Hospitality tips rise 2.1%: Tips in the UK hospitality industry are up 2.1% year on year, according to the management solutions software provider Fourth, at a time when wages in the hospitality industry rose 3.1% on average and the rate of inflation was 2.8%. The figures were presented by Paul Watson, Fourth’s customer success manager, during Fourth’s Customer Conference 2013 at the British Museum in London yesterday. Using anonymised figures from Forth’s “hospitality universe”, covering its more than 1,000 client companies, Watson told delegates at the conference that the average sales per labour hour among companies on Fourth’s database is £34, with a low of £19 and a high of £97. The average main dish gross profit is 73%, with a low of 63% and a high of 82%. Peroni is the most popular bottled beer, selling twice as much as its nearest rival, Tiger, at an average price of £3.48 a bottle, with a low of £2.80 and a high of £7.35. David Johnson-Vuarraz, Fourth’s head of product management, told delegates that the average pay for bar staff, according to Fourth’s database, was £6.62 an hour, while kitchen workers were on £6.98 an hour. Among those employees who had worked for their company less than six months, the average wage was £6.30, while for those who had worked for a company for five years or more, the average was £7.06 a year. Turnover among hourly paid workers was 92% a year, on average, against turnover of 37.1% among salaried staff. Johnson said 48% of the hospitality workforce was aged under 29, against 18% in the UK as a whole, and the average age of the UK hospitality workforce, according to Fourth’s figures is 32. Hourly employees took an average of 6.18 days a year off “officially” sick, with another 2.5 days on top of that of “unauthorised” sickness.

Tim Martin – “I’m right to debate the VAT campaign publicly with Andrew Griffiths MP”: JD Wetherspoon founder Tim Martin has argued, in the company’s magazine, that he has been right to debate the industry’s campaign to reduce VAT with Burton MP Andrew Griffiths, who has been negative about its prospects for success. He said: “I have been advised by some lobbyists and spinners (not by my own publicist) that my arguments with him have been ‘unhelpful’ and ‘counterproductive’, since they will ‘wind up’ Mr Griffiths and this will make life worse for pubs in general. In my opinion, this is unlikely to be true. We have brought, and will continue to bring, to the attention of the public the disparity between the tax treatment of pubs and that of supermarkets and strongly believe that the public is intelligent enough to understand our arguments and to accept or reject them. We are quite happy to bring these arguments, in particular, to the attention of the voters of Burton and Uttoxeter. They may agree with us or, on reflection, they may think that we have it wrong – what people won’t say, I’m sure, is that the arguments should not be put forward for them to consider in the first place.”

Living Ventures joins the ALMR: Manchester-based retailer and operator of the newly-opened Manchester House restaurant, Living Ventures has joined The Association of Licensed Multiple Retailers (ALMR). Living Ventures operates 31 sites, predominantly across the north of England including The Oast House, Australasia, The Alchemist, Gusto, Blackhouse, Artisan and The Botanist. The addition of Living Ventures into membership highlights the broad spectrum of companies represented by The ALMR. Living Ventures Tim Bacon said: “Living Ventures has grown by investing in people and property and The ALMR is committed to protecting retailers like ourselves from interventions that diminish our ability to grow, re-energise communities and create jobs. We look forward to working with The ALMR and other members to articulate the huge value we add to government.” ALMR chief executive David McHattie said: “Living Ventures operates a great range of diverse and exciting brands throughout its portfolio. The mixture of concepts from The Oast House to the fine dining at Manchester House is indicative of the quality and originality of this dynamic vibrant sector. Living Ventures are an excellent example of the growth and proper sustainable jobs that are generated – even in challenging economic times.”

Mojito retains crown as UK’s favourite cocktail: The Mojito has retained its crown as Britain’s favourite cocktail with 21% of females and 23% of males choosing the Cuban classic, according to research by CGA Strategy. The category is also in growth of +3.9% compared to last year. Director of CGA Peach Scott Elliott said: “Well-conceived and delivered cocktails can also drive footfall early evening, with 57% of cocktail consumers saying they choose this category to start their night, with this figure rising to 69% of the core female consumer.” Growth is not only driven by the higher end bars but also more traditional pubs with the number of pubs stocking cocktails increasing by a third compared to 2012. Elliott added: “Making efforts to target the early evening occasion can pay dividends, with 87% of customers saying they’d be more likely to visit a bar running a cocktail promotion – though 52% added that such a promotion would only be an influence if run at a venue they would consider going to anyway. Clearly, the broader brand image must always come first.”

