Mitchells & Butlers reveals wide regional variations in like-for-likes; identifies growth brands: Mitchells & Butlers (M&B) finance director Tim Jones has revealed wide variations in regional performance at the company with the south east outstripping other regional performance by a wide margin. The last five weeks have seen like-for-likes up 1% across the estate but the south east – M&B has 20% of its pubs in central London and 40% in the south east – has seen like-for-likes up by a double digit number. Similarly, in the first half of its financial year, like-for-likes were up by 0.3% across the estate but were up in London “in excess of 5%, close to 6%”. Meanwhile, chief executive Alastair Darby told City analysts that expansionary capital expenditure would be focused on brands that offer “attractive market spaces, return on investment, a focused brand proposition and site availability”. He named Harvester, Miller & Carter, All Bar One and Toby Carvery, which has average weekly takings of £29,000 per site, as examples. Nicholson’s by contrast, is a brand that the company would like to expand but “finding high quality sites in London is very difficult”. “Returns, guest approval and availability of sites will drive these brands,” said Darby. “We’re not setting a target number for brands – we made that mistake a few years ago.” M&B reported volumes decline of 4.7% concentrated in the value end of the business – elsewhere in the estate volume declines stand at just 1%. Darby said: “We were over-aggressive in our drive towards food at the value end of the market. We’re putting Sky back in and making pubs more drinker friendly. In some instances we’ve been out-manoeuvred.” He told City analysts that a survey of 8,000 consumers, who had completed a 30-minute online survey, had provided “clarity on how we should be attacking the market”. 

Darby – Scores on the Doors numbers increasingly important: Chief executive Alistair Darby has argued that it will be increasingly important to ensure sites earn good Scores on the Doors numbers as they start to go compulsorily on display outside premises. “If you score three or less, people are not going to want to eat with you,” he said.

Bob Ivell - ‘I’m the chairman who appeared at the AGM twice’: Chairman Bob Ivell told City analysts that a shareholder had congratulated him at the company’s annual general meeting. When Ivell had asked the shareholder why he was being congratulated, he was told: “For being here twice”. Ivell added: “It summarises what’s been going on with the business.” Meanwhile, Ivell told analysts: “The industry has proved pretty resilient in the last couple of years with consumers still treating themselves – it’s a good sign for the industry going forward.”

UK sector veterans deliver their views on US foodservice market: In today’s separate Propel Friday Opinion email attendees of the Propel Info and the Association of Licensed Multiple Retailers (ALMR) study tour of Chicago and the National Restaurant Association show gives their views on the current state of the US foodservice market – and how it compares to the UK. Articles are by Luke Johnson, the sector investor who runs Risk Capital Partners, Paul Charity, managing director of Propel Info, David McHattie, chief executive of the ALMR, and Eddy Passey, operations director of Beds and Bars.

Survey finds increased demand for British food: A survey has found almost nine out of ten shoppers (87%) say they want to buy British wherever possible – with 41% saying they’d be willing to pay more for this. Consumers are consciously stocking up with British produce with one in ten saying they buy up to 15 British products per week with over two thirds seeking out local products from their particular region. Shoppers say they feel the government should also be encouraging us to eat more British produce. Three quarters of those questioned agree that supporting British farmers and growers was the main reason for buying British, and a similar number said that if they knew the benefit buying British could have on the economy they would be inclined to buy more. The survey was commissioned by rapeseed oil manufacturer Mr Hugh’s.

Smashburger founder to launch pizza brand: Tom Ryan, the founder of Smashburger, the fastest-growing brand in the history of limited service restaurants, is launching another new fast-casual restaurant concept, this time centered on customised, oven-baked pizzas made and served within minutes of ordering. Live Basil Pizza already plans more outlets following its opening Thursday in the Denver, Colorado, area. In a service style similar to Chipotle Mexican Grill, customers go through a line choosing what ingredients they want on their thin-crust pizzas before the dough goes in an oven that can cook a pizza in 150 seconds. Ryan said he thinks fresh, fast pizzas made before a customer’s eyes is where the market is heading.

Steve Holmes named as guest speaker at Arena lunch: Steve Holmes, managing director of ASK Italian, has been named as the keynote speaker at Arena’s foodservice and hospitality networking event on Wednesday 17 July 2013 at The Jumeirah Carlton Tower Hotel, London. Homles is driving ‘an exciting, vibrant and successful period’ of change at one of the UK’s leading casual dining restaurant brands, said organisors. Ask Italian currently has an estate of 112 restaurants and has 2,300 employees. Tickets cost £140 plus VAT for Arena members and £185 plus VAT for non-members. For further information and tickets visit www.arena.org.uk or contact Lorraine Wood on lorraine@arena.org.uk / 0203 087 2378.

