Latest / Hospitality News Briefing / Thursday 29 October: Budget delivers business rates relief for small sites but misses on VAT and wage costs
Transcript
- Good morning. This is the Hospitality News Briefing, from Ops Club. Episode thirty, Thursday the twenty ninth of October. Here is what the UK trade press reported this morning, collated for operators. The Chancellor has delivered a budget that raises the business rates relief threshold for smaller sites while confirming a four per cent minimum wage hike and no change to V A T. Today we start with financial results, move through acquisitions and openings, and finish with reflections on what this means for your margins. First, the numbers and financial results. C and C Group has seen its operating profits rise by four per cent to forty three point four million euros for the half year to August. This comes despite a planned exit from low-margin distribution that saw net revenue dip three per cent to seven hundred and ninety four point nine million euros, as reported by The Morning Advertiser. Three quick updates from the markets. Propel reports that Barons Pub Company grew its turnover by four per cent to twenty point four million pounds, with accommodation income reaching over half a million. Globally, Heineken saw net revenue rise about five per cent in the third quarter, which Langton Capital notes was driven by volume growth in two thirds of its territories. Finally, the Slazenger Padel Clubs concept owned by Frasers Group hit eight hundred thousand pounds in turnover during its first half year, according to Propel. Next, deals and investment. The Caterer reports that Mission Mars has secured a new majority backer to fuel the rollout of Rudy's and Albert's Schloss. Fynveur has acquired a controlling stake in the forty four site group from B G F for an undisclosed sum. The management team's staying in place to explore more site acquisitions after B G F's successful exit. Hospitality and Catering News reports on two major hotel deals. Heartwood Collection's bought The Angel Hotel in Leamington Spa, planning a multi-million pound renovation to open a forty seven bedroom pub with rooms by summer twenty twenty seven. Meanwhile, Accor's partnered with Corinthia Group to add five Verdi hotels in Malta, Portugal, and Tunisia to its Handwritten Collection starting in November twenty twenty six. On to openings and closures. It's a tough morning for some established brands. Restaurant Online reports that the business running the original Voodoo Ray's in Dalston has approved a motion for voluntary liquidation. The Caterer notes that Crazy Bear Group has fallen back into administration, with both its Stadhampton and Beaconsfield sites ceasing trade. Also in Propel, Orange Brands Management has shut Duck and Waffle Edinburgh just over a year after it launched. There's more positive news for new projects. Amber Taverns is investing three million pounds to turn the former Magpie site in Newcastle into a live music venue this December, according to The Morning Advertiser. Propel reports that Din Tai Fung has secured a licence for a two hundred cover site on Carnaby Street, and Blackbird Bakery will open its eleventh site in Clapham on the twentieth of November. Finally, Hospitality and Catering News reports that Tom Sellers has debuted The Penn at Stoke Park, the first of five culinary projects he's bringing to the estate. Next, people moves. Kew Green Hotels has appointed Claire Hemphill to lead its revenue department, as reported by Hospitality and Catering News. Over at Dishoom, Brookes Decker has been hired as senior director of operations to lead the brand's launch into the U S, according to Propel. Now, the latest trends and market data. The fiscal watchdog has slashed growth forecasts and warned of a decade-long income squeeze. City A M reports that the O B R expects real household disposable income to shrink next year, meaning consumers might not have more to spend in hospitality until at least twenty twenty eight. Unemployment's also expected to rise to about five per cent, adding three hundred and twenty thousand people to the jobless total. C and C Group has warned that the late-night market has all but evaporated as younger drinkers shift toward food-led and earlier occasions, according to Propel. Meanwhile, Langton Capital notes that seven hundred and thirty eight thousand U K firms are in significant financial distress due to high borrowing costs and inflation. Finally, other industry news and the Budget detail. Chancellor John Healey has increased the hundred per cent business rates relief threshold from twelve thousand to eighteen thousand pounds. The Morning Advertiser reports this move should exempt half of all hospitality sites from the tax. Larger sites will see bills frozen in real terms for two years, though industry bodies warn that still allows for a four per cent inflationary rise. The National Living Wage will rise about four per cent to thirteen pounds and twenty one pence next April. The Low Pay Commission's recommendation has been accepted for all workers aged eighteen and over. While the hike is lower than some feared, the commission warns it remains a significant cost burden alongside the new business rates. As The Caterer reports, alcohol duty's set to rise with inflation from February, though small brewers will receive a ten million pound relief package. In the courts, Propel reports that M W Eat is suing its insurance broker for eight million pounds, claiming negligence over a pandemic cover policy cap. A few things to think about before you get on with the day. With the business rates relief threshold moving to eighteen thousand pounds, have you checked the rateable value of every site in your pipeline to see which will now be tax-free? The four per cent wage hike is locked in for April. Do you need to model a menu price increase now to protect your margin, or can you find that fifty pence an hour in better rotas? C and C suggests the late-night market is evaporating. Is your trade between ten in the evening and midnight still profitable once you account for the extra labour and security costs? The O B R is forecasting a squeeze on disposable income until twenty twenty eight. Are your mid-week value offers sharp enough to keep the doors turning? 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 Morning Advertiser, Propel, Langton Capital, The Caterer, Hospitality and Catering News, Restaurant Online, City AM and Low Pay Commission - 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.