City Diary — 10 December

How to attract on many levels

The depths of recession are normally a good time to invest. No coincidence that JD Wetherspoon has expanded openings twice (1992 and now) as recession dents property prices. In Norwich, Patrick Fisher is converting a former County & Eastern Building, an unlicensed premises, into a several-storey pub/bar. He says: "Each floor is going to be different. There is a crypt, which will be very plain and back to basics, and then on the main floor we will have carousel horses around the bar to sit on. Upstairs, it will be like stepping back into colonial times, and there will be an old library and grandfather clocks. On each floor there will be four separate areas and I hope that when people go in they will want to go into their particular favourite area, rather than just walking into open-plan tables and chairs like most places are." Who'd be surprised to see him take a lot of business?

JDW news heads for Sky not City​

Eyebrows were raised over JD Wetherspoon's decision to release news of its 250-pub opening plan to the media last week — rather than in a formal release to the stock market. The first City analysts knew of it was reading it on a Morning Advertiser news alert — or on Sky News. At least two leading analysts made a point of mentioning its release on Sky rather than the far more usual release to the City at 7am before the markets open. One analyst told City Diary: "The reference to Sky News was more of a criticism of Wetherspoon not releasing the story through normal channels. If the story is potentially price sensitive, an 0700 RNS is usually the norm."

Trade pair do good in Nepal ​

It's a big well done to intrepid Leisure PR boss Maureen Heffernan and TGI Friday boss Karen Forrester who have returned from a fortnight in Nepal. The pair spent a week re-building a school before a planned trek. The plan changed as they travelled two hours to begin the trek — and they returned to spend the second week working at the school. "They needed help and it was hard to walk away," reports Heffernan. The pair are now planing to return in early 2011.

Fair Pint stalwart goes west​

Life could get a teeny bit easier for tenanted pub companies. Fair Pint's most articulate spokesman Karl Harrison has moved to Canada. Harrison, who has an Enterprise Inns lease and a Mitchells & Butlers franchise among his business interests, moved to Vancouver a while ago where he's had a house for some years. Apart from the skiing, salmon fishing, hiking, the spectacular Vancouver Straights and glorious mountains, it's hard to work out the thinking behind this move. Especially when Harrison has a perfectly serviceable Enterprise pub to live above in Balham. Sources insist Harrison remains actively involved in Fair Pint.

M&B board rebels will be back​

Mitchells & Butlers is the mouse that roared. Last week's sacking of four disruptive board directors linked to big shareholder Joe Lewis and others is in stark contrast to M&B's much more submissive approach to an earlier sizeable shareholder, Robert Tchenguiz, with plans of his own for the company. Private equity giant Jon Moulton once called Robert Tchenguiz a "gambler" who took huge positions based on instinct. He lost big time at M&B and sold his stake to Joe Lewis who is also no stranger to gambling. On Black Wednesday, 16 September 1992, he was one of a handful of currency speculators — another was George Soros — who bet the pound was overvalued and would fall as Britain tried to align it with the European currencies. He got it right that time, but lost out massively on a stake in Bear Stearns last year, building a 9% stake in the bank just as markets turned south. Joe Lewis's intentions in relation to M&B as far from clear. The last thing M&B needs now is having its future thrown on some property market roulette wheel. But as the row rumbled on this week, it's become increasingly clear that this time around M&B directors are determined to show their teeth rather than roll-over and have their collective tummies tickled.

JDW swanning around Oxford​

JD Wetherspoon taking advantage of distressed property conditions is well-documented. But Oxford highlights opportunities very well indeed. For years JDW struggled to open a pub in the centre, having to make do with its William Morris in suburban Cowley. Tomorrow (Friday), though, sees the opening of its second city-centre venue in less than 18 months when it unveils the Swan & Castle, based in the former Ha! Ha! Bar in Castle Street. The previous opening was the Four Candles in George Street, a converted Slug

& Lettuce.

Foreigners lose out on pub tips​

The Foreign Office has axed a pamphlet, The United Kingdom: 100 Questions Answered, distributed to embassies abroad to help solve the enduring puzzle of just what makes Britain British. It's decided the guide is out-dated. Side-stepping issues to do with Government-driven red tape doing its bit to close pubs, the pamphlet says of the pub: "One of the main attractions of the pub for all regular pubgoers is that it offers good company in friendly surroundings. Where else can you appear as a complete stranger and at once be able to join in a conversation with a diverse group of people?" More helpful is an explanation of darts: "Short, weighted steel darts are thrown at a circular dartboard."'

Gee-gee profits put to good use ​

A West Country entrepreneur is financing an expansion in the pub trade through an unusual source — his winnings on horses. He's bought the Millstream at Marden, Wiltshire, after one of his racehorses, Only Dreams, won at Wincanton at a cool 33-1, picking up an even cooler £33,000. The pub will re-open in January under the name of Triple Crown and will have the same sporting theme as the Outside Chance at Manton, West Midlands, which Spooner bought two years ago after the same horse had a 100-1 win from which Mr Spooner pocketed a six-figure sum. Nice.