Hospitality sites hold steady in 2024 but Q4 closures show costs are biting: Britain’s pubs, restaurants and hotels overcame widespread challenges to end 2024 with virtually the same number of premises as 12 months earlier, according to the new Hospitality Market Monitor from CGA by NIQ and AlixPartners. The report shows a total of 99,120 outlets operating in December 2024, compared to 99,113 in December 2023. It said it represents a year of solid consolidation after contraction in both 2022 and 2023, when the licensed sector shrunk by 4.5% and 2.9% respectively. However, the year-on-year comparison disguises substantial churn in hospitality, as many venues changed hands and some group-owned units switched to new trading formats. There were 4,078 closures and 4,085 openings over 2024 – a turnover equivalent to 11 venues a day. Closures accelerated in the final quarter of 2024, the Monitor reveals, with site numbers contracting by 0.7% between October and December – an average of just over eight net closures per day – as cost pressures mounted and some consumers tightened their spending. This last quarter contraction means 748 venues were lost in the three-month period, and if this trend were to continue, annualised it would represent a net loss of nearly 3,000 venues. The latest findings show encouraging trends for pubs, bars and sports and social clubs. While the number of food-led venues has fallen by 0.7% year-on-year, total drink-led sites have risen by 0.5%. Independently-run food-led sites have been particularly robust, with growth of 1.0% in 2024 compared to a 3.2% drop in the number of food-led venues run by multi-site groups. Karl Chessell, CGA by NIQ’s director – hospitality operators and food, EMEA, said: “Given all the challenges that were thrown at hospitality in 2024, stability in site numbers shows the impressive resilience of operators. However, we continue to see a rapid churn of sites as the sector adapts to consumers’ changing habits, while hundreds of net closures in the final quarter of the year emphasise that the burden of costs – made even heavier by the Autumn Budget – is threatening hospitality’s fragile renewal. The long-term confidence of leaders, entrepreneurs and investors is solid, but January has already brought further closures of venues that clung on through Christmas. With economic uncertainty lingering, many more hospitality venues remain extremely vulnerable.” Graeme Smith, AlixPartners’ managing director, said: “The sector has learnt how to operate in tough times over the course of the past few years, and there is a sense that this ability will be tested again this year, becoming more important than ever. The changes to the national minimum wage, national insurance and business rates will render many marginal sites unviable and cause businesses to look at how to right-size their operations for this new environment. While we expect the consumer outlook to improve and M&A to build as we move further through the year, a significant number of businesses will remain vulnerable. The turnover of sites will continue too, we expect, as operators increasingly focus on core operations, close ancillary sites and reassess opening pipelines. Restructurings and rescue deals will be an inevitable and necessary feature of this stage in the business cycle. In the face of this disruption, it is vital that businesses define the key actions they need to be taking – and where they need to be taking them – in order to mitigate the additional costs facing the industry.”

Breakfast and brunch fuels sales increase at Butcombe Group: Butcombe Group (formerly Liberation Group) has said that an increase in customers ordering breakfast and brunch helped drive like-for-like sales up 7.8% for the year to 25 January 2025, including H2 growth of 9.5%. For the year its food sales climbed by 12% while both accommodation and drink grew by 4% and 5% respectively. The company said it recorded its highest week of managed sales in Christmas week and highest single day on Christmas Day with like-for-like growth of 27%. It said like-for-like sales were up 23% across the two Christmas peak weeks versus the same weeks last year. Bookings across December and festive dates were up 18%. The business also saw a 38% growth in the number of events and meetings, and said that its loyalty club continues to add “significant value to our business with year-on-year growth in loyalty customers of 21%”. The company said: “Our strong performance was supported by significant trade taken in the mornings, with customers enjoying breakfast and brunch options. This, combined with our all-day offering on food, reaffirms our belief that providing alternatives to traditional pub mealtimes presents a substantial growth opportunity for the group.” Butcombe Group added that its London pubs also achieved “significant growth”, contributing strongly to its second half performance, with sales up 27%, following investments at Punch Bowl, Brown Cow and The Fulham Arms. It said that the roll-out of its premium Butcombe Boutique Inns, has progressed to plan, with six pubs now launched into Butcombe Boutique Inns with four sites under investment, The Methuen Arms, Corsham, The Lion at Winchcombe, The Castle Inn, West Lulworth and The White Horse, Chilgrove which will all move into Butcombe Boutique Inns when they reopen over the next few months. Jonathan Lawson, chief executive of Butcombe Group’s owner, Liberation Group, said: “These strong results are a testament to our amazing teams and to our ever-evolving strategy that places customers at the heart of what we do. In our managed pubs business, we are redefining what the pub can and needs to be in order to be successful and viable in the years ahead. Still retaining the unique essence of a local pub, but also developing the offer and maximising the amenity to capture new markets such as mornings, weddings and business meetings and in turn welcome new customers with new reasons to visit our great pubs and inns. Likewise in our brewing and drinks business we continue to be delighted by the strength of established and much-loved beers such as Butcombe Original, whilst also innovating and responding to consumer needs with the development of Tall Tales Zero Pale Ale, our second low and no.”

