New Pub Company on the market with £5m price tag: New Pub Company, the operator of seven Scottish & Newcastle Pub Company tied leased pubs in the south east led by Peter Linacre, is up for sale with a price tag of around £5m. Linacre told Morning Briefing: “We have no debt, great cashflow and a great team in place. If we don’t achieve a great price we’ll crack on.” The company has reported that site Ebitda is set to exceed £1m on annual turnover of around £6m in the current financial year. The company, whose Camden Eye venue is run by current BII Licensee of the Year Mahdis Neghabian, has forecast that Ebitda will hit £1.5m in the next 18 to 24 months as turnover grows to £7.1m on the back of further investment. The company has ear-marked investment for four of its sites. A project to develop the ground floor and basement of The Camden Eye completes early next month. A function room project is planned for The Glasshouse, New Malden, with a completion date of October this year while The Hare and Hounds, Claygate, Surrey, will be developed early next year. The Cricketers, Hartley Wintney, Hampshire, will see development that will be completed by March 2014. Rent is currently running at less that eight per cent of turnover with the next rent review in 2015. Managing director Peter Linacre said: “All our development plans to date have been funded from free cash flow and there are four ongoing projects that will further underpin growth in the next few years.” 

Did you know that Marston’s is the fifth most profitable company in the sector but ranks ninth by turnover? 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

Chase – minimum pricing unravelling by the day: Leading on-trade alcohol policy commentator Paul Chase has argued that plans to introduce alcohol minimum pricing is unravelling by the day after four countries lodged objections to the plan. He said: “The Scottish government’s arguments for minimum pricing are unravelling by the day. Scotland’s Health Survey for 2011 has just been released and reveals the following figures: alcohol consumption is down by 22 per cent since 2003 (men down 24 per cent and women down 27 per cent) and five per cent down on last year; the number of those exceeding weekly guidelines is down 25 per cent since 2003 (Men down 24 per cent and women down 22 per cent); binge-drinking is down 14 per cent for men 11 per cent for women since 2003. Minimum pricing is a solution in search of a problem. Meanwhile, Bulgaria, Italy, Spain and Portugal have all lodged formal objections to minimum pricing with the European Commission, and Denmark, Netherlands, Poland and Austria have all sent in detailed comments. These countries all see minimum pricing as a barrier to competition and could impose retaliatory measures – it would be a disaster if, for example, these affected our valuable whisky exports.”

Pete Brown – brewing is a renowned British export story: Beer writer Pete Brown has hailed beer as a UK export story but criticised the government for its lack of support for the industry. Writing in London Loves Business, he said: “Brewing is a British manufacturing industry that is regarded by those who know it as one of the world’s best. Only Germany, the Czech Republic and Belgium have a reputation that’s even in the same ballpark. In the craft brewing revolution, British beer exports are a resounding success story. Fuller’s is everywhere I go here in Canada. In the US, Samuel Smiths is better known than in its native Yorkshire. Scottish bad boys Brew Dog export 70 per cent of their output, as do Norfolk’s St Peter’s ale. British cask ale is unique, as special to the Japanese tourist visiting London as vintage Bordeaux in France. The Duty Escalator makes it very clear how highly both Labour and Conservative governments value this British manufacturing success story. When Alastair Darling cut VAT in his attempt to kick us out of recession in 2008, he thoughtfully introduced an extra duty on beer so that it was the only sector of the economy that did not benefit from this tax cut. When VAT went back up, this extra tax of course remained.”

Groupon spread its net with small-scale acquisition: Groupon has moved to extend its reach by buying Savored, a small New York City-based restaurant deal site that offers customers ways to reserve tables at upscale restaurants in ten cities around the country. Savored is similar to OpenTable but on a much smaller scale and with a discount twist. It has a network of 1,000 restaurants in US cities such as New York, Los Angeles, and Washington. After booking a reservation on Savored.com and visiting the restaurant, diners pay a $10 fee per booking and receive as much as a 40 per cent discount applied to their bill.

