Latest news with #pubindustry
Times
a day ago
- Business
- Times
Pubs brew up a battle over plan to restrict alcohol advertising
Proposals for a ban on alcohol advertising are 'disproportionate, misguided and economically damaging' and will deter investment in the battered pub and beer industry, the sector's trade body has warned. The British Beer and Pub Association (BBPA) has cautioned that a ban on advertising alcohol, which is being considered by the government as part its ten-year plan for the NHS, would deter investment and growth 'and runs counter to the ambitions Labour has set for Britain'. In a letter to Wes Streeting, the health secretary, the BBPA said that while it supports efforts to improve public health, the government's proposals to restrict alcohol advertising, 'particularly those modelled on junk food marketing rules, are disproportionate, misguided and economically damaging'. • Government could ban alcohol adverts in ten-year plan for NHS Emma McClarkin, chief executive of the trade association, whose members brew more than 90 per cent of British beer and own over 20,000 pubs, said the proposals would 'push many businesses over the edge' in the sector, which has already been hit with soaring employment costs from October's budget as well as reductions in business rates relief and packaging reforms. Nearly 300 pubs closed in England and Wales in 2024, equivalent to six a week, according to BBPA data. 'The proposed advertising restrictions would not only add further cost and complexity but also undermine the sector's ability to responsibly promote its products,' the letter said. 'The vast majority of alcohol consumers drink in moderation, and there is scant evidence that advertising bans reduce harmful consumption.' The BBPA's letter was sent in response to numerous reports that proposals for an advertising ban are under consideration for publication next week as part of Streeting's pledge to shift the focus of the NHS 'from sickness to prevention' as part of efforts to improve care, cut waste and make the most of a £30 billion a year boost given to his department in this month's spending review. • Alcohol labels should warn of cancer risk, urge health groups Recent drafts of the ten-year plan are understood to have included plans for a Scottish-style minimum unit price, currently 65p, meaning a pint of beer cannot be sold for less than £1.50 or a bottle of vodka for less than £20. On Thursday the government ruled out an outright ban on alcohol advertising. The Department of Heath and Social Care said the proposed ten-year plan 'will not include a ban on alcohol advertising' but it is 'exploring options for partial restrictions to bring it closer in line with the advertising of unhealthy food'. Last year the government announced plans to ban TV adverts for junk food before 9pm in an attempt to tackle childhood obesity. The measures were set to be introduced in October but this has now been delayed until next year after ministers moved to amend the legislation to ensure brand-only advertising, which does not show specific HFSS products, which are classified as high in fat, salt or sugars, is not caught under the rules.
Yahoo
15-06-2025
- Business
- Yahoo
Britain's biggest pub company to slash jobs amid debt crunch
Britain's biggest pub company is set to cut a raft of jobs as bosses seek to slim down the debt-laden firm following Rachel Reeves's tax raid. Stonegate Group, which runs more than 4,000 pubs across the UK including the Slug & Lettuce and Craft Union brands, has been working with restructuring specialists at AlixPartners over recent months, The Telegraph has learnt. Up to 150 jobs are expected to be cut across the company's head office and central functions. It is understood no decision has yet been made on the exact number of roles under threat. Jobs in its pubs and bars will not be affected and no pubs will close as a result of the restructuring. It comes after a difficult period for Stonegate, which is owned by TDR Capital, the private equity house which also controls Asda. It has lost hundreds of millions of pounds while straining under the weight of a near-£3bn debt pile while higher taxes levied on employers by the Chancellor this year have added to pressures. Despite a rise in revenues in recent years, it reported pre-tax losses of £257m and £214m in 2023 and 2024 respectively as interest payments on its debts pushed it into the red. A Stonegate spokesman said the planned cuts were partly due to a shift away from managed pubs – which it owns and operates itself – towards leased and tenanted pubs, which are rented out to and operated by publicans. The latter have proved more profitable for Stonegate in recent years. Managed pubs also require more resources and head office staff to oversee, making them less appealing to run at a time when the company is trying to return to profit. The spokesman said: 'This, combined with rising costs, particularly after the recent Budget, means we must reorganise our support functions to reflect the shape of our business today. 