Orchid Pub Company – Pizza Kitchen & Bar could be scaled to 200 sites: Orchid Pub Company has forecast that its Pizza Kitchen & Bar format could be scaled to 200 sites. Commercial director Simon Dodd said: “We’ve now done 26 conversions, and the sites are taking the business to a new area. We have plans for another 16 or 17, predominantly from the existing independent local estate. The business model is returning anything from 30% to 100% ROI, and is scalable to 200 plus sites – and by the end of this year we run out of pubs within Orchid, so we need to find some others.” He added: “For us, the spend is lower, the returns are higher, its scalable, it works in sophisticated high streets, it works in mainstream high streets, it works in community sites and works in student areas. Pizza is win/win/win.” The pilot site for the Pizza Kitchen & Bar format was The George in Harpenden, Herts. A front-of-house pizza oven was installed, with a menu offering pizzas made with fresh dough and cooked to order. At the same time, Illy coffee was introduced in order to drive daytime trade. “We didn’t spend much on the site, it was an overlay,” said Dodd. The result was dramatic – The George went from a weekly turnover of around £8,000 a week, of which food was about £500, to a current turnover of around £25,000, with food sales of around £7,500. “What we found was that you keep your customers who drink, but you overlay new occasionality,” said Dodd. The mix includes traditional pub occasions such as TV sport, with a drinks range including cask beer, wine and cocktails, while the expanded trade includes daytime coffee sales, make-your-own-pizza children’s parties, and students looking for good value food. “You keep the wet trade, build the food trade, and sell more drink because people are buying it with food.”

Draught craft beer sales rise 84% in a year: Sales of draught craft beer have risen by 84% in the past 12 months with packaged sales up 40%, according to figures from CGA. Nearly one in four outlets now stock a craft beer and sales are worth £225m per annum, a rise of 79% in a year. Craft beer accounts for 1.9% of total beer sales – 74 million pints of sales per year. CGA chief operating officer Phil Tate said: “With the modern day discerning yet fickle consumer it is vital that outlets look at their range, offer choice and the invitation to experiment. Craft can play that role and rotating them can keep the offer fresh.”

Cut in Ireland VAT boosts Irish visitor numbers: A cut in VAT from 13% to 9% in the hospitality sector has prompted 6% increase in visitor numbers. Michael Vaughan, President of the Irish Hotels Federation, explained the turnaround: “The government’s decision to reduce VAT, albeit by a small percentage in July 2011, has provided a vital stimulus for hotels and guesthouses.” Janice Gault, chief executive of the Northern Ireland Hotels Federation added: “The lower rate of tourism VAT in the Republic of Ireland is a particular challenge for hotels in Northern Ireland. Our hotels offer excellent quality and value for money, but we struggle to compete against hotels on the other side of the border, which charge less than half the UK rate of VAT for visitor accommodation. The UK government needs to recognise the value of our industry and help us compete on a level-playing field within Europe.”

Cedar Dean Gilmarc – London restaurant scene is booming: Morris Greenberg, of property lease specialists Cedar Dean Gilmarc, has reported that the London restaurant scene is booming thanks to the arrival of a fresh set of investors. He told The London Evening Standard: “We are witnessing a new breed of restaurant backers coming into play. They have seen the capital’s restaurant scene become vibrant and lucrative. New restaurants and chains are opening all the time and there is a scramble to get the best addresses. Business is booming. London is the culinary capital of the world and it is attracting the best chefs and the most innovative restaurant ideas. The returns are immense if you get it right.”

Stelios looks to undercut Lidl: EasyJet founder Stelios Haji-Ioannou has bought a freehold property in Croydon, the old MetLife office opposite East Croydon station, to launch a super-cheap grocery shop to be branded easyFoodstore. The top floors will be an easyHotel, the middle floors will offer short-term office space and perhaps a gym with the ground floor housing a ultra-budget grocery store to open this autumn. There will be 50 to 100 items on the shelves, with no fresh or frozen food apart from, possibly, bread and eggs. He told The Guardian: “There is no business plan. I don’t know what the shop will look like. If you ask me to rank the risks, the biggest is that nobody turns up. It’s a freehold property so I can afford to experiment for a year or longer.”