McNally flies off with Kestrel lager: Nigel McNally, the outgoing managing director of brewer Wells and Young’s, is taking the strong lager brand Kestrel with him to his new company Brookfield Drinks. Negotiations are expected to be completed by 1 October. Charles Wells chairman Paul Wells said: “Nigel has made a significant contribution to Charles Wells over the last 18 years and it’s good to know that he will still be involved with one of the brands he’s been associated with for the last few years. Whilst Kestrel has been a good brand for us, it isn’t central to our core brand portfolio so his exciting new venture means we’re able to focus our energies and resource on developing our range of distinctive beers.” McNally said: “I’m excited about taking ownership of Kestrel and applying some of the successes at Wells and Young’s into my own business and look forward to a new chapter of involvement in this fast moving and vibrant industry.” McNally has been managing director of Wells and Young’s since its inception in 2006 having joined Charles Wells in 1994. Charles West brought the nine per cent abv Kestrel brand from Scottish & Newcastle in 2005. 

Nottinghamshire police – late-night levy could raise £1.4m: It has been estimated that the late-night levy could raise £1.4m in Nottinghamshire. The police authority first said in July it was considering a late-night levy of up to £4,440 a year for businesses selling alcohol between midnight and 6am. Estimates to be discussed by the authority today show 1,706 venues in the city and county could have to pay. Some pubs could end up getting discounts or exemptions but if all paid the full amount the scheme would bring in £1,420,325 year. The police authority will discuss sending letters to every council in the county to try to convince them to take up the idea.

Plans for lending bank are “misguided”: A leading finance broker for the pub and restaurant sectors has denounced government plans to put £1 billion into a special bank designed to increase lending to small businesses. David Gant, head of UK business mortgages at Christie’s Finance, said the announcement by business secretary Vince Cable is a welcome attempt to get the country’s main sources of debt finance lending again, but it runs the risk of going the same way as previous good intentions. He said: “Buying existing SME (small and medium enterprises) debt from the very banks applying unbelievably stringent criteria to loan applications from SME’s, doesn’t seem like a very effective way to increase lending to them. Government initiatives have so far ignored the important fact that it is access to debt finance that is the real issue for small businesses. Lending criteria currently applied by UK banks is so stringent that it’s only the most credit worthy applications which attract their support and it is frankly disingenuous of the banks to say there’s a lack of demand. Government initiatives so far have concentrated upon discounting interest rates payable, which is all well and good, but interest rates are so low at present that any effect from a repayment discount is practically negligible on the average commercial loan.”

Shepherd Neame profits before tax up 39.7 per cent to £9.1m: Shepherd Neame has reported this morning that profits have risen 39.7 per cent to £9.1m on turnover up 9.6 per cent to £133m in the year to 30 June. Managed like-for-like rose 7.6 per cent. In the 12 weeks following the year-end, managed like-for-likes rose 7.6 per cent. Chief executive Jonathan Neame said: “This has been another successful year for the company. Our beer, food and accommodation sales have all enjoyed strong growth for the second year in a row and the tenanted estate performance has been encouraging. Our strategy to invest in our pubs and brands during the economic downturn has strengthened the company, improved its competitive position and enhanced our reputation with consumers. Recent pub acquisitions have been successful and this has enabled us to take another step forward this year with some further excellent purchases, which provides a good platform for the future.”

Domino’s reports like-for-likes up 3.7 per cent: Pizza delivery firm Domino’s has reported system sales for the period were up by 7.9 per cent to £136.4m (2011: £127.0m) for the 13 weeks to 23 September, with year-to-date system sales up by ten per cent to £424.1m (2011: £385.4m). The company said this morning: “Despite the challenging economic climate, like-for-like sales in the 660 mature stores in the UK and Republic of Ireland (2011: 605 mature stores) for the period continued to grow. In the UK only, like-for-like sales for the period were up by 3.7 per cent (2011: 4.1 per cent), while the equivalent figure in euros for the Republic of Ireland was down 2.1 per cent (2011: down 4.1 per cent). Year to date, UK like-for-like sales have risen by 5.1 per cent (2011: 3.6 per cent) and in the Republic of Ireland they are up by 1.2 per cent in euros (2011: down 5.6 per cent). Online sales also continue to increase, with e-commerce accounting for 58.4 per cent of UK delivered sales. Chief executive Lance Batchelor said: “We approach the fourth quarter, traditionally our strongest trading period, with continued optimism and determination. We have exciting marketing initiatives in place across our markets and we are confident of meeting City consensus earnings for the full year.”

