Latest news with #Whitbread
The Sun
16 hours ago
- Business
- The Sun
Craft beer prices have rocketed since start of year amid rising costs and tax hikes
CRAFT beer prices have rocketed since the start of the year — giving drinkers a major hangover. Prices have jumped by up to 12.5 per cent since January, The Morning Advertiser Pint Price Survey has revealed. The Campaign for Real Ale (CAMRA) said many landlords are having to charge more just to stay open in the face of rising raw material costs and tax rises. The survey said the biggest price rise was for BrewDog Punk IPA, which was £5.64 a pint in January but is now £6.34. Camden Hells has also climbed to £6.34, up 10.8 per cent from £5.72. Others have seen more modest increases, just 1.7 per cent for Camden Pale Ale, which has gone from £5.59 to £5.69. The average price of a draught pint across all types has crept up to £5.17, compared with £5.08 six months ago. CAMRA chairman Ash Corbett-Collins said: 'It's incredibly frustrating for consumers to see the price of a pint rise yet again. 'It's really important that we talk about the reasons that the price of beer is rising — it's hikes in the price of raw materials for brewers, energy costs staying high, pubs being squeezed by a challenging business rates system and rises in National Insurance contributions. 'Increasing the price of a pint is sometimes the only option for pubs, as not doing so risks closing their doors for ever.' Whitbread, owner of Beefeater and Brewers Fayre, has reported a 16 per cent fall in food and drink sales as it overhauls its restaurants. 1 Pint prices on the rise and Maccies axes beloved item MORRISONS OVER STORM MORRISONS bosses said it had 'bounced back' from a Christmas cyber attack, as it posted stronger sales and profits for the latest quarter. But the UK's fifth-largest supermarket chain warned inflation is driving 'subdued' sentiment among shoppers. The Bradford-based business yesterday revealed group sales grew by 4.2 per cent to £3.9billion for the 13 weeks to April 27 compared with the same 2024 quarter. Morrisons is pushing ahead with a turnaround plan which includes closing cafés along with meat and fish counters. NO BEAUTY BID MIKE Ashley's Frasers Group has pulled out of the bidding process for cosmetic retailer Revolution Beauty. Frasers, which owns Sports Direct, said it 'does not intend to make an offer'. The make-up firm had said Frasers was 'one of a number of parties conducting due diligence' after it put itself up for sale last month. But the withdrawal raises questions over the future of the troubled beauty brand.
Daily Mail
19 hours ago
- Business
- Daily Mail
The Bank of England never misses an opportunity to miss an opportunity, says ALEX BRUMMER
The Bank of England never misses an opportunity to miss an opportunity. Its latest minutes clearly show that after an unexpectedly firm start to the year, the British economy has descended into gloom. Labour's £40billion of tax increases are taking a real toll on jobs and output. The Government's core growth mission is failing. The Bank expects output to be barely up in the second quarter, by 0.25 per cent. Recent surveys suggest growth is grinding along at near to zero. Special factors, such as Trump tariff mayhem, may be part of that. But it is impossible to ignore warnings from business leaders including James Dyson and John Roberts of online retailer AO World, who are blaming tax and anti-wealth policies for the drudgery. Further evidence that confidence is evaporating comes from Whitbread, owner of Britain's largest hotelier Premier Inn. It cited rising employment costs and economic headwinds as factors in the 2 per cent drop in sales in the quarter which ended on May 29. All this should have encouraged the Bank to move ahead of the curve. Instead, six members of the Bank of England's interest rate committee sat on their hands and held the key borrowing rate at 4.25 per cent. There was one glimmer of light with Bank insider Dave Ramsden, joined by two outside members, the dove-ish LSE professor Swati Dhingra and US-based economic guru Alan Taylor, who voted for a quarter-point cut. The cautionary group on the Monetary Policy Committee argued that, with inflation at 3.4 per cent and likely to remain at 3.5 per cent for the rest of the year, dis-inflation needs to continue. Yet two of the Bank of England's most closely watched metrics – private sector earnings and prices for services – are heading downwards. Monetary policy takes time to work, which