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Thu 3rd Oct 2013 - Innbrighton, Greene King, Las Iguanas, Luminar, Starbucks |
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Story of the Day:Number Works Pub Co plans second 'premium steak and cider' pub: Number Works Pub Company, led by Martyn Hathaway which is pioneering a new value offer around fixed £2, £4, £6 and £8 price points at eight pubs, is looking to open a second site focused on its new “steak and cider menu” concept. The offer has been tested at the Navigation Inn, Bromsgrove and proven successful. It is slightly premium to Number Works' core brand, offering meals at slightly higher fixed price points of £4, £6, £8 and £10, table service, and an extended range of real ales, cider and wine. The company is now looking to open a second site at an Enterprise Inns pub near Stratford-upon-Avon; it currently has six Enterprise sites and three Punch venues. Hathaway told Propel: “Our new steak and cider concept has worked better than I expected – it works as a slightly more premium offer at destination venues.” Number Works Pub Company is currently selling 21,000 meals a week, driven by its value positioning. The company has a low gross profit on food of 38% but the extra drinks business that is attracted by the food offer means the pubs have an overall GP of 55%. Turnover at each pub climbs quickly to £20,000 a week after site launch. Hathaway said: “My view is that earning a gross profit of 55% on £20,000 per week of turnover at each pub is a better proposition that 70% of £10,000 per week.”
Industry News: US menu expert spots rise of 'addition' model: Nancy Kruse, regarded as the leading menu trends expert in the United States, has noted the rise of the “addition” model on menus. She argues there has been a shift from the “subtraction model” of the past, when food was touted for having salt, fat and sugar removed from it. Now, the “addition” model stresses the addition of extra fruits, vegetables and whole grains. She also reported in her annual State of the Plate address at the Multi Unit Food Service Operators conference that avocado is the ingredient of the year. Kruse said the fruit, which is appearing in everything from the latest version of Chick-fil-A’s grilled chicken cool wrap to desserts such as the avocado PopSorbetto at Popbar, “plays well with other ingredients” because of its mild flavour and creamy texture.
Autogrill splits in two: Autogrill, the world’s largest duty-free and travel catering group by sales, celebrated the splitting of its two core businesses yesterday, with shares in the newly listed World Duty Free up 3% and Autogrill up 8%. The Italian group, which operates in 39 countries and manages airport, station and motorway concessions for the likes of Starbucks, Burger King and Brioche Dorée, had approved the split of its catering arm from its smaller duty-free operation to allow both sides of the business to more easily tap growth in the US and Asia.
Plymouth looks to raise up to £150,000 with late night levy: The city of Plymouth thinks it can raise between £80,000 and £150,000 a year with a late night levy – and use the money to hire a late-night manager. About 30 bar bosses turned up at the Noah's Ark, in Courtenay Street, to quiz police and council chiefs on the late night levy proposal, which could see bars being charged between £299 and £4,440 a year. All members of the City Centre and Waterfront Business Improvement Districts could be given a total exemption from having to pay the levy, while members of best practice schemes such as Best Bar None Plymouth and Pubwatch could receive a 30% reduction. A consultation on a proposal to introduce the levy, for on and off-trade businesses opening between 12.30am and 6am, closes on Saturday.
Company News:Greene King confirms 18 October opening of first Realpubs site outside London – five more sites to be converted: Greene King will open the first Realpubs site outside London with the conversion of he Anchor on Silver Street in Cambridge city centre to the premium format on 18 October. It will feature a 50-cover first floor serviced dining room and a refurbished lower bar area with five changing cask ales and a selection of craft beer and cider served from a back bar dispenser. The pub’s river terrace, facing the Cam’s Mill Pond, will have a summer-serviced dining area. Confidence in the Realpubs format has been shown in recent months by Greene King’s decision to convert both its King’s Stores and Williams pubs, now the William Ale and Cider House, in the City of London to the format: the two pubs are located on adjacent streets. Five more site conversions are under way: the Golden Fleece on Queen Street, near St Paul’s, in the City will open in November with conversion work also taking place at Boaters, Kingston, Surrey; the Salt House, St John's Wood, West London; the Wilmington, Exmouth Market, North London; and the Kew Gardens Hotel in Kew, South West London. Greene King has seen returns in excess of 33% on the first group of pubs it has converted to the Realpubs format since it bought the company in 2011.
