Papa John’s, the pizza restaurant chain, has announced plans to shut down 43 of its underperforming locations in the UK by mid-May 2024 to minimize operational losses.
The decision was taken after a thorough business review. The closures will be carried out following consultations with the impacted staff members.
The pizza chain did not reveal the number of employees impacted.
The affected restaurants are located in Barnsley, Upminster, Coulsdon, Eastbourne, Lancaster, Middlesbrough, Penge, and St Helens.
The company describes the targeted venues as “underperforming locations that are no longer financially sustainable.”
Chris Phylactou, the managing director of Papa John’s UK, stated, “Our foremost concern is for our team members, who will receive complete support during this transition. We aim to collaborate with affected staff to explore redeployment opportunities wherever possible.”
“We understand the impact this is going to have on our employees and are dedicated to helping them throughout this period. The closures enable the company to reinvest in other locations, fostering long-term growth.
Last month, the company revealed “strategic closures with the goal of reallocating funds towards investment while enhancing profitability at its remaining UK outlets.”
H&M, the second-largest publicly traded fashion retailer globally, surpassed first-quarter operating profit projections, aided by a smaller decline in sales than anticipated.
The Swedish company reported an operating profit of 2.08 billion crowns ($196 million), a significant increase from 725 million, surpassing analysts’ expectations of 1.43 billion in an LSEG poll.
Sales experienced a 2% decline, which was better than what analysts had anticipated. However, at the beginning of its second quarter, sales increased by 2%, indicating heightened demand for its clothing and accessories.
“The sales for the quarter saw a gradual improvement throughout February, particularly with the positive reception of our Spring collections, indicating that we are moving in the right direction,” stated CEO Daniel Erver, who assumed the role two months ago.
Erver’s challenge will lie in demonstrating H&M’s ability to increase profit while also restoring sales growth.
H&M has announced its goal of achieving a 10% operating profit margin by the end of this year.
The company, famed for its $19.99 jeans and $15 dresses, also sells leather trousers for more than $300 and coats for up to $1,190 under its Cos brand.
Bombay Shirt Company has just opened its 20th retail store in India, situated in the vibrant Seawoods district of Navi Mumbai. Since its inception in 2012 as a trailblazing online custom shirt brand, Bombay Shirt Company has gained acclaim for its attentive customer service and unique in-store ambiance. Alongside their renowned custom shirts, tailored bottoms, and tees, they’ve now unveiled a collection of deluxe tailor-made blazers, all accessible at their newest retail outlet.
The innovative design of the new store breaks away from conventional product displays, opting instead for display boxes adorned with mannequins presenting each product category. Customers have the opportunity to explore a diverse range of fabric options for tailor-made shirts, blazers, jeans, chinos, and pants, with the added convenience of previewing their selected customizations on a large screen. Expert stylists are available to aid customers in choosing fabrics that align with their preferences and to navigate them through the complete customization process.
Akshay Narvekar, Founder and CEO, expressed, “Many of our customers who frequent the seven existing stores in Mumbai also reside in Navi Mumbai. With the new store layout, we aim to streamline the shopping experience by reducing visual clutter and enabling customers to make well-informed purchases that cater to their individual needs.”
Retail brands are actively expanding into religious cities, drawn by the burgeoning tourism industry and the opportunity to establish a presence in these promising markets.
Ayodhya, Ajmer, Katra, Somnath, Shirdi, Mathura, Bodh Gaya, and Madurai have witnessed the arrival of brands like Blackberrys, Manyavar, Spykar, Decathlon, and Fab India, among others.
As per CBRE, retail brands spanning various sectors such as fashion & apparel, food & beverage, hypermarkets, homeware & department stores, and consumer electronics are expanding by customizing their offerings to meet the needs of pilgrims.
“Government initiatives aimed at promoting tourism and enhancing connectivity between pilgrimage sites are bolstering this growth. Additionally, the emergence of online retail platforms providing convenient access to faith-based products and services is another significant factor,” stated Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
This trend mirrors a larger change in tourist preferences, as travelers increasingly seek transformative experiences beyond conventional rituals. The emergence of urban spiritual tourism caters to this inclination, drawing visitors to cities renowned for their profound religious and spiritual significance.
