Merchant Inns chairman Robert Breare is a serial hospitality-
industry entrepreneur with a penchant for upmarket foodie pubs.
He shares some of his trade secrets with Lucy Britner
If you look up entrepreneur in the dictionary, you might find a picture of Robert Breare.
For three decades, Robert has been a
hospitality-industry heavyweight. After launching Malmaison in the early '90s he held the position of CEO with pub groups Noble House and InnSpired. Since November 2005, he has been chairman of Merchant Inns. The company currently operates six pubs. The most recently opened is the Talbot, in Ripley, Surrey, where the company plans to spend £3m refurbishing and adding bedrooms. From fine dining to foodie pub, Robert knows his onions.
How did you end up in the pub industry?
I have always been fascinated by the food and beverage side of hotels and could never see why hotels couldn't have successful restaurants. At Malmaison we proved it was possible. I love top-end hospitality and I understand the top better than the bottom. The decision to go for pubs evolved naturally in some ways, but with strict criteria. In my opinion, there's no connection between the financial dynamics of a tenanted spit-and-sawdust pub and a managed upmarket foodie pub.
So does Merchant Inns' success result from your tight shopping list?
Yes, definitely - but it isn't hard to find sites that fit our criteria.
How do you do your research - what works and what doesn't?
Noble House was an interesting era. At one stage we were refurbishing two or three pubs a week and selling them on. We learned valuable lessons about why some outlets were successful and some weren't. It helped me create the strict agenda we now adopt for buying sites.
How many pubs would you like to have?
My view is somewhere between 50 and 75 is the upper limit of what can be done in our current niche. We want to provide quality food, consistently served, at affordable prices. It has to be so fresh and on-the-button that your management lines will be stretched to keep it there.
The future is in premium casual dining. We're very keen to keep three constituencies going simultaneously - the premium casual-diner, the drop-in, middle-market consumers, and bar-snack and guest-ale customers at the other end. Once you cross that line between being a pub and a restaurant, you've lost it, as far as what we are doing is concerned. We fight very hard to make sure the locals are happy.
What is the timescale and budget for opening 50-75 sites?
Three to five years - and they would all be managed outlets. At the moment we're spending about £1m a pop on sites, but this is rising as we concentrate on sites with space for casual accommodation.
There is an emerging hotel niche here, too: luxury-budget. This costs between £79 and £89 a night, including luxury items such as a power shower, flat-screen TV and great décor. But the room size is limited to 24ft, instead of 34ft.
We have five sites in the pipeline - ideally they'll complete by Christmas. Rob Clayton will remain executive chef for all the sites and their menus will be similar, although once you're into the cheffing arena and leave behind boil-in-the-bag, you can afford to experiment.
Where do you see yourselves in the market?
It's very difficult - managed pubcos tend to be small. We also have a tight geographical shopping list. We don't want town-centre outlets, but on the other hand we don't want to be completely rural. We need to be 15 minutes from densely-populated areas. We want to be close to, but not on, an arterial route.
We won't necessarily stay in this area - I'd rather have a great pub 200 miles away than one that offers just average quality, but is located 35 miles away.
I'm very impressed at they way Mitchells & Butlers has kept a lot of innovation in its managed houses - that applies to Greene King and Marston's, too.
How do you recruit, train and motivate staff?
Training is massively important - we organise on-site training for restaurant and bar staff. An interviewer will pick up basic points, such as whether this person gives a damn about customers having a great time in the pub. Many candidates don't care - they just do their job.
We want people who care about whether customers enjoy themselves and have the ability to spot those who aren't having a good time.
So do you set career-paths for staff?
Even if people come here as a stop-gap, but feel passionate about hospitality, we set out a very clear career path for them. In an expanding company it's easy for them to envisage how their career might develop.
Do you imagine spending the rest of your working life at Merchant Inns?
I'm non-executive chairman of Ted Baker and also of the Individual Restaurant Company. I'm very interested in a "Perfect Hotel" project that is currently under wraps. But Merchant will represent the lion's share.
Dessert island dish
I'm not allowed to choose a tasting menu, am I? In that case, I'd go for traditional roast duck.
Crimes against pub food
I hate seeing ethnic food done badly in British pubs. I love ethnic food - and badly prepared ethnic in traditional pubs is a no-no.
Focus on: the Carnarvon Arms
The Carnarvon was the first Merchant pub to open in November 2005.
Wet:dry:accommodation split: 35:45:20
Covers: 100
Turnover: £1m a year
Turnover prior to opening: £280,000
Plans for the future: 11 additional rooms will be in operation by the end of July, bringing the total to 23
Occupancy: 73%
Is the wet:dry:accommodation split here a template for other outlets?
Yes, absolutely. We would like our business to appeal to the single corporate client as much as to the weekend client. They can have access to great accommodation and a place to hold daytime meetings. In the evening, they can take off their ties, enjoy great food, soak up the pub environment and have a great time. Or they can go off to their own break-out rooms. Accommodating two corporate clients can present some difficulties. We are looking to try to retain that 20-30 bedroom limit.
In financial terms, how have your outlets performed?
The Horse & Groom holds 45 covers and the turnover is £650,000 a year. Prior to November 2005, turnover was £75,000 a year. The Black Boy holds 64 covers and turnover is £600,000 a year - up from £150,000, prior to November 2005. We are also planning to invest between £10,000 and £20,000 per unit on outdoor smoking areas at these outlets.
Rob Clayton, Merchant Inns' executive chef, on the group's menu philosophy
Prior to joining Merchant Inns, Robert was head chef at the Priory Hotel in Bath.
How do you plan the menu for your outlets?
With a fine-dining background, coming into a pub environment was a huge learning-curve. We do à la carte restaurant food as well as bar snacks and classic pub dishes. They change two or three times a month.
What's the most popular dish?
l Main: 28-day sirloin steak on the bone.
l Starter: Salad of scallops and asparagus.
Have you thought about publishing food miles on the menu?
With quality ingredients, buying the most local doesn't always bring the greatest benefits. For instance, I think the best lamb comes from Cornwall.
With a Michelin-starred background, what do you find most challenging in pubs?
Getting used to the relaxed environment - people come in just for a starter or main course, whereas a restaurant offers three courses and more. In a pub, you're not scared of trying out dishes.
What made you change?