Latest / Hospitality News Briefing / Thursday 1 October: Young’s raises profit outlook as London trade and Cubitt House deal drive H1 growth
Transcript
- Good morning. This is the Hospitality News Briefing, from Ops Club. Episode ten, Thursday the first of October. Here is what the UK trade press reported this morning, collated for operators. Youngs has boosted its full-year forecasts after a ten point four per cent revenue jump, while Shepherd Neame reviews its brewing strategy and Greggs prepares to consolidate its manufacturing. Starting with the latest results and trading updates, Youngs has upgraded its full-year forecasts following a summer revenue surge. Total revenue rose ten point four per cent to late September, with like for like sales up six point four per cent across the first half. CEO Simon Dodd says the Cubitt House acquisition is performing exceptionally well, and there are plans to double the size of that premium division through new sites and conversions. Propel Hospitality Info reports that the group is now calling for a full-year result that beats previous market expectations. Shepherd Neame is taking a different path, reviewing its brewing arm as pub trade hits records. The Kent operator is looking at its brewing strategy after divisional operating profit plummeted from one million pounds to one hundred thousand pounds. While own-beer volumes fell nearly ten per cent, the retail pub estate saw a six point seven per cent like for like sales boost in the last thirteen weeks. CEO Jonathan Neame told The Morning Advertiser that several sites have broken weekly turnover records despite wider affordability concerns for families. Three quick briefs from Propel. Greggs has signalled energy inflation risks for twenty twenty seven, with CEO Roisin Currie expecting costs to rise even as the group shutters four factories to improve efficiency. Black Country Ales has hit record profit and cleared its debt. The fifty five site operator reported pre-tax profits of nearly six million pounds and paid off all bank loans following strategic pub disposals. Finally, a Belfast McDonald's franchisee has seen six per cent sales growth, with operator Paul Connan growing turnover to twenty six point four million pounds. On to who is buying and investing. BrewDog is aiming to win back taps with a dedicated sales force. New owners Tilray admitted to The Morning Advertiser they need to earn their way back onto other people's bars after previously competing with them. A new sales team has achieved one hundred and seventy five new listings in pubs outside the estate since March. Also in investment, Propel reports the Mayfair Sketch building has been sold for twenty point five million pounds to German investor D W I Group. Meanwhile, the Strathmore Hotels portfolio has hit the market, with administrators putting the eight-strong, eight hundred and eight room group up for sale following creditor pressure. Looking at new openings, Chickpea Group is moving into roadside retail. The Morning Advertiser reports the pub operator will open Chickpea Provisions on the A three zero three in Wiltshire, featuring a deli, butchery, and bakery hub. Propel reports that Bar Douro is returning to Soho for a third site this November, Auntie Annes is plotting a one hundred site U K target by twenty thirty, and the socialising brand Spinners is preparing for a national rollout after hiring new growth and finance leads. In people moves, San Carlo Group has recruited Lisa Buckley as Managing Director. The former Cote and Wagamama boss takes the helm today as the twenty five site group prepares for five international openings. Propel reports that Buckley will work alongside CEO Marcello Distefano to lead the group through a major growth phase. Also in the news, Zia Lucia boss Colin Doyle has joined Joe Blakes to drive a London rollout, Wells and Co has named Dan Simpson as the new operations director for its pub partners estate, and Caffe Nero has hired Alistair Boyd to lead a new channel development strategy. Finally, a few market trends and industry notes. Langton Capital reports that mortgage approvals hit their lowest level in months during August, which could squeeze future leisure spend. They also highlight that energy bills are set for a January spike, with price rises potentially reversing recent cooling trends. And The Morning Advertiser reports that Nature minister Jenny Riddell-Carpenter has faced industry backlash after allegedly labelling a classic image of country pubs as far-right nostalgia. Three things to think about before you get on with the day. Youngs and Shepherd Neame are both seeing London trade pull ahead of the rest of the country. If you have sites outside the M twenty five, do you know exactly what is driving your local frequency and how it differs from the capital's tourist-heavy demand? With energy prices predicted to spike again in January and Greggs warning of twenty twenty seven inflation, are you fixing now or staying variable? A wrong call here could wipe out the margin gains from your record summer trade. Black Country Ales cleared its debt by selling sites that did not fit. Look at your bottom ten per cent of performers - would the cash from a sale do more for your balance sheet than the marginal profit they contribute? 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, The Morning Advertiser and Langton Capital - 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.