Tim Foster – more industry awards should be dedicated to people: Tim Foster, founder of innovative four-strong Yummy Pub Company, has argued that more industry awards should celebrate the role of staff. He said: “Instead of ‘best smoking area’, an award should be created for ‘best team’, ‘best pot wash’ and ‘best runner’. Thankfully, this year more awards have appeared in the various categories, but there is still a very, very long way to go. A token award here and there is great, but let’s dedicate an entire awards ceremony to people – wouldn’t that be novel?”

Ruby Tuesday reports 11.4% like-for-like declines: The 703-strong US Ruby Tuesday has reported a net loss of $22.2 million during its first quarter, driven by like-for-likes sales declines of 11.4% at company-owned restaurants and 8.4% at franchised restaurants. Chief executive James Buettgen said the chain benefited in the last three weeks of its quarter from positive reception of the pretzel burgers, flatbread appetisers and green bean tempura. But brand repositioning would be slow to show results, he added. The company also has 75 franchised units.

Fleurets advise ITV on sale of The Rovers Return: Property agent Fleurets has provided advice to an ITV researcher on an up-and-coming storyline that involved the sale of The Rovers Return on Coronation Street. Whilst the vendors, Stella and Gloria Price, are fictional, they wanted to ensure the storyline was accurate, turning to Fleurets for advice on a realistic asking price – £150,000. Ian Taylor, of Fleurets, said: “We were asked to assume The Rovers Return was a genuine property and asked to provide a market appraisal for the freehold that had recently undergone a full refurbishment after being fire damaged. We carried out our market research and provided our recommendations on the asking price based upon the location, size and trading potential. We were also able to provide the researcher with evidence of other similar pubs that Fleurets have recently sold in the Manchester suburbs.”

Hard Rock Cafe reports slight turnover and profit erosion: Hard Rock Cafe UK, owned by the Seminole Tribe of Florida, has reported turnover and profit were both slightly down in 2012 after merchandise sales slipped by £1,140,000 to below the £10m mark. Turnover was £20,078,000 compared to £20,842,000 the year before. Pre-tax profit was £5,020,00 compared to £5,288,000 the year before. The business served 477,716 customers in the year at an average spend of £23.35 (2011 saw 481,186 customers at an average spend of £22.37). There were 329,508 merchandise transactions at an average spend of £28.71 (2011 saw 360,856 merchandise transactions at an average spend of £29.11). Gross profit after labour costs was 55.2% compared to 55.5% in 2011. Operational performance was driven by “continued positive tourism inflows into the UK”, the company stated. Sales of food and beverage generated £10,757,000 of income (2011: £10,382,000) while sales of merchandise produced £9,321,000 of turnover (2011: £10,460,000). Hard Rock Cafe will open a venue in Glasgow’s former Athenaeum Theatre near the top of Buchanan Street, in mid-November. Exhibits on show at Glasgow’s Hard Rock include a velvet schoolboy outfit worn by Angus Young, the Glasgow-born AC/DC guitarist, and an artist’s palette used by the ‘fifth Beatle’, Scottish-born bassist Stuart Sutcliffe.

Oxford Itsu serves 10,000 customers in the first week of trading: The first Itsu outside of London, opened in Oxford at a cost of £1m, served 10,000 customers in its first week of trading. Itsu founder Julian Metcalfe said: “The excitement and interest we’ve seen since opening has been extraordinary. We’re thrilled with the numbers so far.”

Wetherspoon customers dish out bouquets and brickbats: JD Wetherspoon has published another update, in its company magazine, on the areas where its customers are pleased and displeased. The company reported that customers vented their anger at: CAMRA vouchers (“it seems there is still some inconsistency about those vouchers around which pubs will and won’t accept vouchers from CAMRA members”), drinks upgrades (“more customers want a wider drinks upgrade on the company’s club deals”), cold plates (“fewer comments than before, so we are, hopefully, making progress, but appreciate we need to get this right 100% of the time”) and silent sport (“you love the live sport at Wetherspoon, but ask for at least one screen to have volume”). One customer, referring to an article in the last edition on the in-house magazine that covered Wetherspoon’s property fraud litigation, accused the company of a blatant sausage fraud in replacing three sausages with two in its sausage and mash meal. Founder Tim Martin said: “Last autumn, we switched to two larger pork, leek and chive sausages. However, owing to popular demand, we have now switched back to three slightly smaller Lincolnshire sausages. Our quest for the perfect sausage continues.” Customers praised the company’s cider festival, filter coffee plus hotel standards and value. 

