Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Star Pubs and Bars Banner Morning Briefing Strap Line
Tue 2nd Jun 2015 - M&B – we're learning from Orchid's people-centric culture
M&B – we’re learning from Orchid’s people-centric culture: Mitchells & Butlers has told analysts it has been learning from the “strong people-centric culture” it found when it bought the 173-outlet Orchid estate last year. Orchid also had an “outstanding” cost control and waste management culture, M&B said, in a presentation after a series of trade visits for City research analysts on Monday. The company revealed that the acquisition cost for Orchid was £266m plus around £40m of investment capex, for which it bought Ebitda of £29m before head office costs of £8m. It said it saw two major “value creation levers” that would deliver £6m of synergy: overhead synergies, and M&B’s purchasing power. Analysts were shown four M&B sites, the Miller & Carter Steakhouse in Brookmans Park, Hertfordshire, which was doing an average weekly take of £40,000 with a food mix of 75%; the Toby Carvery at Whitewebbs House, Enfield, which has an average weekly take of £39,000 and a food mix of 72%; the Cock Inn, Cockfosters, a Orchid conversion, which was now doing an average weekly take of £37,000 with a food mix of 47%; and the O’Neill’s in the Euston Road, North London, which has an average weekly take of £54,000 with a food mix of 35%. Steve de Polo, M&B’s programme director for the Orchid conversion and integration programme, told the analysts that M&B was seeing a “two-way best practice transfer” occurring since the Orchid takeover. He revealed that M&B had reopened 24 former Orchid pubs after investments to turn them into M&B brands by the end of May, and was seeing a “strong” turnaround in sales and a high ROI, with around 65 conversions left to do. Another 80 or so former Orchid pubs will be moved to M&B’s Heartland division, covering the Crown Carveries, Oakland and Sizzling Pubs chains, around October, De Polo said, and M&B saw “further investment potential in many of these pubs”. Two case studies were shown as examples of how M&B brands added value: one, the Hemlock Stone, Wollaton, Nottingham, was a traditional pub and Thai dining venue, and had reopened in December last year under M&B’s Ember brand, while the other, the Angel, in Highgate, North London, was an “independent” local which reopened in February as part of M&B’s Castle chain, devoted to upmarket historic pubs. The Hemlock Stone had “purchased” average weekly takings of £12,000 and “purchased” Ebitda of £125,000, analysts were told. After an investment of £444,000, average weekly takings were now £21,000, with a post-investment ROI of 45.1%. At the Angel, the “purchased” average weekly takings were £10,000, with a “purchased” Ebitda of £144,000. After an investment of £501,000, takings have now risen to £16,000 a week. M&B also told the analysts that its Toby Carvery brand was ahead of its major rivals, Whitbread’s Brewers Fare and Beefeater chains, on almost all major metrics, with awareness of 76%, against 68% for Brewers Fare and 77% for Beefeater, “consideration” of 39%, against 32% for both Brewers Fare and Beefeater; usage of 19%, against 13% for Brewers Fare and 11% for Beefeater; and “first choice” of 11%, against 4% for Brewers Fare and 3% for Beefeater.


Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Propel Quarterly Spring 2018view online
 
BT Banner
 
NT Assure Banner
 
Marstons Banner
 
Ei Group Banner
 
Glycol Cooling Systems Banner
 
Casual Dining Show Banner
 
Wi5 Banner
 
Trail Banner
 
Lamb Weston Banner
 
Brothers Banner
 
Pago Banner
 
Venners Banner
 
HGEM Banner
 
Zonal Banner
 
Startle Banner
 
COREcruitment Banner
 
Freeths Banner
 
Venners Banner
 
liveRES Banner
 
Lincoln & York Banner
 
Punch Taverns Link Punch Taverns Link
BT Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website