Propel Morning Briefing Mast HeadAccess Banner  
Propel Morning Briefing Mast Head Propel's LinkedIn LinkPaul's Twitter Link Paul's X Link

Accurise Banner
Morning Briefing for pub, restaurant and food wervice operators

Fri 17th May 2024 - Friday Opinion
Subjects: Curse of the strong, Whitbread goes to the mattresses, something borrowed something new, how single sites can be their best
Authors: Shereen Ritchie, Katherine Doggrell, Sarah Travell, Alastair Scott

Curse of the strong by Shereen Ritchie

I haven’t written anything since I won a poetry contest, and to date, I thought I had peaked and decided not to write again. I was six years old, it was a contest in Hornchurch Pizza Hut, and I beat Darren from Harold Hill to the number one spot. I have long read Propel’s Friday Opinion, and let me be clear, if you are reading this, it’s because I forced it upon Paul Charity [Propel managing director] and Mark Wingett [Propel group editor], not because I was asked! But, as I find myself getting older and as each year passes, I seemingly have less of a filter.
 
I also find myself mentoring more and more amazing humans – humans that are the future leaders of our industry. And it has become absolutely clear that there is a lack of “let’s just be completely honest” conversations being had with them. I am not criticising – if you read my polished LinkedIn profile, you will see a portrait of a wonderful life and very little about the challenges. I am fortunate enough to be a leader in the best industry in the world, but it is not perfect, I am only human and have to deal with a lot the world does not see, as do most people.
 
So, on Mental Health Awareness Week (are you aware it’s Mental Health Awareness Week?), let’s talk about “the curse of the strong”. I first heard this expression when the incredible Steve Head talked about his journey with the Leon team and it was a lightbulb moment for me. There is a wonderful book written about it by Dr Tim Cantopher, who can discuss it far more eloquently than me. But in a nutshell: the “curse of the strong” is a concept that suggests individuals who are perceived as strong, capable and resilient often face unique challenges and pressures precisely because of these qualities. Due to this, high expectations are placed on them, they are expected to handle more responsibility, solve problems on their own and always perform at a consistently high level.
 
They have a lack of support because they are perceived as self-sufficient. People are less likely to reach out and ask how they are and assume they don’t need help. Others will often place their own emotional burdens on them, and they feel obliged to suppress their own vulnerabilities and emotions to maintain their image of strength. And worst of all, they don’t help themselves. They are less likely to seek help, fearing it will make them look weak or undermine their reputation as a capable human. It often leads to burnout….is this sounding familiar?
 
Now, I am certainly not here to teach on the book, that’s not my superpower. But, in the spirit of being “a bit more honest”, I am here to talk around the energy of the message and my experience of it, in the hope that someone reading it feels a little bit better and a little less alone.
 
In 2020, I was sitting in a hospital car park, waiting for my mum to come out of an operation that I was told she had 20% chance of surviving. At the time, I was doing a company voluntary arrangement for a business I did not know the future of. I had a team of 2,000-plus loyal superstars that all depended on me making smart decisions, and we were in the midst of a pandemic that we were having to pivot and react to every day to survive. My personal life was impacted also, I was trying to be a wife and a new mum to a six-month-old baby whom I never wanted to leave and was suffering from real mother’s guilt.
 
I had been a swan, graceful by all appearances on the surface but kicking and struggling like hell underneath. And at that moment in that car park, it all crashed down around me and I froze. Not figuratively, I literally froze. I couldn’t speak, I couldn’t think, I couldn’t move, and before I knew it, seven hours had passed. I eventually came around from what I can only describe as a dream-like state, a hypnosis subconsciously created to protect my mental health. I snapped back into reality and walked into the hospital to understand that my mother (who is still one of the strongest humans I know) was alive. But I returned to my home that night irrevocably changed in myself and in my view on mental health. 
 
I would love to tell you that I changed my ways, that I started to ask for help, that I said no to more things unfearful of the consequences of doing so, and that I started to carve more time out for me. None of these happened, but I did start talking to a select few people more and to show some of my vulnerabilities around people I felt safe to do so. I started to talk. I understood the “curse of the strong” and I took steps, so I did not find myself in the position I did in that hospital car park again.

So, to my point. The point is, dear reader, even the “strong” have a breaking point, so embrace your weakness. My goodness, share your weakness, because believe me, I am yet to speak to a single human who does not identify, even a little, with “curse of the strong”. I can’t imagine a day where I meet a human that hasn’t locked themselves away for a good old cry, or had a bad day at work and sunk a pint. We were raised on Disney movies and fairytales but there is no knight in shining armour coming to save us – we save us. We save ourselves by talking, we save ourselves by saying “no” sometimes. We save ourselves by admitting we are not okay. Life isn’t fair and things don’t always go the way we want, so let’s give ourselves a break sometimes. It is okay to not be nailing everything in your life. In fact, it may feel like you are not nailing anything…and that is just fine.
 