Luminar acquires Dundee nightclub: Luminar Group has announced its latest leasehold acquisition, the 3,000-capacity Fat Sams nightclub in Dundee. One of Scotland’s biggest clubbing venues, Fat Sams has been acquired from Level 2 Entertainments Limited for an undisclosed sum. The acquisition takes the number of nightclubs operated by Luminar Group in Scotland to four, including Liquid & Envy in Dundee. Luminar’s chief executive, Peter Marks, said: “Fat Sams has been an iconic nightclub and live music venue in the city since 1983. It’s a great fit for our estate and complements, rather than competes with our neighbouring Liquid & Envy venue. Fat Sams is well-invested, well-positioned and has a large capacity, making it a great addition to our Scottish estate.” Luminar now operates 55 venues nationwide.
SSP transforms Pumpkin station sites into Starbucks: SSP has turned two of its Pumpkin station coffee bars, in Woking and Stockport, into Starbucks outlets. The Pumpkin store on platform five at Woking station in Surrey reopened as a Starbucks on Monday, and the Pumpkin at Stockport station, Greater Manchester, between platforms one and two, is due to reopen as a Starbucks on Sunday 13 October. SSP said the conversions "mark a new chapter in [the company's] relationship with Starbucks as it continues to open sites in high footfall areas such as airports and railway stations." All staff from the existing Pumpkin branches will transfer to the new Starbucks stores after training to "replicate the Starbucks philosophy and values". Matt Sikes, VP for business development at Starbucks EMEA, said: “These new sites represent a great opportunity to bring Starbucks to new places."
Las Iguanas reports big turnover and profit increase, eyes 100 sites: Las Iguanas, the company headed by Eren Ali and controlled by Bowmark Capital, has reported turnover rose to £40.95m in the year to 30 March, up from £33.8m the year before. Pre-tax profit was £3.92m, up from £2.83m. Companies House documents report the company saw like-for-like sales well ahead of the sector. It opened three sites in the year (Cambridge, Kingston and Aberdeen) with two more, Plymouth and Cheshire Oaks, in its first financial quarter. Five more are planned during the remainder of the current financial year. All new openings exceeded “uncompromising" ROCE targets. The company reported that it sees the opportunity to grow beyond 100 sites.
Douglas Jack – we suspect Domino’s saw double-digit sales growth in September: Numis Securities leisure analyst Douglas Jack has issued a buy note on Domino’s with a target price of 710p. He said: “Quarter Three like-for-like trading was ahead of our expectations, with UK like-for-like sales up 4.0% despite the hot, sunny weather (particularly in July). August-September like-for-like trading was “strong”, which usually means close to double-digit LFL sales for Domino’s, providing excellent momentum to carry into Q4, a period for which our consensus-in-line forecast assumes no LFL sales growth. Full-year guidance of 50 new stores is line with our forecast; of these, six should be in new formats (transport hubs, mobile and university). We are holding our 2013E forecasts (which assume just 4% LFL sales and 18bps margin growth in the UK). We believe attention should soon focus on 2014E, for which we believe our consensus-in-line estimate of 21% earnings growth could be upgraded to circa 27% if UK expansion picks up slightly and the German stores convert to franchised as scheduled." Meanwhile, Wayne Brown, of Canaccord Genuity, issued a sell note, with a price target of 480p, arguing that the Quarter Three results raise “even more concerns” about the company. He said: “ The group is reducing its store openings target by 17% this year with only 23 new units having opened YTD and the total in the UK now expected to be 50, versus previous guidance of 60. Moreover at least six of the 23 units are not traditional stores, having opened in petrol stations, and a large percentage of the rest are area splits. In a retail market where new site opportunities should be benefiting the group, and every other retail/leisure company is increasing openings, we are increasingly concerned why Domino’s is missing its opening targets again.”
