Category: Finance & markets
Euro 2016: Blessing or Blight….
Football benefits wet-led pubs. For virtually all other operators, it’s a negative Pubs: Wet led pubs perform strongly over football tournaments, food led units do not. Sports-led units will clearly perform well. Chameleon bars run the risk of alienating both groups of customers. Hence it’s not just a case of plugging in ‘football’ and getting…
New Entrants, Blessing or Blight….
New entrants keep markets fresh – but they cause problems for incumbents. Restaurants, bars, hotels, you name it: Bars, restaurants: o Peach Tracker shows total sales > LfL by c3%. That’s the impact of new capacity o Some will be new entrants & others will be incumbents bulking up o But the latter can lead…
Pubs & Restaurants – A slower market:
Note, a lot’s priced in. The sector is cheap. Some PERs are single digit & yields are near 5%. Recent data: It’s fast becoming official; the market is tougher. Peach Tracker for March & April (smoothing Easter) suggests LfL sales down c0.2% Marston’s yesterday alluded to tougher H2 comps (starting April) M&B today said that…
London Hotels, further evidence of a slowdown:
Background: Whitbread, STR etc. say the London market has deteriorated This is a supply, rather than a demand issue – see earlier Langton emails Other leisure operators are interested in the volume of hotel visitors Bed/night prices could soon be on the slide More evidence: Latest HVS/AlixPartners Hotel Bulletin reports ‘the UK’s hotel market saw…
JDW versus RTN. Ten year tussle but I think we have a winner…
JD Wetherspoon & Restaurant Group; contrasting styles… Background: In 2013, 14 & 15 we ran side-by-side pieces comparing JDW w. RTN. Whilst the companies were broadly the same size, we much preferred JDW RTN had lower sales but higher margins Whilst JDW ‘invested’ its lost margin in staff, product and premises & had more freeholds…