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Morning Briefing for pub, restaurant and food wervice operators

Wed 17th Apr 2013 - Marston’s, Mezze and Ossett Brewery

Story of the day:

Freezing March causes 3% drop in pub and restaurant like-for-likes: Snow and freezing temperatures across the country contributed to a 3% fall in collective like-for-like sales among 27 large pub and restaurant operators compared with March last year, according to latest figures from the Coffer Peach Business Tracker. Total sales, which include the impact of new site openings, were essentially flat, registering a 0.2% drop. According to the Met Office, March this year was the UK’s joint second coldest since records began more than 100 years ago. The mean temperature was just 2.2C, more than 3C colder than the long-term monthly average. It matched the average temperature of March 1947, with only 1962 being colder. “Pubs and pub restaurants generally had a worse time than high street restaurant brands, with a 3.4%, compared to a 1.9%, like-for-like sales fall. However, looking regionally, eating and drinking-out spending was hit equally both inside and outside London. Simply, it was a bad month all round,” said Peter Martin of Peach Factory, the business intelligence specialist that produces the Tracker, the sector’s biggest and most comprehensive performance barometer, in partnership with Coffer Group, Baker Tilly and UBS. “The damage was really done in the two middle weeks of March, when like-for-likes across the groups in our sample were collectively down 4.8% and 11% - with some operators doing worse than that.” said Martin. “Better trading at the end of the month, including the start of the Easter weekend, however failed to save the situation. The good news is that the four-day Easter holiday, as we reported earlier, was significantly up on Easter last year, with like-for-likes ahead 7%. The industry will hope that is a sign of latent public demand for going out and that warmer more settled weather will bring improved trading,” concluded Martin. The poor March figures came on the back of better trading for pub, bar and restaurant groups in February, when collective like-for-like sales had been up 3.3% on the previous February. On a year-on-year basis, like-for-like sales for the sector remain just positive. For the 12 months to the end of March, like-for-likes were running at +0.6% against the previous year.

Industry news:

David McHattie and Richard Pope to present at the Propel Multi Club Conference on Thursday 20 June at Oxford Belfry: Richard Pope, owner of The Bull’s Head, Repton, Derbyshire, arguably the UK’s finest single site operator, will provide an overview of his site’s continuing retail journey, which includes making its own gelato – and plans to push the envelope further at the next Propel Multi Club Conference. David McHattie, the new chief executive of the ALMR, provides insights on the unique retail experience at his Punch Taverns pub The Devonshire Arms in Baslow, Derbyshire and talks about benchmarking customer service against the best in the sector and the importance of net promoter scores. Multi-site operators can book up to two free places on a first come, first serve basis by e-mailing jo.charity@propelinfo.com

Cambridgeshire community groups add pubs to Right to Bid register: Two community groups in Cambridgeshire have been successful in adding village pubs to the Community Right to Bid register. The Three Tuns in Guilden Morden and The Queen Adelaide in Croydon have now been listed as ‘assets of community value’ to allow local groups to bid to purchase them after The Three Tuns closed in January and The Queen Adelaide was put up for sale in February. Janet Wheeler, who set up Friends of the Queen Adelaide, said: “We now have until 7 May to tell South Cambridgeshire Council whether or not we will put together a bid to purchase the pub.” Applications by Croydon Parish Council and Guilden Morden Parish Council, to add the pubs to the register, were accepted by South Cambridgeshire District Council after nominations demonstrated the buildings were of high value to the community.

Wetherspoon’s Tim Martin tells Telegraph – minimum pricing is the wrong policy: JD Wetherspoon founder Tim Martin has written to The Daily Telegraph to argue that Greene King chief executive Rooney Anand and others calling for minimum pricing are misguided in their call for a price support policy. He wrote: “Rooney Anand and others (letters, April 12) urge state intervention to increase prices for alcoholic drinks in supermarkets. This plea for price controls echoes policies of the Ted Heath and Harold Wilson eras, when the UK economy performed so badly. Instead of discredited and failed policies of the past, the great majority of publicans support the campaign of Jacques Borel’s “VAT Club” which advocates tax parity between supermarkets and pubs. Currently pubs pay 20% VAT in respect of food sales, whereas supermarkets pay nothing, and it is this disparity, which enables supermarkets to subsidise alcoholic drink prices.”