'We recognise that this is a difficult time and we are committed to supporting our colleagues with care and fairness as we consult with the business on the proposed changes.' Hospitality firms have been lumbered with extra costs after Ms Reeves raised employers' National Insurance contributions and lowered the threshold at which they are paid this year. Bosses have argued the latter has disproportionately hurt hospitality firms because of the number of lower-paid and part-time workers they employ. It will be the second round of job cuts at Stonegate in two years following more than 250 redundancies in 2023. Stonegate has also been reviewing rents and agreements with suppliers as part of restructuring efforts. Last summer, TDR pumped £250m into the company to avoid defaulting on its debts, after the cost of servicing its borrowings rose from £301m to £450m in 2024. This included refinancing. The refinancing gave Stonegate breathing room, allowing it to push the repayment date for much of its debts to 2029. At the time, Stonegate said the deal would allow it to invest more in its pubs. The agreement saw one of its lenders, AlbaCore Capital Group, take a stake in the firm. Domiciled in the Cayman Islands, Stonegate traces its history back to 2010, when TDR bought 333 pubs from Toby Carvery owner Mitchells & Butlers. Its debts ballooned when it bought rival pub firm Ei Group – formerly Enterprise Inns – in a £3bn deal in 2019. The deal completed just before the pandemic forced the nation's pubs shut for months on end. After the pandemic, soaring interest rates heaped pressure on firms with large debts. Stonegate's troubles echo those of TDR-owned Asda, which too has been battling to bring down costs in the wake of its debt-fuelled buyout by the firm and the billionaire Issa brothers in 2021. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
14-06-2025
- Business
- Telegraph
Britain's biggest pub company to slash jobs amid debt crunch
Britain's biggest pub company is set to cut a raft of jobs as bosses seek to slim down the debt-laden firm following Rachel Reeves's tax raid. Stonegate Group, which runs more than 4,000 pubs across the UK including the Slug & Lettuce and Craft Union brands, has been working with restructuring specialists at AlixPartners over recent months, The Telegraph has learnt. Up to 150 jobs are expected to be cut across the company's head office and central functions. It is understood no decision has yet been made on the exact number of roles under threat. Jobs in its pubs and bars will not be affected and no pubs will close as a result of the restructuring. It comes after a difficult period for Stonegate, which is owned by TDR Capital, the private equity house which also controls Asda. It has lost hundreds of millions of pounds while straining under the weight of a near-£3bn debt pile while higher taxes levied on employers by the Chancellor this year have added to pressures. Despite a rise in revenues in recent years, it reported pre-tax losses of £257m and £214m in 2023 and 2024 respectively as interest payments on its debts pushed it into the red. A Stonegate spokesman said the planned cuts were partly due to a shift away from managed pubs – which it owns and operates itself – towards leased and tenanted pubs, which are rented out to and operated by publicans. The latter have proved more profitable for Stonegate in recent years. Managed pubs also require more resources and head office staff to oversee, making them less appealing to run at a time when the company is trying to return to profit. The spokesman said: 'This, combined with rising costs, particularly after the recent Budget, means we must reorganise our support functions to reflect the shape of our business today. 'We recognise that this is a difficult time and we are committed to supporting our colleagues with care and fairness as we consult with the business on the proposed changes.' Hospitality firms have been lumbered with extra costs after Ms Reeves raised employers' National Insurance contributions and lowered the threshold at which they are paid this year. Bosses have argued the latter has disproportionately hurt hospitality firms because of the number of lower-paid and part-time workers they employ. It will be the second round of job cuts at Stonegate in two years following more than 250 redundancies in 2023. Stonegate has also been reviewing rents and agreements with suppliers as part of restructuring efforts. Last summer, TDR pumped £250m into the company to avoid defaulting on its debts, after the cost of servicing its borrowings rose from £301m to £450m in 2024. This included refinancing. The refinancing gave Stonegate breathing room, allowing it to push the repayment date for much of its debts to 2029. At the time, Stonegate said the deal would allow it to invest more in its pubs. The agreement saw one of its lenders, AlbaCore Capital Group, take a stake in the firm. Domiciled in the Cayman Islands, Stonegate traces its history back to 2010, when TDR bought 333 pubs from Toby Carvery owner Mitchells & Butlers. Its debts ballooned when it bought rival pub firm Ei Group – formerly Enterprise Inns – in a £3bn deal in 2019. The deal completed just before the pandemic forced the nation's pubs shut for months on end. After the pandemic, soaring interest rates heaped pressure on firms with large debts. Stonegate's troubles echo those of TDR-owned Asda, which too has been battling to bring down costs in the wake of its debt-fuelled buyout by the firm and the billionaire Issa brothers in 2021.
