Propel Newsletter Archive Page

Papa Johns – we’ve been a smaller player in the UK pizza market and we’ve got big ambitions to change that, we really understand our audience now and know who to go after: Papa Johns has told Propel that it “has been a smaller player in the UK pizza market and we’ve got big ambitions to change that”, and that it “really understands its audience now” and knows who to go after. The company will today (Thursday, 13 March) roll out a new marketing campaign across television, social media and digital platforms, which will sit hand-in-hand with its ‘Devoted to Dough’ brand relaunch. It is the second part of Papa Johns’ “growth story” as it looks to return to profitability this year – following last month’s new loyalty scheme launch. “This year in particular represents our ambition to bring the business back into growth again,” Simon Wallwork, the brand’s head of marketing, told Propel. “The Papa Johns brand has been a smaller player in the UK pizza market over the years and we’ve got big ambitions to change that. The loyalty programme was part one, and early indications are really positive. Part two of our growth story is about reframing and relaunching the brand. It’s fair to say Papa Johns is a brand which has been rather under-loved by consumers for a number of years, and our consideration is lower than it needs to be, so we’ve got a job to do to raise that consideration by raising people’s perceptions. People are very much aware of Papa Johns – it’s just that they have either fallen away from the brand or been driven away by the competition through heavy advertising, and perhaps we’ve just fallen off the radar. So, this is about resetting what our brand stands for; leaning into quality and getting out there into the market and giving people reasons to visit Papa Johns.” Wallwork said in terms of marketing, Papa Johns has been “outspent by the competition by some way, which is partly due to the size of the business”. He said: “It’s not that we haven’t focused on marketing or been ineffective, we just haven’t been able to punch above our weight, and that’s what needs to change. We’re thinking slightly differently about how we do that – work smarter rather than harder. We need to make our budgets work harder but we’re also investing more this year in marketing. Along with our franchisees, we have agreed that we will increase our marketing budget this year, and our brand campaign is all about differentiating ourselves from that competition. Quality is at the centre of it, but we’re also going to use a smart media plan to tap into our target audience. We’ve done a lot of work on segmentation, so we really understand our audience now, know who to go after, and we’re going to target them a lot more effectively. So, we’re going to spend more and get out there more, but we’re also going to target them in the spaces that they play so we can get more value for our money. It’s generally the younger end of the audience – it tends to be younger males, customers in more urban areas and younger families – both of which are familiar with Papa Johns. The awareness is quite high, some more users than others, and there’s massive headroom in both those markets to grow. We’re doubling down on our targeting to make marketing more efficient and be able to create propositions more relevant to our audience. It’s being smarter and laser-sharp with our focus – it’s not spray and pray or hit and hope. This relaunch campaign is going to be the start of what is going to be a long-term ambition to drive towards quality – we have a challenger brand mentality to top everything.” Key to this will be new product launches and innovations with the brand’s dough – with taste at the forefront. “When I started at Papa Johns, I asked a few of the franchisees and store owners what makes us different and how can we win over Domino’s, and everyone said the same thing – taste,” Wallwork said. “We use the best ingredients we can, and we pay a premium for some ingredients as we believe it’s the right thing to do for a better quality of product. It’s about more than just returning to profitability – our longer-term strategy is about growing sustainably and consistently over the coming years. This is a bit of a reset for the brand. It’s relaunching what we stand for and why quality needs to be at the heart of everything we do.”

Premium Club subscribers to receive next Turnover & Profits Blue Book tomorrow featuring 1,092 companies: Premium Club subscribers will receive the next Turnover & Profits Blue Book tomorrow (Friday, 14 March), at 12pm. The database will feature 54 updated accounts and 29 new companies, taking the total to 1,092. A total of 684 companies are making a profit while 408 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 subscribers also receive access to five other databases: the Multi-Site Database, the New Openings 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 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.