is another reason for lowering rates. Higher-than-necessary borrowing costs constrain a housing market punished by stamp duty and restrain enterprises from borrowing for investment. Conflict between Israel and Iran is also considered a reason for holding back. The oil price already has zipped up and supplies, as former BP boss John Browne warns, could be dramatically reduced if the Strait of Hormuz were to be closed. The classic textbook policy response to shocks and uncertainty is to ease credit conditions and prevent a flatlining economy plummeting into recession. After all, emergency rate cuts can be reversed. The US Federal Reserve and the Bank may be on hold, but some central banks are bolder. Norway cut rates for the first time in five years yesterday. The Swiss, facing a tide of inward funds looking for a safe home, cut rates to zero. There is even talk of negative rates. The Old Lady has now descended into a pattern in which it chooses to ease rates in the months when it publishes its full monetary policy report. That means waiting until August, when minds are on buckets and spades rather than buying and building homes, and borrowing to invest. Science class There is comfort to be drawn from the latest QS World University rankings which shows that the UK is up among the elite with four institutions – Imperial, Cambridge, Oxford and UCL – in the top ten. But research standards are slipping, with 54 of the 90 British universities falling down the league table. Improved funding and tax breaks would create a real opportunity for the UK to poach disaffected scientists and AI innovators alienated by Trumpian attacks on Harvard. Instead, the Government is bogged down. A 104-page infrastructure plan is all but incomprehensible, with talk of 'spatial tools' and 'granular modelling'. I've a better idea: ramp up research spending and watch invention and enterprise bloom. Slam dunk Everything in America is bigger, including the valuation of sports franchises. The LA Lakers basketball team is being snapped up by Mark Walter of TWG Global for $10billion (£7.4billion), making it the most valuable team on earth. TWG has stakes in the LA Dodgers baseball team and women's basketball outfit LA Sparks. That makes Premier League football teams look cheap.
Skift
21 hours ago
- Business
- Skift
Premier Inn Turns to High-Margin Rooms to Offset UK Hotel Weakness
Premier Inn says it's outperforming rivals in a soft UK market, but it's doing so by squeezing more value from fewer guests, not a rebound in demand. Premier Inn-owner Whitbread reported a drop in UK accommodation sales in its fiscal first quarter and is trying to offset weaker demand by charging guests for room upgrades and add-ons. UK accommodation revenue declined 2% for the period that ended May 29. RevPAR also fell 2%, while occupancy dropped to 78.6%, down more than 3 points from last year. Trading "was against a softer demand backdrop," Whitbread CEO Dominic Paul said on the company's earnings call Thursday. 1. Upselling to lift spend per guest: With fewer bookings, Premier Inn is tryi
The Herald Scotland
a day ago
- Business
- The Herald Scotland
Premier Inn bosses upbeat as hotels planned for Edinburgh
Whitbread reported that total Premier Inn UK accommodation sales decreased by 2% in the 13 weeks to May 29, compared with the same period last year. Total revenue per available room (RevPAR) was also down 2%. Accommodation sales in London Premier Inns declined by by 2.4% and RevPAR plunged by 5.5%, although the company performed ahead of its competitors in the UK capital. In Germany, Premier Inn accommodation sales growth slowed from 23% in the first seven weeks to 15% for the first quarter. Meanwhile Whitbread, which operates restaurants trading under brands such as Beefeater, Brewers Fayre and Table Table, said food and beverage sales tumbled by 16%, in part because it offloaded some underperforming restaurants and converted some into more hotel rooms. Read more: Russ Mould, investment director at stockbroker AJ Bell, said: 'How much does it matter if you're doing better than the wider market and still struggling? That's the question in front of the market as Whitbread updates on its first-quarter trading. 'The Premier Inn owner has a proposition which is relatively affordable and reliable – anyone booking a room knows what they are going to get and that is a key selling point. 'However, the key revenue per available room metric is still trending negative for its domestic business thanks to the weak backdrop for the UK hotels market as a whole amid an uncertain economic backdrop. 