Struggling restaurant and pub operators have praised the new Eat Out to Help Out scheme following a successful first week of the month-long offer.
The Government’s support for the hospitality industry is viewed as an important first step in encouraging the public to dine out again.
Eat Out to Help Out offers customers 50% off their food or non-alcoholic drinks up to £10 per person from Mondays to Wednesdays throughout August.
The latest figures show over 73,000 individual outlets have signed up to the scheme with Trade association, UKHospitality, estimating 93% of eligible businesses across the country are involved.
Some 3.3m people have used the Government online restaurant finder and research by insight agency KAM Media suggests that 35.6m consumers are likely to take advantage of the scheme during August.
Operators across the country have reported significant double digit increases in like-for-like sales, compared to last year, with tables in high demand for the rest of the month.
Colin Hill, chief executive, Nando’s UK & Ireland, said: “Eat Out to Help Out has given a welcome boost to the hospitality industry at a time where we are looking to reignite sales, restore customer confidence and protect jobs. We’ve been busy so far this week, welcoming many new and existing customers back into our restaurants which is encouraging to see.
“It’s too early to tell the long-term success of the initiative due to the many challenges that we still have to navigate in the weeks and months ahead, but so far it has proven popular with our customers.”
Peter Borg Neal, founder of pub group Oakman Inns said: “The Eat Out to Help Out scheme has been fantastic for us – we have been over twice as busy as we were this time last year. It great to see people socialising in a safe environment and the scheme is clearly protecting jobs.
“Moving forward, further financial help is needed to protect pubs and restaurants who have accumulated debt, such as rent, if we’re going to save those businesses and their jobs.”
Michelin-starred pub and restaurant chef Tom Kerridge, said: “It’s been great for the industry. We all love the sound of glassware and crockery being used and happy people in restaurants. We’re all looking forward to the stage where we can stand on our own two feet again, and this has been helpful support in the meantime.”
Will Beckett, co-founder of Hawksmoor, which has received over 15,000 bookings for the 13 days of the scheme across its six restaurants, said: “Although we’ve seen lower sales due to the lower spend per head, but we’re still incredibly happy – everyone loves having busy restaurants and lots of new people are coming in and trying Hawksmoor for the first time, or finding a way to come back that they can afford at the moment.
“Anything that encourages people to leave the home and start enjoying restaurants again is great. The industry needs this kind of kick-start at the moment. I think it is a really good example of much-needed government intervention for an industry still in crisis.”
Kate Nicholls, chief executive of UKHospitality, which represents a sector that employs 3.2m people and generates £39bn of tax for the Exchequer, said: “The Chancellor recognised that our sector has been hit the hardest of all and the Eat Out to Help Out scheme provides a much-needed boost for many vulnerable hospitality businesses.
“The sector has been quick to adopt the scheme and customers have been quick to take advantage of the many great deals available – with many newly social-distanced venues now booked up.
“We hope that people continue to enjoy a fantastic dining out experience at a significant discount throughout the rest of August.”
Further industry commentary and insight will be shared later in the month to update on the impact of the Eat Out to Help Out scheme.
Vapes touted as "nicotine free" to UK consumers can have traces or even considerable amount of nicotine, shows a new report as Trading Standards continue to unearth new intelligence around the illegal vapes market.
As part of Operation Joseph, a Department of Health and Social Care (DHSC) funded initiative tracking the sale of illicit vapes and underage sales, 76 products sold as nicotine free vapes were tested by Heart of the South West Trading Standards Service, working together with Trading Standards teams in Salford and Berkshire.
More than one in every eight (13.2 per cent) of the products were found to contain nicotine in amounts ranging from 0.06 mg/ml to 27.02 mg/ml – around the amount delivered by a pack of 20 cigarettes.
All ten were also found to exceed the limit on the amount of e-liquid permitted in vapes with two found to exceed both the e-liquid and nicotine strength limit.
As a result, consumers hoping to buy nicotine free products would have been exposed to nicotine and its addictive effects and in significant quantities with eight of the ten failed samples.
Lord Michael Bichard, Chair, National Trading Standards, said, “Nicotine free vapes can be a useful tool to quit smoking and reduce nicotine dependency, but these findings reveal that people can actually continue to be stuck in a cycle of addiction if sold the highly addictive substance unknowingly.
“Businesses should be aware vapes falsely claiming to be nicotine free are in circulation and should make sure they are not breaking the law by selling products that are falsely advertised, especially where they are importing goods or acting as the main UK distributor.
“I urge businesses and consumers to be vigilant and report suspected cases to the Citizens Advice consumer service by calling 0808 223 1133.”
Alex Fry, Operations Officer for Heart of the South West Trading Standards, said, “We are pleased to have contributed to and helped co-ordinate the sampling of this project.
"We recognise how important it is for regulators and legislators to have up to date intelligence on what products are being supplied to consumers.
“Trading Standards are at the forefront of ensuring products comply with legal requirements and we hope that the findings will provide valuable intelligence and help shape the future regulation of cigarettes, tobacco and vapes.”
Footfall in February remained somewhat stable, notes a recent report, showing a considerable rise observed after the post-Christmas lull with Valentine's Day emerging as the key contributor.
MRI Software’s latest retail footfall data for February revealed a minor dip of -0.3 per cent compared to February 2024 across all UK retail destinations, driven by a -1.5 per cent decline in high street activity.
This annual fall reflects historical trends for February but may have been compounded this year by a particularly severe flu season, ongoing travel disruptions, and the arrival of Storm Herminia; all of which created further obstacles in driving retail and office-based footfall.