Fuller’s agrees new £185m banking facility, strong trading momentum continues: Fuller’s has reported it has agreed a new £185m bank facility with a consortium of existing relationship banks, which the company said would provide it with significant headroom to pursue further growth through “appropriate acquisitions” and to enhance returns for shareholders. The new unsecured facility is available until 31 August 2028, at an interest margin 75bps lower than existing terms, which Fuller’s said reflects the strong financial position of the company. The business said it was also commencing a new buyback of up to one million of its ‘A’ shares. It said: “In January, we completed the share buyback programme, which resulted in the repurchase of 6.5 million ‘A’ shares. These shares were repurchased at an average price of £6.13, which represents a 26% discount to the £8.30 price of the 6.5 million ‘A’ share equity placing in 2021. We believe that the current share price of the company significantly undervalues the business and does not reflect the intrinsic net asset value of our high quality, primarily freehold estate. As such, we are initiating a new share buyback programme, and today announce the intention of acquiring up to one million ‘A’ shares… To further demonstrate the financial strength of the business and reduce the exposure to future liabilities, the company has completed a full buy-in of the Fuller’s pension plan with Legal & General. With the improvement in the funding position, both the Trustees of the Fuller’s Defined Benefit Pension Plan and the company were keen to move swiftly into a full buy-in with a well-regarded insurer who could provide an enhanced level of security and member service.” The business said that as it approaches its financial year end, on 29 March 2025, trading momentum continues to be strong, and it is confident that market expectations will be delivered. The company also reiterated that it had exchanged contracts to acquire the freehold of The White Swan in Twickenham, with completion due on 19 March 2025. Fuller’s chief executive Simon Emeny, said: “With just two weeks to go, we have had a very strong year – and to cap it off with such an excellent new acquisition is the icing on the cake. The White Swan is a riverside gem in Twickenham, and we look forward to welcoming the team there into the Fuller’s family. We are confident of meeting market expectations for the full year and are taking appropriate actions to manage the impact of forthcoming market challenges. We remain confident and optimistic about the future for our business and will continue to allocate capital to drive long-term growth and returns for shareholders. We will next update the market on 11 June 2025, when we announce the company’s full year results for the 52 weeks to 29 March 2025.”

Deliveroo reports first full-year profit with a return to order growth: Deliveroo has reported its first full-year profit as its saw Gross Transaction Value (GTV) increase 6%, orders up 2% and revenue climb 3% to £2,071.9m in the 12 months to 31 December 2024. The company said it saw an improving trend in the second half of 2024 with GTV growth of 7% and revenue growth of 5% in constant currency. It said it saw encouraging performance in both its segments; constant currency GTV growth of 7% in UKI while International returned to growth, up 4% (International excluding Hong Kong: up 9%). The company also reported positive signs of consumer engagement. It said: “Average order frequency increased across every annual cohort at a group level, and retention improved through the year, supported by progress on our consumer value proposition (CVP), despite continued macroeconomic uncertainty in major markets.” Adjusted Ebitda for the year was up 52% to £130m (2023: £85 million); adjusted Ebitda margin (as a % of GTV) increased to 1.7% (2023: 1.2%); with margin levers including a higher contribution from advertising, delivery network efficiencies and continuing operating cost control. The company reported a profit for the year of £3m, compared to a loss of £32m in 2023. It said that for 2025 it anticipates GTV growth to be high-single digits percentage growth (in constant currency), while adjusted Ebitda is expected to be in the range of £170-190m, as it makes “targeted investments to capture future growth opportunities”. Will Shu, founder and chief executive of Deliveroo, said: “Over the past year, we have been relentlessly focused on making the Deliveroo experience even better. The robust results we’ve announced today, with our first full year profit and positive free cash flow as well as GTV growth across our verticals, demonstrate that our strategy is working. We continued to deliver value to consumers by incentivising partners to reduce mark-ups and by significantly enhancing our loyalty programme. Our dedication to making every order perfect is having a meaningful impact on consumer satisfaction, as reflected in our net promoter score. Whilst the consumer environment remains uncertain, I am confident that we can continue to deliver growth by focusing on the levers in our control: supporting our restaurant partners to meet untapped consumer demand around new occasions, expanding our grocery and retail offering, and continuously improving our CVP. I want to thank the team for all their hard work and expertise in 2024 which will help us to capture the many opportunities ahead of us.”