As leaders, we have a huge responsibility: a responsibility to the board we work for to make money, a responsibility to our team to create a great culture, a responsibility to the guest to create a great experience, a responsibility to the planet to do all of the aforementioned sustainably, and the list goes on and on. That’s a lot of responsibility and a lot of expectation. Just because you have “chair” or “managing director” as your job title, does not mean you possess superhuman powers that make you immune to the pressure that is on your shoulders.
 
We also need to remember that the people that make the magic happen (let’s be honest, we are nothing without our teams, they really are the important ones) have a whole load of “life” they have to deal with. Be it a kitchen porter working an extra shift to send money to loved ones or a supply chain intern trying to make enough money to cover their London rent, it doesn’t matter. Everyone has their own goals and their own struggles, so I guess my message is to simply remember that we are all trying to “adult” as best we can. Let’s support each other and make lives easier where we can.
 
Look after yourself, the world is watching (if not the world, then some team that is trusting you to lead the way) and not only does it need the best version of you, but you need to champion that looking after ourselves is important. Gone are the days that you wear an imaginary badge of honour if you work 80 hours, nearly crash your car falling asleep at the wheel and still pick another shift up before payroll closes. That’s not what life is about! Well-being cannot just exist in your own head – you cannot wish it into existence. Well-being is a combination of positive actions, good nutrition, kind relationships and the community you surround yourself with.
 
My final thought? It’s pretty simple, no blue sky thinking here. It’s okay to prioritise you; it’s okay to not be okay; it’s okay to not be perfect; and it’s okay to ask for help. If you do anything today, be kind and smile. Trust me, it’s contagious!
Shereen Ritchie is chief executive at independent bakery brand Buns From Home and former managing director at natural fast-food brand Leon

Whitbread goes to the mattresses by Katherine Doggrell 

“Would you rather be unconscious or in a Brewers Fayre?” It might sound like a threat, but for Whitbread, it was the basis of a sound financial decision, and one punchy enough to threaten the group’s moniker of “boring, boring Whitbread”. The group is converting 112 branded restaurants and exiting 126 less profitable sites to “unlock” 3,500 new room extensions for its Premier Inn business, a move presented to the market by chief executive Dominic Paul as a way to “optimise our food and beverage (F&B) offer”. 
 
And indeed, there was a comment about “having first transferred the delivery of F&B to an integrated restaurant” in those 112 restaurants, which sounds very deeply in the realm of optimisation, but which those in the hotel sector know could easily mean one of those fun conveyor-belt toasters. Anyone with further appetite for hotel sector vernacular will also enjoy “grab and go concept”. You have one at home. It’s called a fridge. 
 
The nuances of hotel operations aside, this latest move is one of a long line made by Whitbread, which has illustrated that it’s a lot more brutal than its mild-mannered exterior suggests: it got out of brewing more than 20 years ago during a phase of consolidation in the sector, where it admitted that it didn’t have big enough brands to compete globally. 
 
The company currently has a range of restaurant brands – Brewers Fayre, Beefeater, Bar+Block, Cookhouse Pub, Hub, Thyme, Table Table – and Paul has not confirmed which ones will see themselves optimised and integrated. But it would not be a shocking leap to suggest that some of them might not be cutting it in the current world of bubble tea, poké bowls and we-only-sell-hot-chocolate offerings.
 
For the full year, F&B sales were up 7% (for the seven weeks to 18 April the company reported that sales were 2% behind FY24, with a strong performance in integrated restaurants offset by “softer trading in a number of our branded restaurants”) while in the UK, total accommodation sales were up 12% (and behind by 1% for the most-recent period, due to the timing of holidays).
 
You don’t need your accountancy degree to work out that double digits are better than single. Premier Inn also recorded a 15.5% return on capital employed, helped by the brand’s recent efficiency drive and the fact that it takes significantly fewer people to deliver a budget hotel than a carvery. The unconscious guest is more profitable than the conscious one. 
 
The sleepy consumer is simpler in other ways. They are much less driven by trends than those knavish restaurant guests, who want something new and innovative every few years. The Premier Inn brand is built around cost and reliability on the basics. It is far from being the cheapest of the budget brands (there are many in the hotel sector who think of it as closer to the mid-market), but as it has seen during the cost-of-living crisis, that value message is embedded deeply in the central cortex of the consumer. 
 