Shopping centres and retail parks bucked the trend recording rises of +0.2 per cent and +1.9 per cent, respectively, and continues to reinforce the benefits of enclosed retail destinations.
Despite these challenges, February’s month-on-month footfall provided welcome relief.
Total footfall rose by +7.3 per cent from January as the retail sector moved past the traditional post-Christmas lull.
Key events including the February half-term holiday provided a boost for physical retail destinations, particularly shopping centres and high streets where footfall jumped by +9 per cent and +11.6 per cent, respectively, from the previous week.
Valentine's Day was also another key contributor as footfall rose by +22.3 per cent in all UK retail destinations on this day alone compared to the week before; this was led by a +27.1 per cent rise in high streets, a +15.4 per cent uplift in retail parks, and +18.9 per cent in shopping centres.
Year on year, retail park growth was particularly strong from 5pm-11pm with footfall rising by +20.4 per cent in comparison to the same time period on Valentine's Day last year.
Looking ahead, there is cautious optimism among retailers. MRI Software’s weekly Insights from the Inside survey revealed that 55 per cent of retailers saw stronger sales during February’s half-term break compared to last year.
However, the outlook for March is more reserved, with 58 per cent of retailers expecting lower sales than in 2024 likely due to the later timing of Easter, which shifts key spending into April.
As the sector prepares for the upcoming Spring Budget, attention is turning to how financial policies may further influence consumer confidence and retail spending. Potential changes in tax, public spending, and household support will be closely monitored for its impact on disposable income and retail demand in the months ahead.
Leading news wholesaler Smiths News said its chief financial officer Paul Baker will be leaving the company.
Baker is set to join a large private business, operating in a different sector, the company said in a regulatory filing.
He will remain with Smiths News to ensure a seamless transition of responsibilities, as the company now commences the search for his successor.
“I would like to thank Paul for his significant contribution during his time with the business. He is leaving the business in a strong financial and operational position,” Jonathan Bunting, chief executive of Smiths News, commented.
“Paul has been a valued colleague who I have very much enjoyed working with, and I wish him every success in his next role and for the future.”
Baker joined Smiths News in late 2021 from Compass Group, where he was serving as the finance director for Europe. He previously worked at Bird’s Eye and Cadbury in finance director roles.
A leading retailers' body has called on to introduce interim pricing remedies to reduce card fees after a recent report showed that leading credit cards have been consistently increasing their processing fees, squeezing businesses' ability to invest and grow.
British Retail Consortium (BRC) today (6) raised a demand to introduce interim pricing remedies to reduce fees which have been an unjust burden on merchants, and working towards the introduction of a price cap in the longer term.
According to a report by Payment Systems Regulator (PSR), Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25 per cent since 2017, costing businesses at least £170 million extra per year.
This increased cost of doing business in the UK impacts on UK businesses’ ability to invest and grow, and could lead to direct economic constraints, particularly for small merchant, states the report.
In addition, a lack of easy-to-understand fee information has led to costs for acquirers and merchants, including small retailers.
The report also notes that existing alternative payment methods to cards do not exert effective competitive constraints on the fees charged by Mastercard and Visa for scheme and processing services.
Cards are the most popular way for consumers to pay for goods and services in the UK. In 2023, 61 per cent of all payments in the UK were made using cards, making up almost 86 per cent of the total value of retail transactions.
Data from BRC shows that in 2023 consumer credit and debit cards accounted for 85.7 per cent of the total value of retail transactions in the UK.
In 2012, cash was the most popular method of payment. However, since then, the use of cash has declined substantially, while cards have grown and are expected to grow even more.
Mastercard and Visa are central to this; over 95 per cent of transactions using UK issued cards are made on their rails.
However, merchants have been raising concerns about the cost of accepting cards and their limited ability to understand or negotiate fees.
Chris Owen, Payments Policy Advisor at BRC, said, "This report confirms the harms arising from the lack of competition in the card schemes market, with fees being introduced without justification or sufficient explanation.
"There has been a 25% increase in scheme fees since 2017 costing businesses an extra £170 million per year. It’s now time for meaningful action. Following the PSR’s findings, it is clear it must go further than the proposed remedies in its interim report.
"This means introducing interim pricing remedies to reduce fees which have been an unjust burden on merchants, and working towards the introduction of a price cap in the longer term."
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CMA clears William Grant & Sons' acquisition of The Famous Grouse
The Competition and Markets Authority (CMA) has on Thursday cleared the anticipated acquisition by William Grant & Sons Group of The Famous Grouse, Naked Malt and affiliated brands from Edrington.
The competition watchdog has launched an investigation into the deal in January. William Grant & Sons will buy the brands from The 1887 Company, a subsidiary of Edrington.
Welcoming the CMA approval, Søren Hagh, chief executive of William Grant & Sons, said: “This is an important moment for William Grant & Sons. The acquisition of The Famous Grouse, when completed, will further demonstrate our significant commitment to building category momentum in Scotch Whisky in the UK and in our markets globally.”
Edrington and William Grant & Sons reached an agreement for the sale of the brands in September last year.
Founded in 1896 in Perthshire, Scotland, The Famous Grouse is a much-loved blended whisky brand that would add to William Grant & Sons’ portfolio of renowned whiskies and spirits, that includes Glenfiddich, Grant's, The Balvenie, and Hendrick's Gin, among others.
Completion of the acquisition remains subject to customary regulatory approval in certain other countries.