Why is AI so slow to spread? Economics can explain
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Times
14 hours ago
- Times
Chicken dinners really are winners in fast-food battle
W ould you queue for four hours to eat some fried chicken? Hundreds of people did in December when Dave's Hot Chicken opened its first UK restaurant in Soho. The queues have died down now, but the willingness of people (to be honest, those in the line were mainly young men) to pursue the latest thing in warm oily hen has driven a surge of investment in fried chicken outlets in the past two years. KFC, owned by New York-listed Yum Brands, is still the big daddy with about a thousand UK outlets, three quarters of which are franchised. It wants to be bigger still. Two months ago it said it would invest about £1.5 billion over the next five years to open another 500 shops. KFC's main competition used to be a swarm of small independents but now there is a long list of medium-sized chains. Dave's is relatively new here, but among the bigger players are Popeye's, Wingstop, Slim Chickens, Morley's, Dixy Chicken and Southern Fried Chicken, to name just a few. There is a whole subset with punning titles, of which the best has to be Mother Clucker. Lots of things are driving this fowl hegemony. There is a big market to take a bite of; KFC reckons the UK fast-food chicken sector is worth £3.1 billion a year. Private equity houses have in the past made a killing (and, when they got it wrong or overexpanded, a giant loss) from the rapid exploitation of successful fast-food formulas. They are always looking for the next big thing. • Why chicken sandwich is the new hamburger in land of the Big Mac There are also some very astute franchise investors, who specialise in putting their capital to work under someone else's brand. The UK franchisee for Dave's Hot Chicken is Azzuri Group, which also operates three Italian-themed chains, Ask, Zizzi and Coco di Mama, and, as sounds natural in these days of pan-national food offerings, Boojum, a Mexican chain in Ireland. Less well known are the scores of small entrepreneurs who plough their money into food franchises in their local areas — the McDonald's millionaires, as they are known. This poultry proliferation is not just anecdotal. Maria Vanifatova, who runs the food service industry consultancy Meaningful Vision, keeps track of openings and footfall. She says the number of chicken restaurants has grown by about one third since 2021 (from 1,485 to 1,904) while the wider fast-food industry is up about 20 per cent (from 16,307 outlets to 19,303). While the fastest growth has been in London, it is far from a capital-centric phenomenon. Between 2033 and 2024, chicken outlets grew by 12 per cent in the northwest, 11 per cent in the Midlands and 10 per cent in the southeast (excluding Greater London). What is of more interest to potential investors is that people's appetite for chicken seems to be growing, while other food types are flat at best. Seton Leung, head of UK Food Service at the market research company Circana, says that the number of chicken servings in fast-food restaurants grew 6 per cent in the year to April compared with the previous 12 months. The fast-food and drink market as a whole was down 0.3 per cent — figures borne out by the results this week from Greggs, the bakery chain, which was dogged by tough trading in the first half of the year. • What is it about us Brits and fried chicken? Circana also talks to customers about why they choose different kinds of food, and Leung says chicken is more often viewed as a treat than other kinds of food. Diners also talk about wanting something 'light' and 'going somewhere the kids like'. Leung points out that there are no religious problems with chicken, and it is adaptable to all kinds of national cuisines. So chicken is the flavour of the month, but potential investors have something new to consider, something that seems to have become an important determinant of the success of all new fast-food chains. I went to an industry conference in June and nearly all the speakers who ran restaurants stressed the vital importance of getting their social media right. Quality, location, price, efficient management — all those things had to be addressed but killer socials could make all the difference. Will Stratton-Morris, who recently stepped down as chief executive of Caffè Nero in the UK, gave the example of the chain's decision to offer a matcha drink for the first time. They had expected perhaps a few thousand sales in the first months. After it was picked up by some widely followed social media accounts, they were at 140,000 and counting. Good social media does not just mean a positive review. Jim Bitticks, the president of Dave's Hot Chicken, was one of the speakers, and said the right ASMR content on social media was vital. ASMR, in case you have missed this, stands for autonomous sensory meridian response, and is used to describe sounds that will elicit certain types of emotional or physical response. For Dave's, Bitticks said, this meant the crunch of someone biting into a piece of chicken, and the oohs, aahs and mmms they make as they eat it. If you take a look at Dave's TikTok account, you will get the idea — it is full of close-ups of customers crunching, mmming and sighing. Disgusting, perhaps, but it seems to work. Dave's was set up in 2017 by three friends who put their savings together to set up a stand in a car park in Los Angeles. In February Roark Capital, the private equity company that owns Subway, bought the company for $1 billion. There have been some other big private equity deals recently. The three entrepreneurs who bought the UK franchise for Wingstop sold out just before Christmas for more than £400 million. The influx of institutional money could indicate the top of the fried-chicken boom; other fast-food themes have grown rapidly on the back of big investment and then struggled to make money because of over-expansion. Most of the people I spoke to at the conference said they thought there was room for growth in chicken, although much of it would come at the expense of others: a hard time looms, perhaps, for purveyors of burgers, fish and chips, and sandwiches. Their best defence might be to take on the chicken kings at their own game, and recruit an online army of slurpers, smackers and grunters. Dominic O'Connell is business presenter for Times Radio