Brothers buy Botanic Inns package for £4.3m: Brothers Seamus and Henry Downey have bought six pubs in the former Botanic Inns portfolio for £4.3m. The sites include The Kitchen Bar at Victoria Square, The Parador on Ormeau Road, Molly Brown’s in Newtownards and Ryan’s Bar on the Lisburn Road. The brothers also own The Sugar Club in Derry and Downey’s Bar in Magherafelt. The Botanic Inns group – comprising Botanic Inns and Kurkova – went into administration earlier this year with debts of around £14m.

Castle Rock opens its first world beers bar “because drinkers have become more eclectic”: Nottingham brewer and retailer Castle Rock has opened its first world beers bar – The Hop Loft above The Swan in the Rushes in the heart of Loughborough’s student quarter. Castle Rock managing director Colin Wilde said: “I was 23 years old when I moved to Loughborough and while living and working at The Swan in the Rushes, our unique selling point was our wide choice of real ales served in great nick. In Loughborough, we had the real ale market to ourselves and we excelled. Cask ales remain fundamental to us and it’s exciting that today’s 23 year olds are discovering beer for themselves in a big way. This venture is a natural extension for us – we keep our passion for beer and recognise that consumers are more eclectic than ever before. Our aspirations on the supply side are matched by consumer demand and we hope not only to meet this, but also take a new generation of beer drinkers with us.” The Hop Loft has six craft keg beers on draft including Castle Rock’s own Ikaheka IPA, complemented by over 125 different bottled beers from the UK, Europe, North America and further afield. The Hop Loft bar will be opened on Thursday, Friday and Saturday evenings in the refurbished upstairs suite at The Swan.

Michelin-starred couple buy village pub: Steve and Serina Drake, of Drake’s Michelin-starred restaurant in Ripley, Surrey, are part of a consortium that has bought the picturesque Anchor in Ripley High Street off an asking price of £600,000 in a deal handled by AG&G. It will become an upmarket village pub to complement their award-winning fine dining restaurant. “The Anchor will be a completely separate business from Drake’s,” said Steve. “We do not intend to create a gastro pub – rather a friendly, very special and relaxed, family-oriented village pub serving simple but creative pub food, together with good ales and a range of interesting wines, all at very affordable prices. We have some great suppliers that we have been working with for years to get amazing local and regional products, so it is a very exciting project for us all.” The building will undergo a simple refurbishment and should be open within the next month. It also offers on-site staff accommodation that can be used by both businesses. “Ripley is at the heart of the affluent Surrey commuter belt, close to the Royal Horticultural Society gardens at Wisley and close to junction 10 of the M25 – it couldn’t be more ideal for a food-led pub from a culinary star, especially as the High Street is already a hub for bars, restaurants and cafes,” added Michael Penfold of AG&G.

Enterprise Inns appeals over ‘Trojan horse’ pub extension: Enterprise Inns is appealing over a planning application for a pub extension rejected by local councillors who said it was simply a ‘Trojan horse’ designed to make the site easier to sell to Tesco. The pub company looked to sell The Bristol House in Weston, Somerset to Tesco last year, and plans for an extension to the premises were rejected by councillors a year ago this week, who expressed fears that the building work was to encourage Tesco to buy the building. The planning application was described as a ‘Trojan horse’, promising to create a bigger pub but actually opening the door for the supermarket chain. Councillors rejected the application on the grounds of a lack of car parking and the impact on road safety. The pub reopened after the failed planning application, but closed again in June, Now an appeal against the planning rejection will be heard next month. North Somerset Council planning and highways officers have written to the independent inspectorate to say the appeal should be rejected.

Village’s last surviving pub promised ‘major refurb’ if tenant found: Star Pubs & Bars has promised a major refurbishment for the Grade II Listed White Bull Hotel in Gisburn, Lancashire, the last surviving pub in the village, once a new lessee is found. A spokesman for Star Pubs told The Lancashire Evening Telegraph: “We intend to completely refurbish The White Bull, transforming it into a great pub with letting accommodation offering excellent food. The work on the pub will include upgrading the kitchen and refurbishing the letting rooms. The design details are still to be finalised and work will not commence until we have a new lessee on board. We are currently talking to a couple of interested parties and would like to commence work in early 2014, subject to planning and any other statutory requirements.” The chairman of Gisburn Parish Council, John Falshaw, said: “I think it can only be a good thing that the owners are trying to keep the pub open, because it has been struggling for the past few years. Less and less people are going into the pub each year and it really does need work done to it.”