Technomic – hot dogs are a big UK menu opportunity: Research firm Technomic has noted the rise of the hot dog on UK menus. Technomic’s Christine LaFave Grace said: “Given their generally low food costs and eminent customisability, hot dogs hold numerous menu possibilities for operators. They present an easy platform in the same way that burgers do for launching limited-time offerings, even as part of a themed series. (For a recent example of the themed series in action, look no farther than McDonald’s UK’s reboot this summer of the Great Tastes of America series of burgers.) Operators can find another menu opportunity for hot dogs by thinking small: Mini hot dogs can make for a fun, easily shared starters plate – savoury, satisfying and an ideal pairing for a pint.”

Technomic – younger consumers ordering more ethnic food: A new Technomic report commissioned by Mission has found 40% of UK 18-24 year olds say they are ordering more ethnic foods and flavours today than they were a year ago, spearheading overall growth within the market. A spokesman said: “With consumers becoming more diverse when it comes to food choices, outlets can benefit and drive sales by incorporating ethnic inspired dishes on their menus.”

McDonald’s reports sales up in July: McDonald’s sales rose 0.7% in July, with the US up 1.6% but Europe and the rest of the world down 1.9%. McDonald’s US growth reflected the appeal of McDonald’s breakfast, classic core favorites and everyday value offerings. The 21st edition of Monopoly at McDonald’s and the popularity of featured products including Premium McWraps, the Big Mac and Chicken McNuggets also contributed to the month’s performance. In Europe, July’s comparable sales declined 1.9% as negative performance in Germany, France and other Southern Europe markets more than offset positive results in the UK and Russia.

Lincolnshire brewer Batemans reports turnover and profit rise: Brewer and retailer Batemans has reported turnover rose 5.74% to £15,428,011 in the year to 31 January 2013 (2012: £14,589,848). Pre-tax profit was £239,687 compared to £73,580 the year before. Gross margin was down 2.01% to £4,580,000. The company stated: “Gross margin fell back slightly reflecting a change in sales mix and the movement within tenanted pubs towards free trade pricing with an increased rent.” Total directors remuneration dropped from £693,094 in 2012 to £599,543.

Joseph Holt reports slight decline in turnover and profit: North west brewer and retailer Joseph Holt has reported turnover declined slightly to £45,020,242 in the year to 31 December 2012 (2012: £46,574,090). Pre-tax profit was £3,648,582 compared to £3,762,136 the prior year. The company said the brewing industry is facing “tough trading conditions” with operating profit under pressure from cost increases.

Neil Macleod steps down at Inventive: Inventive Leisure, the leading national premium bar operator, has announced that Neil Macleod will step down as director with immediate effect after 21 years with the business to pursue other interests. Inventive chief executive Mark McQuater said: “Neil has made a strong contribution to Inventive over the years and the company wishes him every success for the future.”

Wellington Pub Company reports average rent uplift of 3.7% on review: Wellington Pub Company, the free-of-tie estate owned by the Reuben brothers and run by Criterion Asset Management, has reported an average uplift in rent of 3.7% on review. At the quarter end to 30 June 2013, the first quarter of the 2013-2014 financial year, there were 794 public houses in the estate, four fewer than the prior quarter. The company stated in a report to bondholders: “The disposal strategy remains to sell bottom end and/or problem properties and those that have a higher alternative use value. 680 pubs (85% of the estate) are let on a long lease. Ten properties were re-let on a long lease during the quarter and there were seven lease forfeitures.” The estate is producing an annual income of £26.9 million, which is 1.8% below last year. Quarterly Bond interest of £2,723,016 (‘A’ Class loan notes – £2,124,480, ‘B’ Class loan notes - £598,536) was paid in April. The issuer surplus at that time was £1,145,855 which was paid to the issuer. ‘A’ Class loan notes to the value of £1,111,680 were repaid and ‘B’ Class loan notes to the value of £510,000. Following these payments the company retained circa £11 million of cash on deposit. The annualised EBITDA for the 12 months to the end of June 2013 was £18.3 million.

