JD Wetherspoon sales boosted by the Olympics; but profits drop as pubs are “fleeced” by the government: JD Wetherspoon has reported that like-for-like sales rose by 8.4 per cent in the six weeks to 9 September thanks to the Olympics – but does not expect to be able to sustain this level of sales growth. The company has opened 40 pubs in the year to 29 July, 18 of which were freehold, to bring the estate to 860 pubs. The company spent £210,000 more on each new pub, a total of £1.42m, as it increased investment in kitchens, customer areas and beer gardens – the opening figure will drop to 25 this financial year. Wetherspoon reported it’s selling a record number of breakfasts, plus 750,000 teas and coffees per week – and 98 per cent of the estate is now Cask Marque approved. However Tim Martin argued that the pub industry is being “fleeced” by the government. He said: “All pubs and pub companies are, or should be, happy to pay their share of tax, but the pub industry has been fleeced by the government, in the last decade and a half in particular – resulting in fewer jobs and lower taxes, but more supermarkets, in the UK. We believe that the government has accepted that banks, manufacturers and many other businesses need to remain competitive, both domestically and internationally. The tax régime has often been cited as an important factor, by the prime minister and the chancellor of the exchequer, for example, in gaining a competitive advantage for the nation. In this regard, pubs need a level tax playing field with supermarkets, in order to be able to compete effectively in the long run. Unless there is tax equality, pubs will continue to lose trade to supermarkets – and this will be detrimental to the government, since pubs pay far more tax per meal or per pint, and employ more people, than do supermarkets.” Pre-tax profit declined 4.1 per cent to £58.9m with sales up 11.7 per cent to £1.197bn – like-for-like sales rose 3.2 per cent across the year.

Propel Opinion: JD Wetherspoon has produced record sales but profits are down. Tim Martin told Morning Briefing today: “You have to do more sales each year just to maintain profits. The industry can’t carry on taking these tax increases each year.” Each Wetherspoon pub is currently making site Ebitda of around £195,000 per annum. The figure has slipped from around £210,000 per annum at the start of the millennium despite adding around £8,000 per week of sales at each pub. In other words, the company has not been able to defend site profitability even though it’s added more than 30 per cent to the sales line at each site because of extra regulatory costs.

Did you know that Caffé Nero is the UK’s most profitable stand-alone coffee shop business? The Propel Info Hospitality Sector Turnover and Profits Blue Book ranks the 200 leading pub, restaurant and foodservice companies in the UK by turnover and profit, provides a five-year overview of performance and lists directors’ salaries. To buy a copy e-mail Jo Charity or Sharon Dickinson on jo.charity@propelinfo.com or sharon.dickinson@propelinfo.com.

The Sun recommends eight restaurant chains offering healthy options: The Sun newspaper has recommended eight restaurant brands to its readers looking for healthy options. The newspaper names: YO! Sushi as best for weight-watching; Harvester as the best for salad options; Zizzi as the best for those on a special diet; Wagamama as the best for beating hunger; Giraffe as the best for fussy eaters; PizzaExpress as the best for cutting calories; La Tasca as the best for gluten-free options; and Nando’s as the best for nutrition information.

Reports outlines attractions of working in the sector: Leading recruitment specialists Caterer.com and sector skills council, People1st, have released the latest Hospitality Employment Index report, which shows that the chief attractions to working in hospitality are the career prospects, excitement, and the sociable nature of the industry. The report also offers a range of insights into the hospitality industry’s performance during the second quarter of the year, showing that while job advertisements for roles in hospitality have decreased by eight percent, it continues to outperform other similar sectors. While the research shows that job advertisements have slightly decreased, the industry continues to remain attractive to job seekers, with competition for jobs increasing from 15 applications for every role posted in the second quarter of 2010 to 19 in the second quarter of 2012. Brian Wisdom, chief executive at People 1st, also believes that businesses need to keep pace with change and to ensure that they meet the requirements of this new market. He said: “The rise of mobile technology has changed recruitment, with 46 percent of jobseekers using their phones to apply for jobs and 60 percent of those with a tablet having also done so. Young people use technology to book tables at restaurants, write reviews, and get recommendations on where to eat – it’s a huge market. Yet almost a third of restaurants do not even have a website, which is proven to show that businesses could be losing up to £31,000 in revenue each year.”