Noodles & Co become first US restaurant sector IPO in 2013: Noodles & Co has become the first US restaurant company to launch an Initial Public Offering this year. The fast-casual chain is seeking to raise up to $75 million with the goal of repaying debt and growing nationally. With 339 restaurants in 25 states, Noodles & Co is owned by private-equity firm Catterton Partners, along with Argentia Private Investments, a subsidiary of a Canadian public sector pension investment board.

Consumers underestimate the calorie content of fast food: A study published in the British Medical Journal has found that consumers underestimate the calories in fast food by around 200, about 10% of a woman’s recommended daily intake. An analysis of the 3,385 customers’ eating habits at 89 fast food outlets in the US showed that less than 5% looked at the calories information when deciding to eat.

St Austell turnover tops £100m: Cornish brewer and retailer St Austell has reported turnover has grown by 7.6% to £106.1m in the year to 29 December 2012. Profit before tax climbed 3.5% to £9.7m and operating profit before other items rose 3% to £10.5m. The final dividend was increased from 54p in 2011 to 57p. Chairman William Michelmore said: “Overall 2012 has been a challenging year and our financial performance reflects the tough economic conditions and the inclement weather that we have been trading in.” Sales of St Austell’s own beers grew 7.5% with bottled beer volumes up 41.7%, which “must be regarded as particularly encouraging” against a market decline of 4.7% and 4.6%. Exports rose by 37% with sales now to 20 countries. St Austell bought five sites from Enterprise Inns during the year and completed major refurbishments of two of these - the Three Crowns in Chagford and The Globe in Topsham. It sold five smaller sites “as we no longer considered these sites to be appropriate to our portfolio”. Capital expenditure in the year was £13.7m. Michelmore reported that major events such as the Olympics, Euro 2012 and the Jubilee, when combined with the weather, “proved in many cases to have a negative impact on trade” and visitor numbers to the south west had declined. He said the first two months of the current financial year “have met our expectations”. He added: “With the combination of our recent purchase of the Real Beer Company and our sponsorship of Somerset and Gloucestershire County Cricket Clubs, I am confident that we can look forward to a positive year’s trading in the south west.”

Two out of five Powdertrain freeholds are sold: Two of the five freehold pubs brought to market by agent Christie + Co on behalf of Powdertrain administrators have been sold. The George Inn, the 17th century bar, restaurant and inn in Longbridge Deverill near Warminster, Wiltshire, has been acquired by the Hampshire-based Upham Pub Company. This is the sister company to the Upham Brewery which acquired its first pub in Berkshire last month. It has expressed ambitious plans to increase the scale of its pub portfolio. David Butcher, director, Upham Ale Company said: “Upham Pub Company are delighted to have secured this the fourth pub in our estate. It is an impressive site and location and we believe that with a focussed investment it can generate further and significant returns.” Meanwhile, The Handsome Pig, another 17th century Grade II Listed country inn, situated in the heart of the South Downs National Park in Fernhurst, West Sussex, has been bought by John Portman. The business had ceased trading prior to sale and has been acquired by existing restaurant/pub operators. Phillipa Jeal, Retail Property Consultants, who advised on this purchase said: “My clients are delighted to have secured this attractive 17th century pub and barn. They will be returning the pub to its former glory serving the local community and visitors, with a separate restaurant in the barn.” Ed Bellfield, director of Christie + Co, said: “When we placed the pubs on the market on behalf of the administrators in February we knew the pedigree of the sites was such that they would generate great interest. The two we’ve sold to date have attracted significant interest, confirming our expectation that these highly characterful pubs would attract competitive bidding processes.”

Cheshire Cat Pubs and Bars set to open fifth site: Cheshire Cat Pubs and Bars, headed by Tim Bird and Mary McLaughlin, will open its fifth pub, The Church Inn in Mobberley, in mid-June – it acquired the freehold of the pub in January. The company stated: “We hope to add some bedrooms to the pub and we would also expect to take on functions and private dinner parties. The menu will be focused on lunch and supper and the wine list will be wider reaching. The aim is to offer a different experience to our wonderful Bulls Head and ensure Mobberley has two fantastic pubs famous for their people, their food and drink plus the differing occasions they offer.” Bird was formerly part of Michael Cannon’s management team that acquired companies such as Morrells of Oxford and Eldridge Pope. He was more recently managing director of Brunning and Price and the Freehouse Pub Company within the Restaurant Group. McLaughlin was formerly managing director of La Tasca and grew the Spanish restaurant chain from three to over 70 restaurants nationwide. Meanwhile, The Bulls Head pub has won an Alistair Sawday Award ‘Authentic Pub’ Award. Bird said: “We are the only pub in Cheshire to be recognised across all the categories!”