Tragus chooses Tahola for business intelligence system: Tragus, operator of Café Rouge, Bella Italia, Strada and Belgo, has chosen the hospitality specialist Tahola for the support and continued development of its QlikView Business Intelligence solution. Tragus's IT director, Derek Risk, said: “We have been using QlikView for sales analysis from our Micros EPoS system but as we look to increase our use further throughout the business, we felt that we really need support that goes beyond the technology itself. Tahola’s experience and expertise in our sector and excellent understanding of our business model meant that they were our first port of call.” Tahola is already working with Tragus to develop faster, better reporting. The first stage is a weekly reporting pack which will be the “go to” place for Tragus head office, area and restaurant managers. It will enable them to see at a glance how they are performing across a number of business metrics at a restaurant, area or group level.
Orchid plans to build on success of Halloween: Managed pub company Orchid is planning to build on the sales success of Halloween in 2012. Last year’s 31 October saw record sales at the Orchid Group, up by almost half on the previous year. Julie Wright, area manager for Orchid’s Carveries, said: “Halloween’s popularity has soared to new heights. People are willing to loosen the purse strings for a spooktacular Halloween, and we go all-out to help them celebrate.” Last Halloween, every sub-brand within Orchid saw growth of at least 20%, with Great British Carveries' sales growth the highest overall, at 92.9%. Wright said: “Many Carvery pubs did children’s Halloween parties for the first time – these were a huge success.” Simon Dodd, Orchid’s commercial and people director, said: “One of the biggest advantages of Halloween is that it’s not weather-dependent. In fact, the colder and darker it is, the better. The key to Orchid’s Halloween success lies in a range of parties and activities that are hands-on and encourage customers to stay in the pub for longer. Many of our pubs turn Halloween into a week long ‘Halloweek’ event. It’s great fun, encourages customer loyalty and really drives sales for us.”
Eclectic acquires InnBrighton site in Brighton: Eclectic Clubs & Bars the premium bars operator, has acquired Coalition in Brighton, East Sussex, from InnBrighton, the South East regional pub group led by Gary Pettet and Gavin George. The 600-capacity club, in the Kings Road Arches on the seafront, is open five nights a week from 11pm until 3.30am and is regarded as one of the town’s leading music venues. The club employs around 60 full and part-time staff, all of whom will join Eclectic. In Brighton, Eclectic also owns Lola Lo, the Polynesian-themed nightclub on East Street, and the adjacent Madame Geisha, which will be redeveloped into the first of a new cocktail bar and restaurant brand, Dirty Blonde, in 2014. Eclectic's chief executive, Reuben Harley, said: “Coalition is highly successful. It trades extremely well and we have no plans to make any changes to its operational policy. It’s a perfect fit with our existing venues and we are happy and proud to welcome the club and its excellent team of management and staff to the Eclectic family. The acquisition reinforces the company’s stated policy to expand at the rate of around three sites a year. We are always on the look-out for good businesses to add to our estate. While we will, of course, continue to expand organically, we see acquisition as a major route to growth.”
InnBrighton to concentrate on growth of pub estate: InnBrighton, the 45-strong pubs and bars group, has announced it is to concentrate on growing its business by developing an estate of "unique public houses". The announcement came as the company sold its Coalition nightclub in Brighton to the late-night bar operator Eclectic Bars. InnBrighton's chief executive, Gavin George, said :"We have made a strategic decision to reduce our involvement with the late night club market, and this has resulted in the sale of one of our seafront clubs.” Some of the proceeds of the sale of Coalition will be invested in acquiring more pubs for the company’s Brighton estate, at the same time as it pursues its aim of opening up to five pubs a year in London. Its recent acquisitions include the North Laine pub and brewery in Brighton, the Candlemaker in Battersea, South London and the Freemasons in Hove. In August, InnBrighton announced it was taking a lease on the former Redback Tavern in Acton, West London, which will be relaunched in November as The Aeronaut.