Company news:

Marston’s to begin reporting results in three segments: Midlands-based Marston’s is to begin reporting its results in three new segments, starting with half year results on 26 March. The move will “provide a better understanding of the performance of its pubs from a consumer segmentation perspective, and of the impact of capital allocation decisions”, the company said. The segments are: Destination and Premium: Destination will include those pubs where the food sales mix is high and the primary reason for a consumer visit is to dine. This group of pubs includes all of the new-build investments in recent years and is intended to be the key focus of investment and driver of future growth, increasing by 20-25 pubs a year. All of these are operated as managed pubs. Destination and Premium currently comprises 301 Destination Pub Restaurants, including all of the new-build investments and 38 pubs operating as either Pitcher and Piano or Revere. Taverns: Taverns will include “well-situated high quality community pubs, operated through managed, franchised and tenanted business models”. Taverns currently comprises 156 community managed pubs and 1,242 tenanted and franchised pubs, including 379 pubs identified for disposal. Leased: The leased model “is well-suited to high quality distinctive pubs which benefit from a higher degree of independence and committed entrepreneurial licensees”, the company said. The company operates 391 pubs under this model. Marston’s reported snow and exceptionally cold weather throughout the UK in the three months to the end of March affected trading across its pub estate and it expects to report operating profit for the first half slightly below that of last year. The company added: “As part of the operational restructuring described above and our ongoing focus on minimising costs, we expect to reduce operating costs by around £3m per year, with about half of this amount benefitting the results for the second half of this year.” Trading has started well in its second half. Interim Results for the 26 weeks to 30 March 2013 will be announced on 16 May 2013.

Masterchef star to open 12 restaurants: Masterchef winner star Jay Tinker has signed a contract with an unnamed chain of spas to open 12 restaurants – six in the UK and six abroad. Tinker will open a new restaurant in Shorrocks Hill, Formby next month, which follows the success of Tinkers in Aughton. Tinker said: “A spa company, which has been buying up spas, approached me and asked me if I would like to turn the existing restaurants into Tinkers restaurants. We have been in talks for over six months; it is not something I was going to jump into. The health spa franchise doesn’t have a name yet, as it is currently being branded, but I can confirm that I signed the contract for 12 restaurants; six in the UK and six around the world. There are spas in America and Dubai, so I will be working overseas for a month at a time and then back here for two weeks.”

Punch Taverns calls urgent meeting of stakeholders: Punch Taverns has called an urgent meeting of stakeholders for today in an attempt to end a row over its proposed restructuring plan, The Daily Telegraph reports. Senior bondholders have threatened to block the plan put forward by the company in February, arguing that the proposal favours shareholders who own the company’s junior debt. Punch would like to agree a plan by July this year in respect of its £2.4bn of securitised debt. 

Michelin-starred Sommerin to open first solo venture: James Sommerin, the former head chef of the Michelin-starred Crown at Whitebrook, is open his first solo site later this year. He will launch a restaurant at Beachcliff, the luxury conversion of the historic Edwardian building on Penarth Espalanade in South Wales, in the autumn. Sommerin, who held a Michelin star for five years at The Crown, said: “A restaurant of my own has been a dream for many years and it’s incredibly exciting that it’s now becoming a reality.” The 3,500 square foot restaurant, overlooking the Bristol Channel, will have 70 covers.

Shaftesbury Avenue site available for the first time in 40 years: The site occupied currently by the Scotch Steakhouse, on the corner of Shaftesbury Avenue and Wardour Street in London, has become available for the first time in 40 years. It has a passing rent of £250,000 per annum and agent Cedar Dean Gilmarc is marketing the site with a suggested premium of £550,000.

