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Thu 3rd Oct 2024 - SSP UK sales increased by 12% in Q4 driven by high demand in air sector and lower level of disruption in rail |
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SSP UK sales increased by 12% in Q4 driven by high demand in air sector and lower level of disruption in rail: SSP Group, the operator of food and beverage outlets in travel locations worldwide, has reported its UK sales increased by 12% in the fourth quarter, driven by high demand in the air sector and a lower level of disruption in the rail sector. In the period 1 July to 30 September 2024, the group, which operates in travel locations across 37 countries, said its UK sales were up 12% in total and 9% on a like-for-like basis. This, it said, was “driven by high demand in the air sector, a lower level of disruption in rail compared to last year and strong operational execution throughout the peak summer period”. Group sales were up by a total of 15% over the period, and 6% on a like-for-like basis. It said second half revenue growth will be circa 15% year on year, with an expected operating profit growth of more than 30% in the half. Financial year revenue is expected to be circa £3.5bn, up circa 17% year on year, with financial year operating profit expected to be circa £210-220m, up circa 30% year on year. Year-end net debt is expected to be in the range of £610-630m. The group said good underlying trading momentum has continued through to the end of the financial year, leaving SSP “well-positioned to deliver full year results within our previously published planning assumptions”. It added: “Our performance in FY24 gives us confidence that we will see a year of good revenue and margin progression in FY25. Our expectations are underpinned by the continued structural growth in travel, optimising the performance and returns from our extensive recent investment programme and the secured new contract pipeline, together with planned operating efficiencies. Further progress will be supported by the set of current and planned actions that we are taking to drive returns in Continental Europe. We are planning for a lower level of capital expenditure in the year ahead as we conclude the backlog of renewals from the covid period. Furthermore, having executed a number of important infill acquisitions recently, to accelerate our growth in strategically important markets, our focus is now on integrating these operations and delivering the planned returns. We anticipate little, if any, further new infill M&A activity in the near term.” The group said the performance in Continental Europe in part reflects the impact of the scale and timing of contract renewals and new contract mobilisation, industrial action and weak trading in the motorway services business (ahead of its exit in circa18 months). More recently, it said, European profit has been impacted by lower than anticipated demand during the Olympics in Paris. “We are taking action to improve the future profitability of the region, focusing on driving returns from the investment programme, simplifying the leadership structure, reducing the cost base, and exiting the German motorway services business (contractually agreed as of September 2024),” it said. “We have recently appointed Satya Menard as the new chief executive of Continental Europe to lead this business.” Group chief executive Patrick Coveney added: “There has been good trading momentum across our business throughout Q4. Our North America, Asia Pac & EEME regions have continued to perform ahead of, or in line with, our plan, and we have seen a material improvement in the performance of our UK business. We have had challenges in some parts of our Continental European business, which we are addressing through a series of actions that will build margins. Overall, this year, we expect the group to deliver a significant increase in year-on-year profitability and margins. Our focus is now on optimising the performance of our business, building returns on the high level of recent investment, and the delivery of sustainable and compounding growth and returns in the years to come.”
Premium Club members to receive updated segmented Multi-Site Database tomorrow featuring 442 QSR operators: Premium Club members are to receive the updated Multi-Site Database tomorrow (Friday, 4 October). The next Propel Multi-Site Database provides details of 3,246 multi-site operators and is now searchable in seven main segments. The database features 958 (30%) operators from the casual dining sector, 782 (24%) pub and bar operators, 544 (17%) cafe bakery operators, 442 (14%) quick service restaurant (QSR) operators, 266 (8%) hotel operators, 200 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month, and this edition includes 16 new companies. New additions in the QSR sector include American Pie, a North American Chicago-style pizza concept, and Hop, the Vietnamese street food concept. 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 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.
