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Tue 4th Mar 2025 - Update: Greggs, Gail’s, Revel Collective, Black Sheep Coffee and Marston’s |
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Greggs reports ‘milestone’ 2024 with £2bn sales for first time and record profits: Greggs has a reported a “milestone” 2024, which saw it pass £2bn in sales for the first time and achieve record profits. Total sales for the 52 weeks ending 28 December 2024 were up 11.3% from £1,810m to £2,014m. Its pre-tax profit was up 8.3% from £188.3m in 2023 to £203.9m. Underlying pre-tax profit excluding exceptional income – relating to the sale of a legacy supply chain site – was £189.8m, up 13.2% from £167.7m in 2023. Like-for-like sales in company-managed shops were up 5.5% year-on-year. The company also reported that like-for-like sales in its company stores were up 1.7% year-on-year in the first nine weeks of 2025. It said a cash position of £125.3m will support investment in supply chain and technology. A final dividend of 50.0p per share was recommended, with a total ordinary dividend per share of 69.0p per share, up 11.3% from 2023, in line with underlying diluted earnings per share growth. There will be a record profit sharing, with £20.5m to be shared with colleagues. The company said it continued to broaden its presence, expanding away from traditional high street locations. It hit a record 226 new shop openings in 2024, with 28 closures and 53 relocations (145 net openings), growing the estate to 2,618 shops as at 28 December 2024. It also refurbished 165 existing shops. The company is targeting 140 to 150 net openings in 2025, including 50 relocations, and said it continues to see clear opportunity for significantly more than 3,000 UK shops over longer term. Evening remains fastest growing daypart, with 9.0% of company-managed shop sales in 2024 (2023: 8.5%). Popular existing range and menu development included launching the BBQ Chicken & Bacon Pizza and four-slice sharing box. The Greggs App scanned in 20.1% of company-managed shop transactions (2023: 12.5%), and customers who engage with the app are proven to shop at Greggs more frequently. An increased number of shops offering delivery to 1,556 (2023: 1,440), with delivery sales up 30.9% in 2024, representing 6.7% of company-managed shop sales (2023: 5.6%). A fourth production line was commissioned at Balliol Park in Newcastle upon Tyne, providing circa 35% additional manufacturing capacity for savoury rolls and bakes. Work was completed to expand capacity at its Birmingham and Amesbury distribution centres, adding logistics capacity for a further 300 shops. Work is also progressing on two new sites to increase logistics capacity for up to 3,500 shops: a frozen manufacturing and logistics facility in Derby, opening in 2026, and a national distribution centre for ambient and chilled goods in Kettering, opening in 2027, Greggs chief executive Roisin Currie said: “2024 was another record-breaking year for Greggs; we exceeded £2b in sales for the first time and opened our 2,600th shop. Our people have worked tirelessly to deliver on our strategic ambition to further establish Greggs as a multi-channel food-to-go retailer and I want to acknowledge their efforts. It is thanks to their hard work, week after week, that we continue to grow, all the while maintaining the great prices, high-quality products, and friendly service that keep our customers coming back, again and again. In 2021, we set our sights on doubling sales by 2026 and having a significantly bigger business over the longer term. Three years into this five-year plan, sales are on track, and we continue to be confident in the growth opportunity in front of us. The brand is in better shape than ever, with a material opportunity to continue growing and developing the Greggs estate and plenty of scope to continue to grow in newer dayparts and channels.” Chairman Matt Davies added: “Greggs made strong progress in 2024 and demonstrated its ability to respond to tighter market conditions in the second half of the year. This, and the company’s robust financial health, puts us in a good position to deliver our plans for long-term profitable growth, whilst navigating near-term developments in market conditions. The board remains confident in the Greggs business and our future plans.”
Premium Club subscribers to receive new searchable and segmented New Openings Database on Friday: The next Propel New Openings Database will be sent to Premium Club subscribers on Friday (7 March), at noon. The database will show the details of 169 site openings, including which company has opened a site or its plans to open one in the future. The database 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 subscribers will also receive a 10,264-word report on the 146 new additions. 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 database includes new openings in the pub and bar sector such as Templar, the wine bar from Glen Lee, The Kerfield Arms opening in London’s Camberwell, and Newington Temple, from Ma Pub Group, opening in Liverpool. Premium Club subscribers 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 Club subscribers 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 International Brands report. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers 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 subscribers 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 subscribers 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.