Exchequer Secretary David Gaukes tells pub operator that he thinks VAT equality on food is ‘an interesting idea’: Exchequer Secretary David Gaukes has written to Chris Gerard, founder of pub operator Innventure, to tell him that he thinks the idea of increasing VAT on food sold by supermarkets to enable VAT in pubs and restaurants to be reduced to create jobs is an ‘interesting one’. The response came after Gerard’s local MP Peter Lilley passed his idea on to Gaukes. Gerard has now written a follow-up letter to Lilley. He states: “If, as Mr Gaukes’ letter suggests, he finds the idea of broadening the tax base from hot food to prepared food an interesting one I would be grateful if he could be encouraged to ask the Treasury to model at what VAT rate this suggestion would be revenue neutral. The rate might be slightly higher than 5% but I suspect it will not be much. Even at 7% this would be worth doing. If I am right and a broader lower tax base for ‘prepared foods’ is an opportunity, I would really hope that the government could be provided with this analysis for consideration. I am aware and understand that politics are about choice, but if an idea is refuted on the basis that it is unaffordable, and this, in reality, is not the case, the government of the day is not given that choice.”

Wayne Brown – merger between AG Barr and Britvic still makes sense: Canaccord Genuity leisure analyst Wayne Brown has argued that a merger between AG Barr and Britvic still makes sense despite the new strategy unveiled by Britvic earlier this week. He said: “Following the interims and strategy update, there is nothing that has changed our view that the merger with AG Barr makes commercial and strategic sense. We welcome the comments that Britvic is to place greater focus on building value behind its brands as opposed to being a volume driven business. The ability to deliver this in an environment of falling volumes, aside from a significant cultural change that is required, is challenging. This is even more the case where up to 15% of the workforce will be shed and a major restructuring of the operational framework will take place. Whilst we agree with the need for this change - and supportive of these developments - the Britvic team have an unproven track record on delivering on large projects. The merger with AG Barr immediately infuses Britvic with the core values expressed in its strategy review, but brings with it a management team with a proven track record of delivering on large projects to support long term shareholder growth.”

Pesto in the Pub lines up ninth site – another Punch Taverns pub: Pesto in the Pub, headed by La Tasca founder Neil Gatt and Sara Edwards, has secured its ninth site, another Punch Taverns pub. The brand is to convert The Axe and Compass on Fiveways near Wolvey, Leicestershire. Edwards said: “We are incredibly excited about becoming a key part of the local community and introducing the people of Leicestershire to our unique ‘piattini’ dining concept.” The pub will be fully refurbished and is set to open in mid-June. The £450,000 joint investment from Pesto and Punch Taverns will see pub re-open after being closed for almost two years. The opening is the first Pesto restaurant in Leicestershire.

Premier Inn secured Sevenoaks landmark: Premier Inn is to convert a Sevenoaks landmark into a new 60-bedroom site. It will take over north tower of Tubs Hill House, which it is currently in the final stages of acquiring. Brand owner Whitbread has applied for an alcohol licence which states: “The proposed premises will operate as a stand alone hotel with related licensed accommodation and car parking operating under the Premier Inn brand.”

Frankie & Benny’s to open at White Rose shopping centre in Leeds: Frankie & Benny’s, the brand owned by The Restaurant Group, is opening at White Rose Shopping Centre in Leeds later this week. The new 4,400 sq ft restaurant on the Upper Circle will cater for up to 170 diners and will feature a designated mall seating area for more than 65 people. The new restaurant will add to the shopping centre’s current food and drink offer, which includes Costa Coffee, Nandos, Patisserie Valerie and Bagel Nash. Gerald Jennings, portfolio director for the north at Land Securities, said: “We’re continually working hard to improve our retail and leisure offer to our loyal 12 million shoppers and Frankie & Benny’s arrival will go a long way to bolster the food offer at the centre by creating a unique dining experience.”

