Loungers lfl sales up 4.7%, consumers are feeling increasingly confident: Café bar operator Loungers saw its like-for-like sales increase by 4.7% in the 24 weeks ended 6 October 2024, compared to the previous year and said it continues to make “good progress” towards its target of returning to a pre-covid Ebitda margin level of 13.5%. It said that the latest increase in like-for-like sales represents a continuation of the like-for-like sales growth of 5% previously reported for the 11 weeks to 7 July 2024 and is another “clear demonstration of Loungers’ ability to consistently outperform the broader UK hospitality market”. The group delivered total revenue in the period of £178.3m, up 19.2% on the previous year (£149.6m). It said its balance sheet remains strong, with non-property net debt at 6 October 2024 of £12.2m (1 October 2023: £14.3m). Loungers opened 17 new sites during the period (H1 FY24: 16 new sites), taking its total portfolio to 273 sites as at 6 October 2024. This included the Ritorno Lounge on Bristol’s harbourside, which opened in July and has had the strongest start for a new site in the group’s 22-year history. A further 18 sites are scheduled to open in H2, continuing the increased roll-out programme following the 36 new sites opened in the previous financial year. Nick Collins, chief executive, said: “I am delighted with our performance and the consistency of our sales growth, both in terms of like for like growth in the mature estate as well as the strength of our new openings. During the period we have opened in 17 towns and high streets across the UK, which adds up to 37 in the last 12 months, and enormous credit is due to the hard work and professionalism of our amazing teams. The opening of our Ritorno Lounge on Bristol’s harbourside, where we are holding our AGM today, has been our best performing new site ever. This is particularly gratifying given Bristol is the city in which the Loungers story first started 22 years ago. From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day. That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.”

Premium Club members to receive two updated databases this week: Premium Club members will receive two updated databases this week. The latest Propel UK Food & Beverage Franchisor Database will be sent out tomorrow (Wednesday, 9 October), at midday. It will have 12 new entries, while two which are no longer franchising have been removed. Among the new entries are beverage brands Cuppa Chaii and Bubble CiTea, Canadian coffee house and restaurant brand Tim Hortons, and ice cream, milkshake and bubble tea business Ice Lab. It now has 270 entries and more than 150,000 words of content. The next Propel New Openings Database will then be sent out on Friday (11 October). The database will show the details of 216 site openings, including which company has opened a site or its plans to open one in the future. Premium Club members will also receive a 11,941-word report on the 216 new additions to the database. The database includes new openings in the pubs and bars sector such as Parched’s relaunched Clock House Tavern, European bar concept Atomeca and The Jolly Sailor, reopened by Zazu’s Pubs. Premium Club members will also be sent the videos from this month’s Talent & Training Conference on Friday, 18 October, at 9am. Premium Club members also receive access to four other databases: the Turnover & Profits Blue Book, the Multi-site 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 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.

KFC UK & Ireland sees 4% increase in FY turnover: KFC UK & Ireland has reported a 4% increase in turnover to £294,511,000 for the year to 24 December 2023 (2022: £284,274,000). The company said that operating profit decreased compared to prior year to £54.1m (2022: £86.8m) impacting on the operating profit margin also decreasing to 18% (2022: 31%). The group’s pre-tax profit stood at £59,192,000 (2022: £89,927,00). The company said: “The business continues to drive growth through focus on building culture and people capability, developing new restaurants, delivering great customer experiences and ensuring customers can access KFC in the way they want to.” The company had net assets of £224.7m as at the end of the 2023 financial period (2022: £331.5m). In April 2024, the company completed the acquisition of 216 sites from EG Group. The purchase comprised trade and operations for 216 KFC restaurants in the UK and Republic of Ireland as well as welcoming over 7,800 team members into the KFC team. In June 2024, the company paid a dividend of £32,000,000 to its immediate parent, Restaurant Holdings Limited. It said: “The directors took the decision to convert the entire share premium account of the company to a distributable reserve in June 2024. This had the effect of increasing the company’s distributable reserves by £267,450,329.”

