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Mon 10th Feb 2025 - Papa John’s: new loyalty scheme provides ‘more instant gratification’ and will play a key part in company returning to profitability |
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Papa John’s – new loyalty scheme provides ‘more instant gratification’ and will play a key part in company returning to profitability: Papa John’s has told Propel its new loyalty scheme will provide “more instant gratification” for guests than its previous one and will play a key part in the company returning to profitability. Launching today (Monday, 10 February), the company’s new rewards scheme is centred around a ‘Papa Dough’ concept, whereby earning and redeeming points has been streamlined, simplified and made more flexible. Under the new system, customers will earn points at a rate four times higher than before and won’t have to wait to use their rewards. They will now earn one point for every £1 spent online or via the app, and every 20 points will be automatically converted into £3 of ‘Papa Dough’. This means that for every £20 spent, customers will automatically receive a discount to spend on their next purchase. Current members will have their existing points being converted into the new system automatically. Customers can also add their accumulated discounts, in amounts of their choosing (increments of £1), to any order – applying the discount to pizzas, sides, desserts and more. “Customer expectations have clearly evolved – we all know and we’re all feeling that living costs have gone up,” Robert Beattie, vice president of international technology at Papa John’s, told Propel. “People want more value for money loyalty programmes if they’re going to engage with them. We do have really loyal customers who come back time and time again, and they do like saving up for a big reward. The current structure is one point for every £4 spent, and you have to spend £100 to get a large pizza. That’s a hefty spend, and for a lot of people, that doesn’t really provide them with a motivation or an incentive to come back. Our refreshed scheme gives more instant gratification, so customers can earn and redeem their points on their next order. They can spend against anything rather than waiting to hit a fixed milestone. There’s a broader industry shift towards more flexible and more transparent loyalty, and that’s why we’re doing it. It wasn’t the best uptake before, which is why we changed it. We got a lot of customer feedback about the friction in redemption and how hard it was to actually get a meaningful reward from it, to the extent where it was only really appealing to our super loyal customers and people who were regularly making very big orders. This programme has been researched really well, the customers we have spoken to like it and it’s much fairer and much more contemporary, so I think it will be much more successful than the old one.” Last October, Papa John’s UK managing director Chris Phylactou exclusively told Propel that the business will return to profitability in 2025 after posting a pre-tax loss of £19,289,000 in the year to 31 December 2023 – a loss which he said came about through investment rather than performance. Beattie said the new loyalty programme will play a key part in the push towards the company posting a profit for the first time in three years. “We’ve been working on it since June last year but been thinking about it for a long time,” he said. “It’s linked to our organisational turnaround plans around returning to profitability this year and fixing the basics – which was all around investing in franchisee relationships, investing in people and investing in foundational technology. And this year is about turning it around to profit, which the loyalty will be a key part of. We will be doing a lot more development around the experience in loyalty too and make loyalty a lot more engaging. We know our products are good and we want people to come back to us more often. What we’d like to see is more customers redeeming their loyalty points and getting better value from being more engaged with the brand.”
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 Franchisee Database will be sent on Wednesday (12 February) at 12pm. The database will feature ten new additions plus updates to existing entries. It now has 190 entries and more than 80,000 words of copy. Among the new entries are Subway franchisees A Tasty Experience and Sriram Abhi, and Dave’s Hot Chicken franchisee Azzurri Group. Premium Club members will then receive the next Turnover & Profits Blue Book on Friday (14 February), at 12pm. The database will feature 79 updated accounts and ten new companies, taking the total to 1,066. A total of 655 companies are making a profit while 401 are making a loss. The Blue Book is updated each month and ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Premium Club members also receive access to four other databases: the Multi-Site Database, the New Openings Database, the UK Food and Beverage Franchisor 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.
