, one of China's oldest restaurants, has opened a London outpost on Wardour Street, joined by Noodle & Beer, delivering an authentic Sichuanese experience.” Ian Hawksworth, chief executive, said:  "We are delighted to deliver continued strong performance, with growth in rents, earnings, dividends, valuation and EPRA NTA (net tangible assets). Our West End portfolio continues to be busy and vibrant with high footfall and seven days a week trading. Leasing demand is strong with 193 transactions completed 9% ahead of December 2024 ERV. Valuations have increased by 3% driven by ERV growth and stable yields.  We have entered the second half of the year with positive momentum. Supported by a strong balance sheet and access to liquidity, we are well positioned to grow the business and take advantage of market opportunities in London's West End."

 

McDonald’s franchisee bids farewell after 44 years, sells 26-strong business: Doug Wright, the McDonald's franchisee, who famously started with the company as a teenaged cleaner, has announced his retirement from the restaurant chain. It closes a remarkable chapter in a career which began in 1981, at the age of 16, when Wright took his first job at McDonald’s in Bedford as a 93p-an-hour cleaner. He climbed the ranks within the McDonald’s corporation before fulfilling a dream in 2002 by being granted his first franchised restaurant. Over the next two decades, Wright Restaurants mushroomed into one of West Midlands’ biggest employers – with nearly 3,000 staff across 26 sites. He is now returning 16 sites to McDonald’s while the remaining ten will be sold to other franchise operators. Wright has also won several awards including the Fred L Turner Golden Arch award, which is said to be the highest accolade in the global McDonald's network. Wright said: “I'm very proud of the business we've created and what it has contributed to the West Midlands economy. I will miss the people – we have always acted as one big family. We’ve celebrated proud moments together and also grieved collectively because along the way we have lost some very decent people. I joined McDonald’s initially for three weeks and it taught me life skills. Something I hear time after time from both employees and their families. From getting the opportunity to own one restaurant, the dream was then to get to two and we just kept going from there. But you have to step off the bus at some stage and my dad always said: ‘Be sure to orchestrate your own exit’.” As chair of Ronald McDonald House Charity, Wright helped to raise millions for the charity. As a result, the facility has been able to house nearly 17,000 families of children under care at nearby Birmingham Children’s Hospital. In February, Propel reported that Wright Restaurants’ turnover passed £100m for the first time in the year to 31 December 2023. The company saw turnover increase from £89,517,366 in 2022 to £104,730,859. Pre-tax profit rose from £91,033 in 2022 to £1,420,517.

 

Heineken pondering moving its operations to the US: Heineken has said that it is exploring all options to deal with growing tariff challenges in the long term, including moving manufacturing to the US, as the Dutch brewer reported better-than-expected profit growth in the first half of the year. Dolf van den Brink, the chief executive, welcomed the certainty brought by the US-EU trade deal, which reduced a threatened 30% US tariff on EU goods to 15%, a rate that would still hit Heineken’s US profits, reports The Times. All options are being considered to mitigate the long-term impact of tariffs, he said, but added that such moves were capital intensive and would first need more consistency in policy. “We look at all options, from continuing with our current setup, a more hybrid version, or otherwise,” van den Brink said. “If and when we deem them financially to be more attractive in the mid to long-term, we would for sure explore them.” Heineken reported a 0.8% rise in organic revenues to €16.9bn and a 7.4% increase in organic operating profit to just over €2bn in the first six months of its financial year. This was higher than the 7% analysts had expected, thanks to growth in Africa and Vietnam. The group’s African and Middle East business recorded a 19.8% jump in organic sales to €2b. Beer volumes over the period, however, fell 1.2%, including a sharp 4.7% decline in Europe, where Heineken has faced a prolonged dispute with retailers over price increases. This led to organic revenues dropping 4% drop to €5.7bn in the region. Heineken told shareholders it still believed annual profits would grow in the range of 4%-8% this year. Last year, the company generated organic net revenues of almost €30bn on an operating profit of €3.5bn. Having achieved more than €300m in cost savings over the period, the company said it aimed to save more than €500m in 2025, up from its previous target of €400m, which it believes will offset lower volumes. Heineken employs about 85,000 people and has about 2,400 pubs in Britain through its Star Pubs business.