Punch pumps £15m into I4G extension

Punch Taverns has confirmed plans to extend its Investing For Growth scheme (I4G) into next year, earmarking a further £15m to help another 350 pubs, the Morning Advertiser​ can reveal.

The company launched I4G in April, investing £20m in what it initially expected to be 450 pubs but which has already reached 500, with each receiving an average of £40,000.

"We are delighted with the success of the I4G scheme in helping partners boost trade and promote growth," said head of property Stephen Allen.

"The scheme has been another way for us to support those partners who work exceptionally hard, but whose sites aren't performing at their optimum level for whatever reason."

The money is intended to help fund small-scale improvements such as décor and signage and to help licensees introduce or upgrade food and cask beer offers. The deal also includes site inspections, training and follow-up visits.

"The results have been excellent in helping set up partners for sustained success and we must say a big thank you to all of the teams, suppliers and designers involved in making this such a success," Allen added.

The I4G scheme is also unusual in not being rentalised in the normal fashion.

In some cases, investment precedes the hoped-for phased withdrawal of rent or beer discount concessions. In other cases, investment is taking place where Punch feels support will be needed in the future.

Elsewhere, the usual return on investment levels set by Punch for a capital investment have been relaxed.

The North Star in Finchley, north London, received over £45,000 for a refurbishment and training.

"Even the simple act of having to do a business plan when we were applying for the investment had a benefit for the business, as it helped consolidate what we wanted to achieve and plan how to get there," said lessee Natasha Wilson.

"We even came up with a strap line: 'real ale, real food, real pub', which we now use in all of our marketing."