A Grand [Union] Plan

Grand Union's plan to build an estate of 20 high-end pubs took a further step last week when the independent pub group added another London pub to its portfolio.

The operator is set to unveil a new Grand Union concept in a pub formerly known as the Grove Tavern in Camberwell, South East London next month, as part of an ambitious growth strategy set out by founders Adam Marshall and Adam Saword.

The pub, leased from Young & Co, takes the number of Grand Union openings this year to five sites and the group's estate to 10, with two more in the pipeline.

Founded by Marshall and Saword in 2006, the strategy behind Grand Union is to bring something different to the capital's drinking culture.

The fledgling operator opened its first site three years ago, named after the canal onto which it backs in North London. It was followed by several more in and around the capital, as well as a restaurant-led venue the Three Locks Pub in Stock Hammond in Buckinghamshire.

Individual atmosphere

Despite being branded as Grand Union concepts - each has a similar theme in terms of decoration and offer - and aiming to appeal to a predominantly younger professional crowd, Marshall is nevertheless keen for the group's sites to feel like they are "one man band"operations.

Lively, with some sites offering DJs - and in the case of the group's Brixton site, a huge outdoor cinema screen to entertain drinkers in the pub's garden - Grand Union's ethos is based around fun with a sense of style and punters seem keen, to the point of being prepared to pay £3 to get into its Brixton site after 8pm on a weekend.

"Each has a unique, individual atmosphere," Marshall says. "Friday and Saturday nights is 75 per cent to 80 per cent of our business. We've dozens of people queuing for up to an hour to get in to the Brixton pub. If things get really going then dancing on tables is allowed."

Expanding outside London with the Three Locks, a Scottish & Newcastle Enterprises lease, was a risk, but also a challenge, he says. "We've taken it from £20,000 a week to £35,000. We turn round sites," he adds.

Marshall, Saword and the rest of the Grand Union team want to offer a different experience for customers, with a better-than-average food offer and a comprehensive drinks range. Staff, for example, are hired on the basis of their character as well as relevant experience, says Marshall.

"We want each to be a tight, neat package," he says. "Camden was the template and the number of openings we've done in a recession gives us cause to be optimistic about what we're doing.

"It's important to work out where you are going with a business like this. I used to run a bar here and there, but now we're in multiple operator territory."

No issue with the tie

The current debate over the issue of the beer tie holds little interest for Marshall. "I have no issue with the tie. I wasn't drunk when I signed the lease," he says. "It's not the pubco's fault there's a recession. You just need to work harder when there's a recession on."

Still, there are limits, says Marshall. "We don't want to pay premiums," he says, noting the 20 year-long lease for the former Grove Tavern didn't come with a premium, which suggests the group's relationship with Young's is already paying dividends.

Hard-nosed he may be, but Marshall points out that Grand Union ploughs significant sums of investment into each pub it opens, anywhere up to £350,000, most of which comes from cashflow and profits.

"Hopefully we come across as people you can do business with. We don't have financial backers, and we're not interested in selling equity stakes in the business to anyone," Marshall says. "We can take on a couple more sites without breaking into a sweat financially. If something needs doing we'll react quickly and sort it out ourselves."

Some lessons have been learned the hard way, like when the manager of one of Grand Union's establishments walked off with thousands of pounds from the pub's till.

"We were guilty of being naïve concerning what we were told by the individual at the time," admits Marshall, "but we'd recognise the signs if things were heading that way again. You have to take some knocks along the way."

As for Grand Union's ambitions, Marshall wants the group to evolve into a big player "with enviable sites attracting the right demographic". He might just be onto something.