Westfield Stratford attracts 47 million visitors: The Westfield Stratford shopping mall attracted 47 million visitors in its first year, “hugely exceeding” expectations. The number of visitors is broadly twice that enjoyed by its sister site in Shepherd’s Bush. Stratford has 70 bars and restaurants.

Ralph Findlay – honorary degree recognises Marston’s achievements: Marston’s chief executive has described the honorary doctorate he has received from Wolverhampton University as recognition of the company’s achievements. Findlay, who joined Marston’s in 1996, said: “It is a privilege to be awarded a doctorate from the University of Wolverhampton, both for me and Marston’s. Over the past 12 years, Marston’s has developed into a nationally recognised business with significant growth despite the recession – but we are very much a Midlands firm, and we are committed to our operations in Wolverhampton, including the Banks’s Brewery. I am delighted that the University of Wolverhampton has decided to recognise the role that Marston’s plays in community and commercial life in the West Midlands.” Findlay has been chief executive of the Midlands based company for the last 12 years and has been the architect of the development of the business from a regionally based brewer and pub operator to one of the leisure sectors most respected names with an estate of pub restaurants across the breadth of the country and five breweries. The company is the UK’s fifth most profitable pub, restaurant or foodservice company according to Propel Info’s Blue Book of sector despite having the ninth largest turnover.

A total of 93 more Pubfolio pubs on the market: Agent Christie + Co is selling another 93 pubs from the Pubfolio and Goldtry estate. The companies went into administration in September 2010 with PriceWaterhouseCooper as the administrator. The vast majority are freehold pubs.

Orchid ramps up traditional menu items as patriotism boosts British dishes: Managed company Orchid has increased the number of traditional dishes on autumn menus within its Modern British pubs after sales of traditional dishes soared during the Queen’s Jubilee, Olympic and Paralympic Games. Sarah Thomas, head of food at Orchid Group, said: “This has been the most patriotic year we’ve ever had, so it is no surprise that we’ve seen sales of British classics soar. To recognise the current feeling, we’ve gone one step further than a traditional British menu by digging up some forgotten classics that will please the palate. Our chefs have been trawling through old recipe books for a bit of food archaeology, bringing back the favourites we had forgotten we loved and putting them at the top of the order once again.” New menus include: Homity pie; traditional open vegetable pie with potatoes, onion and leek, covered with cheese; Mini suet pudding starter - Wiltshire cured ham and grain mustard suet pudding, served on a black pudding and pea puree; Butcher’s board - homemade Scotch egg, complete with runny yolk, pork pie, crispy pork belly pieces, honey and mustard mini sausages, black pudding fritters, homemade Stilton sausage roll, served with piccalilli, brown sauce and homemade apple sauce; The fisherman’s platter - hand battered fish goujons, peppered mackerel, West Country crab cakes, mini prawn cocktail, chilli tempura squid, served with tartare sauce and malted bread and butter; a range of homemade dishes - beef, mushroom and ale cobbler, plus Welsh lamb shepherd’s pie; British rabbit suet pudding – complete with buckshot warning.

Spirit rolls Costa Coffee out to six brands: Managed company Spirit has now rolled out Costa Coffee to six brands. Commercial director Clive Briscoe said: “Costa Coffee is now available in all of our Taylor Walker, Chef & Brewer and Fayre & Square pubs. In each case we have seen a strong uptake from guests driving both volume and sales increases. We have also rolled out Costa Coffee to our invested Original Pub Company, Flaming Grill and Barras pubs.”