The report highlights Amritsar, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai as pivotal cities experiencing this surge in retail activity. Retail brands are strategically adjusting their offerings in established mall clusters as well as high-street locations to accommodate the expanding tourist demographic.
The rise in spiritual tourism is a result of improved infrastructure, including well-connected roads, airports, and public transportation, alongside the establishment of diverse accommodation options like hotels, guesthouses, and wellness centers.
In response to increasing demand for spiritual travel, local governments and businesses are collaborating to develop distinctive retail experiences.
Leading hotel operators are responding to the shifting needs of spiritual tourists by offering clean, sanitary, and family-friendly lodgings at premium prices.
Numerous cities are witnessing a robust influx of new hotel projects, with renowned brands such as Marriott, Taj, and Hyatt demonstrating significant interest in venturing into this market. Branded hotels are emerging as pivotal contributors, providing a fusion of comfort and traditional hospitality customized for spiritual travelers.
In India, a collaboration has developed between wellness centres and lodging firms to meet the needs of spiritual tourists. These wellness centres provide services such as yoga and Ayurveda to improve physical, mental, and spiritual wellbeing.
“Propelled by the increasing appeal of spiritual tourism, investors are rushing to capitalize on the market’s potential. This trend has opened up opportunities for the hospitality and retail sectors to flourish in these destinations,” remarked Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India.
Lifestyle, the department store chain owned by Landmark Group, launched its first outlet in Aurangabad, marking the 24th addition to its portfolio in the Western region. Situated within the Prozone Mall on API Road, this new store spans across 22,000 square feet of retail area.
“We are excited to inaugurate the first Lifestyle store in Chh.Sambhaji Nagar. This is the 19th store in Maharashtra and the 112th across India. Expanding into new towns and markets is a goal for us, and this first shop in the region is a significant step forward,” said Vivek Thilakan, Senior Vice President – Operations (West) at Lifestyle International Pvt Ltd.
The new store is equipped with self-checkout options and provides an omnichannel experience, including services like ‘click and collect.’ This allows customers to shop online and collect their purchases from a Lifestyle store of their choice.
“We have ambitious expansion strategies in place. Our goal is to open approximately 4-5 stores in Gujarat and Maharashtra during the upcoming financial year. This expansion will encompass new towns as well as additional locations within existing cities,” Thilakan further elaborated.
Lifestyle is a large-format department store offering apparel, footwear, children’s wear and toys, furniture, home furnishings, and personal grooming products. Typically, a Lifestyle store spans an area of 20,000 – 50,000 sq. ft., varying based on location and product range.
The brand showcases over 350 national and international labels, including Louis Philippe, Van Heusen, Arrow, Park Avenue, Benetton, Nike, Adidas, Allen Solly, Levis, Tommy Hilfiger, Swatch, Tissot, and Tag Heuer.
The chain marked the inauguration of its 100th store in May 2023. It aims to launch a minimum of 50 new stores over the next three to four years to enhance its retail presence in the country.
During this year’s Holi festivities, liquor sales in Uttar Pradesh once again surpassed previous benchmarks. The excise department reaped a remarkable revenue of INR 17.75 crore, marking a significant 24% increase from the previous year. Compared to the INR 14.25 crore generated in 2023 from retail sales of beer, foreign liquor, and country liquor, this season saw a notable uptick, with an additional INR 3.5 crore in revenue.
Weather conditions resulted in an increased sale of beer cans, with a corresponding rise in demand for Indian Made Foreign Liquor (IMFL). Despite shops being closed on the day of festivities, known as a dry day, the excise department evaluates the demand and supply scenario two days prior.
Shops were closed on March 25, but by that time, enthusiasts had already stocked up on their favorite drinks on March 23-24. Similarly, last year, Holi was celebrated on March 8, and the department took into account the sales figures from March 6-7.
