Latest / Hospitality News Briefing / Tuesday 27 October: Hospitality confidence hits two-year high as Oxford Street goes traffic-free
Transcript
- Good morning. This is the Hospitality News Briefing, from Ops Club. Episode twenty eight, Tuesday the twenty seventh of October. Here is what the UK trade press reported this morning, collated for operators. Hospitality sector optimism has climbed to fifty three per cent ahead of the Budget as London's Oxford Street begins its transition to a traffic free zone. We will start with the latest financial results and trading updates, before looking at investment news, new openings, and market trends, finishing with a few things to think about. First, the numbers and financial results. Safestay's warned of a winter liquidity squeeze after weak summer trading fell short of expectations, as reported by The Caterer. The hostel operator is weighing up property sales and a debt review after revenue dropped to eight point four million pounds. While bank debt was cut to nine point one million pounds following a site sale in Glasgow, the group's facing a challenging cash flow period over the quieter winter months. Elsewhere, Langton Capital reports that Accor has raised its full year profit outlook. The hotel giant increased its annual ee bit dah forecast to between one point two seven and one point two eight five billion euros after strong RevPAR growth. In other updates from Propel, a Cumbria McDonald's franchisee, Nuestra Familia, saw turnover hit forty eight point five million pounds across eleven sites. Also from Propel, Devon operator Braddicks Leisure grew turnover to eight point one million pounds. They're now investing hundreds of thousands in sea defences to protect their clifftop Pier House venue. Next, deals and investment. The Coaching Inn Group's going to plough ten million pounds into its estate and growth next year, according to Restaurant Online. The forty three strong group will focus on adding bedrooms at The Feathers in Ledbury and upgrading sites recently transferred from RedCat. They've hired David Phillips from RedCat as property director to lead a methodical search for new acquisitions in market towns. Propel has four more updates on the investment front. Swedish operator Moyagi plans to grow the Lucky Voice estate and its software platform after last month's pre-pack deal. Red Oak Taverns has bought The Wheatsheaf in Leicestershire from Everards. Deckers Hospitality Group has acquired the North Yorkshire drinks wholesaler Tate-Smith. Finally, The Beverley Group's taken the lease of the Marble Arch Inn and plans a full refurb to turn it into a boutique three star site. On to openings and closures. City A M reports that pedestrianisation has started on Oxford Street, with vehicles now barred from a one kilometre section. Two new public squares should be finished by spring twenty twenty seven. Propel reports that Thomas Texido's launching the Adelia pasta bar in Clapham, and Wasabi has secured a site in the Trafford Centre. NinetyNine nightlife destination has opened on Regent Street, according to Hospitality and Catering News, who also report that a luxury Hotel Indigo has been approved for Hampton Wick. Three more from Propel: a Black Sheep Coffee franchisee has opened its seventh Glasgow site, The Sushi Co has reached forty sites with a Bromley opening, and Frurt frozen yogurt is targeting thirty stores by twenty twenty seven. Finally, Langton Capital reports Costa Coffee has opened its first cinema unit with Cineworld, while Propel notes that Pete Holt has acquired The Old China Hand pub in Clerkenwell. Next, people moves. Propel reports that Mission Mars has promoted Jo Branney to chief people officer and hired Hux Norman from Loungers as group head of acquisitions. Social Pantry has promoted Jessie Broadway to sustainability manager. The Morning Advertiser reports Star Pubs has named Matt Dyson as operations director for the north. Hospitality and Catering News notes that Mahesh Jay is the new general manager of DoubleTree by Hilton Bristol City Centre, and Emily Nunn has been named hotel manager at INNSiDE by Meliá Liverpool. On to trends and market data. Hospitality confidence has hit its highest level since early twenty twenty four, according to The Morning Advertiser. Optimism among leaders jumped to fifty three per cent after five months of consecutive sales growth. However, independent operators are far more cautious, with only eleven per cent feeling positive. The data shows eighty four per cent of businesses maintained or grew revenue in the third quarter. Shop price inflation has jumped to two point one per cent as the dam breaks on rising costs, as City A M reports. The British Retail Consortium warned that non-food inflation has nearly doubled to one point seven per cent. These figures have led to fresh calls for the Chancellor to cancel planned business rates hikes in tomorrow's Budget. The Caterer reports that four in ten M Ps now back a hospitality V A T cut. Elsewhere, Langton Capital notes the ten year gilt yield, which is what it costs the government to borrow for a decade, rose to about five per cent as markets await the Budget. Finally, other industry news. New Respect Orders launch today in England and Wales to target anti social behaviour, according to the Home Office. These powers allow councils and police to ban repeat offenders from town centres. Crucially for operators, housing associations and transport networks can also apply for the orders to protect their premises. City A M reports the minimum wage is set for a four per cent hike to thirteen pounds and twenty pence in tomorrow's Budget. The rate for younger workers will also rise to eleven pounds and twenty seven pence. Trade bodies welcomed the decision to keep age bands, warning that full equalisation would hit entry level roles hard. In shorter news, The Insolvency Service reports a Tyneside pizza boss was jailed for two years for a hundred and fifty thousand pound loan fraud. Also, The Morning Advertiser reports that Storm Boelo forced pub closures and power cuts across Cumbria and Lancashire this weekend. A few things to think about before you get on with the day. Shop price inflation is hitting two point one per cent. How much more cost can your menu prices absorb before you lose the dwell time that's currently driving your revenue? New Respect Orders mean police can ban repeat offenders from high streets. If you operate in a town centre, have you briefed your team on how to work with the council to use these orders against persistent troublemakers? The minimum wage is expected to rise to thirteen pounds and twenty pence. Have you modelled the impact on your middle management pay differentials to avoid losing your best supervisors? Safestay has issued a warning about a potential winter liquidity squeeze. Do you have enough cash headroom to survive a weak first quarter if the post Christmas slump is deeper than usual? The full rundown is at ops dash club dot com, where every story links back to the publication that reported it. Today's pulled from The Caterer, Langton Capital, Propel, Restaurant Online, City AM, Hospitality and Catering News, The Morning Advertiser, Home Office and The Insolvency Service - a signpost to their reporting, not a replacement for it. Scripted and read by AI and published without a human check, so check the original before you act on anything. For longer conversations with the people running the sector, find the Hospitality Ops Club podcast. That is your briefing. Have a great day.