Southwark pub listed as an asset of community value: The Grange pub in Grange Road, Southwark – which is up for sale with an asking price of £800,000 - has been listed as an asset of community value by Southwark Council. Bermondsey and Old Southwark MP Simon Hughes has launched a campaign to get all pubs in his constituency listed as community assets. “Our local pubs are absolutely fundamental to the character and quality of life in Southwark and in our capital city,” he said.

Marston’s eyes another Scottish new-build opening: Marston’s has signalled its intention to grow its presence in Scotland with a plan to build a new pub restaurant in West Lothian. The company has targeted the Southdale regeneration project for its latest venture north of the border. Marston’s has yet to submit a planning application for its venue, which marks the continuation of a new-build strategy that has seen it launch outlets in Dunbar, Midlothian and Braehead, Renfrewshire. The firm, which plans to invest £25m in building ten new pubs in Scotland over three years, said the West Lothian site is scheduled to open its doors some time in 2015, subject to planning and licensing consent. The firm’s acquisitions manager for Scotland Adrian Blackburn told a local newspaper: “This is an exciting and welcome potential acquisition for the company as it continues our links into the central lowland belt. We currently have three pub restaurants open in Scotland – The Pine Marten in Dunbar, The Steam Wheeler in Braehead and The Old Colliery in Midlothian near Danderhall. Towards the end of November we are set to open another new Milestone Rotisserie pub restaurant in Forfar on Orchardbank Business Park – and in 2014/15 another half dozen newly-built pub restaurants are likely to open.”

Redcomb Pubs acquires seventh pub – Spirit site: Redcomb Pubs, the company led by former Mitchells & Butlers marketing executive Dan Shotton and Mark Draper, has acquired its seventh pub, a Spirit Pub Company leased site called The Bickley Arms in Chislehurst. The company takes over the site on 4 September and a major investment is planned for early 2014. Shotton said: “We aim to convert the site from its current format (a bar and events venue) to something similar to what we have done at The Station in Hither Green (which is only a couple of miles away) – a top quality suburban pub which caters for a wide range of the community. We’ll have at least eight real ales and ciders on draught plus an extensive range of well-known and some specialist lagers and stouts – as well as an interesting and varied wine list. Simple, fresh, seasonal food will be available all day every day.” The company, which also runs three pubs in a joint venture with BFI, aims to make one more acquisition in 2013 – it has a site under offer – and then add another three to five sites in 2014.

Over the Moon plans £500,000 investment: Over the Moon Hospitality is investing £500,000 in The Hunloke Arms, a Grade II listed pub in Chesterfield. The pub, two miles south of Chesterfield in Wingerworth, is to be renamed The Wingerworth Pub & Kitchen, serving breakfast, lunch and evening meals seven days a week. Leo Jurkiw, director of Over The Moon Hospitality, said: “It’s a tired old building and we are giving it a new lease of life. We’ll be serving the normal pub classics, along with a more exclusive option and will be working with a high class wine establishment, who will provide an interesting range of drinks.” 

Ted Tuppen – Enterprise is ahead of schedule on external decorations programme: Enterprise Inns chief executive Ted Tuppen has reported that the company has already completed 700 external decoration schemes this financial year within its estate – against a target of 1,000. The company is aiming to improve “kerb appeal” at its pubs. Tuppen said the company had made “greater progress over the recent summer months”. He added that the programme has made a “difference to trade, morale and general performance”. Enterprise expects to complete between 800 and 900 this year. Tuppen told analysts the company is thinking about other estate-wide projects that would make a difference. “We have two or three things in mind for next year.” Meanwhile, chief operating officer Simon Townsend said the company would be adding BT Sports at 130 smaller sites, with a number within its Beacon managed tenancy estate.