According to the latest Hotel Guest Survey from BVA BDRC, Premier Inn continues to enjoy a “notable brand advantage” over its rivals, an achievement that gives it greater customer recognition and makes it a whole lot more attractive to investors who might wish to hoist its flag over their door. This customer recognition converts into direct bookings, where the group has industry-leading figures of 97% (most via its website and app). In a sector where the online travel agents might charge a hotel 30% of revenue per booking, direct booking is one of the first data points owners look for.
 
Whitbread is hoping to take this simple approach of a few things done well around the world, with Germany its current target, although we understand other territories are under consideration. In Germany, the group remains on track to break-even on a run-rate basis in 2024, and it expects to add around 400 rooms this year on top of the 10,500 rooms now open.
 
The group was one of the first international brands outside Accor’s budget flags to show an understanding – or lack of fear – of the German market, which is dominated by leaseholds, a model that gives the commitment-phobic hotel sector the yips. Such has been Premier Inn’s success in the country that other, larger hotel groups are sharpening their own slide rules. Last month saw IHG announce a long-term agreement with domestic group Novum Hospitality that will double its presence to more than 200 hotels.
 
In a sector dominated by passion, it’s always exciting to see businesses where the numbers are taking precedence. The hotel market in particular has danced around the idea of being an industry, but largely finds it distasteful. But as it moves closer to the mainstream as an asset class, it will find that mainstream investors are more interested in cash than flash. And as Whitbread shows it can lop off dead wood without qualms, more will come knocking at its doors. 
Katherine Doggrell is Propel’s editorial advisor and founder of NewDog PR. This article first appeared in Propel Premium, which is sent to Premium subscribers every Friday. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Something borrowed, something new by Sarah Travell

There is a big misconception about disruptive companies because you do not necessarily have to reinvent the wheel to be successful – unless the tyre is flat. You just need to know the difference. 
 
Sometimes companies can take an existing product or technology and create something completely new out of it. The wheel may already be there, but it might be able to do much more than what it was originally intended for. Never is that more the case than when it comes to the evolution of the hospitality sector, whether it be pizza, burgers or sandwiches. The next iteration is just around the corner.
 
The Propel Premium Club Multi-Site Database has now grown to include 3,098 companies, which operate 75,033 sites. An additional 23 companies, which operate 70 sites between them, were added over the past month, many providing a new take on a traditional part of the market. 
 
Sandwich Sandwich, for example, founded in 2012 by Nick Kleiner, currently operates three sites across Bristol. It won the £100,000 top prize in the Uber Eats restaurant of the year awards 2023 and is now planning to open two new shops in London, one near Liverpool Street and another near London Bridge, along with dark kitchens in conjunction with Uber Eats. At the same time, Chaker Hanna, formerly chief executive of Comptoir Group, the Comptoir Libanais and Shawa brand operator, has joined Sandwich Sandwich as its non-executive chairman, while ex-Comptoir Group chairman Richard Kleiner is an advisor to the company.
 
From sandwiches to a new take on your local bartender and kebab shop, Agent Jacks is a concept where customers negotiate the price of a drink from a virtual bartender. It is to make its UK debut after securing a site in London’s Blackheath. Parent IT company, HQL Solutions Private, which is venturing into the hospitality business in the UK and already operates a number of sites across India, has signed a partnership deal with the Ajay Shetty-led Crust & Wine to make its UK debut with Agent Jacks. It has secured the former Bianco 43 site in Lee Road on a 15-year lease, with an opening expected this summer. 
 
Meanwhile, there is kebab-concept Kebhouze, which was launched in Italy in December 2021 and has opened more than 20 stores there over two years, plus one in Spain. Kebhouze made its UK debut in December 2023 with its largest site yet, over three storeys in London’s Oxford Street, also offering interactive arcade games and table football. “We decided to move to the UK as kebabs are more ingrained into the UK culture due to the different demographics and it is more multicultural compared with Italy,” co-founder Giulio Paternò told Propel. “Our plan is to develop and expand all over the country. I think we’ll need to open at least five in London before moving out, with the end of 2025 or start of 2026 for a first regional site.”
 
