Milestone Spirit pub conversion for Punch

Punch Taverns announced what it called "a significant milestone" this week, with the completion of its 100th conversion from Spirit managed to leased pub operation.

Phil Pegler, Punch's director in charge of the conversion process, said he was "delighted" with the transfer of the Jubilee, a wet-led community pub situated on Canvey Island, to its manager of 10 years.

It was a move that marked a significant chapter in the on-going programme to convert around 750 former Spirit sites to leased premises, he said.

Punch revealed that, in addition to the 100 conversions already signed off, it has a further 100 currently in the legal pipeline with completion due in the coming months.

Some of the 100 completions - from a total of 458 pubs offered so far - came with a premium over and above fixtures and fittings, the company said.

Average lease agreements were for 14 years, Pegler said, with 25 per cent of lettings going to existing bar managers.

Eighty-five per cent of these pubs are on upwards of £2,000 per week, he added.

New food supply arrangements, plus EPoS till systems and financial training were being rolled out as part of a package of support measures for new tenants, Pegler said.

Some of this is mandatory; for example, tenants must attend a two-week business training course run by the company.

"We have to be sure we get the right people in," said Pegler, "and we need to convince a potential licensee he can make money."

Some newcomers wanted to premiumise the pub once they'd taken over its lease, he said, while others want to keep them as value-for-money offerings. "It's down to the licensee," he explained.

The group is this week launching the third and final phase of its conversion process, releasing a further 266 pubs, which include 48 City pubs and taverns, 34 Qs, 28 John Barras and 120 community locals, with average turnover amounting to £504,000 a year on average annual barrelage of 519.

There would be some redundancies among staff and management running the sites, although the group wouldn't comment on the scale of job losses.