City Pub Company raises another £8m; seeks joint chief executive: City Pub Company, headed by Clive Watson and David Bruce, has become the most successful EIS company in the sector in recent years after successfully raising £15.8m in less than two years. City Pub Company launched its third round of fund-raising last month and has raised £8m already – it aims to raise another £2m by September. The previous two rounds of fund-raising produced a total of £7.8m in tranches of £4m and £3.8m and were over-subscribed. The company’s most recent acquisition is the The Phene, off Kings Road, Fulham, bought for an estimated £4m. The deal comes after property investor Robert Bourne failed to get planning consent to convert the pub into a £20m home. The Phene is the company’s first acquisition in London since it was launched – it has eight other pubs around the UK. Future openings include Alfie’s freehouse in Winchester, a freehold acquired in February this year set to open in mid-2014. City Pub Company opened its second brewpub, The Cambridge Brewhouse on King’s Street in the city at the end of February. The pub was formerly known as The Jolly Scholar and is the company’s second pub in Cambridge, with both held on university leases. City Pub Company is split into City Pub Company (East) and City Pub Company (West) and it is intended that at least 80% of the investment programme is in freehold pubs. The company is currently looking to recruit a joint chief executive to work alongside Watson to provide focused management for each company. In the 15 months to 30 December 2012, City Pub Company (East) had turnover of £1,267,000 and company Ebitda was £22,000. City Pub Company (West) saw turnover of just under £1.1m and company Ebitda of £87,000 before an exceptional item. The only setback has been a leasehold site in Eton that the company acquired in August 2012 but where it was unable to negotiate sensible renewal terms, which resulted to a loss on disposal of £101,000. Chairman David Bruce said: “It’s been a great first year for our company.”

CGA – food spend in pubs outstripped restaurants last year: Insights firm CGA has reported that food sales in pubs are worth £7.5 billion a year and growing by over 4% per annum. Business unit director Scott Elliottt said: “For the first time, more money was spent last year on food in pubs than on food in licensed restaurants. Restaurants used to get a larger share of discretionary (food) spend. However, the food offer within pubs now is so varied that it can easily meet the different needs of most consumers - be it cheap and simple or Michelin-starred. The very best pub food retailers have done a fantastic job of leveraging their offer to tap into this treat spend mentality. It is essential for all retailers to understand this mindset if they are to maximise spend per head and drive footfall in an engaging and relevant way. Does this mean that driving down the price to consumer is business critical? For some parts of the value-driven market, yes. For most others, absolutely not. Surely price is king? For those holding that opinion, I would ask, then, why in the on trade, are all premium drink variants outperforming their mainstream counterparts - across every single drinks category? Treat spend mentality leads to premiumisation.” 

ALMR – value of eating out has recovered to pre-recession levels: The Association of Licensed Multiple Retailer has reported that Office of National Statistics figures on household spending show that the value of spending on eating outside the home has recovered to pre-recession levels, although the volume of spending has not yet recovered to pre-recession levels. British households spent £73.3bn on eating out in 2012, a £3bn increase on 2011.

Minimum wage could be frozen: The minimum wage could be frozen if the economic downturn continues. The Low Wage Commission has been told that it has to consider the impact on employment and the economy before agreeing future increases. The change will be written into the commission’s new guidelines.

Enterprise Inns puts Kes pub on the market: Enterprise Inns has put a pub on the market that hosted filming for the iconic film, Kes. The Dards pub in Barnsley is on the market through Smiths of Barnsley, with offers in the region of £290,000 excluding VAT invited. A spokesman for Enterprise Inns said: “As part of the ongoing development of our business, we do from time to time identify a pub that may no longer have a long-term future in our estate. After careful consideration, the decision has been made to sell The Dards, with no restrictions on future use.”

Tesco - Thailand has taught us the importance of creating retail destinations: Tesco has reported that its experience in Thailand, where it has more than 1,400 stores, has taught it the importance of creating retail destinations at its stores. Its Asia chief executive Trevor Masters said: “Creating retail destinations is something we have been doing for some time in Asia and we have learned a lot about creating a compelling offer for local customers. In the UK, we are creating retail destinations and Asia gives us valuable experience to learn from.”

Beautiful South star - I fear for the pub so I have banned David Cameron: Beautiful South Star Paul Heaton, who owns The Kings Arms in Salford, has banned George Osborne and David Cameron from his pub. He told The Daily Star Sunday: “They’re not coming in my pub. I was relieved the government scrapped the beer duty escalator and reduced duty by 1p. It’s a relief for publicans and it’s a step in the right direction. But in the grand scheme of things it doesn’t mean anything if people can’t afford to come to the pub for a pint. And at the moment they can’t. I fear for the future of pubs. The way it’s going, in 50 years time I can see people talking about going to the pub like something we used to do in the old days, like the way people talk about music halls or the wireless.”