Daily Mail
05-06-2025
- Business
- Daily Mail
Young's hikes shareholder payouts as profits after City Pub Group takeover
Young & Co's shareholders will enjoy a higher dividend this year after the acquisition of City Pub Group helped to drive bumper earnings growth last year. The pub group shrugged off 'a tough macroeconomic environment' for the sector as adjusted operating profits surged 24.6 per cent to £71.4milliion over the year to 31 March. Revenues rocketed 24.9 per cent overall to £485.8million and rose 5.7 per cent on a like-for-like basis, thanks to a balance of volume growth and price increases. Growth was achieved despite labour cost increases of around 10 per cent as a result of last year's Autumn Budget, as well as higher utility bills. But chief executive Simon Dodd said the pub and bar business was in 'excellent shape' and 'positioned well for difficult conditions'. Young's board has recommended a final dividend of 11.53p, giving a total dividend for the year of 23.06p, up 6 per cent, 'reflecting our strong profit performance and progressive dividend policy'. Dodd added: 'Young's continues to be a leader for like-for-like sales in our sector and everything within our control is going to plan.' Like-for-like managed house revenue for the last nine weeks was ahead of last year by 8 per cent, Young's said, 'giving the Board confidence for the year ahead.' The London-listed firm also said it had completed the integration of City Pub Group into the Young's estate after the £162million deal announced in November 2023. It said: 'Head office synergies realised, and food and drink margin benefits achieved in line with the acquisition plan.' Dodd added: 'A tough macroeconomic environment for the industry seems to have been par for the course since I became CEO and Government changes coming into effect in April make life no easier. 'However, we are in excellent shape, with our differentiated approach and premium business model positioning us well in difficult conditions.' He added: 'It's been a fast start to the new financial year, with the great weather throughout April and May meaning our beautiful pub gardens and riverside locations have been packed full of customers. 'Whilst we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter, we are confident our premium, well-invested, predominantly freehold pub estate will continue to deliver profitable growth.' In January, Dodd warned that the cost of a pint would increase by 20p after the Budget's increase in employer national insurance contributions. At the time, the pub chain said it planned to raise prices by up to 3.5 per cent after Rachel Reeves' tax raid on business. This added 20p to the cost of typical pint of beer in London – taking it to £6.50. The group enjoyed bumper sales over Christmas and New Year.