M&B appoints two key marketing executives: Mitchells & Butlers is strengthening its marketing team with two key appointments, following the departure of Ian Dunstall, the managed house operator’s director of insight and innovation. Dunstall left M&B this month to set up his own consultancy after 16 years with the company. His role will be filled by Steve De Polo, who has been appointed director of insight, innovation, and brand strategy. De Polo will be responsible for understanding market and consumer trends, developing innovation and managing M&B’s brand strategy planning process. The second key appointment is Paul Madden, who has been made director of customer experience and will be responsible for guest services, the guest satisfaction programme, customer relationships strategy, and M&B’s digital marketing platforms. Previously, Madden was head of the managed house’s digital department. A M&B spokesperson told Morning Briefing: “Both these appointments are a result of our internal succession planning process - we’ve been able to identify internal candidates who have the potential to fill these key positions within the company. These roles are key in supporting our journey to drive forward our brand strategies and increase our focus on delivering a great guest experience.” They will report to marketing director Simon Cope. During his 16 years at M&B, Dunstall had overseen numerous developments including the creation of the Miller & Carter and the Village Pub & Kitchen concepts.

Gondola loses chief executive of India joint venture: PizzaExpress operator Gondola has lost Vivek Mathur, the chief executive of its Indian joint venture to Vodafone, where he become chief commercial officer. Gondola plans its first India opening in Mumbai later this year in a joint venture with the Bharti family.

Dartmoor Brewery seeking to recruit a managing director: Dartmoor Brewery is looking to recruit a new managing director to help expand the company beyond its south west roots. A spokesman for Excelerate Resources, which is tasked with recruiting for the new position, said: “The success of beer brands from further down the south west has illuminated the opportunity for an operation with real roots in a unique location. For someone with a love of the area aspiring to lead a growing business, this could represent the start of another great regional success story.”

Mitchells & Butlers lines up Browns opening in Liverpool: Managed operator Mitchells & Butlers is understood to be lining up a Browns Bar & Brassiere to open in the former Zavvi unit on Liverpool’s Paradise Street. Landlord Grosvenor plans to split the large corner unit into two leisure units to form a trio of restaurants with the existing Jamie’s Italian. Zavvi ceased trading from the unit in 2009. Browns opened its first new venue in eight years in Manchester at the start of 2011 on York Street.

Scottish Pub Group steps away from Norfolk pub: Scottish Pub Group has quit its latest estate addition, Enterprise’s Chequers Inns in Bressingham, two months after taking it over. The venue re-opened in July following rebuilding work in the aftermath of a devastating thatch fire in 2009. Scottish Pub Group runs 11 pubs, bars and hotels in Scotland and northern England. But a spokesman for pub company Enterprise Inns, which owns the pub, said: “It is only a temporary closure and we are actively looking to recruit a new publican to reopen the pub as soon as possible. Any bookings will be passed to the new publican in due course.” More than 80 firefighters from Norfolk and Suffolk tackled the thatch fire on October 17, 2009 which destroyed the roof and damaged the first floor timber framed walls and 20th century extensions.

Costa Coffee plans first town site on the Isle of Wight: Costa Coffee is planning its first stand-alone site in Newport on the Isle of Wight. The company has submitted plans to open in the former Millets store in St James Square, Newport. Costa already has concessions in Spar shops around the Isle of Wight, as well as outlets at Ryde Pier and Tescos.