Gail’s set to make airport debut: Fast-growing bakery brand Gail’s is set to make its airport debut. 155-strong business, which plans to open between 30 to 40 new bakeries this year, is preparing to launch at Gatwick airport’s South Terminal this summer. “We’re taking off! Gail’s is coming to Gatwick,” the company posted to social media. “This summer, we’re bringing our craft baking to Gatwick’s South Terminal, with a thoughtfully designed 100-cover space where travellers can enjoy the same freshly baked goods, quality coffee, and warm service that we’re known for on the high street. From our expanded grab-and-go range to our new selection of homewares and gifts, we’re here to bring the joys of craft baking to every journey. With a carefully designed space, continuous baking to meet demand, and seating for those who want to linger, we’re ready to welcome travellers from all over. See you at Gatwick!” Gail’s already has a presence in other transport hubs and last month added to this with an opening at Liverpool Street station – its third London train station location. It also last month secured a site in Bath to extend its presence in the south west, while co-founder Tom Molnar said the company uses a self-built computer algorithm to select the location of new sites – helping Gail’s decide what makes a “good place” to open a store.
Revel Collective – recovery slower than expected but Peach Pubs and Founders & Co performing strongly, Revolution relaunch planned: The Revel Collective has said challenging conditions in bar brands has meant recovery has been slower than expected, but its Peach Pubs and Founders & Co brands are performing strongly. The operator of 65 venues – trading predominantly under the Revolution, Revolución de Cuba and Peach Pubs brands – announced total sales of £64.2m for the 26 weeks ending 28 December 2024 (first half FY25), compared to £82.3m in the first half of its 2024 financial year. Pre-tax profit (IFRS16) was £30.1m compared to £3.1m in 2024, and pre-tax loss (IAS17) widened from £2.1m to £3m. Adjusted Ebitda (IFRS16) was down from £8.9m to £6.1m, and adjusted Ebitda (IAS17) was down from £3.2m to £3.1m. The company said its statutory profit before tax of £30.1m was significantly impacted by non-cash gains from the disposal of leases under the restructuring plan. Net bank debt reduced from £20m to £14.7m and the group operates a £26m revolving credit facility. The company said: “H1 saw the completion of the restructuring plan in September 2024, putting the group in a far stronger position going forward. H1 also saw a strong performance from Peach Pubs and Founders & Co. However, trading in the bars continued to be challenging due to the reduced consumer confidence currently impacting the UK nighttime economy. The restructuring plan completed two months later than originally planned, leading to prolonged uncertainty for both Revolution and Revolución de Cuba. Management have been working to counter this through evolution of the bar brands and propositions, and through the execution of robust efficiency and cost saving measures. Notwithstanding the delay, we received record levels of pre-booked corporate bookings in our bar brands in the festive trading period. These ongoing actions are aimed at putting the group's bar business in a strong position to both take advantage of a return in consumer confidence and mitigate the expected cost impact of the government’s budget. Festive trading was robust, and Peach Pubs enjoyed a strong FY25 H1. Sales in the bar brands were challenged, with the recovery plan running several months behind our initial expectations and have seen a slower recovery than anticipated due to ongoing consumer and market challenges. Despite this, the group experienced positive like-for-like2 sales during the key four-week festive trading period of +1.6%, with record levels of pre-booked corporate bookings in our bar brands of +5.3% on last year. Peach Pubs has enjoyed a strong FY25 H1 and festive trading, performing the best across our three main brands. The group continues to review expansion opportunities for this brand.Revolution concluded its restructuring plan in September 2024; however, sales recovery has been slower than anticipated. A number of trials continue within the brand to enhance profitable growth, and a relaunch of the brand is planned for spring 2025. Revolución de Cuba was also impacted by the negative commentary surrounding the restructuring plan. The brand therefore experienced softer sales in FY25 H1 and was also impacted by competitor openings, with continued initiatives and brand proposition work aimed at returning to previous market outperformance. The brand enjoyed strong corporate sales over the festive trading period.Founders & Co. enjoyed very strong trading as the site goes from strength to strength. New events continue to be held, and our lineup of traders is the best it's been over our three years of operation, ensuring there is always something new for guests. There is an excellent opportunity to expand this brand when funding allows. There are opportunities for conversion of existing portfolio properties into Peach Pubs and Founders & Co. sites. Current trading continues to see softer sales due to subdued consumer confidence; this, together with changes announced in the Budget and due from April 2025, are expected to offset initiatives implemented in FY25. We therefore expect to achieve Alternative performance measures ("APM") adjusted1 Ebitda of £2-£4m, as previously announced. Further cost savings have been identified across the Group to support FY26 onwards.” Chief executive Rob Pitcher said: “The first half of FY25 experienced a number of challenges caused mainly by the impact of consumer confidence on the late night bars market, and the delay to the restructuring plan timeline, so I was very pleased to see a robust 2024 festive trading period. I am particularly pleased with the strong performance in Peach Pubs and Founders & Co. and excited to see where these brands can take us in the future. With the impending Budget measures due in April, in particular the regressive reduction in the National Insurance threshold, we are cognisant of the significant and damaging impact this will have on the group and wider industry and economy. The hospitality industry can be a powerhouse for economic growth in the UK when allowed to do what it does best, unimpeded by unrealistic government cost increases. It's a real disappointment that chancellor Reeves doesn't seem to understand the impact of her actions. Our immediate priority is both the mitigation of this cost impact and continued driving of sales, particularly in the bars brands. We strongly urge the government to reconsider the national insurance changes and explore more balanced alternatives. Chairman Luke Johnson added: “Following suppressed trading in FY25 H1, caused in part by delays to the restructuring plan and the distraction this created for management, current trading remains softer within the bars. After the disappointing announcement of the new government’s budgetary impacts, we have already implemented significant cost-saving exercises and continue to review costs within the business. We are energised by the opportunities available to the group, as we put the distractions of the restructuring plan behind us. We have been pleased to see Peach and Founders & Co. continue to perform well in early 2025 and will focus on the ongoing initiatives and trials within the bars, with significant focus by management, to increase sales and profitability.”
