City Diary — 14 Jan

Inventive gets fired up for pizza

Revolution vodka bar operator Inventive Leisure is targeting the pizza chain market to boost its food sales. The company installed wood-fired pizza ovens in its 58 sites in late 2008 and saw pizzas grow to account for 30% of food sales. The company is looking to power through early 2010 by ramping up its Italian-themed offering (Peroni on tap and new pizza varieties) in a campaign called Ciao Bella. To get staff properly motivated, management flew 89 assistant managers to Venice on 9 and 10 December to get Italian juices flowing. "It's a great place to go in December," boss Roy Ells tells City Diary. "Crisp and beautiful — and not many tourists."

Elliott plots his next move​

So what next for David Elliott, the departing head of Greene King's leased arm? "I've restored four houses in my life — from derelict — so I may do another one," he says. "My daughter also has a business so I might help her with that." What about some non-execs? "Well, it would be nice to be asked, wouldn't it? I haven't ruled anything out." And how about taking on a leased pub or two? "I have no intention of running a pub.

I have lived away from home for 14 years so I'm looking forward to spending some time at home, and getting re-acquainted with my wife."

Drastic measures at New Year​

It makes sense to close a site when it costs more to run than shut it. But you know things are bad when a nightclub closes the night before New Year's Eve. Such was the fate of Nexum's Halo nightclub in Nottingham. The venue in Goldsmith Street, which was previously known as Mode, shut on 30 December according to its website. Paul Kinsey, chief exec of Nexum Leisure who owns and runs the club, said: "We have been trying to sell Mode for some time and have now decided, for commercial reasons, to close the club. "We are exploring future development opportunities for the venue."

Chilly reception for new lease idea​

Tenanted pubcos are looking to innovate in the current tricky climate. Rumour has it that one is looking at a 15-year RPI-only lease. A City Diary contact is less than impressed: "With RPI going up at 2.5% per annum the rent will be 37.5% higher at the end of the term. Of course, in the face of the last five years' barrelage falls, future barrelage will be 37.5% higher so the divisible profit ratio will be the same, won't it?"

Luff: 'only noticed when we're tough'​

MP Peter Luff may be getting tired of run-ins with tenanted pubcos and wants a shot at running a Government department should (when?) the Conservatives win the next election. Luff, who is currently chairman of the Business, Innovation and Skills Committee, said: "I nominated David Cameron for the party leadership, and it's the best judgment call I have made as an MP.

I could have easily asked for a job in the shadow team, but I didn't want to stop chairing the committee. Of course I would be interested in ministerial office, but it's not in my gift." Luff reports he is content in his current role, he had found the whole experience "very frustrating" at times due to the lack of coverage the committee gets. He said: "It's only when we attack that we get noticed."

Will they or won't they sell pubs? ​

More speculation about whether Royal Bank of Scotland is still trying to flog the 800 pubs it has under management with Scottish & Newcastle. Usual names have surfaced as would-be buyers, including businessman Philip Green and a host of property entrepreneurs. Problem is that the major banks are distinctly wary right now of get-rich-quick schemes involving the pub sector. After all, it's been a while since anyone got other than a lot poorer financing pub deals.

What are the odds on this?​

London Evening Standard columnist Nick Goodway has made a series of forecasts of unlikely 2010 events. For July, he forecasts: "Britain's biggest licensee Enterprise Inns, which owns 8,000 pubs, announces it will demerge into eight regional pub companies each with their own independent brewery making "local ale for local people"." It's not the worst idea City Diary's heard.

From Woolworth to Wetherspoon​

It's the wonder of Woolworth's. A year ago, City Diary asked Wetherspoon boss John Hutson whether he'd look at closed sites for new openings. He indicated that JDW would be looking at unwanted sites some point down the line (where rents, no doubt, are subject to the cold light of reality). The moment has arrived. Local sources indicate that JDW is eyeing Melksham's former Woolies.

Cavendish to convert next trio​

Cavendish Bars, the business formed by ex-Po Na Na boss Christian Arden, has three more conversions of the seven former Walkabout sites it acquired last year lined up — Brighton, Bromley and Swindon. Cavendish runs 13 sites. Arden has converted three Walkabouts — Putney, Southampton and Oldham — to its new Wahoo concept. A source close to the company reports that two more single-site acquisitions are lined up. Arden formed Cavendish with 27 ex-Luminar bars and clubs, most of which were not trading, in April 2008. He bought five separate companies for £1 each, but received working capital of about £4m from Luminar as part of the deal.

Thorley rolls with the punches​

Pub company bosses who took bonuses last year risked making themselves unpopular with their shareholders — or become the subject of Daily Mail quizzes. The newspaper's annual New Year City & Business quiz featured the following question: "Which pubs boss took a bonus for the past financial year, despite presiding over a £406m loss and axing the dividend?" Sorry, Giles. Poor Giles probably finds himself blamed for a lot of things aside from the company's share price. In Devon, Honiton businessman Graham York, wrote Thorley a snotty letter about the ugly shutters on a closed-up Punch pub in the town: "This shows a complete disregard for the local environment or feelings of residents — it feels as if we are living in a war zone." A spokesperson for Punch Taverns points out: "The shuttering is stipulated by our insurers as a security measure."