Innteresting Pubs partners Punch Taverns in £170,000 Buxton Inn investment: Innteresting Pubs, headed by veterans Daniel Matthews and David Dennehy, is to partner Punch Taverns in investing £170,000 in turning The Buxton Inn, Hyde, into a quality community local. The pub has two cask ales, including one ‘Buxton Inn’ ale and five new plasma screens showing live sports. The pub now boasts a new food menu featuring pub favourites from a ‘two for £10’ menu and will also have a selection of home-made daily specials. The pub’s four en-suite letting rooms are currently being renovated. Daniel Matthews, managing director of Innteresting Pubs, who has over 25 years experience in the sector, said: “David and I wanted to take on The Buxton Inn as we could see the pub’s potential and we share Punch’s vision of creating a quality community local with something for everyone.”

UK’s biggest Everyman cinema to open with a 100-seat restaurant: The largest Everyman cinema in the UK – and the first in the north of England – is to open in Leeds at the new Trinity Leeds shopping arcade on 26 April. The new cinema will also feature a bar and separate 100-seat restaurant, a first for the Everyman group which operates nine boutique cinemas, such as Screen on the Green in Islington, in the south.

Peppermint Events buys ‘fixed address’ bar: Peppermint Bars, which runs bars at major UK festivals and sporting events, is understood to have bought Adventure, a neighbourhood free-of-tie bar in Balham, south-west London, off an asking price of £74,500 for the leasehold interest. Carl Steer of agent Christie + Co’s, said: “Our marketing of the Adventure bar attracted a lot of interest and we received a number of viewings and multiple offers from both first-time buyers and multi-site operators. The business was sold to an established and successful events company which is looking to buy ‘fixed address’ sites to complement their existing business model.”

Starbucks trialing own root beer and ginger ale: Starbucks in the US is currently trialing its own root beer and ginger ale. One blogger who tried the root beer said: “This was crazy good. It’s advertised as a “Spiced Root Beer,” but whatever spice element there is, is absolutely subtle. It’s sweet, refreshing, and a lovely distinctive root beer flavor! I think this is a great adjacent product idea for Starbucks.”

YO! Sushi tipped to replace Pizza Hut in Cheltenham: YO! Sushi is tipped to take over a Pizza Hut site in Cheltenham that is set to close. YO! Sushi, which said 18 months ago it wanted to move to Cheltenham, is currently advertising online for a general manager, assistant manager, head chef and sous chef for Cheltenham.

Renassisance Pub Company introduces pizza oven at Rossendale pub: Six-strong London pub company Renaissance has introduced a pizza oven at The Rossendale. It states: “From midday, every day, you (and the kids) can enjoy delicious artisan pizzas made with UK milled flour and charcuterie toppings sourced from small British producers. From Laverstoke Park buffalo mozzarella, tomato and basil (£9) to Bath chorizo and Golden Cross goat’s cheese (£10.50) there will be something to delight the gastronomes and pizza lovers.” The pub will also add a boules pitch shortly to its new all-weather external table tennis table.

Ossett Brewery applies to convert York shop to pub: Ossett Brewery, which operates 16 pubs, has applied for planning consent to convert one of the largest vacant sites in York city centre, the former Fellini’s restaurant in Fossgate, more recently Leila’s tearooms, to a new pub. John Howlett Planning, Ossett Taverns’ planning agents, said in a statement: “It would bring a vacant unit back into use, adding to the vitality and viability of the area.”

Brakspear choose IBS Epos for first managed pub: Brakspear has chosen Epos from Intelligent Business Systems for its first managed pub, Henley’s Bull Inn on Bell Street. The £750,000 relaunch has been led by Brakspear business development manager Mat Aket, who says selecting a cloud-based IBS system was the logical choice having worked with the Epos specialist at Geronimo Inns. IBS managing director Gareth Powell sees Brakspear’s investment as a tribute to the Epos specialist’s reputation in the pub restaurant and gastropub sector and the flexibility offered by developing key touchscreen and online enterprise management products in-house. “Our work with Geronimo Inns, and others like Peach Pubs and Bath Ales, has obviously influenced Brakspear’s purchasing decision.” 