Daily Record
15 hours ago
- Daily Record
Dunelm bedding that feels 'really expensive' and comes in 3 colours gets 30% cut
'This is amazing bedding. Utterly soft and warm. I sleep so well under these cosy duvet covers.' Dunelm is currently hosting a mid-summer sale, which is seeing thousands of products get discounts up to 50 per cent. From curtains and rugs to garden chairs and storage spaces, shoppers will be able to get their hands on a cheeky homeware bargain across a range of products. For those wanting to switch up the aesthetic in their bedroom or bring the finishing touches to a guest room, you can never go wrong with a new set of bedding. With designs ranging from silky and simplistic to brightly coloured and delicately detailed, there is a wide selection of bedding choices included in Dunelm's sale. One stunning set that many shoppers say 'looks more expensive than it is', is the Edie Duvet Cover & Pillowcase Set. Normally retailing for between £30 and £45, shoppers can now get their hands on this luxury set for 30 per cent off, with prices starting at £21. Said to provide the 'perfect harmony of comfort and exotic design', this Edie Duvet set is crafted with soft polyester to provide a luxurious feel that will enable a rejuvenating night's sleep. Featuring an eye-catching quilted Moroccan design, this bedding will add sophistication and intrigue to your bedroom. Available in olive, natural or clay to best match the room's aesthetic, this duvet comes with matching pillowcases to create a seamlessly coordinated and stylish look. However, Dunelm states that this bedding isn't just about boasting a 'trendy design', as it also comes with a secure button closure to ensure a snug fit for an uninterrupted sleep. In terms of sizes, shoppers can currently buy a single set for £21 (RRP £30) or a double for £24.50 (RRP £35). The king sized set has also been reduced down from £40 to £28, while the super king set is now retailing for £31.50 in the sale (RRP £45). For those looking for something a bit more simplistic in its design, Dunelm has also reduced the price of the green edition of the Kersey Embroidery Duvet Cover & Pillowcase Set. With prices now starting at £15.40 instead of £22 for a single, this bedding set features a crisp white duvet with a charming leaf embroidery. Alternatively, M&S is selling their Cotton Blend Striped Bedding Set in a double for £20. Currently available in pink or neutral colourway, this bedding provides a clean and modern look with its bold pinstripes design. With StayNew technology, this set should still look and feel fresh wash after wash. Back to the Edie Duvet Set, it currently has a 4.4 star rating from Dunelm shoppers, with many reviewers praising the set for its 'luxurious' feel and 'premium' quality. One delighted shopper said: "Absolutely in love with this bedding in green! It feels so luxurious and looks way more expensive than it was. The quilting isn't too much so doesn't get too hot underneath and has a slight weight to it which feels so good when you're sleeping. Definitely recommend." With another customer commenting: "If there was a 4.5 score then this is what I would give this duvet cover and pillowcases. It feels really expensive with the quilted design and soft material. However, they did go on to add: "The downside is that the Super King Size cover is far too big for a super king size duvet. I have had to shorten the cover by sewing the top edge by about 15cm. But other than this it's lovely." Another shopper also grumbled: "This duvet cover is huge, very oversized, a proper workout when it comes to putting the duvet in. The underside fabric is not cotton which prevents it from getting a nice tidy finish." Despite this, a five-star reviewer praised: "This is amazing bedding. Utterly soft and warm. I sleep so well under these cosy duvet covers." While a fifth shopper added: "The bedding set is lovely, very soft and smooth, almost silky to the touch, easy to put the duvet inside also, very premium product for the price." To buy the Edie Duvet Cover & Pillowcase Set, click HERE. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
Reuters
15 hours ago
- Reuters
Canada manufacturing PMI shows activity declining for sixth straight month in July
TORONTO, Aug 1 (Reuters) - Canada's manufacturing sector contracted for a sixth straight month in July as tariffs undercut trade with the United States and spurred firms to reduce inventory as well as staffing levels, data on Friday showed. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged up to 46.1 in July from 45.6 in June but remained well below the 50 no-change threshold. A level below 50 indicates contraction in the sector. The PMI has posted sub-50 readings since February. 'Canada's manufacturing sector continued to struggle in the face of tariffs during July, with output, new orders and buying activity all declining at noticeable rates – albeit to lesser degrees than seen in recent months," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Unsurprisingly, it was again trade with the United States that remained especially challenging, with firms noting reduced demand and sales volumes from US-based clients." The new orders index rose to 44.2 from 43.5 in June, while the measure of new export orders was at 41.9, up from 40.2. The U.S. is set to increase tariffs on Canadian goods not covered by a continental trade pact to 35% if the two countries do not reach a trade agreement by August 1. Canada sends about 75% of its exports to the United States. "For companies facing a hugely unpredictable business environment, it has become increasingly important to run operations as lean as possible," Smith said. "And such considerations inevitably led to further cuts to both employment and purchasing activity.' The stocks of purchases index fell to 44.1 from 44.6 in June, posting its lowest level since May 2020, as firms sought to run down their inventory levels, while the employment index was at 46.2, down from 46.7. One silver lining was reduced input cost inflation. The input price index fell to its lowest since November, at 57.0 from 61.4 in June.