UK’s late-night hospitality sector hit by hundreds of closures in the last year but being revitalised by wave of new bars and experiential venues: The UK’s late-night hospitality sector has been hit by hundreds of closures in the last year but is being revitalised by a wave of new bars and experiential venues, according to data analysts CGA and the Night Time Industries Association (NTIA). The first edition of the new Night Time Economy Market Monitor reveals that in December 2024, Britain had 2,264 nightclubs, late-night bars and casinos, 2.8% fewer than at the end of 2023 and 25.2% down on the pre-covid level of March 2020. Nightclubs have borne the brunt of these closures, with numbers having dropped 33.2%. It follows the seismic impacts that covid lockdowns, high inflation and pressure on consumer spending have all had on late-night businesses over the past five years. However, venues in the wider evening economy, which also includes sites where evenings form a major part of trading, rose by 3.9% to 16,004 in 2024 – equivalent to around 12 net new openings every week. This partly reflects the success of bars, which rose 5.4% in just 12 months. There was sharp growth in themed bars (up 24.4%), cocktail bars (up 17.4%) and craft bars (up 14.3%). Venues offering competitive socialising and other interactive experiences have been among the fastest growing of any hospitality channel in recent years. The Monitor also highlights the vibrancy of northern British cities, including Liverpool, Glasgow, Edinburgh and Leeds, where the number of late-night venues rose by more than 4% in 2024. It also sets out the disproportionate impacts of covid and inflation on independently run venues in the evening economy, which have closed at a rate of nearly four per week since March 2020, compared to 3.3% growth in numbers for managed groups. Additional findings show key trends such as earlier visits to bars, pubs and restaurants, with more than two thirds (70%) of NTIA members report falling revenue in post-1am trading, while far fewer (47%) report a drop in the 6pm-to-8pm period. It also showed a growing demand for experience-led venues, with a third (33%) of consumers who go out for high-tempo occasions saying they are visiting more of these sites than they were a year ago, while only (19%) are using them less. There were also concerns about trading in 2025 and the impact of new labour costs in the government’s Budget, with only 13% of NTIA members feeling optimistic about the market over the next 12 months, while 65% feel pessimistic. Reuben Pullan, CGA by NIQ’s senior insight consultant, said: “The covid crisis and relentless pressure on costs have created enormous challenges for hospitality businesses in the last five years, and late-night clubs and bars have been hit hardest of all. However, many other segments have been remarkably resilient, and the growth in new types of venues like competitive socialising bars shows the evening economy isn’t disappearing – it’s just changing. With the right support from government, night-time businesses can power not just hospitality but Britain’s economic growth and job creation.” NTIA chief executive Mike Kill added: “This new report highlights the resilience and challenges of our sector. With consumer spending reaching £223.5 billion in 2024 and the night-time cultural economy growing by 3.2%, the importance of live music, late-night venues, and cultural spaces is clear. However, rising operational costs and inflationary pressures are still straining businesses. Employment trends show a vital yet transforming workforce, with significant declines in pub, bar, and licensed club employment, but growth in sporting venues, clubs, and gyms. Targeted support and strategic policy interventions are essential to safeguard the future of this critical pillar of the UK economy.”
‘Glass tax’ will likely kill off beer bottles and limit the choice of booze available: A ‘glass tax’ to help the environment will likely kill off beer bottles and limit the choice of booze available to consumers, brewers have warned. Set to begin on 1 April, the new extended producer responsibility (EPR) scheme will see businesses charged for the amount of packaging they use based on its weight. With glass bottles weighing in heavier than other vessels like cans, the policy could see brewers abandon bottles completely, the British Beer and Pub Association (BBPA) cautioned. Mark Kelly, a beer seller at brewery Sambrook’s in London, the The Telegraph: “We think beer bottles will die off in the long term.” Duncan Sambrook, founder of Sambrook’s brewery, added: “The EPR will accelerate the decline in the variety of bottled beers you see on the shelves and increase consumer prices. This is not an environmental scheme... it is a tax.” The ‘glass tax’ would have businesses paying up to 7p more per 500ml bottle in packaging costs, the BBPA said. Brewers make on average only 3p of profit on a half-litre bottle, it added, so if they do not increase their prices, the ‘glass tax’ will have them in deep financial trouble and they may start using cheaper materials like aluminium cans. Many brewers also think glass is the best material for packaging, in terms of its strength and how it protects the quality of their product. Jonathan Neame, owner of Shepherd Neame Brewery in Kent, said: “Glass is ultimately the best container for product quality and strength. It’s been dressed up in different ways, but it looks like a tax, it smells like tax and it will pass onto the retailer, who will have to pass it on to the customer.” Industry leaders wrote to environment secretary Steve Reed last year warning him that British ales could be wiped out by the EPR. It is not only beer at risk though. Spirits and wine will be on the line too when the new EPR comes in, with a bottle of each costing 18p and 12p more respectively, the Wine and Spirit Trade Association said. A Department for Environment, Food and Rural Affairs spokesperson said: “Extended producer responsibility for packaging is a vital first step for our packaging reforms. Together, our reforms will create 21,000 jobs and help stimulate more than £10bn investment in recycling over the next decade. It means taxpayers won’t foot the bill for managing waste. We continue to work closely with businesses, including in the glass industry, on this programme.”
Just Eat for Business – 37% rise in pizza orders in 2024 versus 2023: Just Eat for Business said it saw a 37% rise in pizza orders from office workers in 2024 versus 2023. It said 24,934 margherita pizzas were ordered in 2024, making it the most popular pizza choice, and that Thursday is the most popular day for pizza orders. Furthermore, it said 377,000 pizza slices were consumed by office workers in 2024, and that 44% of pizza orders were vegan or vegetarian. Just Eat for Business managing director Matt Ephgrave said: “Employers are increasingly recognising that shared food experiences can help build stronger, more engaged teams, and pizza’s universal appeal makes it the perfect choice.” Just Eat for Business shared the data to celebrate National Pizza Day yesterday (Sunday, 9 February).
Liverpool microbrewery falls into administration: A Liverpool microbrewery has fallen into administration and its assets are to be sold via auction. Carnival Brewing Company, located in Gibraltar Row, was established in 2017 following a fundraising event and often collaborated with musicians and record labels to produce limited edition craft beer. Paul Stanley and Jason Greenhalgh, of Begbies Traynor in Liverpool, were appointed as joint administrators on 29 January. After several unsuccessful attempts were made to find a buyer, the company’s assets, including a canning line, will be sold via auction on Wednesday, 26 February. “Many small, independent businesses are facing difficulties at the moment, and despite establishing a number of trade and individual customers in a competitive industry, Carnival has been unable to find a buyer and has been placed into administration,” Stanley said. “We are working closely with creditors and directors to support on next steps.”
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