Esquires UK and Irish store lfl sales up 5.1%: Cooks Coffee Company, owner of the Esquires brand, has reported its like-for-like store sales were up 5.1% for the 26 weeks of its financial year to 29 September 2024, with its business in the UK up 6.3% and Ireland up 2.9%. In said in the period group store sales were up 26% at £16.4m, with UK store sales up 36% at £11.4m and Ireland store sales up 6.7% at £5.1m. The company, which currently operates 83 sites in the UK and Ireland as at 29 September 2024, said it has a strong pipeline of new stores with more than ten further outlets expected to open before the end of the financial year. During the period, the company added ten new stores in the UK and Ireland and closed two. The business said it is benefitting from positive operating cash flow “reaffirming its positive trajectory and underscores its continued progress”. Aiden Keegan, chief executive of Cooks Coffee Company, said: “We are delighted with the continued sales growth across our existing coffee store locations, as well as the strong performance of our newly opened stores. FY25 so far has been a record-breaking period for the company, and this achievement is a testament to the hard work and commitment of our entire team. As we look ahead, we are dedicated to providing exceptional in-store experiences and setting even higher benchmarks through the efforts of our local franchise owners.”

McDonald’s accuses meatpackers of price-fixing in lawsuit over beef costs: McDonald’s has sued the four biggest beef producers in the US, alleging they conspired to drive up the price of meat paid by the world’s largest burger chain. The FT reports that the lawsuit filed in federal court in New York follows similar litigation brought by cattle ranchers and supermarkets as well as federal probes into US cattle and beef markets. Cargill, JBS, National Beef and Tyson Foods were named as defendants. The case pits two powerful industry groups against each other: McDonald’s, which serves millions of hamburgers a day, versus meatpackers whose slaughterhouses control the majority of US beef production capacity. McDonald’s is making its claims after a period of broad inflationary pressure that put it in politicians’ crosshairs. In its civil lawsuit, McDonald’s claimed the meatpackers and alleged co-conspirators “engaged in a contract, combination or conspiracy in restraint of trade or commerce” in violation of antitrust law, with a goal to sell at prices “artificially higher than beef prices would have been in the absence of their conspiracy”. Cargill, JBS, National Beef, Tyson Foods and McDonald’s did not immediately respond to requests for comment. McDonald’s said one way in which beef companies had conspired was to suppress prices they paid for cattle fattened for slaughter, which propped up margins for the beef they sold. They “have exploited their pivotal role in the process of buying cattle to produce beef to collusively control upstream cattle pricing and downstream beef pricing” since at least 2015, the McDonald’s lawsuit alleged. 

Small businesses urge Reeves to avoid ‘anti-enterprise’ tax increases: Britain’s largest employers’ group has warned Rachel Reeves against introducing “anti-enterprise tax rises” at this month’s budget. The Times reports that the Federation of Small Businesses said the chancellor should not be “lured into” tax rises that would be damaging for entrepreneurs as she seeks to repair the public finances. Reports that Reeves is considering increasing capital gains tax, which at present is charged at a lower rate than income tax, have prompted warnings that the incentive to start and grow companies is at risk of being undermined. In its budget submission the federation called on the chancellor not to scrap a relief that allows entrepreneurs to pay capital gains tax at 10% on all gains on qualifying assets up to £1m, instead of the standard rate of 20%. “Without [this] and other incentives there is little reward to the risk” that small business owners take, the group said. The federation also called for support to ease employment costs, including by reintroducing a rebate that allows small companies to reclaim the costs of statutory sick pay and by increasing the generosity of the employment allowance, which reduces the cost of national insurance contributions for small employers. The group also asked the government to take action to stop “blanket” demands from lenders for “personal guarantees”, which can mean business owners being asked to put their homes on the line when their companies borrow money. Tina McKenzie, policy chairwoman of the federation, said: “The chancellor, in her recent party conference address, gave every impression that she would sensibly avoid being lured into damaging anti-enterprise tax rises in the budget, and we urge her to stick to that.” In its submission to Reeves, the CBI said the chancellor could provide a “tone-setting” budget to demonstrate to markets, investors and businesses that the UK had a “credible plan for boosting its growth trajectory”.