Wagamama lines up opening at York Designer Outlet: Wagamama is set to open a site at York Designer Outlet. The brand, which opened its first York restaurant in Goodramgate in December 2011, has applied to City of York Council for a music, late night refreshment and alcohol licence at the centre. The centre has re-launched its Food Quarter, a 35,000 sq ft eating area in August last year, splitting it into three areas, called Pit Stop, Family Kitchen and Dining Lounge. It seats up to 600 people across eight eateries and was a £1.3m investment.

Stables pizza and cider brand expands to Bath: The Stables pizza and cider brand, based in Bridport, has bought the renowned Hole in the Wall in Bath. The Bath restaurant opened in 1951 when the influential restaurateur and chef George Perry-Smith bought haute cuisine to Britain – it closed in May 2012. The new concept will be a neighbourhood restaurant with approximately 120 covers offering pizza, pies and cider – stone-baked gourmet unique pizzas topped with quality local ingredients, together with more than 57 different varieties of cider, many from small-scale local producers. The first Stables restaurant opened in October 2009 and expanded to a site in Weymouth in 2012. The Stables brand occupies heritage properties providing rustic authenticity. The Hole in the Wall is a Georgian-vaulted restaurant under the pavements of the heritage city of Bath. Stables’ existing restaurants have won awards for both the quality of pizzas (PAPA awards) and cider (CAMRA best cider bar). Agent was Christie + Co.

Graze doubles up in Belper: Restaurant concept Graze is to open a second site on Belper’s Strutt Street. The brand, which was established in Friargate, Derby, will offer a pizzeria, cocktail lounge and restaurant serving modern British cuisine. The restaurant will seat up to 80 people and the venue will feature acoustic music on Friday and Saturday nights.

Sale price for Scottish hotel slashed by £410,000: The asking price for the freehold of Cullen’s Seafield Arms has been slashed by £410,000 in bid to find buyer – the original asking price was £900,000. The 23-bedroom Seafield Arms in Cullen has lain empty since closing in June 2011 and has so far failed to find a buyer. The hotel’s price has now been dropped to £490,000 by Aberdeen-based Shepherd Chartered Surveyors.

KFC losses planning appeal over pub demolition: Kentucky Fried Chicken has lost a planning appeal over whether it is allowed to convert a vacant pub in Woking into a KFC drive-through restaurant. The fast food chain had aimed to demolish The Goldsworth Arms in Goldsworth Road and replace it with a new two-storey building and car park. The application was initially refused by Woking Borough Council planning committee and an appeal by KFC has now been thrown out by a planning inspector. The pub, closed since 2011, is currently boarded up on a roundabout, that adjoins with the entrance to Morrisons. The planning inspector’s report said: “I have found that while the loss of the public house would not in itself result in undue harm, it has not been demonstrated that the site would not be viable for any other social or community use.”

Micro-pub gets the go-ahead in Ely: A plan to build Ely’s first micro-pub has been given the green light by planners at East Cambridgeshire District Council. The venue will open in Forehill where former ladies clothing store, Mayer, used to be. Behind the micro-pub is Martin McKeever, who runs Liberty Belle tours along the River Great Ouse in Ely. He plans to call the micro-pub ‘Liberty Belle Micro-pub’. In a statement to the council, Mr McKeever said: “The aim of the micro-pub is to offer a venue where the discerning drinker can enjoy fine ale and conversation. The focus will be to provide an attractive environment that will offer customers an ever-changing menu of hand-crafted real ales from local brewers.”

Yum! Brands plans to double Taco Bell sales in the US: Yum! Brands plans to double Taco Bell’s US domestic annual sales to $14 billion by 2021, according to two securities analysts who attended investor meetings with the company on Tuesday. Yum!, which also operates and franchises KFC and Pizza Hut, told attendees that system growth would include an increase in average unit volumes from $1.3 million in fiscal 2012 to about $1.8 million by the end of the decade, as well as growing its unit count from 5,700 to 8,000 locations.

Famous Irish pub sells for close to €300,000 asking price: A rural Irish pub made famous in the iconic movie ‘The Quiet Man’ has been sold to an unnamed fan of the film. Pat Cohan’s bar in Cong, Co Mayo, went on sale at the start of the year. The pub, which was immortalised in the hit movie, saw a number of bidders from the UK and America show an interest. Local auctioneer Vincent Walsh confirmed that the pub had been sold and contracts were now with solicitors. The new owner is understood to be from England and already owns a number of properties in the area. He is understood to be a regular visitor to the area following on from his love of the John Wayne and Maureen O’Hara movie. The pub is understood to have sold for close to the €300,000 asking price.