West Midlands McDonald’s franchisee doubles profit: West Midlands McDonald’s franchisee A&S Restaurants doubled its profit in the year to 31 December 2023. The business, which operates seven McDonald’s restaurants, saw a pre-tax profit of £501,874 in 2022 increase to £1,078,540. Turnover was up from £38,472,622 in 2022 to £41,063,113. Dividends of £550,000 were paid (2022: £780,000). Owner Afia Sirkhot, who was the first Asian woman globally to run a McDonald’s franchise, said: “The company has positive cash flows and the balance sheet shows net assets of £3,646,553. The re-imaging strategy continued to have a positive impact on sales growth, which is in line with expectations and objectives. Sales through digital channels, including McDelivery, mobile app and self-order kiosks, have increased during the year. We are constantly elevating our digital experiences, with the festive wins and McDonald's Monday's promotions offered via the mobile app in 2023. The company will continue to push digital and delivery offerings. The financial performance of the company improved during 2023. This was aided by government support packages such as the 75% business rates relief in the retail and hospitality industry and permanent rent reductions from the franchisor. Higher levels of pricing have been introduced to counteract food cost inflation, which was at an all-time high of 19.10% in March 2023 but slowly declined throughout the year.”
Garrick Club reverses several resignations following men-only membership row: The Garrick Club in London’s West End has reversed several resignations following its men-only membership row earlier this year. Civil service chief Simon Case is understood to be among a number of members to have rejoined six months after resigning, reports The Telegraph. The Garrick, which was founded in 1831, had repeatedly rebuffed calls to admit women but overturned the policy following a vote of its 1,500 members in May 2024. While the decision to admit women members marked a landmark moment for the Garrick, the pace of change has remained slow. In July, Dame Judi Dench and Dame Sian Phillips became the first female members of the club in its near 200-year history. Classicist Mary Beard, former home secretary Amber Rudd, Channel 4 News presenter Cathy Newman and actor Juliet Stevenson were all put forward on a list of prospective candidates by existing members earlier in 2024. But no women have since been elected as Garrick managers have insisted that female candidates will not be “fast-tracked”.
The Lord’s Taverners cancels its Christmas lunch for being ‘too expensive’ in the face of rising costs: Cricket charity The Lord’s Taverners has cancelled its Christmas lunch for being “too expensive” in the face of rising costs. The Daily Mail reports that the event, which has been running for 73 years, has been axed this year. It says the lunch, traditionally held at the Grosvenor House hotel in Mayfair, has become too expensive to stage. The event was moved in 2021 to the Park Plaza Westminster Bridge, a more accessible venue, with tickets costing £180 each. A spokesman for The Lord’s Taverners said: “As a charity, we have a responsibility to ensure that we raise as much money as possible for the young people and their families we support. Costs have increased by 40% on the Christmas lunch since 2019, and as we make no profit on ticket sales, we rely solely on the income made in the room through the raffle, silent auction and live auction.” Some regional lunches will still go ahead.
Row erupts over increasing rise of ‘cakeage’ fees at UK restaurants: A row has erupted over the increasing rise of ‘cakeage’ fees at British restaurants. Many are now adding a charge for customers who bring in their own birthday cake to restaurants, reports the Daily Mail. While some restaurants charge a flat rate, others will make customers pay per head. Among those in favour of the charge is TV chef Asma Khan, who charged £25 to bring your own cake at Darjeeling Express in London. She previously banned customers from taking their own cake to the restaurant at all. Andrew Scott, executive development chef at Wadworth Brewery, defended the cost saying: “You’ve stopped them being able to sell dessert to you as you’ve brought your own?” Paul Foster, who runs Michelin-starred Salt in Stratford-Upon-Avon, added that it’s “very fair if desserts aren’t ordered” and that he’s “charged it in the past”. However, Nick Gibson, the owner of the Drapers Arms in Islington, says it makes restaurateurs appear “penny pinching”. He said: “What frustrates me is there are too many people in this industry who spend their time online complaining about customers. They might say they’re entitled to make their margin, but they’re portraying the industry as penny-pinching, inhospitable, resentful. It’s mean, it misses the point of what we’re here to do.”
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