Geof Collyer – Enterprise making real progress: Deutsche Bank analyst Geof Collyer has argued that Enterprise Inns is making real progress toward positive like-for-like net income. He said: “The trading performance in H2 so far may be not quite as good as some may have hoped, but there is real progress, continuing positive trends established last year. It has been a year of one-offs both positive and negative. First half like-for-like net income was -4.2%, or -2% adjusting for exceptionally cold weather and the sinking into administration of the group’s main wines and spirits supplier. For the 18 weeks to date of H2, like-for-like net income is -2.7%, or -1%, after adjusting for the exceptionally hot weather in July and last year’s combination of the Olympics, double bank holiday for the Jubilee and Euro 2012. Trading for the first five weeks of Quarter Four is positive, and whilst we think that achieving positive like-for-like net income for H2 is unlikely, it does look probable that this could be achieved in Quarter Four. 356 pubs have been either sold or are in the final throes. On completion, this should generate £127m of disposal proceeds. The mix has changed, and this should provide some comfort that the top end disposals are no longer generating the bulk of proceeds. 335 bottom end pubs have been sold for an average of £304,000 each (versus £215,000 each at the Q3 stage last year), whilst 21 top end pubs have been sold for £1.2m, an average premium to book value of 20% (or 14x rent). We think that Enterprise will have completed its more aggressive disposal programme by the calendar year end and should return to more normal plans of circa £50-60m per annum thereafter. Elsewhere this week, S&P upgraded its outlook on Enterprise from negative to stable, reflecting progress on debt repayment and trading improvement.”

Spirit loses Cambridgeshire marina pub to fire: Spirit Pub Company has lost a Fayre & Square pub, a former Mill House inns pub, in Hartford Mill, Cambridgeshire to a fire. Cambridgeshire police are not treating the fire as suspicious and a spokesman said the cause was “most likely an electrical fault”. A spokesman for Spirit Pub Company, which owns the Fayre & Square pub, said: “Until a full investigation has been carried out we cannot comment on the cause of fire, estimate the total cost of the damage or predict a date on when the pub will be reopened.” Richard Dykes, incident commander, said: “Due to the severity of the fire when we arrived, we were unable to save the public house itself, but were able to stop it from spreading to the function room. This was a large fire, which has destroyed the home of a family and a popular venue used by the local community. Thankfully everyone was able to get out of the property quickly and unharmed.”

Wrap it Up! boss to appear on Dragon’s Den: The managing director of gourmet fast food chain Wrap it Up! is appearing on Dragons’ Den this Sunday (August 11). Tayub Mushtaq, 31, will be facing the Dragons to seek investment for the chain of outlets which serve a range of internationally-inspired wraps. The programme, recorded earlier this year, is aired on BBC2 at 8pm. Wrap it Up! operates 11 outlets across the City and Central London, with plans for future expansion. Tayub joined Wrap it Up! as its first franchisee in 2010 and became its managing director in October 2012. Before joining the company he worked as a stockbroker for a boutique investment bank in the City. He said: “As a youngster growing up in Leeds I wanted to have a food business. I remember thinking that the range of ethnic food was very restricted and that there really ought to be more choice in the market. Even at a young age I wanted to be an entrepreneur. What I love about Wrap it Up! is that we are different to others. There are a number of Mexican burrito outlets which are similar to each other and I believe the same can be said of burger and sandwich joints. Our 11 outlets are extremely popular. Our customers love our food and this gives us the confidence to expand. This is an exciting time for the business.”

Debenhams to open three new eateries at flagship site: Debenhams is to launch three new eateries at its flagship London Oxford Street site. A new restaurant, cafe and bistro will open in the autumn as part of the expansion of the store. A 250 cover-restaurant on the fifth floor will have a focus on British dishes. Food services director John Baker said: “The fifth floor restaurant will be a celebration of British culinary history and heritage, with an emphasis on iconic dishes both British visitors and tourists will love. Fish has always been one of our best sellers so we’ve created a fish and chip shop where fresh plaice, cod, scampi and salmon fishcakes will be available with thick-cut chips and mushy peas.” A bistro in the basement will have a more upscale menu and a new cafe will offer a more relaxed service with menu items including fish pie, lamb hotpot and sausage rolls.

Kalton and Barlow like-for-likes up 9.8% in July – set to announce fifth site: Kalton & Barlow, the north west pub operator, is set to unveil a fifth site later this month. The company saw like-for-like sales up 5.7% in the first six months of 2013 and had an even better July. Co-founder Simon Kalton said: “Thanks to a record month of sunshine, our third quarter figures are already off to a flying start with year-on-year sales up 9.8% in July. We believe it’s about taking the time to get all the little things right – that’s what makes the difference. We’re always looking at new ways of improving our customers’ experiences – this summer we have trialed a new range of our own smoothies that have gone down a storm.”