Also targeting the capital is quick service restaurant pasta concept Guido’s, which is targeting an estate of 20 to 30 sites in London after securing two new sites in Camden. Launched by Guido Oselladore in 2016, the business currently operates three sites in Chancery Lane, Fetter Lane and Kingsway. The first two are takeaway sites, with the latter, which opened last month, the group’s first site with seating. It is also the company’s first location that is open in the afternoons until 7.30pm. The business has now signed up to open two takeaway sites in Camden – one in the West Yard and another in the Hawley Wharf development. Oselladore said: “The beauty of our business model is that it can adapt to several different locations, but for the time being it is safer to stick with smaller sites. Mainly, we've been trading Monday to Friday just over lunch. We are a quick service restaurant, a high-end Italian fast-food concept. We mainly serve pasta dishes, but in the future, as the business expands and grows into several locations of different sizes, we will look to introduce other Italian products.”
 
And even established operators are looking to try new categories, with Pizza Hut announcing that it is entering the burger market. The pizza brand described its new Cheeseburger Melt menu addition in the US as a parmesan-crusted thin crust melt folded and loaded with beef, applewood-smoked bacon, onions, mozzarella and cheddar, served with burger sauce on the side. Notably, the new menu item ditches the bun in favour of a crispy, thin crust. “Pizza Hut has cracked the code for what a cheeseburger should be: portable, crunchy, and oozing with cheese,” the company said. Lindsay Morgan, chief marketing officer at Pizza Hut, added: “As a brand known for exceptional pizza, venturing into the burger business is an exciting first for us.”
 
The move is being aggressively promoted in the US, with delivery drivers being deployed to make appearances at certain fast-food burger brand drive-thrus, complete with a QR code displayed on their back windows to “scan for a better burger”. Those that scan the code will be entered into a competition to redeem a coupon for a free Cheeseburger Melt and Pepsi. The offer is available in a few markets where the largest fast-food burger brands are headquartered, including Chicago and Miami. Very much a case of new tanks being parked on a very established lawn.
Sarah Travell is the founder and chief executive of Virgate, sponsor of the Propel Multi-Site Database. The comprehensive database is updated monthly and provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different. The database has been redesigned so Premium Club members are able to search the data segmented into key industry sectors. 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 a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to sign up.

How single sites can be their best by Alastair Scott
As I journey around the industry, I am fascinated by who is successful and who is not. In particular, I love to see the success that single sites can have. My sister and her husband run a very successful single site near York (The Alice Hawthorn, for those who know it – John is an amazing chef!) I was even more surprised when my sister said that she enjoyed reading my articles – and not just because she never compliments me! It is true that some people are just great single site operators – they have their own procedures and routines, and for the most part, tend to stick to them.
 
I have recently been talking to another person who is a single site operator quite close to me in Harrogate. They have no wish to be a multiple, either because they earn enough money or are settled in how their lives work – hopefully it is both. As I observe single sites though, I find that their biggest challenge is how they avoid getting set in their ways and how they seek out best practice. 
 
Reading, attending conferences and having a good network of similar local business is important and should never be underestimated. So is using suppliers, and even the “dirty word”, consultants. Some of the above are free and some cost money, whether that is time away from the business or the cost of employing someone else.
 
The hard bit when you are a single site operator is challenging yourself to get better, to try to change and try things that might not work. The danger is slowly but surely, you become less competitive and less profitable until it is too late and the cash to be brave has run out. And, sometimes, this should also happen right at the start of your journey. 
 
I am constantly frustrated by newcomers to the industry who listen too much to their head chef and run a menu and a cost structure that doesn’t work. These are probably two of the biggest risks for single site operators: going into a business with some key skill gaps and relying on the wrong people, and then having a successful business and not initiating enough change.
 
We want to help operators recognise where their operations may need to be adapted and show them the best ways to enact these adjustments. This is why we decided to launch an operational excellence programme on labour management for single sites. We are also keen to help facilitate more programmes on the subject matters that we are not experts in, because we understand the value of shared knowledge.
 
We are constantly learning new ways to help operators to be their best and plan to continue doing so. I really hope that we can help a nation of single site operators become better and better.
Alastair Scott is chief executive of S4labour and owner of Malvern Inns

Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Tevalis Banner
 
Contract Furniture Group Banner
 
CACI Banner
 
Casual Dining Banner
 
Meaningful Vision Banner
 
Singa Oy Banner
 
Lactalis Banner
 
Santa Maria Banner
 
Tabology Banner
 
awrys Banner
 
Propel Banner
 
Tenzo Banner
 
HGEM Banner
 
Meaningful Vision Banner
 
Zonal Banner
 
Access Banner
 
Christie & Co Banner
 
Sideways Banner
 
Airship – Toggle Banner
 
Wireless Social Banner
 
Startle Banner
 
Deliverect Banner
 
Growth Kitchen Banner
 
Zonal Banner
 
Tabology Banner