Bistrot Pierre – new initiatives have “significantly improved future Ebitda levels”, extends bank facility: Bistrot Pierre, the Nick White-led company, has said that a number of initiatives taken to address the cost base of the business have “significantly improved future Ebitda levels and increased the board’s confidence in a brighter future”. It comes as the business reported turnover for the year to 30 June 2023 of £24,417,774 (2022: £28,419,444), with a pre-tax loss of £2,989,660 (2022: loss of £1,023,265). Full-year Ebitda was zero against £700,000 the year before. The company said: “The financial year covered by these accounts began on 1st July 2022 and is the first full financial year not to be directly impacted by the covid-19 pandemic. However, the lasting impact of the change it brought to everyone’s lives, including our employees and customers, became evident. Inflation running at 10% and the cost-of-living crisis driven by the pandemic and other world-wide events inevitably caused people to consider much more carefully when, where and how they would spend their limited funds. When they do visit, their expectations are much higher as they need to feel the value of their experience. The business has therefore been very focused on service and in particular driving consistency, to ensure that all of our guests enjoy the same great experience. It became clear that some locations were no longer viable to operate and the difficult decision was taken to close our restaurants in Newport in September 2022 and Altrincham in December 2022. This left the company operating 17 restaurants by the end of the financial year. Many of the challenges experienced in the prior year continued in 2022/23; supply disruption, food and beverage inflation, energy prices and the cost of labour, but availability of team members has improved. A number of factors have helped with this, including improved external recruitment processes, internal development programmes and the introduction of 10% service charge fully paid out to team members. Continued focus on reducing costs, simplifying menus, reducing operational complexity and improving procedures to become more cost efficient, ensured price increases could be minimised at a time when our guests can least afford them. In light of the reduced number of restaurants and continuing cost pressures, a radical review of the above restaurant company structure was completed, resulting in a major restructure in September 2022. Multiple roles were removed, leading to a leaner structure and more agile approach to the running of the company. A brand review was undertaken in the year, culminating in the roll out of a more modern and contemporary brand style including widening the Bar Pierre concept to a number of locations. The group turnover reduced from £28.4m in 2021/22 to £24.4m 2022/23 due to the closure of Altrincham and Newport (£1.5m in 2021/22) and the tougher trading environment following the temporary boost in sales in the prior year at the end of the lockdown periods. Trading Ebitda also reduced as a consequence of the lower sales and the multiple cost pressures the business faced. Post year end a number of initiatives have been successfully actioned to address the cost base of the business to ensure financial stability during this period of a challenging external trading environment. Due to improved footfall in the area, the Newport restaurant has also been reopened under new branding concept Pierre’s. These actions have significantly improved future Ebitda levels and increased the board’s confidence in a brighter future.” In May 2024, the company’s existing bank loan facility was formally extended and is now repayable in November 2025. In May, the company launch its new all-day dining concept, Pierre’s, in Newport, which marketing director Jess Wight told Propel would potentially be rolled out if successful. The opening marked a first opening for the group since 19 of its sites were acquired out of administration in 2020 and brought its estate back up to 18. 

Shop prices inflation slows to lowest pace in three years: Discounting and falling food costs have driven down the pace of price rises in Britain’s shops to the slowest rate in almost three years, new figures suggest. The Times reports the annual rate of shop prices inflation eased to 0.2% in June, down from 0.6% in May and to the lowest level since October 2021, according to data published by the British Retail Consortium and NielsenIQ. Food prices inflation measured 2.5% last month, down from 3.2% in May. That represents both the 14th consecutive fall for the category and the lowest level since December 2021. Price rises for fresh food slowed further to 1.5%, down from 2% in May. Products other than food remained in deflationary territory, with a 1% fall, compared with a decline of 0.8% in the previous month. Helen Dickinson, chief executive of the consortium, said: “Food inflation is now lower than any time since 2021, helped by falling prices for key products such as butter and coffee. Meanwhile, non-food prices went deeper into deflation as retailers tried to drive sales by discounting. This was particularly true for TVs, with great deals to capitalise on the Euros fever.” Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Shop prices inflation is still slowing and this will be of help to shoppers as they plan their household budgets for essential goods and services. With uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer.” Dickinson said the decline was thanks, in part, to retailers investing in their operations and supply chains during the cost-of-living crisis in an effort to “compensate for the impact of global shocks on input costs”. “Whoever wins Thursday’s election will benefit from the work of retailers to cut their costs and prices, easing the cost of living for millions of households. The last few years should serve as a warning that where business costs rise significantly, consumer prices are forced up, too.”