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Morning Briefing for pub, restaurant and food wervice operators

Wed 24th Jul 2024 - Update: Marston’s lfls up 5.2%, Tortilla H1, Good Food Guide awards
Marston’s lfl sales up 5.2% year to date: Marston’s has reported that its like-for-like sales increased by 5.2% for the 42 weeks to 20 July 2024, comparted to the previous year, with like-for-like sales up 2.4% in the 16-week period to 20 July 2024. The company said that year to date total retail sales in its managed and franchised pubs increased by 6.2% as its portfolio of “well-invested community pubs continues to demonstrate its appeal”. The company said: “We have seen considerable uplift from Euro 2024, with like-for-like sales for the week of the semi-final and final matches rising by 8%. This has helped to lessen the impact of recent unseasonably wet weather and a particularly strong comparative period last year. We continue to see positive momentum across both food and drink occasions. Food sales have been particularly encouraging, with changes to our menu proving increasingly popular with guests.” As announced on 8 July 2024, the group agreed to the sale of its 40% interest in CMBC to a subsidiary of Carlsberg for £206m in cash. Marston’s said: “Debt reduction remains a central focus for the management team and we intend to put financing in place that is better suited to the new level of leverage in due course. Marston’s will provide an update to the existing capital allocation framework at an Investor Day in the autumn. The trading momentum seen year-to-date provides the board with confidence that, adjusting for the impact of CMBC, performance will be in line with market expectations.” Justin Platt, chief executive of Marston’s, said: “The continued positive trading momentum carried through from H1 has been encouraging. This is a testament to the focus and energy of our team, who are dedicated to giving our guests the very best pub experiences. The disposal of our 40% stake in CMBC marks a pivotal step for Marston’s, allowing us to become a pure play hospitality business. I look forward to delivering on the opportunities a focused pub business will provide.”

Propel’s next Multi-Site Database to be released on Friday with seven category segmentation including 532 operators from cafe and bakery sector: Premium Club members are to receive the updated Multi-Site Database on Friday (26 July). The Propel Multi-Site Database, produced in association with Virgate, provides details of 3,200 multi-site operators and is now searchable in seven main segments. The database features 937 (29%) operators from the casual dining sector, 778 (24%) pub and bar operators, 532 (17%) cafe bakery operators, 436 (14%) quick service restaurant operators, 261 (8%) hotel operators, 200 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month and this edition includes 50 new companies. New additions to the café and bakery sector include Hertfordshire bakery business Leavened Bakery, London all-day café operator Bobo & Wild and East Midlands coffee shop concept Public. Premium Club members also receive access to five additional databases: the New Openings Database, the Turnover & Profits Blue Book, 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 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.

Tortilla reports H1 sales decline, seeing early signs of progress on new strategic vision: Tortilla, Europe’s largest fast-casual Mexican restaurant brand, has reported revenue of £31.5m for the half year ended 30 June 2024 (down £1.2m on last year), with like-for-like revenue down 5.9%, which it said was due to its strategic decision in Q1 to condense to a dual delivery platform to improve profit conversion and increase focus on in store revenue. The 81-strong business said that adjusted Ebitda for the period stood at £1.8m, in line with H1 last year despite revenue drop. It said it had seen early signs of progress against the group’s newly outlined strategic vision – the Vital 5 – set out in April 2024, including improved profitability on delivery sales following switch to dual platform, and stronger year-on-year profit conversion underpinned by last year’s supplier contract negotiations. It also said that it had successfully trialled food improvements in Q2, now rolled out in stores and showing early encouraging results. Tortilla brand awareness increased to 23% Q1 2024 up from 19% at Q1 last year following strong focus on targeted marketing initiatives. It said that six kiosk store conversions had been completed so far this year following the success of its London Wall conversion in August last year. It said that its UK franchise stores continue to excel with multiple sales records achieved this year across the group’s partnerships. Momentum of its SSP and Compass partnership roll-out continued with a new SSP site opened in Leeds Train Station and a new Compass site opened in Leicester. The company said: “Through our new strategy, the group is in the process of executing several exciting key strategic initiatives to drive sales growth and profitability, building on previously implemented profit drivers such as the dual delivery strategy. The early results are encouraging, however, the benefits of these initiatives will be slower than originally anticipated, and this combined with an ongoing challenging trading environment, means the board now expects adjusted Ebitda (excluding the recent Fresh Burritos acquisition) to be £5m for 2024. A revised combined outlook, including Fresh Burritos, will now be adjusted Ebitda of £4.5m and the year-end net debt position is expected to correspondingly increase to circa £7.5m.” Andy Naylor, chief executive at Tortilla, said: “We are now seeing the positive implementation of our strategy across all five pillars as we continue to strengthen Tortilla’s offering and position the business to capitalise on the long-term significant opportunities in our market as the dominant European market leader in fast-casual Mexican cuisine. In the first half of 2024, we have significantly improved the quality of our food and are driving exciting innovation with our new food director, James Garland now onboard. We have accelerated the deployment of kiosk-ordering technology and will be launching our new loyalty platform at the beginning of August. Whilst the timing of these initiatives has been slower than planned, the early signs are positive, and we look forward to updating shareholders on progress in September.”

Bistro that has ‘lit up community’ named Britain’s best local restaurant: A French bistro in Leeds that has “lit up the community” has been named Britain’s best local restaurant by The Good Food Guide. Bavette in Horsforth, Leeds, beat off competition from across the country to take the prestigious title for 2024, with judges describing it as “the model of a perfect local restaurant”. Owned by Sandy Jarvis and Clement Cousin, Bavette has only been open since February this year, but impressed the guide’s anonymous inspectors with its “natural ease and warmth of hospitality” and its menu of “authentic, beautifully executed French classics”. Judges said: “The consensus is that it has raised the game in this corner of Leeds and beyond, presenting the model of the perfect local restaurant. An impressive win and one that is richly deserved.” Chloë Hamilton, co-editor of The Good Food Guide, said: “With Sandy and Clément’s backgrounds in some of London’s top establishments (Terroirs, where they met, is a strong influence), opening a restaurant together in an outer suburb of Leeds looked great on paper. But the way they’ve brought it to life – excellent bistro cooking, an adventurous, engaging wine list (including bottles from Clément’s family of organic winemakers in the Loire), and the energy and warmth of the team – make it irresistible. They’ve had first birthday parties and 90th birthday parties here. It has lit up the community.” Overall the guide said French food was “still fabulous” and “Britain’s real appetite is for simple dining”. Other restaurants with a French flavour which made it to the awards shortlist included L’Hexagon in Norwich, and Paulette, Josephine and Les 2 Garçons, all in London. While a taste of France features heavily in the 100 Best Local Restaurant list, nominations also reflect Britain’s waning appetite for fine dining. A relaxed restaurant where diners can eat well but eat simply too is the order of the day according to feedback from The Good Food Guide readers, and many restaurants on the list feature chefs who have swapped fine dining kitchens for their own, more accessible restaurant with the same high standards of cooking. The regional winners of The Good Food Guide’s Best Local Restaurants 2024 were – Central and East of England: Greyhound Inn – Pettistree; London: Mambow – Clapton; North East England: Bavette – Leeds (Overall winner); North West England: Cibus – Levenshulme; Scotland: Fin & Grape – Edinburgh; South East England: Med – Brighton; South West England: North Street Kitchen – Fowey; and Wales: Inn at the Sticks – Llansteffan. 

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