Bob Ivell – minimum pricing doesn’t solve anything; retail foodservice operators need to back the ALMR: Mitchells & Butlers (M&B) non-executive chairman Bob Ivell has voiced his opposition to minimum pricing in the wake of new chief executive Alistair Darby describing it as a “Trojan horse”. Ivell said: “I am not sure it solves anything and I think there is a risk of it escalating. History shows that when the government gets into something like this, it goes on and on and builds and builds - what is 45p or 50p a unit today becomes something else. So I am not sure that this is necessarily the route to go. There has to be a balance with these things and a sensible approach. It is the minority that causes the problems for the majority and 90 per cent of the population enjoy a night out with no problems.” Ivell said that there is a risk that the health lobby will now begin to target alcohol through taxation in a way akin to the treatment of tobacco. “I think there is a risk that they are doing a bit of the same with alcohol which has nothing like the detriment that smoking has on peoples lives. If you drink in moderation all the research says that it does not do people any harm.” Asked if M&B had lobbied MPs on the issue of minimum pricing, Ivell said: “I have always said that you need one body that represents the industry and the whole time the industry is fragmented the government will be able to fob us off - and that has happened from as far back as I can remember. That was part of our decision to join the ALMR and support one (trade body) and not spread our wings across the various bodies. My view is that the best way to do it is for us to put our weight behind the ALMR and get as many people in the ALMR representing the retail trade. I am not sure if individual companies, however big they are, can have the same effect by whingeing and moaning. I think the whole industry has got to get behind (the ALMR) and make it work.”

Propel Quarterly magazine available online: The winter 2012 edition of Propel Quarterly magazine is now available to view online at http://content.yudu.com/Library/A204bg/PropelQuarterlyWinte/

ALMR increases membership by 30 per cent in 2012: The Association of Licensed Multiple Retailers (ALMR) has reported that it increased membership by 30 per cent in 2012, growing to 160 operating company members employing 325,000 people. Strategic affairs director Kate Nicholls told the body’s Christmas lunch yesterday that membership growth reflects a “growing recognition for the need for a trade body who speaks for retailers only, a broad church, not just pubs, but for bars, restaurants, clubs - a body not constrained by the vested interests of property owners, breweries or suppliers”. She said: “It’s been a big year, one in which we celebrated our 20th anniversary. There has been a rapid broadening of membership in four segments: entrepreneurs and smaller pub and restaurant companies; large companies such as Mitchells & Butlers, Spirit, JD Wetherspoon and Stonegate; food-led companies such as TGI Friday’s; La Tasca and Geronimo; and late-night operators. For the ALMR to truly become the voice of the sector this must continue for all the obvious reasons - to be taken seriously and listened to, we have to have scale, reach, excellent lobbying skills and a rational, fact-based approach to dealing with Whitehall. The ALMR has a key objective to focus government, media, investors and operators on to the many positives of the sector; we delight many customers every day, we train and develop many thousands of young people and we contribute hugely to the economy, tax base and social fabric of UK plc. Our sector is not a political football to be kicked around between health groups, headline-chasing newspapers and those who love to regulate. It is a large, serious part of the economy, a generator of sustainable growth, innovation and employment - odd thought it may sound, the ALMR will continue to remind government of this fact. Finally, I would suggest despite an excellent year of progress for the ALMR, much remains to be done.”

Operators report mixed results on daily deals: A study in the US by Cornell University and Rice University has found operators reporting mixed results on daily deals. “Operators reported that about 40 per cent of the deal purchasers were new customers, meaning that there was substantial cannibalisation of existing customers,” said the researchers, who conducted an online survey of restaurateurs in late 2011 and summarised their findings in the report, “Restaurant Daily Deals: The Operator Experience.” On the plus side, the researchers added: “35 per cent of the first-time deal customers returned to the restaurant without a further incentive.”