Whitbread marketer – we can learn from behavioural psychology: Whitbread’s head of loyalty David Oliver has suggested that fellow marketers can make use of behavioural psychology to predict the customer behaviour that affects their actions and decisions. Speaking at Jump, part of the Marketing Week and Econsultancy Festival of Marketing in London, Oliver said: “Psychology is teaming with potential for us in marketing, if we can work out how to apply it and understand how consumers make decisions.” He referred to the example of “social proof”, a behavioural psychology where a person’s actions and decisions are influenced by those around them. He claimed that humans are very vulnerable to making automatic instinctive decisions based on what others around them are doing. “Humans are configured to be lazy and make the quick, easy decision. We are all open to influence and one of the key sources of that is how people around us behave. We can play to that as marketers,” he added.

Hi-Spirits welcomes Defra ruling: Hi-Spirits, distributor of the Antica Sambuca range, has welcomed a DEFRA ruling confirming that it is legal to sell flavoured Sambuca under the EU Spirit Drinks Regulations, provided it is correctly labeled. DEFRA launched an investigation earlier this year after being asked to rule whether only clear spirit could be labeled as Sambuca. The EU regulations describe Sambuca as a “colourless aniseed-flavoured liqueur”. Following representations from Hi-Spirits, DEFRA has now issued new guidelines to Trading Standards. This confirms that it is legal to use the term on flavoured and coloured Sambuca, provided it is used as part of a compound term, such as “Sambuca with raspberry flavour”.

Geof Collyer – we reiterate out ‘Hold’ advice on Marston’s shares: Deutsche Bank leisure analyst Geof Collyer has reiterated his ‘Hold’ recommendation on Marston’s shares with a Price Target of 120p a share. He said: “Despite its rise yesterday, the share price is back to where it was last week before a number of downgrades caused some uncertainty ahead of the year end IMS. However, short to medium term expectations are now lower and we see the shares continuing to drift downwards as consensus forecasts – once adjusted for higher disposals – are likely to show low single digit profit before tax and earnings per share growth for FY’13E-FY’15E. Trading is in line but all growth just from Destination & Premium Retail: (68% of managed pubs, 75% of retail sales, circa 35% of group EBITA). Like-for-likes of +2.2% were slightly better than we had expected. In the total managed estate like-for-likes were +1.7% for the year, just below our +2% forecast for the retail business before the restructuring. Despite the geographic overlap, Marston’s doesn’t seem to have seen the same like-for-likes decline as Mitchells & Butlers during September. The new-build programme, which seems to be driving virtually all of the group’s growth, is to be accelerated slightly, funded by higher disposals (200 versus 100 tenancies a year). This sensible recycling of capital will be initially dilutive, as there is bound to be a lag between cash in and its reinvestment.”

Texan BBQ launches pop-up site: Dragon’s Den star Joe Walters has launched a pop-up Texan BBQ at the Brewdog site in Shoreditch. Texas Joe’s BBQ will serve a full range of smokin’ Southern delights including slow-cooked brisket, beef ribs, chili-dogs and fresh cornbread. The company plans to open a series of standalone restaurants in the coming months. Walters secured the offer of a £50,000 investment from Peter Jones as a result of Dragon’s Den but turned it down. However, Brewdog co-founder James Watt saw the potential in the Texas Joe’s brand and invested. Walters said: “Since appearing on the show, the response to our Texan jerky has been so phenomenal that we knew we had to expand our offering and bring a little South hospitality to London. With our first pop-up BBQ joint we’re giving people a taste of authentic Texan BBQ and we know they are going to love it.”

Papa John’s celebrates 1,000 international store landmark with event in London: Papa John’s held a celebration event in London this week to mark reaching the 1,000th international restaurant milestone. The celebration featured Papa John’s founder John Schnatter. He said: “We are very pleased with the steady growth of Papa John’s in the international arena over the last 15 years. Papa John’s first restaurant outside of North America opened in Mexico City in 1998, and just 15 years later, the brand’s 1,000th restaurant opened in Moscow, Russia this past July. Currently, there are 4,300 Papa John’s restaurants in 35 countries and territories, 1,045 of which are located outside of North America.” Said Tony Thompson, Papa John’s president: “International development is the long-term growth engine for Papa John’s, and we will continue to bring a better pizza experience to more and more consumers around the world.”

Zizzi freehold is sold for circa £1.1m: The freehold of the building occupied by Zizzi in Beaconsfield, Buckinghamshire has been sold by agent Christie + Co for circa £1.1m. Let to Ask Restaurants Limited at a current passing rent of £85,000 – with 20 years of a 30 year term remaining – the freehold was sold to a local private investor for a price which earns a net initial yield of just under 6%.

Greene King executives granted shares: Greene King has reported that senior company management have been granted shares under the company’s performance share plan. Those receiving shares were: Rooney Anand (137,260); Matthew Fearn (86,580), Chris Houlton (43,798), Steve Jebson (45,512), Richard Lewis (45,512), Simon Longbottom (64,744) and Jonathan Webster (68,554).