Rakesh Singh, the District Excise Officer, mentioned that last year the temperatures were not as high. “Initially, we were concerned and anticipated lower sales since Holi fell towards the end of the month,” Singh commented.
Another factor contributing to the influx of liquor patrons at retail vends was the vigilant monitoring of illicit liquor trade on the outskirts and neighboring districts, as well as continuous surveillance of the UP-Haryana border in the national capital region.
Devesh Jaiswal, spokesperson for the Liquor Sellers’ Welfare Association in UP, commented, “I believe the youth are more inclined towards enjoying the festivities rather than being concerned about financial difficulties. A majority of the bulk buyers who purchased large quantities of beer cans from retailers in Gomtinagar, Indiranagar, Sushant Golf City, Hazratganj, Mahanagar, and Aliganj were in the 25-50 age bracket and made their payments using credit cards.”
“Last year, we had nearly 3,000 food orders during the month of Holi, with less than 100 orders on the actual day of Holi. According to Shireesh Joshi, ONDC’s chief business officer, more than 30,000 orders were placed everyday through the Open Network for Digital Commerce (ONDC) throughout this year’s Holi extended weekend (Saturday, Sunday, and the holiday).
He further mentioned that the network is nearing the milestone of 600,000 food delivery orders for March, marking a staggering 200-fold increase compared to the previous month.
Speaking about the role of the food delivery category, Joshi remarked, “A year ago, food was the sole category on ONDC. Now, food constitutes only a small portion of our sales. This is positive news as we have expanded into numerous other categories and regions.”
In recent months, prominent food brands like McDonald’s North and East, Domino’s, Rebel Foods, and Biryani By Kilo became part of the ONDC.
ONDC saw approximately 7 million transactions in February.
Delhi-based Mr Makhana is gearing up to broaden its retail footprint in the UK with its healthy popped lotus seed snacks.
Founder Rishab Jain mentioned that the brand is “in discussions with several distributors” to introduce its products to major UK retailers.
When questioned about the retailers, Jain mentioned Tesco and Sainsbury’s.
He anticipates finalizing the discussions “hopefully within the next two to three days.”
A select range of Mr Makhana products has been available for purchase in the UK via Amazon since January.
Jain stated that the goal for 2024 is to “secure a distributor, introduce the product to retail stores, establish a network of outlets, and assess the product’s performance and feedback.”
Elaborating on the reasoning for expanding into the UK, Jain said, “There’s a perception that the product is only for the Indian or ethnic market, but I believe the taste is quite universal. We can cater to everyone.”
As part of its strategy, the company is creating new flavors tailored for the UK market to help consumers “adjust to the taste,” Jain noted, introducing options such as cheddar cheese, truffle, and smoky barbecue.
Mr Makhana offers a variety of makhana snacks, also known as popped fox nuts or lotus seeds from the water lily plant.
The company’s selection features chocolate-coated makhana, along with savory flavors like Pudina Party, Piri Piri Paradise, Butter Tomato, and Lime & Chilli.
Apart from India, Mr Makhana’s primary markets are in the GCC countries like Oman, Saudi Arabia, and the UAE, as well as Canada. The brand also has sales in Japan and the US.
Established in 2015, the company relied on outsourcing until 2019 when it established its first local production facility in Ahmedabad. It continues to use this site to supply the domestic market.
Last April, the company established a facility in Dubai to cater to customers outside of India.
The Indian plant produces approximately 50 tonnes of makhana snacks per month, whereas the Dubai facility has an annual capacity of 24 tonnes.
Last year, the company’s total annual production capacity was approximately 600 tonnes, with plans to increase it to 800 tonnes annually in the future, according to Jain.
Mr Makhana recorded a total annual turnover of around $43 million in 2023, with approximately $40 million generated within India.
Simpl, India’s leading Checkout Network, has strengthened its partnership with the food ordering and delivery platform, Zomato. The collaboration will integrate Simpl’s 1-Tap Checkout with Zomato Gold, Intercity Legends, and Zomato Everyday. This initiative aims to enhance convenience for millions of customers nationwide, improve conversion rates, increase the average order value, and promote user retention among other platform benefits.