Euston Tap operator to open two sites in Yorkshire: The operator of The Euston Tap, Pivovar, is to open two venues in Yorkshire. Pivovar is to renovate refreshment rooms in the old Harrogate Station and also open a pub in Leeds city centre, complete with its own brewery. The company began with Pivni in Patrick Pool in York in 2007 and has since won national praise for its bars at railway stations, Sheffield Tap, Euston Tap and York Tap. Jamie Hawksworth, director of Pivovar, said the Harrogate plan would bring a historic building back into use and the Leeds one would show that the company’s recent success was not purely due to its positions on stations. He said most of the old Harrogate Station had been knocked down in the 1960s when the new one was built, but the refreshment rooms had been neglected but not demolished. “The old station was beautiful - a real spa town station,” he said. “It was like a mini York, with bells and whistles on.” He said numerous plans for the area had fallen through but said Pivovar would turn the building into a welcoming pub that showed off the building’s features. He said it would have a softer feel than The York and Sheffield Taps. The exact Leeds location is yet to be revealed but Hawksworth said the brewery would operate under the same name as that at The Sheffield Tap, The Tapped Brew Co.

Luminar debrands Bournemouth site with a £1m investment: Nightclub company Luminar Group has re-opened its Lava and Ignite site in Bouremouth as Cameo & Myu Bar. Myu Bar opens from 7:30pm for cocktails while Cameo has a 2,000 plus capacity. Ged Gorrie, Luminar’s regional director, said: “Bournemouth’s nightlife is enjoying a real resurgence so the timing of the launch couldn’t be better. We’ve invested wisely to transform what was already a great venue into the most prestigious club in town. From the cocktails in Myu bar to the facility to pre-book VIP booths and order drinks from the comfort of your seat, this is what the future of club retailing looks like.”

Digby Trout reports turnover down but profit up: Digby Trout Restaurants, a division of Elior UK that operates restaurants and cafes in heritage and leisure venues around the UK, has reported turnover down and profit up. Turnover dropped to £13,244,860 in the year to 30 September 2012 compared to £21,198,767 the year before. However, pre-tax profit rose to £331,074 compared to £132,577 to the year before.

Corney & Barrow names new managing director after Lucy Knowles departure: Ed Gardner, the current group business development director for Corney & Barrow Group, will become managing director of the business from 1 May. Gardner has been with Corney & Barrow since 2001 - he replaces Lucy Knowles who recently resigned from the company to pursue a career elsewhere in marketing. Chairman Percy Weatherall said: “We wish Lucy well. However, we are lucky to have an ideal internal candidate to step into this key role. The board is confident that Ed can provide the necessary strength of leadership and direction to enable Corney & Barrow Bars to remain the premium bar offering of choice within London’s financial district.”

Leeds Brewery sets sights on expansion in York: Leeds Brewery has submitted an application to transform a former York estate agency premises, Your Move in Kings Square, into a pub. Co-founder of the brewery Michael Brothwell said the plans were in the very early stages. He said: “Leeds Brewery is keen to have a site in York. Both of the directors went to University of York, and I still live in York. It’s been a long-term wish of ours to have a site here. It’s very, very early days, so we’re nowhere near signing a lease, but we think it could be an interesting site for a pub, and we’ve been looking for a site in York for a while now.”

Chef & Brewer sets up campaign to encourage Brits to chill on a Sunday: Chef & Brewer has set up an online charter to help encourage Brits to savour their Sundays after it surveyed 2,000 customers and found large numbers focused on chores on the day. Anyone that signs the charter, www.facebook.com/chefandbrewer, will be given a £5 voucher to spend on food at their local Chef & Brewer, to help them kick-start their pledge to take it easy on and enjoy some well-deserved relaxation. Beth McDonald, of Chef & Brewer, said: “This research shows that if it wasn’t for weekends and in particular Sundays, we would all fall behind with domestic chores and admin duties. Eating Sunday lunch out will help take some of the pressure off rather than slaving away in the kitchen.” 

Domino’s strengthens marketing team with new role: Domino’s Pizza has appointed a new role within its marketing team - head of marketing. Jane Walker will oversee the national and local store marketing teams to help position the brand for long-term growth. Simon Wallis, Domino’s sales and marketing director, said: “I am delighted to welcome Jane to the team. Jane’s experience of brand building and her strong background working in consumer insight will help us to continue to drive the business forward and further strengthen our marketing capabilities across all platforms.” Walker joins Domino’s from Carphone Warehouse where she was head of marketing strategy and insight. Prior to this she spent a large part of her career in the food and beverages sector, including Costa Coffee and KFC, where she worked on marketing new business concepts.