The Sun
07-05-2025
- Business
- The Sun
Wetherspoons pint prices to rise by 20p in DAYS as Tim Martin blames Labour Budget tax hikes
THE boss of Wetherspoons has warned the price of a pint will go up by 20p in the coming days as breweries are already pushing through hikes on the back of costs pressures from the Budget. Sir Tim Martin said the government kept heaping pressure on pubs through higher taxes and costs. 1 The pub industry had already faced demands for higher prices from breweries, which had increased their prices by around 7p per pint in the past week, he revealed. "It means pints in pubs are going to go up by on average 15p to 20p this month", he said. The British Beer and Pub Association recently warned that the price of a pint is expected to exceed the £5 mark, up from the current average of £4.80. Breweries are reacting to increases in the National Living Wage and National Insurance contributions, which came into effect at the start of April. The National Living Wage rose by 77p an hour to £12.21, while the rate of employer National Insurance contributions increased from 13.8% to 15%. Plus, the threshold at which businesses begin paying this tax was reduced, dropping from £9,100 to £5,000 a year. Sir Tim warned: "The risk to the country is people either in the UK or coming from abroad will thing that it's too expensive to set up a business in the UK." The latest price hikes follow a similar move in January, when Wetherspoon told The Sun it had raised the prices of certain drinks and meal deals by up to 30p. Despite rising costs, however, the pub chain boss remained confident that customers would stick with their favourite drinks. Sir Tim said: "Guinness is pretty expensive but we are selling plenty of the stuff. Why are so many pubs and bars closing? "We have also introduced Jaipur ale, which is more pricey but doing very well. "Our Stella also outsells Bud Light, which is cheaper." The Wetherspoon boss confirmed he remains "very keen" on the idea of opening pubs overseas through the company's rapidly growing franchise business. The pub giant already operates a few franchised pubs on university campuses and seven pubs within Haven Holiday parks. "It's a good sign the holiday parks are doing very well so we think it will do well with people overseas, especially where Brits holiday." Sir Tim added that he is "open to anything," including launching pubs in airports and campsites. Wetherspoons revealed like-for-like sales had jumped 5.6% in the 13 weeks to April 27 this morning. How can I save money at Wetherspoons? FREE refills - Buy a £1.50 tea, coffee or hot chocolate and you can get free refills. The deal is available all day, every day. Check a map - Prices can vary from one location the next, even those close to each other. So if you're planning a pint at a Spoons, it's worth popping in nearby pubs to see if you're settling in at the cheapest. Choose your day - Each night the pub chain runs certain food theme nights. For instance, every Thursday night is curry club, where diners can get a main meal and a drink for a set price cheaper than usual. Pick-up vouchers - Students can often pick up voucher books in their local near universities, which offer discounts on food and drink, so keep your eyes peeled. Get appy - The Wetherspoons app allows you to order and pay for your drink and food from your table - but you don't need to be in the pub to use it. Taking full advantage of this, cheeky customers have used social media to ask their friends and family to order them drinks. The app is free to download on the App Store or Google Play. Check the date - Every year, Spoons holds its Tax Equality Day to highlight the benefits of a permanently reduced tax bill for the pub industry. It usually takes place in September, and last year it fell on Thursday, September 14. As well as its 12-day Real Ale Festival every Autumn, Wetherspoons also holds a Spring Festival. What else is happening at Wetherspoons? Despite rising cost pressures, Wetherspoon is set to open 15 brand-new pubs in the coming days, following a recent surge in sales. Six locations already have confirmed opening dates, which The Sun can exclusively reveal. Wetherspoon also announced that approximately nine more pubs are expected to open by July 2026. First on the list is The Conister Arms in Douglas, Isle of Man, set to open on Wednesday, May 14. Next is Walham Green at Fulham Broadway, South West London, opening on Tuesday, June 17. The Dictum of Kenilworth in Warwickshire will follow, opening on Wednesday, July 30. On Tuesday, August 26, The Sun Wharf on Tooley Street near London Bridge will welcome punters. The King of Essex in Basildon is scheduled to open on Tuesday, September 23. Finally, a new pub in Merchant Square, Paddington, is also set to open later this summer, though the exact date has yet to be confirmed. Wetherspoon is also launching a new "gourmet" food range from May 14, adding exciting new burgers to its iconic menu. Top of the list is The Big Smoke, a towering burger packed with pulled BBQ beef brisket, American-style cheese, and maple-cured bacon—offering a perfect balance of sweet and savoury flavours. For those who enjoy a bit of spice, the Buffalo Burger is sure to be a hit. It features a crispy fried buttermilk chicken breast, tangy blue cheese, fiery naga chilli sauce, and melted American-style cheese. Finally, cheese lovers can indulge in the Cheese Meltdown, a rich and creamy creation loaded with American-style cheese and topped with a blend of melted Emmental and Cheddar sauce. Full list of new pubs on the way WHETHERSPOONS is gearing up to open pubs in six brand-new locations, with the first set to welcome punters in just a few days. The pub giant is also planning to launch an additional nine pubs over the next financial year.
