Propel Newsletter Archive Page

Inflation concerns mounting after foodservice prices rise in December: The latest Foodservice Price Index report from Prestige Purchasing and CGA by NIQ reveals a month-on-month increase in inflation in December, raising fears of renewed price pressures for the UK’s hospitality sector. Year-on-year inflation dropped to 1.9% in the final month of 2024, but prices rose by 1.0% from November – the highest monthly jump since June 2024. In a marked shift from the previous two months, all ten categories of the index recorded month-on-month inflation. The report said the breadth of increases suggests that inflationary pressures are becoming more widespread across the foodservice sector. More positively, some categories showed continued easing in their year-on-year inflation rates. Vegetables (up 3.0%) and sugar, jam, syrups & chocolate (up 3.5%) saw significant declines in their rate of increase – but oils and fats (up 5.7%) emerged as a category of concern. Fish (down 1.2%) remained the only category with year-on-year deflation. The December report highlights ongoing volatility and uncertainty in the foodservice market. Adding to the complexity, the current threat of an international trade war introduces further uncertainty into the market. Disruptions to global supply chains and fluctuations in commodity prices could exacerbate inflationary pressures and create additional challenges for the hospitality sector, the report said. Shaun Allen, Prestige Purchasing chief executive, said: “This month’s figures are a reminder that the battle against inflation is far from over. While we’ve seen encouraging progress in the year-on-year trend, the month-on-month increase is a reminder we must stay vigilant. The potential impact of the autumn Budget, combined with these latest figures, suggests that we could be facing a renewed inflationary challenge in 2025.” Reuben Pullan, senior insight consultant at CGA by NIQ, added: “After a solid end to 2024 for hospitality sales, news of renewed foodservice inflation is a concerning start to this year. On top of other pressures including increased international economic uncertainty, national insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter. The inflationary threat is another reason why hospitality needs more support from government so businesses can invest, create jobs and drive growth.”

Premium Club members to receive new searchable and segmented New Openings Database and videos from Restaurant Marketer & Innovator today: The next Propel New Openings Database will be sent to Premium Club members today (Friday, 7 February), at midday. The database will show the details of 268 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis, and Premium Club members will also receive a 15,168-word report on the 268 new additions to the database. The database is segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. The updated database includes openings in the quick service restaurant sector such as German Doner Kebab launching its first train station location, Thai street food operator Kinn Kinn opening at Gloucester Food Dock, and SoBe Burger with six new locations. Premium Club members are to be given access to the entire recording of the 2025 Restaurant Marketer & Innovator European Summit Conference. Members will be sent 26 separate video presentations, featuring more than 60 speakers, today at 9am. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, 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 Excellence in Pub Retail (May 2025) and discounts on specialist sector reports such as the Propel 500. 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.

Hotel company Veladail makes loss but significantly reduces net current liabilities, extends £6m bank loan: Hotel company Veladail made a loss in the year to 31 December 2023 but said it significantly reduced its net current liabilities. The company, which operates hotels in Central London and Hatfield and a golf course in Watford, alongside a property portfolio, saw a pre-tax profit of £223,425 in 2022 turn into a loss of £1,200,749, as costs rose by more than £2m and administration expenses by more than £1m. The company’s turnover increased from £18,936,774 to £22,661,776. Interest received grew from £238,335 to £568,727 while no government grants were received compared with £12,000 in 2022. No dividends were paid (2022: nil). Director Sudha Gulhati said: “During the year, the group has faced new challenges following the covid pandemic, such as increased costs of operation, supply shortages, a tight labour market and the instability in the property market. However, the group has adapted effectively to these challenges and has managed to navigate through the difficulties. The net current liabilities as at 31 December 2023 have significantly reduced to £3,057,261 from the previous year’s figure of £60,859,479. This substantial movement can be attributed primarily to the reclassification of the bank loan facility amounting to £62,229,385. This is now classified as due after one year. The facility was successfully renewed during the year. The group’s total net assets has decreased from £64,194,200 as of 31 December 2022 to £62,518,572 as at 31 December 2023. Overall, the balance sheet remains strong and well-positioned for future growth from both a liquidity and capital perspective.” Post year-end, Gulhati said the directors continue to explore the redevelopment of the golf course, which has been shut since October 2019. In June 2024, the group extended a bank loan facility for a further five years. As at 31 December 2023, the loan amounted to £5,906,210.

North east operator reports positive trading: North east operator Kymel Trading, whose portfolio includes Trenchers Fish Restaurant in Whitby, has reported positive trading during and after the year to 31 December 2023, and said it has extended its outside courtyard in order to increase footfall. The company’s turnover rose from £3,411,649 in 2022 to £3,666,980. Pre-tax profit dropped from £375,652 to £283,309. Interest income fell from £9,414 to £6,397 while no government grants were received compared with £6,000 in 2022. No dividends were paid (2022: nil). Director Kyle Mackings said: “Recent general consumer confidence in the UK has been growing, largely due to the recent pandemic now being behind us, and while our target customers appear less sensitive to economic downturn, the effects of recent increases in the general cost of living are yet to be fully realised. The restaurant sector, however, has continued to attract more of consumers disposable income over recent years, and especially local to the restaurant, with the recent popularity of staycations. To capitalise on this, the company has extended the courtyard of the restaurant, which was completed post-year end, to enable us to seat more customers and increase trade. The company has continued to trade well, with a successful summer period in particular, despite the poor weather.” The company is also behind Spanish City in Whitley Bay, The Lord Crewe and The Castle Inn in Bamburgh, and The Park Hotel in Redcar.

London immersive adventure Phantom Peak reports record-breaking 2024: Phantom Peak, the open-world immersive adventure in London’s Canada Water, has reported a record-breaking 2024. The experience, which was launched in 2022 by Nick Moran, will celebrate its 400th show next Friday (14 February), alongside the launch of its 12th season, JonaCon. In 2024, Phantom Peak saw 75% growth in advance ticket sales year-on-year and 11% growth in average spend in the venue, driven by its curated food and drink offering. 2024 also saw continued growth in visitor numbers, with 2022-23 showing a 25% growth rate while 2023-24 showed 74% growth. Phantom Peak said it has seen a remarkable shift in audience behaviour over the past two and a half years, with a 28% return rate, as the experience continues to reinvent itself with new seasons and storylines. The introduction of season passes, coupled with in-venue discounts, has further strengthened this loyal following, it said.