Today’s news in brief – 03/10/23

Greggs reported a 20.8% increase in total sales for the 13 weeks ending 30 September. Company-managed shop like-for-like sales also rose by 14.2%, driven by extended trading hours and increased app usage. Evening trade contributed to 8.8% of sales, and 13.1% of transactions were made through the Greggs app. The company opened 82 new shops this year, with plans for 135 to 145 net shop openings in 2023 and about 40 relocations.

Inflation in the UK’s foodservice sector decreased for the third consecutive month, according to CGA, but remained above 20% year-on-year. While price increases have slowed in both foodservice and supermarkets, the rate of easing has been faster in retail. All 11 categories in the index remained in double-digit inflation, with vegetables recording the highest year-on-year inflation at 33.5%. A significant drop in prices (deflation) across the entire basket of food and drink is not expected until at least early 2025.

M&A activity in the UK’s F&B sector increased by 68.2% in terms of deal volume and 49.1% in deal value compared to the same period last year, according to Oghma Partners’ F&B M&A report. Despite the increase in deal value, it remains low overall, with most transactions estimated at £10m or less. Overseas buyers were responsible for 24.2% of deals, and financial buyers accounted for 27.3%. Distressed M&A activity increased, with 27% of deals being acquisitions out of administration.

Matt Wood, the MD of Lexington Catering, has been appointed to the leadership team of Elior UK. Lexington Catering specialises in corporate catering, offering premium catering and hospitality services to organisations and independent schools, primarily in London. Wood will continue to focus on growing the Lexington business, while contributing his expertise to Elior UK’s leadership team.