Antic opens another pub: Antic, the fast-expanding London pub company founded in 1999 and headed by Anthony Thomas that majors in eclectic and bohemian décor, opened its latest pub last night – The Acton Arms on Acton High Street. The company is also in discussions to open a pub in The Confederation of Ship Building and Engineering Union building on Walworth Road, Southwark. Antic runs an estate of 31 sites, including the pop-up Leyton Technical Pup site.

Anand – kitchen is the engine room of the pub: Greene King chief executive Rooney Anand has taken part in a series of articles in the Daily Telegraph stressing good news in Britain. He said: “We maintain a stable and consistent approach to building our business. We focus on getting the basics right, ensuring that customers get great value, service and quality at all our pubs and restaurants. In turn, this means focusing on our people, which is why we’ve recruited 1,300 trainees into our apprenticeship programme over the last two years. This programme offers the first steps for young people in a great career in an important and growing industry. It also means evolving and adapting to suit new consumer demands. While we may have started as a brewer, much of the growth in our business today comes from food. The cellar may once have been the engine room of the pub – now it’s very much the kitchen.”

Joe Lewis’s Tavistock appoints franchise boss for Freebirds World Burrito: Mitchells & Butlers shareholder Joe Lewis’s Tavistock has appointed an executive to oversee franchise development for its Freebirds World Burrito concept. The new appointee Chris Cheek will work to find no more than two dozen operators in the US to run an average number of circa 40 restaurants within their territory. Freebirds signed its first franchise partner in March. “We aren’t looking for a lot of franchisees, we just want great ones that can help us build our brand,” said Freebirds president Jim Mizes. “Franchising is an important part of our growth, and we are confident Chris can help us find the right partners.”

Masterchef contestant to open second restaurant: Masterchef contestant Jay Tinker is to open his second restaurant. He has taken over Bellagio in Aughton and will re-name it Tinkers of Aughton when it opens its doors to customers in three weeks time. The 120-seater venue comes after his first restaurant in Southport’s Lord Street earlier this year. Tinker, who cooks “comfort food with elegance”, made it through to the final four of this year’s Masterchef, which was won by Shelina Permalloo.

 

TCG rolls out King’s Feast to sixth pub: Managed pub and bar operator TCG has introduced its King’s Feast concept to a sixth pub - the Royal Victoria & Bull in Dartford. TCG designed King’s Feast as a way of building food sales in traditionally wet-led pubs, initially trialing it in two pubs in spring 2011.  Five pubs already operate the King’s Feast menu and results are impressive, with food revenue at each site growing from below 10 per cent of total sales to an average of 25 per cent post-conversion. Nigel Wright, TCG chief operating officer, said: “Despite the pressure on consumer spending, the success of King’s Feast demonstrates that there are customers out there for operators who provide high quality food and drink at a good value price. Crucially, the increase in food sales at each site has been achieved alongside a significant increase in wet sales, ensuring that the pubs retain their broad community appeal. We’re not trying to reinvent local pubs as restaurants; we’re extending their appeal to a wider customer base.” 

New brewery launches for Winchester: A new microbrewery – Alfred’s Brewery - has been launched by businessman Steve Haigh to target the Winchester market. Haigh said Winchester is “the perfect place to set up business”. “Winchester is a lively old town with a lot of history and a great pub and restaurant culture,” he added. “We have some great quality, locally produced food to which I hope to add a tasty pint of beer.”

Machaan to open second site: The Indian restaurant Machaan, specilising in northern Indian cuisine, is to open a second site in Chiswick next month. It will open on the site of the former Woodlands restaurant. The company’s original restaurant is in Hampton Wick. The restaurant is named after the comfort platforms built into trees upon which India’s hunters used to rest while they awaited their prey. The restaurant website says: “Treating the combination of herbs and spices as a kind of alchemy, the Machaan kitchen team is committed to authenticity and freshness, the full, extensive menu featuring only the best meals, perfected through experience and skill and ranging from classic favourites to the more exotic recipes found in home kitchens.”

