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Morning Briefing for pub, restaurant and food wervice operators

Fri 30th Aug 2013 - Barworks, Beefeater, Camerons, cask ale and Gordon Ramsay

Story of the day:

Pub campaign plans mass tweet to two million people: It’s Better Down the Pub, the national campaign that celebrates all that is good about the British pub, is looking to unite its supporters by sending out a mass tweet to over two million people on Tuesday 17 September. The tweet, which aims to get the campaign ‘trending’ on Twitter, will springboard It’s Better Down the Pub to a wider audience and boost its momentum – but it needs the support of the whole industry but especially publicans. Co-founder of It’s Better Down the Pub Francis Patton said: “The mass tweet will highlight the third major competition led by the campaign, centred around sport. We all know that sport plays a central role in thousands of pubs whether it’s being watched there or played by your customers in pub teams. The aim is to celebrate the links between pubs and sports of all kinds and to ‘kick it off’ our campaign has set itself the ambitious target of reaching two million people with a tweet linked to the start of the Champions’ League group matches which start on 17 September. To do this, the campaign will use Thunderclap which is a new website that allows people and companies to pledge to tweet or send a Facebook message all at the same time on the same day in order to achieve the maximum effect. It’s just like an online version of a flash mob.” Giving support to the campaign involves signing up to the Thunderclap campaign by going to the following link: https://www.thunderclap.it/projects/3649-it-s-better-down-the-pub?locale=en which will allow the app to tweet the same message in unison with all others who have signed up.

Industry news:

Jamie Oliver donates free copy of cookbook to every library in the UK: A free copy of Jamie Oliver’s latest cookbook, Save With Jamie, is being donated to every library in the UK. The book, published today (29th August) by Penguin division Michael Joseph, focuses on cooking on a budget. More than 4,000 libraries in England, Wales, Scotland and Northern Ireland will each receive a copy of the title, donated by Penguin Random House with the assistance of The Reading Agency. Oliver said: “We know from the fabulous work that libraries do every day that everyone deserves a chance to learn basic skills that can improve everyday lives. Reading and cooking are two of those skills for sure. I’ll admit I’ve been a late developer with the first, but I can definitely help with the second.”
 
New research shows fast-casual continues to out-perform in the US: Fast-casual restaurants continue to lead the US restaurant industry in growing traffic and unit count, especially in markets like Colorado and Florida where brands are quickly grabbing hold of market share, according to new research from the NPD Group. The research firm found in its Crest industry tracking service that for the 12-months ended in May, visits to fast-casual restaurants grew 9% compared with a year earlier, while total industry traffic was flat during the same period. Fast-casual chains collectively increased their unit count by 7% over the 12-month period ended in March.
 
Fentimans recalls products: Fentimans is recalling some of its Ginger Beer, Curiosity Cola, and Dandelion & Burdock products, because some 750ml glass bottles have been found to display signs of weakness, which may cause some to break. Fentimans is recalling the products as a precautionary measure. Point-of-sale notices will be supplied to retailers to be displayed in store, to tell customers about the recall.
 
Unite delivery strike talks held: Talks aimed at averting the threat of disruption to deliveries of beers, lagers and soft drinks to pubs, clubs and thousands of other sites ended without resolution last night. The Unite union warned that if a dispute over working conditions and jobs involving drivers and other staff employed by KNDL (Kuehne and Nagel Drinks Logistics) is not resolved, it will prepare to name dates for industrial action. The union warned of disruption to supplies to pubs and premises run by Enterprise Inns, Trust Inns and JD Wetherspoon. Unite reports that the company to restructure its delivery operation by creating three “super hubs” in Livingston, in West Lothian, Thatcham, near Newbury and Wakefield.

Bristol City ground becomes first sports stadium to win food award: Lindley Venue Catering, the catering partner at Bristol City FC, has achieved the Silver Food for Life Catering Mark for the League One club’s hospitality and event menus, making Ashton Gate the first sports stadium in England to receive the prestigious accreditation awarded by the Soil Association, which has its headquarters in Bristol. The Silver Food for Life Catering Mark assures guests dining at the Ashton Gate hospitality facilities that the menus feature fresh and healthy meals that only use sustainable fish and seafood, and meat which is UK Farm Assured.