Gourmet Burger Kitchen launches new customer loyalty programme: Better burger chain Gourmet Burger Kitchen is launching a customer loyalty programme through a new website and smartphone app. The app and the website will direct diners to one of the companies 53 sites and view menus via a “check-in service”. Customers can gain loyalty points for every purchase. Points can be increased by playing games on the app or undergoing certain challenges such as ordering burgers with jalapeno chillies, which will entitle them to a free drink. The app runs on iOS, Android, Windows and Blackberry platforms. Gourmet Kitchen Burger’s chief executive Alasdair Murdoch told Marketing Magazine: “We know that now, more than ever, our customers are looking for value, as well as a fun, easy to use loyalty scheme that offers quick rewards. Our new loyalty app offers just that. It also allows us to take a more personal approach, rewarding the most frequent customers with extra benefits, according to their tastes.”

Kuwaiti franchise giant signs up another brand: Kuwaiti franchisee M H Alshaya, which employs 28,000 people, has signed to bring a new brand to the Middle East. Katsuya by Starck, which serves Japanese cuisines across eight outlets in the US, will open two locations in Kuwait and Dubai next year. The brand, managed by Los Angeles based SBE, has plans to develop up to seventeen restaurants across the Middle East by 2017. “The cuisine, service and design of Katsuya by Starck restaurants combine to create an exciting dining destination that we believe will have strong appeal in this region,” said M H Alshaya executive chairman Mohammed Alshaya. In August, the Cheesecake Factory, which is also operating in partnership with M H Alshaya, opened its first restaurant outside the US in Dubai. Alshaya also operates brands such Starbucks and PizzaExpress under franchise. 

Condé Nast heads to the Middle East: Condé Nast Restaurants is due to open two new venues in Dubai as part of its plans to establish outlets in the Middle East. Vogue Café in the Dubai Mall is set to open before the end of the year and will be run in partnership with Ginza Restaurants. Vogue Café will include a coffee lounge and “a selection of international cuisine”. The other venue, GQ Bar, is expected to be operational in 2013 and is linked to a five-star hotel. The Condé Nast group already runs restaurants in a number of countries where its magazines are published, but plans to expand into other areas to “encompass new and emerging markets where the brands do not have a local presence”.

Langan’s Earl’s Court site sold: The lease of Langan’s Bar & Grill at 254-260 Old Brompton Road, Earls Court, has been sold to Roccopoint, an Italian charcuterie concept. The brand is making its debut in the UK for a new venture that will focus on cold cuts and cheeses prepared in an open kitchen. The site comprises of 4,500 square foot spread over ground floor, basement and terrace. Langan’s Bar & Grill closed in October 2010, but still operates four remaining sites in London. Agent is Davis Coffer Lyons.

St Peter Brewery doubles pre-tax profit: St Peter’s Brewery doubled pre-tax profit to £161,839 in the year to 29 February 2012, up from £61,749 the year before. Turnover rose to £4,149,331 from £3,730,000 the year before. The company stated: “The financial year 2011-2012 was one of steady progress in spite of relatively challenging market conditions. Our bottled ales continued to perform well in major UK supermarkets (Waitrose is our largest customer, but we also supply all the ‘majors’ including Tesco, J Sainsbury, ASDA and Morrisons) and our export sales were also strong, particularly to Russia, the US and Canada, and Scandinavia but to a further 30 markets besides. However, we did not make the progress we had expected in the supply of cask and keg draught beer to the UK pub trade, partly because our additional brewing capacity was needed to meet bottled beer requirements but also because our sales and logistics partners in the draught beer sector found price competition there to be particularly strong and were unwilling to trade margin for volume. Increases sales in this sector remain, however, a priority. Our production in this financial year increased steadily (16,445 hectolitres in 2011-2012 compared with 13,896 hectolitres the previous year, with most of the increase in the second half) so less reliance was placed on contract brewing. However, as St Pete’s Brewery is, in effect, a large ‘craft’ brewery and hence less efficient than the contract brewery which supplied (and still supplies) some of our beer volumes, the benefit of the increased production was in the area of flexibility and control rather than in the financial area. The current financial year has started well with beer sales, year-to-date, 14 per cent above the previous year and overall sales, including the Jerusalem Tavern in London and other retail sales, ten per cent above last year. However, the world economic outlook seems to be deteriorating so this performance may be difficult to maintain. As we have just installed a further tranche of new production capacity and plan to operate this only with a small increase in staff numbers, we are doing our best to make progress in difficult times.”