McDonald’s and Waitrose unveil big investment plans
Plus, insolvencies on the up, government borrowing exceeds expectations and the case for appointing AI as your next COO
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Business Agenda
A summary of the most important business news
By Sarah Vizard
1. Government borrowing was £1.1bn higher than most economists expected in July as the cost of public services and benefits rose. Borrowing was £3.1bn last month, the highest level for July in three years. The data from the Office for National Statistics also shows that the UK’s national debt remains at its highest level since the early 1960s. You can read more here.
2. McDonald’s plans to open more than 200 restaurants and hire 24,000 people in the UK and Republic of Ireland over the next four years. The expansion is its biggest since 2002 and part of a £1bn investment that will see the company put a renewed focus on high street locations. You can read more here.
3. McDonald’s is not the only company investing in the UK. Waitrose is also planning a £1bn-plus investment that will see it open 100 convenience stores and refurbish some shops over the next five years. The expansion will include its first new store in six years in Hampton Hill, west London, due to open by the end of the year. You can read more here.
4. Rents increased by 5.7 per cent in the year to the end of June, the slowest rise since September 2021, according to data from Zoopla. Its executive director Richard Donnell tells the BBC the market has gone from “red hot” to “hot, but cooling”. The slowdown suggests the cost-of-living crisis caused by rising rent is abating, although renting is 20 per cent more expensive than a couple of years ago. You can read more here.
5. More than 25,500 companies fell into insolvency in the year to the end of July, up 1.4 per cent year on year and higher than the number that failed during the financial crisis in 2008-09. The numbers, published by the Insolvency Service, show 2,150 companies went insolvent in July alone. You can read more here.
Business Question
Guess the company
- It was founded in San Francisco in 1969
- Its name is derived from the initials of the last name of its founders
- Its HQ is in Bonn, Germany
- It has 594,000 employees and serves over 220 countries and territories
- Revenue for this company hit €81.8bn in 2023
The answer can be found at the bottom of the page.
Business Thinker
Deep dives on business and leadership
🫨 ‘We will be trembling when we play against them’
A fascinating 15-minute video interview with Manchester City manager Pep Guardiola offers an insight into the reasons for his success. He is constantly worried about being overtaken by other teams and looks for lessons from other sports, such as basketball.
🤖 The case for appointing AI as your next COO
Interesting column in the Financial Times about why artificial intelligence could be your next chief operating officer. “From chatbots to credit scoring, the technology is reshaping the way that business processes are constructed and managed.”
❓One question every entrepreneur gets asked is…
Why couldn’t a bigger company do this? According to this insightful LinkedIn post from a venture capital consultant, there are strong reasons why small and medium-sized businesses are better at innovation than large companies. These include agility, closer links to customers and culture.
Business Quote
Inspiration from leaders
“I didn’t get there by wishing for it or hoping for it, but by working for it.”
– Estée Lauder
Business Leader
The best of our content
Three tips on how to take advantage of the new government
The UK is on track for another record-breaking year in company formation, with over half a million new businesses launched in 2024 alone. This surge in entrepreneurship, driven by a mix of post-lockdown flexibility and a keen eye for market gaps, presents a wealth of opportunities for start-ups.
From selling to the government under new procurement laws to revitalising the high street and accessing fully-funded support programs, Business Leader expert and founder of Enterprise Nation says now is the time for founders to capitalise on these growing prospects and turn their ventures into lasting successes.
You can read the article here.
Other popular pieces
🛒 Building B&M: Speed, strategy, and success
💥 Disrupting the disruptors: Lessons from 5 businesses that failed to adapt to change
🐓 The spicy tale of supersizing Nando’s
And finally…
Disney+’s The Bear has been one of the breakout shows of the past few years. It’s not the first look into the back of a luxury restaurant but that hasn’t stopped the show from having a 96 per cent score on Rotten Tomatoes and scooping up four Golden Globes this year. It’s heightened the general public’s obsession with luxury food and someone who is no stranger to this arena is Gordon Ramsay.
On the High Performance podcast, Ramsey spoke about the power of mentorship. He was taken under the wing of renowned chef Marco Pierre White and credits White’s influence for making him the man he is today.
You can see the clip here or an extended version here.
The answer to today’s Business Question is DHL.