Launch of Cadillac Jack’s postponed until further notice: The launch of a new American-style restaurant, Cadillac Jack’s, in Mildenhall, due yesterday (16 April) has been pushed back due to “unforeseen circumstances”. A spokesman for Punch Taverns, which has co-invested £150,000 in the business, formerly called The White Hart, said: “Due to unforeseen circumstances, the opening of Cadillac Jack’s has been postponed until further notice.” Site licensee Australian Corrine Yendle opened the Littleport Steakhouse in 2012, revamping the former Plough and Harrow pub.

Stonegate Pub Company student pub to close to make way for a swimming pool: Stonegate Pub Company’s Gun Barrels pub in Selly Oak, Birmingham, is to close on 28 May to make way for a new multi-million pound swimming pool and sports centre. The venue, in Bristol Road, will be bulldozed and replaced by a £11 million 50-metre swimming pool and sports facility being built by the University of Birmingham. It forms a part of a major £175 million plan to re-develop the university’s main Edgbaston campus, which will also see the creation of new library facilities, student accommodation and staff car parking. A spokesman for Stonegate said: “Where possible, staff will be re-located to other Stonegate businesses.”

Costa Coffee opens first Malta site outside the airport: Costa Coffee’s Maltese franchisee has opened its first site outside the airport – and the fourth on the island. The Costa Coffee site has been launched at The Axis Complex, a shopping centre in Paceville. The first outlet opened in the departures lounge of Malta’s International Airport, in June 2012.

Caldmore Taverns re-opens derelict pub as alehouse: Caldmore Taverns has re-opened a pub, The Globe Tavern in Tunstall, that has been derelict for almost a decade as a specialist alehouse. Licensee Diane Birch said: “We are aiming to be a real alehouse. We will have guest beers and are going to be a locals’ pub.” Historian Mervyn Edwards, of the Potteries Pub Preservation Group, said: “It is owned by the same company, which re-opened The Victoria, in King Street, Newcastle, and that’s a good community pub attracting a mix of age ranges. It is in a good position and there is scope for an alehouse in Tunstall.” Last year, Shropshire-based Caldmore also re-opened a pub, The Foaming Tankard in Fenton branded ‘one of the worst in Stoke-on-Trent’, after a £200,000 refurbishment.

Falmouth businessman get partial green light go-ahead for second hotel site in Truro: Falmouth hotelier Nigel Carpenter has won the resounding support of councillors for his plans to build a new four star hotel in Truro. The proprietor of the St Michael’s Hotel in Falmouth, appeared before Cornwall Council’s strategic planning committee last week to put forward his case for redeveloping Old County Hall. His plans include creating a 43-bedroom hotel as well as building 23 apart-hotel units and 14 new residential units. The strategic planning committee voted 15 to one to support the scheme, which now has to be referred to the government and Health and Safety Executive for final consent.

Scottish distillery suspends production because of drought conditions: A drought has forced the Tobermory Distillery on the Isle of Mull to halt production - the island has been named the driest place in the UK. Mull received only 1.8 inches of rain in March, the lowest anywhere in Britain and Tobermory has halted production for only the second time in its history. The distillery uses water from Lochan Gearabhain on the island, but water levels have now fallen so low that master blender Ian McMillan halted operations as he can no longer ensure quality. McMillan told the local newspaper: “Over the last three weeks we have seen the water level occasionally dip to such an extent that we have temporarily halted production in order to preserve the quality and consistency of our whisky.”

Pieminister plans first site in the north west; completes £200,000 investment: Pieminister has launched its new Stokes Croft site following a £200,000 investment and also revealed plans to open its first outlet in the north west. The Bristol-based company’s investment in its Stokes Croft site includes office space to house its marketing, events and sales teams. The location was the home of its first site in 2003 and an additional 13 members of staff have been taken on in a on-site new restaurant. Pieminister is also set to launch its first site in the north west in Manchester city centre. The new outlet will open at the end of next month.