This integration aligns with Zomato’s broader vision of providing customers with superior food options conveniently. With these integrations, millions of new and existing customers are anticipated to utilize Simpl’s 1-Tap Checkout on Zomato for various needs, thereby broadening the user base for both companies. This is particularly noteworthy as Simpl has surpassed 100 million checkouts on Zomato within six years since 2017, underscoring a strong consumer preference for streamlined checkout experiences.
Additionally, the expansion will be fueled by the rising influx of customers from tier-3 cities and beyond transitioning to online platforms, alongside a surge in order frequency from customers in metropolitan and tier-1, 2 cities. With an increasing number of customers opting for online convenience through Simpl’s 1-Tap Checkout, both companies anticipate a substantial enhancement of their customer base in the coming years.
Nitya Sharma, Founder and CEO of Simpl, remarked, “In today’s e-commerce landscape, convenience is emerging as a significant differentiator, following selection and affordability. This is especially true for food ordering and delivery, where transactions are more frequent than any other category. It highlights the importance of a seamless checkout solution that minimizes transaction failures and provides a one-tap experience. These core principles have facilitated over 100 million transactions on Zomato to date. We are enthusiastic about expanding our reach with offerings like Zomato Gold, Intercity Legends, and Zomato Everyday, further strengthening our presence in this sector.”
The success rate for checkout using Simpl’s 1-Tap on Zomato is an impressive 99%, showcasing customers’ growing preference for the added convenience of 1-Tap Checkout. Simpl’s contribution to the platform has seen substantial growth over the past five years, with per-user spending via 1-Tap checkout increasing by almost 27 times since 2018. The platform recorded its highest-ever single transaction on New Year’s Eve 2024, which was INR 18,807 through Simpl’s 1-Tap Checkout on Zomato.
“Our goal is to consistently provide outstanding and convenient customer experiences. Simpl has been a trusted partner for a long time, and integrating their services has enabled us to offer our customers 1-Tap access. This enhances their interaction with our platform, making it seamless and hassle-free,” stated Rakesh Ranjan, CEO of Food Delivery at Zomato.
Simpl’s 1-Tap Checkout, accessible at 26,000 merchants, provides the ease of completing a purchase with just one tap, boasting near-zero transaction failures and is favored by millions of consumers. Presently, numerous major enterprises and emerging Direct-to-Customer (D2C) merchants in the food and hyperlocal delivery sectors offer Simpl’s 1-Tap Checkout to millions of customers nationwide.
Consumers could soon see higher prices for their favorite Cadbury bars and chocolate cookies. The increase in cocoa prices, due to a global supply shortage, is raising production costs for companies. As a result, these companies might pass some of these additional expenses onto customers.
Major chocolate producers such as Mondelez, Hershey’s, and Nestle, along with local artisanal chocolate makers and biscuit manufacturers, are expected to feel the impact. As cocoa prices surpass $10,000 per ton for the first time, companies are encountering substantial challenges in controlling their expenses.
Industry experts caution that companies, particularly those targeting price-conscious consumers, will face difficulties in preserving their profit margins due to the higher cost of sourcing cocoa. This challenge is intensified by an anticipated 8% reduction in cocoa supply for the 2023-24 season, mainly because of supply disruptions in major cocoa-producing countries like Cote d’Ivoire and Ghana.
Some companies are already considering raising prices to counter the rising costs. Others are exploring alternative approaches, like reducing package sizes and using cocoa butter substitutes approved by the Food Safety and Standards Authority of India (FSSAI). Nevertheless, these strategies may offer only short-term relief.
For artisanal chocolate makers who depend on fine flavor cocoa, the situation is especially tough. The diminishing price gap between fine flavor cocoa and bulk cocoa, combined with supply challenges, jeopardizes their pricing strategies and profitability.
In light of these challenges, companies are exploring different solutions, such as looking for more affordable alternatives and renegotiating contracts with suppliers. However, the ongoing uncertainty surrounding cocoa prices continues to be a major worry for the industry.
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