Starbucks posts smaller-than-expected sales drop: Starbucks has slowed a decline in sales as it works to reduce waiting times and improve the customer experience in its coffee shops. The company reported a 4% decline in global like-for-like sales for the first quarter, an improvement on the 7% drop reported in the last quarter. In the US, its biggest market, same-store sales were down 4%, having declined 6% in the prior quarter. The results beat Wall Street expectations, sending shares in the company up $3.46, or 3.5%, to $103.85 in after-hours trading. Brian Niccol, Starbucks’ new chief executive, said the company had focused on “getting back to Starbucks and those things that have always set us apart”. He said: “While we’re only one quarter into our turnaround, we’re moving quickly to act on the ‘Back to Starbucks’ efforts and we’ve seen a positive response. We believe this is the fundamental change in strategy needed to solve our underlying issues, restore confidence in our brand and return the business to sustainable, long-term growth. While we have room for improvement, we’re making progress as planned, and have confidence we’re on the right track.” The company said it would not introduce any further price rises this year as it looks to appeal to consumers paring back on big non-essential spending and to ward off competition from upstart brands.

Boxpark hires Chris Burford as new CFO: Boxpark has hired Chris Burford as its new group chief financial officer to “support and strengthen the operations and growth strategy of the business”. Burford, who has over 25 years’ experience working across private equity and venture capital backed enterprises in the hospitality, leisure, and retail sectors, joins Boxpark following senior finance positions at Wagamama, Leon and EG Group. He said: “I am hugely excited to be joining Boxpark, a fantastic established brand with heaps of ambition and potential. I am looking forward to playing my role in a fast-growing, dynamic organisation and overseeing the strategies and financial growth across the portfolio.” Boxpark chief operating officer Ben McLaughlin said: “We’ve had an awesome year opening new sites, building incredible guest experiences and doing what we do best with the Euros frenzy! But as we continue to grow, we need world-class leaders with the relevant skills to achieve our business goals. I am delighted to welcome Chris to the team who will bring a wealth of experience to the team and be a part of our journey here at Boxpark.” Last summer, Boxpark appointed Paul Thandi CBE as its Independent non-executive chairman, who has been driving the group’s UK and global expansion strategy, as well as supporting the senior management team to explore potential new offerings and concepts. Last year, the group launched two new Boxpark venues in Liverpool and Camden, and has just announced a lease extension for its flagship Shoreditch location. This spring, it will launch sibling social dining concept Boxhall in London’s Liverpool Street, providing a “unique and exciting culinary food hall experience in a historical location”.

Healthy diet is twice the price of junk food for every calorie: Eating healthily has never been more expensive according to research that highlights the “tragic imbalance” between food that is affordable and food that is good for us. The study found that healthier food – based on nutrients – is more than twice as expensive per calorie as junk food. Healthier options have increased in price at twice the rate of less healthy options in the past two years. The Times reports that the study, published by the Food Foundation, said the growing cost of eating well was exacerbating health inequality. The most deprived fifth of the population would need to spend 45% of disposable income on food to meet the government-recommended healthy diet, rising to 70% for households with children. Children in the most deprived fifth of households ate 20% less fruit and vegetables than those from the wealthiest fifth, and were nearly twice as likely to be obese. Deprived groups were also much more likely to be affected by type 2 diabetes and tooth decay. The study also found that food manufacturers and retailers were much more likely to promote unhealthy foods. Only 2% of all food advertising was for fruit and vegetables, while more than a third was for confectionery, snacks, desserts and soft drinks. A quarter of places to buy food in England were fast-food outlets, rising to a third in the most deprived areas. The Food Foundation wants Labour to bring in new taxes to encourage businesses to reformulate food and drink in a similar way to the soft drinks levy. It also wants VAT removed from healthy meals in restaurants and fast-food outlets, and restrictions on unhealthy food advertising.