Latest / Hospitality News Briefing / Monday 21 September: Jersey Mike's targets 400 sites with former Boparan CEO Satnam Leihal taking the reins
Transcript
- This is the Ops Club Hospitality News Briefing for Monday the twenty first of September. Here is what the UK trade press reported this morning, collated for operators. Jersey Mikes has appointed a former Boparan CEO to lead a four hundred site rollout, while Burger King explores new brands and Costa Coffee pivots away from its traditional breakfast dominance. Starting with trading, Propel reports that Hydes Brewery has hit a record turnover of forty one point two million pounds. Despite the sales success, which represents a fourth year of record turnover, pre-tax profits dipped to seven hundred and one thousand six hundred and twenty seven pounds due to spikes in wages and energy costs. The operator has cut its net debt to nine point two million pounds and says it is ready to make quick acquisitions if the right pubs come to market. Also in Propel, more than one hundred workers at the Cameronbridge Diageo distillery are set to strike for three weeks. The walkout follows plans to cut jobs as demand for spirits falls. On to who is buying what, Burger King UK is hunting for new brands to fuel its growth. CEO Alasdair Murdoch is looking for fresh concepts that can use the group's drive-thru pipeline and internal infrastructure. Interestingly, Propel reports the business is also shifting its menu toward snacks and smaller portions to keep customers who are using weight loss medications engaged. Elsewhere, Giggling Squid has snapped up Thai Express from administration, according to The Caterer, while Hospitality and Catering News reports that HOSPA has expanded its events arm by acquiring a prominent industry conference. Turning to new openings, there is a lot of activity in the pipeline. Propel reports that KFC is aiming for more than sixty new restaurants in twenty twenty seven, even offering twenty thousand pound fees for new site introductions in retail parks and travel hubs. The Indian fast food brand Haldirams is also scouting locations in Manchester and Birmingham following its London debut. The Caterer reports that Pret A Manger is accelerating its growth with plans to open one hundred new stores next year, and Chicken Cottage is targeting more global territories following launches in Morocco and Saudi Arabia, as reported by Propel. In people moves, Propel reports that Giles Fry has departed TGI Fridays UK. The Chief Operating Officer left the business after finishing a fifteen month restructuring and turnaround project. Looking at the wider market trends, Costa Coffee is seeing lunchtime and snacks overtake breakfast as the main driver of trade. The UK MD Nick Orrin says functional and iced drinks are shifting demand into the afternoon, with protein lattes and matcha being scaled up to capture this trend. Also in Propel, leaders in the bakery sector have dismissed fears of brand consolidation, arguing that regional identities will protect local bakeries from being swallowed by national chains. Finally, a couple of other stories from the morning. Propel reports that the planned Universal UK resort is being described as a wake up call for attractions, with veteran John Wardley saying the twenty thirty one opening will force existing parks to innovate. And in Hospitality and Catering News, McDonalds and its suppliers are aiming to raise one point five million pounds for charity by donating one pound from every meal to support families of children in hospital. Three things to think about before you get on with the day. Costa and Burger King are both pivoting their menus toward snacks and functional drinks to capture changing afternoon habits. Do you have a specific plan to bridge the gap between your lunch and dinner trade, or are your sites sitting half empty at three thirty in the afternoon? Hydes managed to improve gross margins by a full percentage point despite massive cost headwinds. When did you last conduct a line by line margin review to see where pennies are leaking from your P and L? With KFC and Jersey Mikes both hunting for hundreds of sites, the fight for prime drive thru and retail park space is about to get much more expensive. Have you locked in your pipeline for the next twenty four months, or are you going to be outbid by the big brands? The full rundown for today is on the page, where every story links back to the publication that reported it. This briefing is a signpost to the trade press, so please do go and support their reporting. Today's briefing pulled from Propel, The Caterer, and Hospitality and Catering News. That is your briefing. Have a good day.