'With visibility limited, all the company can do is control what it can and hope that it comes out of this difficult period with its competitive position enhanced thanks to weaker players and independent operators falling by the wayside.' Whitbread chief executive Dominic Paul gave an upbeat assessment of the company's performance, declaring it was 'making excellent progress' with its accelerating growth plan, which involves converting 112 branded restaurants into new hotel rooms and selling 126 more. The plans announced in April 2024 will also see around 1,500 jobs axed as it looks to save about £150 million over the next three years. Mr Paul highlighted progress with plans to expand Whitbread's hotel network in the UK and Germany, which currently numbers more than 900 properties. And he said Whitbread was 'on course to deliver £60m of cost efficiencies and meet our target of £250m-£300m of property disposal proceeds this year'. He added: 'Our five-year plan is on track and will deliver a step change in profits, margins and returns over the next few years. 'In the UK, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and RevPAR growth ahead of the market. Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year and we remain confident that we can continue to outperform the market. 'In Germany, we delivered another strong trading performance, led by the increasing maturity of our estate and our commercial initiatives. Our total estate is outperforming the M&E (midscale and economy) market, and we remain on course to deliver profitability in FY26.'
Daily Mail
a day ago
- Business
- Daily Mail
Premier Inn owner Whitbread suffers 'challenging' UK market
Premier Inn's parent company's UK sales have plunged as the group faces a 'challenging' domestic market and undergoes an overhaul of its restaurants. Whitbread, which also owns the Beefeater and Brewers Fayre brands, saw total turnover fall 4 per cent in the 13 weeks ending 29 May. Revenues in the UK dropped by 5 per cent, with food and beverage sales slumping by 16 per cent as the group continued to convert several branded restaurants into hotels. UK accommodation sales also dipped 2 per cent, although Whitbread said Premier Inn outperformed the wider midscale and economy (M&E) hotel market across both London and the regions. In the former territory, accommodation revenues exceeded the M&E market by 3.9 percentage points, while revenue per available room (RevPAR) was 2.4 percentage points higher. Meanwhile, Whitbread's German business, which represents a much smaller share of its trade, saw turnover climb by 16 per cent on a local currency basis. The FTSE 100 firm expects its German division to become profitable this financial year. Dominic Paul, chief executive of Whitbread, said: 'In the UK, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and RevPAR growth ahead of the market. 'Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year, and we remain confident that we can continue to outperform the market.' Under the company's 'Accelerating Growth Plan', it aims to construct about 3,500 additional hotel rooms on the way to having at least 97,000 open rooms in the UK by 2029. To help achieve this, it intends to convert 112 restaurants and invest approximately £500million through its capital expenditure programme. Whitbread said the plan is on track to achieve a minimum £300million of incremental profits and more than £2billion of shareholder returns by 2030. Whitbread shares were 2.3 per cent lower at £27.26 on Thursday morning, taking their losses to around 10 per cent over the past year. Derren Nathan, head of equity research at Hargreaves Lansdown, said: 'While forward bookings in the UK are ahead of last year, that doesn't provide a huge cushion if conditions don't improve. 'However, Whitbread is a quality operator that's doing all it can to improve efficiency, and optimise its estate through initiatives such as converting low performing restaurants into additional room space. 'The current valuation reflects the challenging outlook. And Whitbread continues to build on the substantial operational improvements made in recent years so the shares could be attractive to investors who are prepared to sit out the cycle.' Whitbread's latest trading update comes three weeks after it revealed that Christine Hodgson, the chairwoman of water giant Severn Trent, will replace Adam Crozier as its next chair.