Starbucks to roll out own brand of snack bars and fruit pouches: Starbucks will start rolling out its own brand of snack bars and fruit pouches, marking yet another push into the packaged food category. The Evolution Harvest snacks will begin appearing in US cafes next week, with plans to reach all major metropolitan markets by the end of September. The bars and Evolution Fresh bottled juices, which are already in about a third of the company’s US cafes, are also being sold at Whole Foods supermarkets. Meanwhile, Starbucks plans to open at least 50 coffee shops in Colombia over the next five years, using locally grown and roasted coffee. Starbucks currently has more than 650 stores in a dozen Latin American countries.

Eight Japanese Burger King sites host time-limited all-you-can-eat: Eight Burger King restaurants in the Kansai area of Japan are holding an all-you-can-eat Burger King promotion today. The “Beast Festa,” as the campaign is being called, will allow customers who visit one of the Burger King locations from 2pm to 11pm to have 30 minutes from the time stamped on their receipt to order as much food as they want for the price of 1,500 yen (US$15). The special all-you-can-eat menu has five items to choose from.

Company news:

Camerons puts ten pubs on the market: North east brewer and retailer Camerons has put ten pubs up for sale as it looks to strengthen its business. Camerons, based in Hartlepool, says it is disposing of the pubs as it looks to build on plans to promote a new corporate identity and range of cask brands. Leigh Parsons, director of Colliers International’s licensed and leisure team, who are overseeing the sales, said: “While a number of the pubs within the portfolio have possible higher alternative use, the majority are in good trading locations.” The pubs, which range in price from £100,000 to £350,000, include The Market Tavern, in Bishop Auckland, Wolsingham’s Bay Horse, and The Coach and Horses, in Crook, County Durham. Camerons, whose ales include Gold Bullion, Strongarm and Trophy Special, plans to increase its portfolio to more than 200 sites in the next three years. Chris Soley, Camerons’ director and general manager, said: “2015 will see the company celebrate 150 years in business, and our plan is to see our brands dominate our north east heartland area and see our products available to suppliers and customers nationwide”.

Hand Picked Hotels buys Fawsley Hall Hotel: Hand Picked Hotels, the company run by Guy and Julia Hands, has bought the 58-bedroom Fawsley Hall Hotel in Northamptonshire for just under its £15m asking price. The deal follows the acquisition of St Pierre Park Hotel & Golf Resort in Guernsey in June and Bailbrook House Hotel in Bath last year, bringing the company’s portfolio of hotels to 20. Christie + Co was the agent for Fawsley Hall Hotel and the vendor was entrepreneur Simon Lowe.

Ramsay’s Union Street Café mobbed with bookings as London is set for a deluge of openings: Gordon Ramsay’s new London restaurant, Union Street Café, opening on 16 September in partnership with David Beckham, had more than 1,200 bookings within half an hour of its website going live at noon on Wednesday. Within four hours, 2,500 diners had been booked in and Friday and Saturday nights were almost fully booked until early November. Ramsay said: “In London right now we’re spoilt with the range and sheer number of phenomenal restaurants available, so it’s amazing to see the response today when bookings opened. We can’t wait to get the doors open and start welcoming guests.” Adam Hyman, publisher of the restaurant industry newsletter The Code Bulletin, told the London Evening Standard: “There is no doubt that having this number of restaurants of this calibre open in one month is unprecedented. It only goes to show that London is in the middle of a restaurant revolution and there is demand for these new restaurants, ranging from informal noodle bars in Soho to high-end dining. Londoners are eating out more and more and we are witnessing a shift in our eating habits, with 25 to 34-year-olds spending more of their disposable income on eating out and drinking.”

Bliss closure in Birmingham forces relocation of Jongleurs: The late-night venue Bliss has closed on Birmingham’s Broad Street, forcing the comedy club Jongleurs, housed in the building’s basement, to also shut temporarily. David Elphick, sales and marketing director of Momo Leisure, which operates Jongleurs under a licensing agreement, said: “Because of the closure of Bliss, we are having to seek a new home for Jongleurs in Birmingham. This came as a bolt from the blue. Jongleurs was trading profitably in Birmingham and we are now actively seeking an alternative venue. We are keen to re-open as soon as possible.” Bliss opened in January 2011.