Harvester Salad and Grill named best family restaurant: Harvester, the Mitchells & Butlers brand headed by Steve Cash that serves 30 million meals a year, has been named the UK’s best family restaurant in a vote by 32,000 members of Tommy’s parenting club. Votes were cast in a wide variety of categories, ranging from best family supermarket to most eco-friendly baby company. Helen Worrall, of Harvester, said: “The Tommy’s Baby-Friendly Awards have set the benchmark for companies in the UK, and we are delighted and honoured to have been named Best Family Restaurant. Harvester has invested in ensuring that our offer and our Young Guest menu meets the needs of families in the 21st century. It is testament to the hard work by our team members across our 206 restaurants that we have been named winners of this year’s award.”

KFC to open more 40 new sites in 2013 as expansion accelerates: KFC is to open at least 40 new sites this year and will spend £40m giving 160 existing outlets a refurbishment. The company has been opening around 30 sites a year through franchisees in recent years but stepped this up to 40 last year and is aiming to beat that number this year. The company has around 850 restaurants in the UK and has seen seven consecutive years of growth – sites serve an average of 4,000 customers each per week. Sales rose 6% to £394m in the year to December 2011. Managing director Martin Shuker said: “We have line of sight to at least 1,200 restaurants in the UK.”

JD Wetherspoon applies to open £1.8m pub in Oakham: Managed operator JD Wetherspoon has submitted a planning application to open a new venue in Oakham town centre (population: 9,975) The company wants to turn the former Royal British Legion club in the high street into a pub. It has applied to Rutland County Council to build a rear extension and a beer garden with boundary wall. The firm says the £1.8m development would create about 35 part time and 15 full time jobs.

Belgique wins planning appeal costs: Belgique, the operator of ten Home Counties continental cafes, has been awarded legal costs after Redbridge Council was found to have acted unreasonably when it tried to force it to demolish a terrace built without planning permission. The company spent £120,000 doubling the size of an outside seating area at Belgique in Cambridge Park, Wanstead, and replacing an existing canopy in January last year. Seven months later the council ordered the company to take it down following complaints, but it appealed against the move. The planning inspectorate has now upheld the appeal and ordered the council to cover the company’s legal costs of £4,470 after it emerged the authority did not include all the relevant information when it issued the order. The inspectorate said: “The view is taken that the council acted unreasonably by issuing and subsequently withdrawing the enforcement notice, which resulted in the appellants incurring wasted or unnecessary expense in appealing.” The council has issued a second order in an attempt to enforce the original ruling. But the company believes the latest order will also be defeated on appeal - at a significant cost to the taxpayer.

Pesto in the Pub to open Spirit site in Sheffield next month: Pesto in the Pub, the growth brand headed by La Tasca founder Neil Gatt and Sara Edwards, will open a Spirit pub in Sheffield, The Waggon and Horses, as its latest venue next month after a £350,000 refurbishment. Gatt said: “We both hate being ripped off in restaurants which charge fancy prices but don’t deliver fancy food and service. At Pesto, we aim to give our customers great value for money by producing freshly cooked food with informal but efficient service in a warm, relaxed atmosphere.” Edwards said: “I find one big plate of pasta too much and a little boring once you’re halfway through it – and the same goes for big pizzas. With Pesto you can order five or six dishes between the two of you and enjoy a selection of different tastes in one lunch.”

Holden Brewery expansion delayed a second time: Plans to expand the landmark Holden’s Brewery have been delayed for the second time. A £200,000 project to expand the Black Country brewery has hit further delays with work now due for completion in July or August – months later than originally planned. Construction of the three-storey extension at Holden’s Brewery, in Woodsetton, started in October to allow an increase in production from 50,000 pints to 75,000 pints per week. Work was originally expected to finish in December but this was put back until the end of March after plans were changed from a two-storey to a three-storey development. Holden bosses admitted the scheme had taken “more time than first thought”.

Joule’s Brewery wins planning consent for brewery extension: Shropshire brewer and retailer Joule’s Brewer has been granted full planning permission to extend the current brewery in Market Drayton, creating additional storage space and a new and improved car park. The brewery, created in 2010, was built following an extensive design process, creating a unique brewery that combines architectural beauty, brewing excellence and industrial splendour. The building has now been nationally recognised by English Heritage, CAMRA and the Victorian Society, and last year was the winner of the National Pub Design Award. Trudie Meredith, sales and marketing manager, said: “The extension forms an important part of the £1 million expansion plan, and since production began, Joule’s has always maintained a very high quality product, reflecting small batch production and door to door delivery. As part as our ongoing commitment to quality, the brewery now requires more storage space, and enclosed loading bay and a much needed marketing storage area.”

