Propel 500 report – UK is uniquely positioned to become a global leader in experiential leisure: The UK will see further innovation and growth in the experiential leisure sector during 2025, writes Phil Pemberton, Propel’s director of Premium services, in the introduction to the Propel 500 report. The comprehensive report showcases the UK’s 500 leading hospitality operators ranked by turnover, providing more than 90,000 words of analysis – delving into company histories, leadership structures, site numbers and financial performance, making it an essential resource for industry professionals. Pemberton’s is just one article in a report that is delivered in two parts: an introductory PDF, featuring deep dives into the top 25 companies and 6,500 words of insight from Propel’s expert writers, and a fully searchable Excel sheet, offering easy access to all the data. Further analysis includes Mark Wingett’s exploration of mergers and acquisitions shaping the Top 500’s future and Tim Street’s view of the UK’s franchise market. Katherine Doggrell examines developments in UK hotels, while Mark Bentley, business development director at HDI, identifies emerging growth sectors, and Maria Vanifatova, founder of Meaningful Vision, analyses trends in QSRs. Together, the Propel 500 companies generate more than £30bn in turnover across 51,000 sites, and the report spans seven key segments: pubs and bars, hotels, quick service restaurants (QSR), casual dining, cafe and bakery, experiential leisure and fine dining. A list of these operators can be discovered now by visiting the Propel 500 page on Propel’s website. Propel 500 is available now for £595 plus VAT. Existing Premium Club members can purchase it for £395 plus VAT. Premium Club members will receive the report for free on Friday, 28 February at 9am. Order the Propel 500 report today by emailing: kai.kirkman@propelinfo.com.

Whitbread reports UK F&B sales ‘performing in line with expectations’ as Premier Inn owner makes ‘good progress’ on strategic plan: Whitbread has reported its UK food and beverage sales “continue to perform in line with expectations and previous guidance” as the company makes “good progress” on its strategic plan. The company stated: “We are making good progress against our strategic priorities and remain on track with our five-year plan. While forward visibility remains limited, we expect to realise further benefits from our commercial initiatives that will enable us to continue to outperform the market. There is no change to our Accelerating Growth Plan guidance and we expect to fully reverse the FY25 profit before tax negative impact of £20m to £25m. Including the impact of the UK Budget, we expect gross UK cost inflation to be between 5% and 6% on our £1.7bn cost base. However, with efficiencies of £50m, net UK cost inflation is expected to be between 2% and 3%. We’re making excellent progress in Germany and with continued estate and brand maturity, we are on track to deliver profitability in FY26. An expected reduction of between £15m and £20m in net finance income versus FY25 reflects lower cash balances and the impact of refinancing the group’s 2015 bond.” The company said its UK food and beverage sales over its third quarter were down 1% on a like-for-like basis, and 2% year to date, “which was expected given the Accelerating Growth Plan”. Whitbread reported that total accommodation sales in the third quarter across its UK Premier Inn estate were in line with last year. With the expected reduction in UK food and beverage sales as a result of the Accelerating Growth Plan, total group sales were down 2% to £763m. For Premier Inn UK, “trading improved during the quarter resulting in total accommodation sales broadly in line with last year” and up 51% versus FY20. Like-for-like UK accommodation sales were down 3% in the quarter and 2% in the year to date. Total revpar in the third quarter was down 3% and up 35% versus FY20. Whitbread said Premier Inn “continued to outperform the midscale and economy sector” with total accommodation sales growth 0.8 percentage points ahead and a revpar premium of £6.24. In the six weeks to 9 January 2025, total UK accommodation sales were up 2% and total Germany accommodation sales were up 37%. Chief executive Dominic Paul said: “Our five-year plan is set to deliver incremental profit of at least £300m by FY30 and release more than £2bn for shareholders through a combination of dividends and share buy-backs. We are making good progress against our strategic priorities including our Accelerating Growth Plan and cost efficiency programme, and we remain confident in our ability to deliver a step change in profits, margins and returns. The structural shift in UK supply has meant that Premier Inn is continuing to sustain the significant gains made since the pandemic. While forward visibility remains limited, the favourable supply backdrop, together with our brand strength and commercial initiatives, means we are confident that we can continue to outperform the market. In Germany, we continued to perform strongly in what is an important trading period. As a result, we remain on track to reach profitability on a run-rate basis this year which is a key milestone and gives us real confidence as we continue to build momentum towards becoming the country’s number one hotel brand.”

