Upper Crust owner SSP sees revenue boost from airport and train delays

Travel chaos has caused misery at airports and train stations – but it has boosted income at SSP, the company that sells distress-purchase sandwiches and drinks through brands such as Upper Crust, Caffe Ritazza and Camden Food Co.

In an update to shareholders, the business said revenue was running at 89 per cent of 2019 levels in the seven weeks since 24 May.

Thousands of passengers have been stuck in airports and train stations waiting for planes and trains delayed by staffing chaos or strikes.

“Our revenue performance has been driven by an ongoing recovery in passenger numbers and has also benefited from longer passenger dwell times in some markets,” SSP told shareholders on Thursday.

“The recovery has been led by domestic and leisure travel in both air and rail. Rail commuter travel continues to recover well, albeit at a slower pace than leisure travel.”

But in SSP’s recovery from the pandemic, its UK business is lagging behind other markets. UK sales averaged 82 per cent of 2019 levels in the quarter, compared to 93 per cent in Europe, and 91 per cent in North America.

In the update, the business also signalled that it might hike prices for customers trying to buy food from its shops.

“In common with the entire hospitality sector, we continue to face widespread and increasing inflationary pressures impacting our supply chain, labour and energy costs, and these are anticipated to persist well into next year,” SSP said.

“However, we are confident in our ability to manage these pressures through productivity and pricing initiatives and expect to mitigate the impact on profit, whilst sustaining the positive momentum in consumer demand.”