Latest / Hospitality News Briefing / Thursday 24 September: Foodservice price inflation hits 0.4% as global sugar and dairy supply tightens
Transcript
- Good morning. This is the Hospitality News Briefing, from Ops Club. Episode five, Thursday the twenty fourth of September. Here is what the UK trade press reported this morning, collated for operators. Supply chain pressure is persisting as sugar and dairy prices climb, and McDonalds has unveiled an eight point five billion dollar global modernisation plan for the next decade. Starting with market trends, Propel Hospitality Info reports that site numbers in the sector are masking high levels of churn. While a net site loss of just zero point two per cent over the last year suggests a stable market, the underlying data shows seven per cent of all locations are in flux. The late night sector is suffering most, with one in five bars or clubs changing hands or closing in the past twelve months. This churn is creating significant pressure for incumbents, though it is opening doors for new entrants. Also from Propel, employment costs for eighteen year olds have climbed forty per cent in ten years. Rising minimum wage levels mean the real term cost of hiring young staff has soared since twenty fifteen, prompting calls for new business tax breaks. On to who is buying and investing, most of this morning's briefing comes from Propel Hospitality Info. McDonalds has pledged eight point five billion dollars for a decade long restaurant overhaul. The global giant will invest billions through twenty thirty to modernise sites, improve food quality, and boost digital loyalty. Franchisees will be expected to match this with their own investments during regular ten year remodel cycles. Elsewhere, Star Pubs is putting five hundred and twenty four thousand pounds into an Exeter site as its managed model expands. The renovation of The Engine House represents the largest single investment in the Just Add Talent managed operator division this year. Half of the twenty six major revamps completed in twenty twenty six have focused on wet led pubs. Two quick updates from Propel. David Wood Craft Bakery has saved Sayers and Poundbakery. More than four hundred jobs and forty eight shops have been secured following a pre-packaged administration sale to the eight site bakery operator. Meanwhile, Millennium and Copthorne has bought the Kensington Holiday Inn for two hundred and eighty million pounds. The group acquired the seven hundred and six room London property despite seeing UK revenues dip slightly to two hundred and eighteen million pounds in the last financial year. Moving to trading updates, Propel reports that Vaulkhard Group has boosted ee bit dah to two point one seven million pounds despite cost headwinds. The Newcastle based operator saw turnover edge up to nineteen point two million pounds as it focused on consolidating its portfolio and buying freeholds. Also, a Lake District hotelier has flagged the national insurance hike as a major future challenge. The Inspire Holding Company reported fifteen point two million pounds in revenue but warned that upcoming national insurance changes will force a review of service levels. Next, a look at new openings. Camile Thai has set its sights on matching its Irish estate size in the UK, as Propel reports. The brand plans to aggressively expand its Petite Camile format across UK forecourts, airports, and leisure hubs. Following a recent opening in Portsmouth, a Southampton site is next as the group leans into a franchised model. In a run of briefs from Propel, The Coffee House has hit fifty sites with a Yorkshire debut. The independent style chain has opened in Huddersfield as part of an ambitious plan to reach two hundred locations. The Salad Project has made an international move to Paris, serving seven hundred people on its first day in France with an aim for twenty European sites within four years. Finally, Cotti Coffee has picked Birmingham for its first regional UK site, moving into the former Moss Bros unit on New Street. In people moves, The Caterer reports that Milena Floyd has been named CEO of Creative Restaurant Group. She will lead the group behind several high profile London sites through its next phase. To finish, a few other industry stories from Propel. Jinseon Korean BBQ has won the one hundred thousand pound Uber Eats top prize. The Coventry based independent restaurant beat forty five other nominees to be named Restaurant of the Year. The founders plan to use the cash prize to expand their authentic grill at the table concept. Lastly, the B B P A is calling for a thirty per cent draught tax relief boost to save pubs. The trade body claims that freezing duty and increasing relief could create seven thousand jobs and protect the twelve pence profit made on a pint. Three things to think about before you get on with the day. If food inflation is currently being masked by seasonal UK produce, do you have a plan for when supply shifts back to volatile global commodities like dairy and sugar this winter? With seven per cent of sites in flux despite stable headline numbers, are you watching your local competitors closely enough to grab a prime site if a stable neighbor suddenly fails? Hiring an eighteen year old now costs forty per cent more than a decade ago. Does your current training and retention strategy actually justify that higher entry level wage, or are you just paying more for the same output? 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 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.