 

Deliveroo reports UK and Ireland orders up 5% in ‘robust’ fourth quarter, Ebitda expected to be towards top end of guided range: Deliveroo has reported orders in the UK and Ireland in the fourth quarter increased 5% to 43.1 million in what was a “robust” period for the group. Orders for the year to date in the UK and Ireland were up 2% to 162.8 million. Gross transactional value (GTV) per order in the UK and Ireland also rose in the quarter, up 3% to £27.70 and is up 5% in the year to date at £27.60. GTV value in the quarter was up 9% £1,195m and 7% in the year to date at £4,489m. Deliveroo said full-year GTV growth of 6% was in-line with guidance of 5%-9% while adjusted Ebitda is expected to be towards the top end of the £110m-£130m range. The company stated: “We have seen robust fourth-quarter GTV growth as we continued the strong execution on our strategy. We have made continued progress on our consumer value proposition, with encouraging signs from our enhanced Plus loyalty programme and strong growth in grocery. UK and Ireland GTV growth improved to 9% in the fourth quarter with order growth accelerating to 5% (first quarter: 0%, second quarter: 1% and third quarter: 2%), as further execution on our initiatives helped drive improvements to frequency and retention despite continued uncertainty in the consumer environment. International GTV growth increased to 5% with orders flat and GTV per order up 5%. We saw continued strength in UAE and Italy, and a slight improvement in France, despite some ongoing market softness. Hong Kong continued to be impacted by the difficult competitive environment.” Chief executive Will Shu said: “I’m proud of our progress in 2024 as we continued to strengthen our consumer value proposition. We enhanced our loyalty programmes, delivered strong growth in grocery and secured new partnerships to expand our retail selection, enabling us to bring even more of the neighbourhood to consumers’ doors. Our continued execution has driven improved frequency and retention in the fourth quarter, with order growth improving throughout the year in UK and Ireland. Our execution has also continued to deliver profitable growth, with Ebitda expected to be towards the top end of our guided range. We see many exciting opportunities ahead with significant growth potential for Deliveroo.”

 

Loungers shareholder snubs improved takeover offer: A shareholder of café bar operator Loungers has dismissed an improved private equity takeover offer as “not good enough”. US private equity firm Fortress has increased its offer to takeover Loungers from 310p a share to 325p a share, now valuing the 283-strong operator of the Lounge, Cosy Club and Brightside brands, at £354.4m. But Judith MacKenzie, head of Downing Fund Managers, which owns a 1.56% stake in Loungers, said Fortress was just “paying lip service” to improving the bid. She told The Mail: “It’s a paltry offer. It needs to sharpen its pencils again. It is not good enough.” MacKenzie said Downing would consider backing a bid of between 360p per share and 380p per share. “It is miles away,” she added. Loungers’ shares closed up 4.6% at 322p following the improved offer.

 

The Beautiful Pubs Collective reports like-for-like sales up 17% in December: The Beautiful Pubs Collective, the independent pub operator led by Sam Hagger, has reported a 17% year-on-year increase in like-for-like sales for December 2024, despite a challenging start to the trading period. The group, which expanded its portfolio with the acquisition of the Old Horse in Leicester in late-November, now operates four sites across Leicestershire. Looking ahead, Hagger said the group remains committed to its strategy of ongoing investment in its venues to drive guest occasions. In line with this, the group will make a £257,000 joint investment into The Rutland & Derby, a site it has operated for nearly 15 years in partnership with Leicester brewer and retailer Everards. The refurbishment project is set to begin next month and aims to enhance the guest experience by increasing seating capacity and expanding the range of occasions the venue can cater to. Hagger said: “While we remain concerned about the upcoming increases in employer costs, the reduction in business rates support, and the significant inflation in beef prices – challenges that will undoubtedly impact us – we firmly believe the key to navigating these obstacles is to double down on providing exceptional, best-in-class hospitality. By continuing to grow the wide range of guest occasions we cater to, we aim to ensure that our venues remain at the heart of the local community.”