Barworks acquires tenth London site: The London bar operator Barworks has acquired the leasehold interest of the ground floor and basement of the free-of-tie Fallen Angel, Islington from a private individual for an undisclosed price. Michael Penfold, of the property agent AG&G, which acted for Barworks, said: “The pub is located in White Lion Street, which is becoming increasingly fashionable for licensed leisure operators with Bills, Craft Beer Co and now Barworks taking on properties in this location in recent years.”
 
Yummy plans Cosy Kettle cocktail bar: Yummy Pub Company, the four-strong operator led by Tim Foster and Anthony Pender, is planning to build a multi-purpose cocktail bar called Cosy Kettle in the basement of its Somers Town pub in Kings Cross, London, a Charles Wells site. In his blog, Foster said: “Anthony Pender has stepped in once more as interior designer, the fantastic team at Charles Wells are ready and willing to tinker with their building for the second time in as many years – and tinker we will.” The move to expand the Somers Town site downstairs comes as Yummy copes with demand. It has 4,500 people booked in for Christmas lunch already and it is rumoured to be selling more cask ale than Fuller’s Parcel Yard site in Kings Cross, which is selling 1,000 barrels a year. The Cosy Kettle, which is scheduled for a soft launch on 1 November, will host functions and provide conference facilities for 60. Foster told Propel: “The cocktails bars we have visited in London tend to be somewhat dark and dirty, and trading on their reputations. We want to build a bright and colourful version.”

Cask ale sales rose from 11% to 20% of total drink sales at Nicholson’s: Cask ale sales at Mitchell & Butlers’ 77-strong Nicholson’s have risen from 11% of total drinks sales to 20% in three years. The brand is reinforcing its cask ale credentials with an autumn ales festival between 21 October and 16 November. The festival will showcase exclusive brews available to Nicholson’s Pubs. Breweries such as Thwaites, Liberation and Camerons will join a selection of 50 cask ales supplied on rotation. Customers will be able to taste a variety of flavours through a carefully selected and balanced range of IPAs, pales, traditional, dark and speciality brews. The menu will also include a range of seasonal ales and a choice of ciders for guests’ enjoyment.

Urban Coffee to open fourth site after being chosen by hotel scheme: Birmingham-based coffee shop group Urban Coffee has unveiled plans to open a fourth outlet in the city centre. The company is investing £100,000 in the new outlet, which will be situated in the Beneficial Building, opposite Paradise Forum. The 1960s former bank building is undergoing a £16m makeover that will see it transformed into a new hotel. The project is the brainchild of Gethar Ventures, led by entrepreneur Anthony McCourt. Urban’s new outlet will be its largest in the city. The 161sqm ground floor space, with seating available upstairs, will enable the company to dramatically expand its food service with specific breakfast, lunch and dinner menus, plus a full bar service. The 16sqm kitchen will also be used to offer room service to the proposed hotel above. McCourt said: “Urban Coffee Co was the obvious choice for us. Often hotels use the usual coffee shop chains, but we wanted an independent option to give guests something a little different. It’s one of Birmingham’s most vibrant brands with an unrivalled coffee offering.”

Little Gems Country Dining wins Town Pub of the Year in Good Pub Guide awards: The Park in Bedford, a Charles Wells pub operated by Little Gems Country Dining, led by Steve Wilkins, has been named as The Good Pub Guide 2014 Town Pub of the Year. The guide states: “Right through the day this is a relaxing refuge, suiting all sorts of people from young mums with their toddlers, through business colleagues sorting out deals, to couples and groups simply enjoying themselves and having a laugh. [It’s] a civilised and individual oasis – a great asset for the city.”

Wetherspoon teams up with US brewers: JD Wetherspoon has launched a brewing initiative, inviting selected brewers from the US to produce a beer here in the UK, for its pubs. Following on from the successful visits of overseas brewers to the UK, as part of the Wetherspoon beer festival, the company has extended that beer brewing idea. The twice-a-year beer festival sees up to ten overseas brewers teaming up with a British brewer to produce their own beer at a brewery in the UK. The beers are then among those available at the festival at the Wetherspoon pubs. The company has now launched a similar project, with two US brewers visiting every month, between August 2013 and February 2014, excluding the autumn festival month of October. Each brewer will produce one of their own American craft beers, at a British brewery, and the beer will be available at all Wetherspoon pubs across the country. Brewers from New York kick off the six-month initiative, with an August visit. Mark Szmaida, from Chelsea Brewing, is brewing Sunset Red (5% ABV) at Wadworth in Devizes, while Jan Matysiak and Heather McReynolds, from Sixpoint Brewery, are brewing Bengali Tiger IPA (6.4% ABV) at Adnams in Southwold. Gary Holmes, Wetherspoon’s festival organiser, said: “Our collaboration with overseas brewers has proved such a success for our festivals, so we were keen to extend the idea and focus specifically on USA craft beer. There is a growing interest in the US craft beer market and this initiative combines the best of craft brewing with the traditional British cask-conditioned beer. This monthly brewing partnership will provide a great opportunity for Wetherspoon customers to discover this particular speciality beer.”