Luminar to debrand another site after £350,000 investment: Nightclub company Luminar is to invest £350,000 in debranding its Liquid & Envy site in Romford. It will be called Fiction when it re-opens on 25 October. General manager James Hall said the new name is in keeping with the building’s past: “This is a great building with a strong heritage and we wanted to come up with a new name that had some relevance to its past. The investment will maintain all of the art deco features and compliment them with incredible lighting and video, mapping making the very best of an amazing venue.”
KFC seeks to open on 'mosque pub' site: An application has been made to bulldoze a pub in Sheffield that almost became a mosque and turn it into a KFC restaurant. Alison Roland Town Planners has submitted an application to demolish the former Pheasant pub on Barnsley Road, and build a restaurant at the front of the site, with a 49-space car park at the rear. The new building would have stone walls and a red aluminium entrance, with large windows looking out onto Barnsley Road. The application says the restaurant would make a "positive contribution" towards redevelopment of the area while creating several dozen jobs. The pub was the subject of an application to turn it into a mosque, though the group behind the mosque idea later pulled out because they could not afford the building’s £330,000 asking price.
Pullen sells Kent site to Redcomb Pubs: Serial entrepreneur Terry Pullen has sold the Bickley in Chislehurst, Kent, through agent Davis Coffer Lyons, to Redcomb Pubs, the company led by the former Mitchells & Butlers marketing executive Dan Shotton. The disposal comes after the recent sale of three other venues and is part of a wider strategy to concentrate on growing the Bloomsbury Ballroom in Bloomsbury Square, central London, which Pullen purchased in 2012, and consultancy projects. The art deco ballroom provides 15,000 sq ft of multi-disciplinary event space with a capacity of 880 people standing, 500 for conferences and 300 seated for dining, and can be used for a wide range of events from weddings and bar mitzvahs to fashion shoots and product launches. Pullen said: “Since purchasing the Bloomsbury Ballroom we have been oversubscribed by both organisations and individuals wanting to use our unique space. Nowadays, people have a very clear idea of how they want their event to look and feel. Our truly bespoke service, which doesn’t restrict guests in terms of suppliers, menus or themes, ensures it turns out exactly as they imagined. We are currently on the look-out for other similar venues in the capital which we intend to operate as a similar format events venue.” Chris Bickle of Davis Coffer Lyons said: “After hearing of their success at the Station Hotel in Hither Green, I knew Redcomb Pubs would be the perfect operator for the Bickley and ideally suited to build on the success Terry has enjoyed over recent years at this marvellous venue.”
Loungers lists Zeo: The café bar concept Loungers has listed Zeo, the new, all-natural soft drink launched by Freedrinks, across its 38 Lounge and Cosy Club venues. Loungers co-founder Jake Bishop said: “There’s a great deal of synergy between our approach and that behind Freedrinks. We wanted to create somewhere we wanted to drink personally. That meant doing things our way and not being afraid to be a bit different. If we liked it, we figured other people would like it, too, and we’re happy to say that Zeo takes the same approach.”
Topless baristas get green light: Coffee shops in Spokane, Washington State can continue offering "topless Tuesdays and Thursdays", after the city's council rejected a proposal to ban lightly-clad baristas. The attempted cover-up came after three espresso stands in and around Spokane, where the female baristas dressed only in bikinis, began twice-weekly topless sessions. The owner of the stands, Sarah Birnel, told her local newspaper: "I feel bad people are offended by it," but from a business standpoint, it would be “stupid” to stop: “It’s twice as busy.” Baristas told the newspaper they go home with at least $80 (£50) each in tips from every five-hour shift, on top of their wages. On Monday Spokane City councillors voted 4-2 against modifying local unlawful public exposure laws to force the baristas to cover up.
Benito’s Hat unveils fifth opening: The Mexican kitchen and bar group Benito’s Hat will open its fifth restaurant on the former Piada site on St John Street, Farringdon, central London in early November. Its other restaurants are located at Goodge Street, Covent Garden, Oxford Circus and Kings Cross in London, but this will be its first venture into the City. The 1,200 sq foot restaurant designed by Dover Designs will seat up to 40 diners for breakfast, lunch and dinner. The Farringdon outlet will be the first in the chain to have a new food creation counter dedicated solely to servicing electronic orders. For the first time, customers will be able to pre-order for collection or delivery via a multitude of platforms: online via the website; the new in-store ordering screens; or by downloading the new Benito’s Hat mobile app, which is due to launch in tandem with the restaurant opening.