Micro-pub plans for Ely: A plan to open Ely’s first ever micro-pub have been submitted. Martin McKeever, who runs the Liberty Belle boat tours along the River Great Ouse in Ely, wants to turn 29A, Forehill, the former ladies clothing store, Mayer, into the micro-pub, calling it the ‘Liberty Belle Micro-pub’. In a statement to planners, he said: “The intention here is to convert the existing, disused retail premises into an attractive cafe/bar in the style of a micro-pub. The focus will be to provide an attractive environment that will offer customers an ever-changing menu of hand-crafted real ales from local brewers.”

Mezze restaurant to open fifth site next month: Mezze Restaurants will open its fifth site on 4 May, The Anchor Inn at Ham Green. The pub has seen four landlords in the past two years but Mezze Restaurants has signed a 20-year lease and is in the process of carrying out a major £350,000 refurbishment. This refurbishment will create a new modern venue boasting a cocktail bar, Mezze restaurant, an a la carte restaurant and outdoor Mediterranean garden. The company’s sixth site will be The White Lion in Portishead, an Enterprise Inns site.

Simon Rogan abandons plan for London restaurant: Simon Rogan has abandoned plans to open a permanent restaurant in London, for fear his two Michelin-starred L’Enclume restaurant in Cartmel, Cumbria, could suffer. Rogan told Reuters he abandoned plans for a London outlet after a recent restaurant opening in Manchester “almost killed” him. “I was always determined that I wouldn’t have a restaurant that I would never step foot into,” Rogan told Reuters. “How much (money) do you need? How greedy do you want to be? Quality-wise, it’s the right decision.” Rogan’s current pop-up in Marylebone closes in June after two years of trading.

Salt Yard Group founder to open simple neighbourhood rotisserie Lecoq in Islington: Ana and Sanja Morris, who founded the Salt Yard Group, are to open a stripped-down neighbourhood rotisserie restaurant in Islington’s St Paul’s Road in mid-July. Lecoq will offer a weekly changing, two or three course set menu. Ana Morris is a Leith’s-trained chef who has worked at Salt Yard, La Trompette, Bocca di Luppa, Rochelle Canteen and most recently as head chef of Silkstone catering company in New York which opened The Fat Radish to great acclaim. The restaurant will be on two floors - upstairs is the main restaurant with around 40 covers and downstairs will be a private dining room for up to 16 people in which bespoke menus will be created using the rotisserie. Ana will be executive chef at Lecoq with Sanja working in a consultancy role.

Second Kingston venue faces licence revocation: A late-night bar in Kingston could lose its licence for failing to control crowd numbers and having “unacceptable crime levels”. Barcadia, opposite Oceana nightclub in Clarence Street, will have its premises licence reviewed by Kingston Council tomorrow (Thursday) , following an application by the Metropolitan Police. The review comes after police officers visited in February, and found several licence breaches. Nightclub company Luminar faces an appeal hearing in May over the revocation of the licence at Oceania Kingston.

Patisserie Valerie to open in Derby this month: Patisserie Valerie will open at the Westfield Derby shopping centre on Tuesday, April 30. John Forkin, managing director at Marketing Derby, said: “This is yet more good news for Derby following the announcement by Wagamama last month. Patisserie Valerie is a quality brand we have been chasing for a while and it is great to see them finally locate in the city.”

Wadworth brewer retires after 44 years: Wadworth trade quality brewer Adrian Wood is retiring after 44 years in the brewing industry. “I think the attention to detail is much better across the pub estates than it used to be, and so is the quality of the beer we drink has improved enormously,” said Wood. “The beer companies have put major investment into pubs to raise cellaring standards, encouraging cleaner, smaller lines so that beer doesn’t sit around and has much better keeping qualities.”

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