Upper Crust owner SSP blames Paris Olympics for slower Europe sales

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SSP blamed the Paris Olympics for slower sales in Europe this summer, with the owner of the Upper Crust and Ritazza chains becoming the latest company to highlight the patchy impact the games had on tourism in the region.

The group, which runs food outlets at airports and railway stations, reported a 3 per cent rise in like-for-like sales at constant currency rates in continental Europe for the three months to September 30 compared with 6 per cent growth for the whole group.

SSP said that slow sales growth in continental Europe — its largest region, accounting for just over a third of sales — was “behind our expectations, primarily in France, where demand was negatively impacted by the Paris Olympics”. The company said that as well as fewer people passing through railway stations, passengers also spent less time waiting there because of increased security following the sabotage attacks, meaning less opportunity to buy food.

Meanwhile, in Germany, while the Euro 2024 football championship delivered a boost, its motorway service business in the country still underperformed, it added.

The group expects continental Europe’s full-year operating profit to be lower than last year given the impact of “lower than anticipated demand during the Olympics”.

The softer than anticipated demand echoes what other consumer and travel-focused businesses have experienced, with some tourists avoiding the French capital out of fear of large crowds and higher prices in hotels and restaurants. Some local French residents also postponed their holidays until after the games.

Air Canada in August reported a 51 per cent decline in quarterly profit, blaming lacklustre ticket sales in France as well as Germany.

Delta Air Lines warned in July that the financial impact of the Paris Olympics was expected to be responsible for some $100mn in lost revenue as travel to the French capital had slowed this summer.

SSP, which operates nearly 160 outlets across airports and railway stations in Paris, had originally braced for what it expected to be a “bumper summer” of sports.

It said in May it would be gearing up for longer opening hours and recruiting extra staff to cater for the additional demand to prepare for an anticipated surge in air and train passengers, adding to its costs.

Nevertheless SSP expects group operating profit to be in the range of £210mn-£220mn, up around 30 per cent year-on-year.

“There has been good trading momentum across our business throughout Q4,” said chief executive Patrick Coveney. But he added: “We have had challenges in some parts of our continental European business, which we are addressing through a series of actions that will build margins.”

The company said it was overhauling its regional leadership team structure and leaving the German motorway services business.

Shares in SSP were up 0.2 per cent in London morning trading at 157.5p.