Just a game of consequences
The very lively Sam Smith's website www.samsmiths.info is dedicated to moaning about life within the brewery and pub estate. One contributor has this useful thought, though: "Beware the toes you tread on today are not attached to the leg that supports the arse that you are gonna have to kiss tomorrow."
House of horrors bites the dust
Spirit, Punch Taverns' managed arm, has completed the refurbishment of the first few of its next-generation Metro pubs. The Tattersalls Tavern, behind Harrods in Knightsbridge, is the best example. Also moved on is the Marlborough Head, in Mayfair's North Audley Street. It was previously a little, er, dark and brooding as part of former owner Scottish & Newcastle Retail's naff Eerie Pub Company, which, according to Wikipedia, had a "gothic horror" theme. "It's a little more traditional now," a source says.
Young's still splashes the cash
London brewer and retailer Young's continues to pick up freehold pubs, buying four sites at a cost of £12.1m in its first six months. Included among the acquisitions is what's believed to be the highest price it has ever paid for a pub — £4.7m for the Old Ship on the Thames, in Hampstead. It's also branched out into a new territory, acquiring an O'Neill's from Mitchells & Butlers. How's that going? "It's made a steady start," reports chief executive Stephen Goodyear.
Fuelling some food for thought
Enterprise boss Ted Tuppen has a tale about how licensees actually behave when faced with tougher trading. He regaled City analysts last week with the story of a host who got a bigger discount on his fuel by ordering more than he needed and splitting the extra with others in his village. "It's a bloody good story about how people actually behave, rather than how they behave according to a spreadsheet — he's fixed himself firmly at the centre of the village."
Prime prompts for Tuppen
The Enterprise supremo has used quotes from two former Conservative Prime Ministers to illustrate the way he sees the pub world at the moment. Referring to a four-point strategy for the current year, he said the company was doing a John Major and "going back to basics". But then he turned to Winston Churchill for help with a broader overview: "If you're going through Hell, keep going."
No banking on long-term loans
Enterprise Inns boss Ted Tuppen says that the company is definitely in its bank's "good customer category". There had been discussions about extending the company's bank facilities, but the credit crunch has provided one good reason why this wasn't sensible. Finance director David George says: "Three years are the new five years. We could have extended our facilities (to a later date) but would have paid a higher price."
Stealing hosts to face the facts
Uncompromising message from chief executive Ted Tuppen to those buying out-of-tie. He described buying out-of- tie as the equivalent of stealing. Tuppen said: "We're taking no truck with those who deliberately breach the terms of their agreement. They risk gaining Robin Hood status. But if licensees breach their supply terms, they're stealing from us."
Multiple gets order of the Bath
A well-known managed multiple tells City Diary that it's received a pretty outrageous rent increase demand at a site in Bath. A property landlord is asking for a rent increase of tens of thousands of pounds. It's not somebody from the pub sector, though. It's Bath City Council. Silly burghers.
Rooms for Improvement
Whitbread's current strategy is about co-location of a pub and hotel on the same site, creating, er, synergies. Looks like Marston's is increasingly eyeing this potential. The company has applied to build a new 16-bedroom hotel on Old Rufford Road in Farnsfield, Nottinghamshire, next to the White Post Inn pub. Estate director for Marston's Inns and Taverns Ed Hancock says: "Building rooms at the White Post is the natural progression for a successful business and we are hopeful of a positive outcome from our planning discussions."
Crown gets vote of confidence
Good to see the lease on one of Prince Charles' favourite pubs getting snapped up quickly. The Old Crown, at Hesket Newmarket, Cumbria, was saved from closure five years ago by a community co-operative. New licensees are Edna and Keith Graham. The pub, visited by Prince Charles during several Cumbrian visits, is doing just fine, reports Edna. "You wouldn't normally take on a new lease in this climate, but this pub is a whole different kettle of fish. It has the support of all the shareholders and the village. We can hold our own here," she says.
Obscene power of bad news
Market information group CGA reports an unnamed Scottish retail group insider noticing how powerfully bad news affects consumer spending. For the four days the media focused on the controversy over Russell Brand and Jonathan Ross's obscene Radio 2 remarks — rather than the dire state of the economy — business levels increased in almost all venues in the group!
JDW shows value of working offers
Managed operators are hitting the value lever fairly hard. JD Wetherspoon is threatening its "biggest ever January sale on food and drink". Chief operating officer Paul Harbottle also reveals that the company sent out discount vouchers to some 16 million UK households this autumn. Shows how hard you have to work to keep sales ticking ahead by a few percentage points.
Punch pulls 'em in for festive bash
Congratulations to Punch Taverns for looking after its own. All headquarters staff - and field-based staff who can get there - are being invited to the annual Christmas party to be held at a Punch leased pub, the Uba Rooms, in Burton. Should be a cracking night for the licensee with as many as 400 staff expected to attend. Meanwhile, City Diary hears that the annual conference, which took place in November last year, is being rolled over to next summer to coincide with the opening of new offices for Spirit.