Cains re-opens flagship – serving someone else’s beer: Liverpool’s brewer Cains has re-opened its flagship pub, Doctor Duncan’s, after striking a deal with landlords. The pub was closed by its landlord Neptune last month after a row with its tenant Hoylake Inns, a Cains subsidiary. Those “outstanding issues” have now been resolved. But the pub is no longer selling Cains beer on draught – the brewery has been closed and owners the Dusanj family plan to submit a planning application to turn it into the ‘Brewery Village’ shops complex.

Steve Richards undertakes a Grand Tour: Former Novus Leisure boss Steve Richards is enjoying a well-deserved break touring Europe after stepping down from the bar operator last month. Keen to keep in touch with industry news he furnished Propel with a new private email address to ensure his Propel Newsletter was arriving safely. The new e-mail address features the number 45: “It’s my age not my waist-line size,” he advises.

The independence of Decks: A Propel source hot-footed it to the Decks opening in Coventry on Tuesday to have a look at the new Tesco carvery operation. He was generally impressed but there was one minor disappointment. “You couldn’t use your Tesco clubcard in Decks reinforcing the independence point,” he notes.

Little Chef, big plans: The acquisition of Little Chef by Kuwait-based Kout Food Group took a few by surprise, with further complications caused by the deal completing the night before Ramadan – and the Kuwaiti Stock Exchange being closed for a couple of days. But the Kuwaitis certainly seem to have done their homework. One source tells Propel: “The business is generally very different to the one that was in a mess. They have ideas for the estate on a site-by-site basis. Quite a few sites have vacant Burger King operations – one of the priorities is to get those areas generating a bit of cash.” As it happens, the Little Chef estate features 27 Burger Kings already. And what was the definitive sale price? It was 6.1 million Kuwait dinars, which is, according to Propel’s convertor, £13.9m.

Premium Country Dining Staff: Mitchells & Butlers Premium Country Dining Group blazed a trail as it expanded to 80-odd sites with a superior offer and superior staff. Diary hears that the company has become very proactive in warding off competitors trying to poach staff as they develop premium offers – and there’s a few of them. A sizeable, and Diary means sizeable, pay rise is being dished out to GMs on the receiving end of an approach.

Don’t come crying to me: JD Wetherspoon has raised the prospect of onerous lease provisions at full year results in September. They can expect little sympathy from veteran Deutsche Bank analyst Geof Collyer, though. He notes: “We would be disappointed if (Wetherspoon) decided to publicly moan about paying too much rent for leasehold pubs by taking an onerous lease provision. The group has long had one of the best, if not the best, lease covenant in the sector in our view. So if it has paid too much rent for some properties, then that is just the rub of the green, notwithstanding the various litigious issues that the group has engaged in with a number of its site finders.” Wetherspoon must regard itself as duly warned.

UK sporting glory continues: It’s a golden age of British sporting achievement. And this week one more record was snatched away from Johnny Foreigner. Living Ventures’s Oast House in Spinningfields, Manchester, broke the World Record for the largest beer tasting event. A total of 322 ale lovers convened in the Courtyard outside the Oast House – travelling from as far as Scotland – to assist with The Oast’s successful attempt to enter the Guinness Book of World Records. The previous Guinness World Record was held by a Dutch bar, which mustered a measly 267 participants.

Floral notes and floral language: Kathy and Tim Britton have become the first husband and wife team to become Beer Academy sommeliers. The Brittons own The Oldershaw Brewery in Grantham, Lincolnshire where Kathy is the managing partner. A love of beer and a yearning to make sure that ‘life didn’t just drift by’ prompted them to move from Buckinghamshire to buy the brewery three years ago. Kathy runs the brewery whilst Tim still commutes to London every day but they both get involved in beer events. Borrowing on the language of the beer sommelier, Tim describes Kathy as “blonde in style, well hopped with floral notes and a citrusy edge to her finish.” Kathy’s tasting notes to describe Tim are “smooth, easy drinking in style, lots of flavour and what he likes to think of as depth, but others rank as an acquired taste!”