A coming trend this year is the arrival of more high-performing American food concepts in the UK. Chipotle, the Mexican fast-casual concept has paved the way. The chain is America's 25th largest chain operation, with $1.8bn of sales and 1,084 units. Even in a stagnant US food service market it added 13.5% to sales in 2011 – the best performance among the country's top 50 food-service companies. Signs are that its early UK openings are performing well despite industry surprise at its choice of locations.
Now two more of the fastest-growing chains in the US are looking hard at the UK market. Five Guys Burgers and Fries was the fastest-growing chain by unit numbers in 2011. It added 190 new stores in a single year to grow to 737, a remarkable 43% growth in outlets. System sales stood at $716m. The company has, no doubt, noticed the growth of "Better Burger" concepts in the UK – like Byron's and Gourmet Burger Kitchen - and believes its own take on high-quality burger with price points not vastly different to McDonald's will find a ready market in the UK.
A double-trend is the focus on the UK market by Smashburger. It ranks Number Seven in the list of fastest-growing chains in the US with an extra 50 units added in 2011 to grow to 106 outlets and sales of $69m.
It has grown by the dynamic franchising route in the US – and wants to follow the same route in the UK. Licensed retailers in this country have been sent an e-mail by Smashburger reporting that 450 restaurant licences have been awarded in the US to 35 franchise groups. The e- mail adds: "If you have the vision, experience and the resources to build a franchise network of Smashburger restaurants in the UK, we invite you to contact us." The aforementioned double-trend is, firstly, the "Better Burger" category with more American food service franchise content – there's more than 100 on offer in the US - arriving in this country. Watch out, the Yanks are coming.
The campaign to reduce VAT in the UK for the leisure sector
Pub, restaurant owners and hoteliers are mounting a campaign to persuade the government that reducing VAT in the sector would be a great stimulus for the overall economy. But, as was ever the case, there's division among our own ranks. There's a group led by French VAT campaigner Jacques Borel that is mounting a broad campaign around a general argument. And there's a group led by the British Hospitality Association (BHA) that is mounting a two-stage campaign. Stage One is reduced VAT for visitor accommodation and attractions. Stage Two is a reduced VAT rate for out-of-home meals.
Monsier Borel argues that the BHA campaign is wrong-headed because if it is successful it will mean that the second part will, by definition, "follow on". The problem is that, he tells us, "follow on" could well mean many years hence – or not at all.
I'm inclined to take the Borel view on this – the BHA campaign seems to elevate the interests of hoteliers and tourist attractions above those of restaurateurs, pub owners and food service companies.
It's a shame – not least because it's a missed opportunity to present a united front.
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