Black Sheep Coffee appoints new chief operating officer and head of franchise operations: Speciality coffeeshop operator Black Sheep Coffee has appointed a new chief operating officer and head of franchise operations – both promoted from within. Ben Fenton has been promoted from global operations and development officer, a role which he has held for the past year, to chief operating officer. In his four years with Black Sheep Coffee, Fenton’s other roles have included director of operations and head of operations (UK). Fenton previously spent eight years with Itsu in various roles including senior vice president/director, head of people operations and operations manager. Kieran Littlewood, meanwhile, has been promoted to head of franchise operations. In his two years at Black Sheep Coffee, Littlewood has also been franchise operations manager and general manager. He previously spent three and a half years at Costa Coffee as a senior drive-thru manager. Littlewood replaces Jess Bouscarle, who stepped down as Black Sheep Coffee’s head of franchising in January, after five years with the business, to take on a new role as head of international business development with luxury nail salon brand Townhouse. Last month, the company made its Northern Ireland debut with a launch in Belfast’s Pearl Assurance Building, at Donegall Square East, and secured a site for its Bristol debut, in the city’s Queens Road. Black Sheep Coffee operates circa 90 sites in the UK and more than 100 worldwide.
Hayleigh Lupino to step down as Marston’s CFO: Hayleigh Lupino is set to step down as chief financial officer at Marston’s to pursue a new opportunity outside of the Group. She will remain with Marston’s as chief financial officer and executive director for the remainder of the financial year, until October 2025, to ensure a smooth transition while her successor is appointed. The process to recruit a replacement is underway and a further update will be issued in due course. Justin Platt, chief executive at Marston’s, said: “I would like to thank Hayleigh for her more than 20 years of service to the Group. Since becoming CFO in 2021, she has played a key role in Marston’s transformation into a pure-play hospitality business, helping lay the foundations for the Group's continued success. She leaves with our very best wishes for the future.”
Low-paid workers to get 80% of salary in sick pay: More than one million low-paid workers in the UK are to be entitled to 80% of their weekly salary as sick pay from the first day of illness, under government plans. Currently, to qualify for statutory sick pay, you must have been ill for more than three days in a row and earn an average of at least £123 a week. “No one should ever have to choose between their health and earning a living, which is why we are making this landmark change,” said work and pensions secretary Liz Kendall. The government says the changes will mean about 1.3 million people on low wages who fall ill will receive either 80% of their average weekly earnings or statutory sick pay – which is currently £116.75 per week – whichever is lowest. “The new rate is good for workers and fair on businesses as part our plan to boost rights and make work pay, while delivering our plan for change,” Kendall added. However, some groups are asking the government to set sick pay for the lowest paid workers at no less than 95% of their weekly pay. TUC general secretary Paul Nowak said: “This shouldn't be the end of the story. We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.” The change to sick pay is part of a number of updates to the Employment Rights Bill expected to be announced today (Tuesday, 4 March). However, the planned increase in workers' rights, together with the rising minimum wage and hike in employers' National Insurance, has led to criticism from many businesses, who say the combined impact will hit growth and employment. Earlier this week, it emerged that the government would not be including the “right to switch off” for workers in the bill. This measure had been proposed to stop employers contacting staff out-of-hours on phones, emails and texts.
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