Beefed up

Whitbread restaurants MD Mark Phillips is more into steaks than mistakes. Lucy Britner reports

It's no secret that Whitbread's pub restaurant brands have had a tough few years. Beefeater and Brewers Fayre were starting to resemble tired players sitting on the subs bench in a game dominated by the likes of M&B.

But 17 months ago Mark Phillips embarked on what he calls a "three-year journey" to get the brands in shape and back on the playing field. With the help of a dedicated food team, headed up by Janine Wills who developed the gastropub range for Marks & Spencer, the company's 2007 half-time results show Beefeater has seen a 10% increase in covers, and profitability on a per-house basis is up by more than 40%.

Phillips says: "I think it's fair to say that in the previous couple of years the business has had a fairly torrid time in terms of commercial performance - in what had been a generally buoyant market."

Improving Beefeater quality

Consumer research revealed that Beefeater brand awareness levels dwarfed other pub restaurant chains in the UK.

Phillips says: "The general feeling was warm nostalgic memories of the brand, but when you got to the $64,000 question, 'Why don't you come any more?', people felt they had outgrown it. They said: 'You do steak and chips and prawn cocktail, we don't do that any more.' But there was no strong rejection of

the brand."

Over the past 17 months, Whitbread has invested around £400,000 per Beefeater site and is on its fourth generation menu.

Under Phillips's instruction the company has introduced tasting panels and a team of food coaches work across the estate to ensure consistent quality. The offering is focused on fresher, better quality ingredients and Phillips says their chefs are re-energised and enthusiastic about the food on the plate - and recruiting new ones is getting easier as a result.

He adds: "Beefeater is famous for steak and we wanted to celebrate that. It's the original home of chargrilling in this country. So in today's Beefeater you can have half a rock lobster alongside your steak. All the time we're introducing better quality, fresher ingredients.

"There are 22 new dishes on the latest Beefeater menu. We hold chef cook-off days to train chefs and get feedback on the dishes, and we also ask for customer opinion."

As well as upping the quality of the food, Phillips has also expanded price points. Cheap eats start at around £6 for a main course and stop just shy of £20.

"We did this to keep the average spend per head the same, but to make Beefeater a venue for all occasions - from parties and anniversaries to mid-week can't-be-bothered-to-cook occasions."

Brewers Fayre re-invented

During the past 17 months, almost 100 of the 240 Brewers Fayre sites across the UK have been converted to an unbranded contemporary dining concept.

Phillips says: "Brewers Fayre had lost its way as a competitive guest offering - it wasn't because it got worse, it was because the market and the competition got better and Brewers Fayre stood still."

Whitbread plans to complete a further 50 sites earmarked for an unbranded contemporary makeover in 2008. Again, price points have been stretched, with the intention of keeping the average spend per head the same. This time the high end is around £13.

Discounts and coupons have been axed completely and an off-peak set menu of two courses for £9 has taken their place in the core Brewers Fayre sites.

"We announced a 10% profit growth in Brewers Fayres, in our first-half results - a key feature of this growth was weaning ourselves off this drug of discount. We were confident people would come anyway," says Phillips.

"Contemporary dining is about more interesting dishes, better food and stylish sites to give our loyal customers the wow factor, rather than trying to attract more upmarket clientele."

Dishes on the contemporary Brewers Fayre menu include pork belly (£9.99), chicken and chorizo (£8.25), yellow fin sole stuffed with smoked haddock and spinach (£8.50) and braised beef rib (£8.75).

Carving out a niche

Carvery is also on the menu at Whitbread and trials are underway in five Brewers Fayre sites. While he thinks there are better innovations to be discovered in casual dining, Phillips can't help but see the attraction of carvery.

He says: "I'm amazed by the resurgence of carvery. We ran a chain called Roast Inn years ago and I've thought deeply about them, I understand why they are resurgent - food on display conveying subliminal messages about freshness and quality, and veg, plays to the health conscious. There's also the all-you-can-eat factor.

"But I think there are more interesting and exciting ways of innovating pub food and we want to be at the forefront. I do like the concept of the food being in front of you, and open kitchens is something we have explored in some Beefeater sites."

Carvery is on offer everyday at these sites. More broadly, Phillips says he has noticed a real change in Sunday dining. "The Sunday lunchtime meal occasion has expanded dramatically - the meal is still the focus of the day, but the time is shared between shopping, cinema and other new Sunday attractions. So now we're trying to get better at turning covers to serve all day."

Premier Inn and Costa coffee also shelter under the Whitbread umbrella and prior to working on Beefeater and Brewers Fayre, Phillips used to "flog coffee" for Costa, as he puts it.

While Costa is served in pubs across the estate, the typically suburban locations of the pubs mean little passing coffee trade. But takeaway Costa is available at Premier Inns with adjoining restaurants, which feed in useful synergy to Whitbread pub restaurants, with 40% of occupants dining at the adjoining premises.

"Premier Inn is a terrific asset for the restaurants. It's a source of incremental income that my competitors don't have. We think the two combined offer the best return in the business," says Phillips.

After 17 months, Mark Phillips is approaching half time in his three-year plan. The second half looks set to be very exciting indeed.

FACTS and stats

Average covers per week across the Beefeater estate: 1,900

Average covers per week across the Brewers Fayre estate: 2,200

Number of restaurants attached to Premier Inn: 100

Number of Premier Inn occupants visiting restaurants: 40%

Best-selling dish: steak

Crimes against pub food: pathetic looking pinches of salad garnish

Favourite pub dish: rib-eye steak and mixed salad

Phillips admires: M&B for its segmented business, creativity and innovation.