Beefeater offers one customer free steak for life: Whitbread’s Beefeater brand is offering one customer free steak for life if they are chosen to become the “apprentice” of brand ambassador Sir Ian “Beefy” Botham. Customers enter on Facebook and fill out a two-minute questionnaire, with five chosen to meet Botham before the apprentice is picked. The message to customers states: “So you’re pretty beefy. But are you beefy enough to impress the Boss of Beef himself, Sir Ian Botham?”

Nottingham pub group takes on the coffee nationals with local partnership: Two Nottingham-based businesses have joined forces to take on the challenge posed by national coffee bar chains. Castle Rock Brewery, whose pub operation is based in Nottingham, the East Midlands and Yorkshire, and coffee roaster Stewarts of Trent Bridge are rolling out a tie-up starting at the Poppy and Pint pub in Lady Bay, Nottingham and the Stratford Haven in West Bridgford. West Bridgford, an affluent suburb of Nottingham, is currently having its coffee shop tally increased by two. In all, it is believed that 15 shops, bars and retailers all within easy walking distance of each other, sell coffee in the area. Colin Wilde, Castle Rock Brewery’s managing director, said: “Branded coffee outlets such as Costa and Starbucks nowadays fill our streets much like banks did in the 1980s. They’re good at what they do and we have to recognise they get their high footfall by delivering something the customer wants. The Camra-led LocAle initiative shows that origins can have a profound effect on people’s buying habits and so we believe it’s perfect for us to add this extra local dimension to the already considerable success we have selling locally brewed ales. Our beans are roasted and packed in the Meadows district of Nottingham, giving work to local people. I’m sure this working relationship will be appreciated by our customers.”

Frankie & Benny’s fights ‘matchday’ licensing restrictions: The Restaurant Group, owner of the Frankie & Benny’s chain, is fighting an attempt by police to impose ‘matchday’ licensing restrictions on the outlet it wants to open in a £90m shopping centre next door to a new football ground. York Council is due to discuss the licensing application for the new Frankie & Benny’s restaurant at the Vangarde development on the edge of the city next week. The application seeks a licence for the restaurant to be allowed to serve alcohol between 10am and midnight. But North Yorkshire Police has objected to the application because it wants “matchday conditions” written into the licence, on the grounds that a new 6,000-seater stadium housing York City FC and York Knights rugby club is due to open next door.

Douglas Jack – we recommend buying Spirit shares: Numis Securities leisure analyst Douglas Jack has issued a ‘Buy’ note on Spirit Pub Company shares with a target price of 90p ahead of the company’s full year trading statement, due on Thursday. He said: “We are forecasting a pick-up in managed like-for-like sales in Quarter Four to circa 4% (from 0.7% in Q1-3, which was held back by poor weather). This is due to a combination of more favourable weather and management initiatives. For similar reasons, we expect tenanted like-for-like net income to have recovered to being flat in Quarter Four, resulting in full year profit before tax being in line. Spirit has the lowest valuation in its sub-sector on most metrics, prior to considering its £80m of cash tax credits. In our view, this low valuation reflects the onerous lease provision (which should be minimal within two years), a past slowdown in like-for-like sales (management has a good opportunity to maintain recent momentum) and aggressive bond amortisation (which can be refinanced). As these issues are resolved, the rating should improve accordingly, in our view.”