Tiggis seeks to turn ex-pub site into restaurant and homes: The Lancashire-based operator Tiggis, which runs Italian restaurants in Preston, Blackburn and Lytham St Annes, is set to open an outlet on the site of a former Burnley pub. Plans for a Tiggis restaurant and 10 three and four-bedroomed houses with parking on the site of the Bull and Butcher in Manchester Road, which has been empty since its last incarnation, as an Indian restaurant, closed three years ago, have been submitted to Burnley Council by Lugano Developments. In its submission to the council, the developer said: “The building forms a gateway into Burnley, as it is the first building visitors pass upon entry into the town. This presence of the building creates sense of place and is an important landmark within the town. Fundamentally the design concept is to reinstate the Bull & Butcher building to its former standard and stature within the local community. Incorporating a neighbouring mid to high range, high quality residential development and landscape buffer will create an interesting and imposing elevation upon entering the gateway into Burnley town." If the application is successful, the Burnley restaurant will bring Tiggis back to four restaurants for the first time since its Bolton restaurant closed after 27 years, in 2009, at the height of the recession. The company was founded in Preston in 1978 by Lino Della Pesca.
JD Wetherspoon ups the ante with free coffee refills and longer food hours: JD Wetherspoon will raise the food ante with the launch of a new menu next week (9 October) that will see food served an extra hour until 11pm and free coffee refills until 2pm. The extended food service hours mean the company will be serving food for 15 hours each day, starting with breakfast at 8am, and the purchase of a single cup of coffee will allow limitless refills. Wetherspoon is also launching a new meal club, the Chicken Club, offering char-grilled peri-peri chicken on a Wednesday between 12 noon and 11pm, with new dishes including ten spicy chicken wings and new combos that offer meat or fish options to be added. The company has also expanded the number of dishes for calorie counters, with 18 under 500 calories, including a pasta pomodoro dish and a skinny chicken breast burger. New main course dishes include a chicken and ribs combo, a new salmon salad and a pulled pork sandwich. Wetherspoon added a gourmet hot dog to its menu at the start of the year. At its results in September, chief executive John Hutson told Propel that the menu item was “still finding its feet”. However, the company is adding a new barbeque hot dog, topped with a half portion of pulled pork and grated cheese, and a new Mexican hot dog, served with cheese, salsa, guacamole and chilli peppers, to the menu. Each features a foot-log hot dog served with six onion rings. Wetherspoon’s gourmet foot-long hot dog is smoked over beechwood with onion rings, sweet American mustard and chips. The breakfast menu has been extended with Greek yoghurt, a bagel with cream cheese and a smoothie that contains a pound of fruit – 74 blueberries, five blackberries, more than three apples and just under two bananas. At the September results announcement, founder Tim Martin reported food sales at each Wetherspoon pub had increased from around £1,150, or 10% of average weekly takings of £11,500 per week, on flotation in 1992 to around £11,000 per week per pub now, on average weekly takings per pub of £34,000 (including VAT). Average food takings vary dramatically. A total of 75% of sales at the company’s pub in Fort William now come from food, while the figure is 70% at its pubs in Louth, Lincolnshire and Lymington. Wetherspoon is on track to record £400m of food sales this financial year. In March this year, ribs, peri peri chicken and southern fried chicken also made their menu debuts. A Tennessee Burger served with a Jack Daniels glaze and a chicken burger and a honey glaze gammon steak were also new to the offer this year. Other key innovations have included a cheesy pasta, spaghetti bolognese and a banana split on the children's’ menu. The Indian Club menu, offered between noon and 10pm on a Thursday night, has a new "Indian Sharer" dish and a poppadum tower. The company’s Sunday Club added a large char-grilled roast half chicken in the March menu change.
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