Upmarket Manchester wins licence reprieve: A Manchester nightclub, The Circle Club, that was shut down after a brawl has been given a reprieve. The plush venue, popular with footballers and celebrities, stopped trading for almost a month after a fight involving about 20 people. The upmarket nightspot off St Ann’s Square will relaunch on Saturday night. Three bouncers needed stitches and six people were arrested after trouble broke out at the club’s Candypants event on 8 September. Town hall bosses suspended the bar’s licence after the fight and the club’s future hung in the balance.

Family brewers launch recruitment website: The Independent Family Brewers of Britain (IFBB), which currently operates around 4,100 pubs in the UK, has added a dedicated recruitment microsite to its revamped website (www.familybrewers.co.uk), allowing would-be licensees to locate available pubs countrywide with ease. The new microsite features details about all of the Family Brewers member pubs in Britain currently available to run. Those looking to become a licensee can search through the available establishments according to county area. This allows them to look at all the options in a specific area and compare between different pubs. Each listing features basic information about the vacancy, and offers the ability to click through directly to the relevant brewer to apply or request more information. This recruitment microsite is the latest addition to the Family Brewers’ new website, which went live recently. The website now benefits from an improved new look and feel, with greater detail about each brewer and more emphasis on imagery of Family Brewers’ pubs, and a tourism section so visitors can find local brewery tours. James Staughton, chairman of the IFBB, said: “The Family Brewers’ new recruitment microsite enables would-be licensees to quickly and easily locate vacant pubs by their ideal location. Furthermore, as our members can upload their vacancies themselves, it ensures the website constantly features the very latest opportunities, encouraging more and more people to come and be part of the IFBB family.”

Wetherspoon launches children’s game app: JD Wetherspoon has launched an exclusive children’s game app to tie in with the launch of its new children’s menu. The free game can be accessed via a QR code on the front of the children’s menu in each of the company’s pubs across the UK. The game, Bodswap, can be played on an iPad and will be available on iPhone from late November. Bodswap, described as an interactive, family based drawing game, can be played by one or more people or with others who are connected to the app, in real time. Wetherspoon’s marketing manager Marc Saunders said: “Our children’s meals are more popular than ever and we want to keep our young customers entertained while they are enjoying them. Bodswap is a great way for children, and the adults with them, to play a fun game while they’re at a Wetherspoon pub. The app is exclusive to Wetherspoon and free to use for our customers. We are confident that it will be a great success.”

Harry Ramsden’s reports increased losses: Fish and chip shop chain Harry Ramsden’s, led by Joe Teixeira and owned by Boparan Ventures, has reported increased pre-tax losses of £2,446,632 in 2012 (2011: £2,129,019) as it exited six of its sites in the UK – two more sites have been exited in 2013 and it now operates 20 restaurants. Turnover in 2012 was £13,957,626 compared to £15,707,934 the year before. It stated: “The company has made great progress since the balance sheet date in turning around the financial performance of the business, the benefits of which will be seen fully in the 2013 results. The disposal of six loss-making sites in 2012 and operational improvements has moved the business to a position where it is generating cash and is now looking to improve profitability through targeted investment in its core estate, together with expanding its franchise operations, and licensed retail range under third party agreements. Internal controls have been enhanced to benefit from efficiencies of scale. The supply chain has been overhauled, providing future capability and improved margin. After a slow start due to unfavourable weather in the first four months, 2013 has shown excellent growth supported by considerable investment in the flagship store in Bournemouth.” The company incurred £1,350,000 of recharged management costs from its parent company Boparan Ventures in 2012. Management accounts for the period ended 31 August 2013 show turnover of £8.8m and loss before tax of £303,000 after £40,000 of cost in closing two sites. Budgeted turnover for the year ending December 2014 is £14.39m and profit of £812,000 before group management costs. The company has negotiated additional finance facilities of £500,000 this year. Franchising and licensing income last year was £461,559 compared to £355,175 the year before. In July, Teixeira told Propel that the company is in talks with a number of franchisees and a major pub group that could lead to rapid expansion of the brand. It is understood that the company is in discussions with a FTSE250 company with a managed and leased estate over licensing the brand for its leased division. In addition, the company is understood to be close to signing a franchisee for the Yorkshire territory with a view to opening 50 sites over five years. The company opened a flagship site in Bournemouth that has seen a £1m refurbishment, creating the largest fish and chip shop in the world with 417 covers. The refurbished Bournemouth site showcases both the company’s restaurant and takeaway format and is expected to take £200,000-a-week net of VAT.