Top industry operations managers unveiled: Heike Funke of Punch Taverns and Donny McIntyre of Spirit Pub Company have been named as business development manager and area manager of the year respectively in the Association of Licensed Multiple Retailers (ALMR) awards announced at the annual Christmas lunch yesterday. Rob Summers of Punch Taverns was awarded a Highly Commended with the Rising Star award going to Benjamin Smith of Charles Wells – he has worked in the sector for less than two years. Nick Bish, chief executive of the ALMR, said: “The standard of the class of 2012 was exceptionally high and this is demonstrated by the fact that a Highly Commended award was given for the first time.”

Gourmet Society launches app: The Gourmet Society has launched a new app designed to deliver its 6,000+ dining deals directly to members’ smartphones. Available across all mobile platforms, the app lists participating restaurants for restaurant-goers on the move, and has already been downloaded by more than 30,000 members. The Gourmet Society’s 500,000 members can use the new app to find participating restaurants according to their current location, near to a set postcode or even close to a specified London Underground tube station, as well as search for specific restaurants themselves. The app doubles up as a digital membership card, so Gourmet Society members will always have their membership with them if they find a participating restaurant, allowing them to claim the advertised discount regardless of whether they’re in possession of their physical card.

Operators to take part in Hospitality Show panel: A panel of leading operators will provide tips on building a multi-site business at the Hospitality Show on Tuesday 22 January at the Birmingham NEC. The Business Mentor Session will feature Adam Marshall, founder of Grand Union Group, Steve Haslam, founder of TLC Inns and Kevin Charity, founder of Bulldog Hotel Group. The session, to be chaired by Propel managing director Paul Charity, begins at 11.15am and offers the chance to book one-to-one mentoring sessions with the three operators. To register for the show go to: http://www.hospitalityshow.co.uk/page.cfm/link=40

BDO reports strong deals pipeline in 2013: A report by BDO has forecast a strong deals pipeline in 2013 with brands such as Côte and better burger brand Byron likely to be sold for more than £100m. The Restaurants and Bars Report also predicted modest growth for the sector as demand improved and the restriction on consumer spending eased.

Punch Taverns – progress on restructuring; profit performance in line with management expectations: Punch Taverns has released its AGM statement this morning reporting that it still believes a restructuring is possible after early discussions with stakeholders. The company stated: “As reported at the time of our full year results announcement in October, the board has completed a detailed review of the group’s capital structure, and we are now progressing discussions towards a financial restructuring of the business. Our current discussions with certain major shareholders and other significant stakeholders remain ongoing and, following the completion of a noteholder identification exercise, will be extended to include noteholders in both the Punch A and Punch B securitisations. On the basis of the dialogue with stakeholders to date, the board continues to believe that a restructuring can be successfully implemented.” Meanwhile, it reported average profit per pub is stable and overall profit performance is in line with management expectations in the 16 weeks to 8 December. It added: “Trading comparatives are much more challenging in the first half of this year and given this, net income in the core estate is down five per cent on a like-for-like basis, in line with management expectations. Trading comparatives are expected to improve in the second half of the year when the business will also benefit from the recent improvements in letting and investment activity.” The company expects to sell circa 400 non-core pubs in the current financial year, having disposed of 86 pubs in the current quarter (including 11 pubs from the core estate) for proceeds of £26 million. Chief executive Roger Whiteside added: “Our performance in the first sixteen weeks of the financial year has been in line with management expectations. While the UK consumer environment is likely to remain challenging for at least the near-term, we continue to make good progress with our clear operational plan to return the core estate to growth in the medium-term and extract maximum value from our non-core assets.”

Davy’s of London reports turnover and underlying performance up: London wine bar operator Davy’s has reported turnover rose to £12,604,521 in the year to the end of March 2012, up from £12,417,373 the year before. Pre-tax profit dropped to £138,460 from £843,658 the year before when the company was boosted by a £841,978 exceptional item. The company stated: “Underlying profits and turnover were higher. These reflected improvements in the core units of the business and the elimination of weaker units. The directors continued to focus on raising standards of quality and service delivery. They believe trading conditions for the coming year remain challenging but that there are prospects for growth.”