Chester agonises over lost identity after plans for 11th Costa Coffee outlet are unveiled: Chester traders have raised concerns over the city losing its unique identity, sparked after Costa Coffee revealed plans to open its 11th outlet in the city. A plan to turn a unit on Watergate Street into a Costa Coffee shop have raised concerns that Chester could become an “identikit” city. Andy Tabberer, of Chester Culture, a group trying to promote the unique culture of the city, said: “We have enough coffee shops as it is and lots of pubs now supplement their trade by doing coffee in the day as well. I accept that it will create a few jobs but it is another step to a homogenous high street and coffee shops are the most obvious way of seeing that because there are so many.” Andy Delooze, who runs The Barista’s on Watergate Street, Chester, said he believed more must be done to protect and promote independent traders or Chester risks becoming an “identkit” city. Not all of the ten Costas in Chester are fully branded shops but are outlets which sell its coffee and are all listed on the Costa website.

Marston’s and McDonald’s part of Redcar scheme: Proposals have been put forward to transform a three-acre farmland site next to the Tesco Extra store, off the A1085 trunk road, in Redcar, with McDonald’s and Marston Inns already been signed up to operate from the site. Wetherby-based developer Oakgate Group is seeking planning permission from Redcar and Cleveland Council to go ahead with the project, which would form part of the wider Greater Eston regeneration efforts. Redcar and Cleveland Council’s planning committee will rule on the application at a future unspecified date.

Restaurant Group chairman Alan Jackson to take Playtech chairman role: Alan Jackson, who is chairman of The Restaurant Group, is to become chairman of gaming company Playtech, where he is already senior non-executive director. He is to assume the chairman’s office after Roger Withers’s decision to retire after seven years in the role. Withers will step down as chairman after a board meeting scheduled for 9 October.

Bar for deaf people opens in London: A bar staffed by sign language experts has opened especially for the deaf. The Deaf Lounge is thought to be the first of its kind in the UK to offer club nights for the hard of hearing. The venue, which is also open to people who can hear, was set up by deaf entrepreneur Paul Cripps, 31. He said: “I’ve had problems ordering drinks, talking to fellow clubbers and sometimes even getting into clubs. The Deaf Lounge is open to both the deaf and non-deaf. For example, the bar will play music, as that’s really important to attract non-deaf customers.” The bar, in Seven Sisters, north London, also holds salsa, Zumba and DJ workshops for deaf people.

Be At One buys central London site: Be At One has acquired another central London site – The Wimpole near Oxford Street. The company paid an undisclosed sum for the circa 1,250 sq ft ground floor and basement unit. The Wimpole Street bar will open later this year. Jonathan Moradoff, associate director at agent Davis Coffer Lyons, said: “Be At One is an incredibly successful brand and, thanks to the recent investment from Piper Private Equity, it has continued to expand rapidly. Its latest bar is in a sought after location, which is underserviced in the bar sector and will benefit greatly from the area’s many residents, workers and – of course, due to its proximity to Oxford Street – shoppers.”

Paul UK announces strategy change as losses increase: Losses at the 30-strong bakery café chain Paul UK have deepened after the company’s trading patterns in London were affected by last summer’s Olympics and Royal events. The company, which launched its first site in Covent Garden in 2000, will now embark on a plan to evolve its UK sites, all in London, to a larger footprint. Overall transaction value fell by 1.4% in 2012 compared to 2011. Turnover for the year to 31 December 2012 rose 3% to £23.37m from £22.68m. However, the company’s operating losses rose sharply to £1.24m from £463,000 the year before. Pre-tax losses were £1.23m, up from £572,000 in 2011. The company said it is working on a three-year strategy that will focus on driving sales and growth through the acquisition of larger shops which can offer customers a complete food and beverage offer in “an environment which will encourage a longer dwell time and increase average transaction values”. It added: “A programme of shop refits will be implemented to improve existing environments and maximise the opportunities to encourage customers to purchase product. Where existing shops do not fit in to the strategy and can’t be turned into profitable units a structured closure programme will be implemented.” The 2012 results include a provision of £475,000 for the closure of non-profitable shops that do not fit the focus of the business moving forward. The company said that its “geographical focus in London meant its trading patterns wee significantly impacted during the year under review by Royal events in the capital and the Olympic Games”. It opened sites at London Kingsway in October 2012 and Bankside in December 2012. Paul UK said: “The company recognises the growth potential is in larger shops which can offer the customer a full range of products for both eat-in and takeaway. Where the company has smaller stores which have not proved successful in this very competitive takeaway market a strategy will be developed for the disposal of any shops which can’t be returned to profitability or do not fit with the company’s focus moving forward.” Paul also reported that external funding had become more expensive after a new loan agreement with BNP Paribas and Credit Lyonnais.

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