Senior bondholders reject Punch restructure plan: The Association of British Insurers (ABI) special committee, made up largely of senior Punch Taverns bondholders, has rejected the restructuring plan proposed by Punch Taverns last month. The committee suggested a more suitable plan would involve paying bondholders in the correct order – the committee believes the current plan prioritises junior bondholders. However, it said it was prepared to work with the tenanted pub operator “to reach a quick and efficient resolution”. The ABI Committee said: “The committee have, along with their advisors (Rothschild and Latham & Watkins), considered the proposals and their financial effects. Following this review, the committee’s view is that the proposals do not provide a satisfactory solution for the capital structures of the Punch A and Punch B securitisations. The committee would not support the current proposals put forward by Punch. The committee is prepared to work to reach a quick and efficient resolution. As a result it would welcome Punch and its advisors to work alongside the committee’s financial and legal advisors (and those of other stakeholders) to develop revised proposals.”

TCG adds three more pubs to the King’s Feast format: Managed pub and bar group TCG has converted three more pubs to its successful King’s Feast big value menu format. The introduction of King’s Feast at The Black Horse in Skipton, The Corn Exchange in Preston and The Newquay Arms in Cornwall coincides with the second anniversary of the concept and the launch of a new menu. With nine pubs now trading under The King’s Feast banner, the format is proving to be a successful way of revitalising certain town centre sites and local community pubs, driving sales growth and expanding their customer base. The menu is launched following a facelift for the pub - which often only needs to be a ‘sparkle’ rather than a major refurbishment - and each pub has seen its food revenue increase from below 10% of total sales to an average of 25% post-conversion. Nigel Wright, TCG chief operating officer, said: “Community pubs are at the sharp end of the changing face of the pub trade, having to deal with pressure on consumer spending and increased competition for customers. Our approach proves that there’s plenty of life left in the community sector for operators who are prepared to invest. At each site, the increase in food sales comes alongside a significant increase in wet sales, ensuring that the pubs still retain their broad customer appeal.” The latest King’s Feast menu builds upon the popular dishes and offers which have driven the format’s success including a wide choice of dishes from Royal pies and grills to sharing platters and pub grub classics but includes some new offers through the week, such as curry and a drink on Tuesday and ‘Fry Day’ fish and chips. Additions to the latest menu include a range of pizzas with a choice of toppings, five new wraps, including Chicken Caesar and Aromatic Duck and a fantastic new homemade rack of ribs. “The broad range of choice on the King’s Feast menu, from an extended ‘lite bite’ option to a full blown Big Plate, is one of the key drivers of its success,” added Wright.

Metro Inns opens flagship Greene King cask ale pub: Suffolk multiple Metro Inns has opened a flagship Greene King cask ale pub in Bury St Edmunds, giving customers the chance to try exclusive new Greene King beers. The historic Grade II listed Mason’s Arms pub in Whiting Street, 600 metres from the Greene King brewery, has undergone a £160,000 refurbishment and among the new features is a window in the floor allowing customers to view the cellar below. The pub will now stock nine different cask ales including special one off and trial beers available only to Mason’s Arm customers. Sean Driscoll and his business partner Gary Wood, who run four other pubs in the area through Metro Inns, took over the pub in October last year and closed it last month for the refurbishment. Greene King head brewer John Bexon said: “The Mason’s is a great example of a proper pub and, particularly since the refurbishment, the perfect place for us to showcase what’s new at the brewery. As a proud Bury brewer we were keen to give local people the first opportunity to try exclusive new beers and we are pleased to be able to do this at The Mason’s Arms.” Driscoll said the pub would serve locally sourced food and coffee, while it has introduced a third of a pint glass, a loyalty card, and will allow drinkers to try before they buy. The opening of a JD Wetherspoon pub at the Corn Exchange in the town centre has been said to be impacting on trade at a number of drinking establishments in Bury St Edmunds. Driscoll said last year: “The fight back starts here really. Although we cannot compete with Wetherspoon’s buying power, we hope to offer something a little bit different that makes people want to come and visit The Mason’s Arms. I think traditional pubs have still got a place.”

McMullen adds two new directors: Hertfordshire brewer and retailer McMullen & Sons has added Heydon Mizon and Tom McMullen to its board. Mizon, a law graduate, joined the company in 2007, was promoted to associate director in 2009 and will continue to lead the company’s managed house division as retail director. McMullen, a qualified lawyer who also has an MBA, joined the company as company secretary in 2010 and will continue in that role as well taking responsibility for strategic development. Chairman Charles Brims said: “I am delighted to welcome Heydon and Tom to the board so they can contribute fully to the future development and continued success of McMullen”.