Simon French increases Greene King price target: Panmure Gordon leisure analyst Simon French has increased his price target for Greene King shares. He said: “We have increased our Greene King target price from 565p to 607p as we roll our valuation year onto 2013. The group’s recent first half results were in line with expectations and current trading was resilient, although the level of outperformance traditionally seen has narrowed. We expect the group will enjoy a good Christmas trading period but, with the shares having risen circa 33 per cent in the second half of 2012, we think the stock is fully valued and, merger and acquisitions apart, there are no obvious catalysts for further share price outperformance. The reorientation of the business mix towards a higher proportion of managed pub earnings is on track and we think the group is well placed to participate in industry mergers and acquisitions. Our fear is that if the group does not utilise its premium valuation to make acquisitions then the market will steadily de-rate the stock towards the sector average as earnings growth is forecast only at 6.5 per cent compound over the next three years, below the sector average of circa ten per cent.”

Application for Wetherspoon pub is submitted in Diss: A planning application has been submitted for a new-build Wetherspoon pub in Diss, Norfolk, which has a population of 6,742. Joe Darrell, landowner of Kings Head Yard in Diss, has applied to South Norfolk Council for permission to build a 6,000 square foot pub. He secured planning permission for the plan four years ago, but has had to resubmit it because the latest scheme will be slightly bigger than the proposal that secured the original permission. Approval is also needed for a mezzanine floor, which will divide the interior of the restaurant into two levels with a dining area on each level within the two-storey building.

BAE Systems pension fund acquires pub and cinema freehold: The BAE Systems pension fund has bought a pub and cinema in Carlisle for £8.8m. The fund has acquired the freehold for the Vue Cinema and a JD Wetherspoon pub in Botchergate from the Glanmore property fund. The sale price represented a net initial yield of 8.25 per cent. The seven-screen, 49,000 sq ft cinema is let to Vue Entertainment at £673,977 a year on a lease until 2025 while the pub is let at £101,000 until 2027.

Alistair Darby – real test for “Ways of Working” with be early 2013: Mitchells & Butlers chief executive Alistair Darby has argued that the real test of the company “Ways of Working” trial, which seeks to empower individual pub managers, will be early 2013. The company trialed the scheme at nine pubs before rolling it out to 300 at the end of summer. Darby said: “The big question though is, what happens when you start to roll-out at scale and you are not able to kind of throw your arms around it quite in the way that you can in a kind of hot-house trial. It takes some time for you to go through various steps to get managers confident about taking on responsibility, because you can’t just say to them on day one, “You are now responsible for everything,” because you have to skill them up and give them capability and you have to give them tools to run effective team meetings and so on. We are in that first stage of that roll-out to 300 pubs. So it is too early to be able to come out with any data as to what impact it is having, because it hasn’t got to the end of that process. I think the real test for “Ways of Working” is going to be how that 300 pub trial embeds in January, February, March and I would certainly hope that we would be able to give much more clarity on the success of that larger scale trial when we get to the interim results next year.”

Indian software firm signs M&B deal: India’s largest software services firm Tata Consultancy Services (TCS) has signed a contract with Mitchells & Butlers (M&B) to streamline the management of its HR and payroll operations. M&B director of business change and technology Martin Taylor said: “In the last 12 months, we have successfully upgraded our core network and replaced our old data centre infrastructure by moving into the cloud, whilst introducing a utility-based services model.”

Wadworth outsources distribution to increase supply: Wadworth Brewery has re-organised its distribution and warehousing to allow its beers to become available across a much wider area. This means that Wadworth ales such as 6X, Corvus, Horizon and Bishop’s Tipple will be available directly to pubs and free houses across the whole of the south of England including London. This significantly extends the company’s traditional distribution area, which covers the south west of the country. The Wiltshire-based company until recently ran its own distribution from the brewery in Devizes. However, recent successes with beers such as the new nitro-keg stout Corvus, and with enquiries from free houses increasing, the company realised that in order to meet demand and grow the business the distribution needed to be outsourced. The international company chosen is Khune and Nagel Drinks Logistics (KNDL) based at Thatcham in Berkshire. KNDL has expertise in the transport of real ale and has earned a Cask Marque accreditation for its work.