Enterprise Inns converts third Scunthorpe pub to Project Beacon: Enterprise Inns has converted a third pub in the north Lincolnshire town of Scunthorpe to its Project Beacon, which re-bases prices while improving amenity levels through investment. The Tavern in Scunthorpe, formerly The Harry Charlesworth, has seen the price of a pint of ale at The Tavern lowered to £1.70 – The lowest price on Scunthorpe High Street. Previously, Enterprise has used the Beacon scheme to improve the fortunes of both The Desert Rat and The Comet Hotel in Scunthorpe. A company spokesman said: “We are investing and developing many of our properties in the region to become new Beacon concept pubs. They offer a great range of beers at extremely good value and are proving focal points for the local community.” The company also re-opened the nearby Red Lion in Barton-upon-Humber as a Project Beacon pub.

Guinness lines up big name acts for pub performances on Arthur’s Day: Guinness has organised a host of big name bands to perform in 50 free Arthur’s Day performances in pubs in Ireland. Folk band Mumford & Sons, Primal Scream, Fun Lovin’ Criminals, Tinie Tempah, Ellie Goulding, Mika Professor Green, Fatboy Slim, Texas and Amy MacDonald will all perform in mystery gigs at Irish pubs on 27 September. Customers have to vote for their local to give it a chance of hosting a performance.

Moleface Pub Company opens fifth pub: Moleface Pub Company, the award-winning Nottingham-based company led by John Molnar and founded in 2007, has opened its fifth site The new venue is The Chesterfield Pub and Kitchen in Bingham, a Punch Taverns site that has seen a £300,000 investment from the pub company and £150,000 from Moleface. Molnar was former executive chef of the Bluu group of restaurants acquired by Marston’s in 2008 from Fat Cat Cage Group – Fat Cat founders Matt Saunders and Simon Patterson are directors of Moleface.

Pub People Company reports Ebitda of £419,000: Pub People Company, the East Midlands multiple headed by Kevin Sammons, has reported it has completed a three-year plan to churn lower profit leases and tenancies and re-investing into better quality businesses. The process has seen the company dispose of 29 sites and 14 new ones acquired. Sammons said: “We now operate 37 pubs, a mixture of freeholds, leased and tenanted businesses. Trading styles are a mixture of destination, food, live music and community venues. We are planning to do additional high value capital expenditure schemes with the more enlightened brewers and pubcos.” Consolidated accounts for Pub People’s two operating companies (and Holding Co) show capital expenditure in the year of £364,000 on new projects with group turnover now at £11.6m, an increase of £370,000 or 3.3 per cent on the previous year. The company saw an increase in Gross Profit of 1.1 per cent and Ebitda was £419,000, a 3.7 per cent increase on the previous year. Sammons added: “Wet margins have been difficult to maintain stability on, due to the duty escalator and suppliers price rises. Intelligent management across the categories and the new businesses which have higher margins has stabilised GPs.”Operating costs increased by 0.8 per cent due mainly to legislative costs and increased specialist marketing.” The company added in its Companies House statement: “The investment into the infrastructure of the individual pub businesses will continue to produce stable business for the future.” In July, Pub People Company extended its relationship with Downing Corporate Finance to add five freeholds to the estate – the company has acquired two pubs to date, a pub from the Greene King estate and one from the Punch Taverns disposal estate. Pub People Company runs seven Downing-owned pubs under management contract and a further five in joint ownership. The company made a loss after tax of £50,000, compared to £57,000 the year before.

City Pub Company re-opens Oxford site: City Pub Company, the EIS company headed by David Bruce and Clive Watson, has re-opened the St Aldate’s Tavern in Oxford after a £130,000 refurbishment. The pub, which closed last year, has a new kitchen, more seating, upgraded toilets and improved staff accommodation. General manager Lucas Van Rensburg said: “We wanted to go back to basics and create a traditional pub with locally sourced ales and great food, and the interior reflects that.” Watson said: “I wanted a pub which has a wide range of beers, some good continental lagers and great sharing food. I wanted it to be a place where if you want a drink you can but if you want to go for a drink and food you can as well.”