C&C Group – Group revenues are expected to be in line with last year: C&C Group has said that its group revenues for the year to 28 February 2025 are expected to be in line with last year. It said that this would reflect growth in its distribution business offset, as highlighted at the interim results, by the impact of the disposal of its non-core soft drinks business in Ireland, the strategic exit of low margin contract brewing volume and softer GB cider sales during the important summer trading period. The company said: “The macroeconomic environment and UK October Budget have placed a degree of additional pressure on our hospitality customers and impacted consumer confidence more generally.” Despite these headwinds, the group said it has made good progress and expects to report underlying Ebit in the range of €76m- €78m, which although modestly below its target due to softer trading across the market in January and February, reflects “significant recovery” versus the prior year’s earnings of €60m. Operating margins are expected to be ahead of FY2024 with positive progress in both its Branded and Distribution businesses. The group said it has increased customer numbers growing 7% in the second half of FY2025 in its Matthew Clark Bibendum distribution business, reflecting further “improved and consistently high service levels”. It said: “We have invested in our brands and achieved market share value growth for Tennent’s in both the on and off trade and for Bulmers in the ROI on trade.” It said that cash generation has remained strong, with net debt: Ebitda at year-end 1.0x, in line with its target, reflecting disciplined working capital management, investment in the business, and further progress in its shareholder return programme. On the current outlook, the business said: “We have some exciting plans for our brands coming in FY2026, including the relaunch of Magners as the brand is now back under our full management control in the UK market. Looking forward, we expect to see continued uncertainty for consumers alongside the impact of the well documented challenges of the hospitality sector. We remain confident in the longer-term and will further invest in our customer proposition, brand innovation, systems and people. This underpins the board’s confidence in our ability to achieve sustainable, long-term profitable growth. We expect earnings in FY2026 to be marginally ahead of FY2025, reflecting our ongoing investment in the business to enhance our growth potential. The group remains well-positioned to navigate these challenging conditions and our previously stated objective to deliver €100m Ebit remains in place over the medium-term.” Roger White, chief executive, said: “Having joined the business in late January 2025, although it is still early days, I believe I have already gained an understanding of the business and the wider market dynamics. It is clear to me that C&C has a committed and capable team, alongside great brands and a passion for delivering for its customers. However, there is much work to be done to fully realise the potential across the group. Whilst the market backdrop remains challenging, we are continuing to support our customers, invest in the business and have some exciting plans to implement this year which I look forward to updating you on further in May. I remain confident of the significant long-term opportunity within the business and I am fully focussed on delivering increased shareholder value.”

Three Uncles to open sixth site later this month: Cantonese roast meat concept Three Uncles will open its sixth site in London’s Brent Cross later this month. The concept, which was founded by childhood friends and chefs Cheong Yew, Pui Sing Tsang and Mo Kwok in 2019, said its new restaurant will take the lead from East Asian food courts and traditional hawker centres, where it is common to have great food as part of the retail experience. The new 635 sq ft restaurant is one of seven units within the shopping centre’s new District food hall that offers a selection of vendors around a central dining area. Alongside Three Uncles, confirmed vendors include Pasta Remoli and Smatcha. “In Asia, it is common to find great food in shopping centres, so we looked at the food courts and hawker centres for inspiration; the look and feel will be very similar. We are proud to bring authentic Cantonese flavours to the everyday shopping experience, proving that quality, fast, traditional Cantonese food can work everywhere,” said Mo Kwok (Uncle Mo). The new northwest London location joins Three Uncles’ growing group of independently owned takeaway kiosks and restaurants in the North (Hawley Wharf Market), South (Brixton Village), East (Liverpool Street), West (Ealing), and Central (St Paul’s). “Three Uncles is going from strength to strength, and we’re excited to expand into more areas of London. Our next stop: Brent Cross, one of North London’s most well-known shopping destinations,” said Chong Yew (Uncle Lim). Last summer, Three Uncles told Propel that it recognised there was huge potential outside the capital for the business and that it was in a unique position to possibly become the UK’s first branded Cantonese chain.