Luminar launches app that allows customer to queue-jump: Nightclub company Luminar has launched an app that takes customers to the front of the queue. In a first, Luminar’s new digital passport iPhone application is a fully integrated customer solution giving clubbers the facility to purchase and store e-tickets, vouchers and offers on their iPhone and scan tickets at the Box Office. Luminar’s head of marketing and central operations Tim Howard said: “We know that our customers don’t like queuing, especially in the run up to the festive season. With this new app, they’ll be able to browse events, choose when they want to visit and buy the package they want. All transactions are stored within the app, so they don’t even need to print off vouchers. When they’ve bought their ticket, they can just walk straight to the club’s main entrance without queuing, as the voucher is instantly recognised by our EPoS system.” The new app is also a customer communication and engagement tool which links to the company’s full digital assets including Facebook, Twitter, databases and EPoS. It’s designed to help customers share information and benefit from faster delivery of services. All app users can text to a screen above the dance floor and chat to others and see themselves in the photo galleries. Clubbers will also benefit from drinks deals, sponsored by Luminar’s key brands, through vouchers within the app.

Wells and Young’s beer to go on sale in Walt Disney World: Wells and Young’s has landed a prestigious deal that will see their Double Chocolate Stout sold at Walt Disney World in Florida. The beer will replace Guinness at the popular holiday destination. The United States has grown to become the largest international market for Wells and Young’s and is thought to net it around $9 million.

Lincoln operators open third site: Lincoln operators Christopher Regan and Mark Cumming have opened their site in Lincoln – the Lincolnshire Red steak house offering locals a taste of locally produced meat and creating 25 jobs. Lincolnshire Red steak house replaced the former Essence bar on Mint Street. Regan and Cumming also own The Cloud Bar in uphill Lincoln, and Ye Olde Crowne Inn.

Chef Hugh Fearnley-Whittingstall to open fourth site in Bristol: Chef and TV presenter Hugh Fearnley-Whittingstall will open the fourth branch of his River Cottage Canteen in Bristol’s Whiteladies Road in February next year. The restaurant will be in a listed 19th-century hall - the chef has signed a 15-year lease on the premises.

Iconic Dublin pub in legal row: The iconic Porterhouse pub and nightclub chain is embroiled in a legal row ahead of a Bank of Scotland High Court bid to seize control of a one-third share in the group next week. Bank of Scotland is due to ask the High Court on Monday to direct the Dublin City Sheriff to take control of the one-third of the group owned by Frank Ennis, who owes it €1.2 million.

ALMR National Restaurant Show Study Tour in Chicago open for bookings: The Association of Licensed Multiple Retailers (ALMR) has opened its study tour to the National Restaurant Association Show in Chicago in May 2013 for bookings. Next year’s visit takes place between Thursday 16 May and Monday 20 May. The ALMR launched its first study tour trip to the NRA show this year, with the trip led by Propel Morning Briefing managing director Paul Charity. The NRA draws 58,000-plus industry professionals from all 50 states and 100 countries, all seeking the newest innovations and up-to-the-minute information about trends and issues. The ALMR trip provides: insights from industry experts on the rise in fast-casual dining, social media, new and emerging brands, menu development, staff management and a host of other issues – with 70 free education sessions; involves a tour of Chicago’s hottest concepts and a market overview briefing sessions from US experts. ALMR chief executive Nick Bish said: “Our first trip in May this year was a tremendous success with our attendees reporting they had benefited enormously from the visit to the Show and the chance to study the key trends in the innovative US market.” Paul Charity, managing director of Propel Info, said: “The NRA show is a fantastic opportunity to find fresh inspiration and understand the emerging trends shaping the fast-changing US market.” To book a place, e-mail Jo Charity on jo.charity@propelinfo.com or call her on (01444) 810304. Places are limited.