Latest / Hospitality News Briefing / Friday 9 October: UKHospitality warns of 100,000 lost jobs as trade bodies lobby for Budget tax relief
Transcript
- Good morning. This is the Hospitality News Briefing, from Ops Club. Episode sixteen, Friday the ninth of October. Here is what the UK trade press reported this morning, collated for operators. UKHospitality is warning that one hundred thousand jobs could be lost as trade bodies lobby for Budget tax relief, specifically pointing to youth employment being at risk without reform to National Insurance Contributions. Starting with the latest trading figures, Propel Hospitality Info reports that bubble tea specialist Gong Cha has seen its annual turnover exceed one hundred and sixty million pounds. The brand now has nearly two thousand two hundred sites globally and is rolling out a new format that has seen record sales in Japan and Korea, positioning it as a serious rival to traditional coffee shops. Propel also reports that Wendy's has reached forty one point one million pounds in UK turnover for twenty twenty five, up from thirty four million the year before. Pre-tax profits climbed to one point six million pounds as the brand expands its footprint, now operating thirty six franchised sites alongside eleven company-owned units. In other results, Langton Capital notes that Artfarm Group, which owns the Groucho Club, saw revenues climb to fifty six point five million pounds, though it reported a thirty nine point seven million pound pre-tax loss due to heavy investment. Also in Propel, Edwardian Hotels saw turnover rise to one hundred and thirty six point seven million pounds following a major portfolio sale, while Reel Cinemas has become debt-free with record spend per head. Finally, SME Group profits reached thirty two million pounds, largely due to property gains across its portfolio of over one hundred units. On to who is buying what, Restaurant Online reports that actor Daniel Craig has partnered with Soho House founder Nick Jones and Charlie Carroll of Flat Iron to take over The Horseshoe pub in Clerkenwell. The site will undergo a year-long refurbishment to become a traditional boozer. Propel reports that Thomas Anderson of Common Table Group will ditch the national chain model for the fifty seven sites he acquired from Whitbread, opting for local identities instead. In Liverpool, the iconic Cavern Club has been sold to London-based fourteen Collective for an undisclosed sum. Langton Capital reports that Moyagi Group has rescued three Lucky Voice sites from administration, while Safestay has exited its Holland Park site with a three million pound lease sale. Looking at new openings, Subway has unveiled a blueprint format targeting evening and breakfast trade, according to Hospitality and Catering News. The plan includes doubling its footprint to ten thousand sites with new tech-led designs and a Subway After Dark menu featuring pizzas. This is a direct challenge to the likes of Greggs and McDonald's for all-day trade. Also in Hospitality and Catering News, the one hundred and sixty seven room Webster lifestyle hotel has debuted in Covent Garden. Propel reports that Wild Group will open its twelfth London site with a steakhouse in Kensington, and Arcade is looking at international growth in the US and Middle East by spinning off its successful food hall concepts into stand-alone restaurants. A few moves to note: Propel reports that specialty coffee brand WatchHouse has appointed former Tortilla CEO Andy Naylor as its new CFO. Meanwhile, The Botanist operator N W T C has promoted Sam Beech to people director as it prepares for winter expansion. In market data, Langton Capital notes that the ten-year gilt yield - what it costs the government to borrow for a decade - edged up to five point four four per cent. This keeps pressure on commercial lending rates for hospitality. Separately, Tortilla was named the top QSR brand for quality and service in a survey of three thousand five hundred consumers. Finally, in other industry news, The Morning Advertiser reports that Carlsberg is to close the historic Marston's brewery in Burton-upon-Trent in twenty twenty seven. The move puts three hundred and three jobs at risk as cask ale volumes continue a decade-long slump. In Newcastle, The Caterer reports that the council has axed its late-night levy to ease financial pressure on venues, admitting the tax was an unfair burden. And Propel reports that Stonegate has settled an eighty five million pound pandemic insurance dispute with its broker. Three things to think about before you get on with the day. Nearly sixty per cent of businesses are now eating their own margins to avoid price hikes. How much more of the middle can your P and L afford to lose before a price rise becomes non-negotiable? With forty five per cent of all job losses coming from our sector, are you still planning your recruitment around entry-level roles that may soon attract much higher National Insurance costs? Casual dining giants are now promising forty five minute lunch turnarounds to compete with supermarkets. Does your current service model allow a desk-bound worker to get in, eat, and pay in under an hour? 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 Propel Hospitality Info, Langton Capital, Restaurant Online, Hospitality and Catering News, The Morning Advertiser and The Caterer - 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.