Advanced bookings boost Novus Leisure

Pre-booked festive parties helped Novus Leisure, the privately backed bar operator, grow like-for-like sales over the Christmas period by nearly eight per cent.

Novus, which runs 38 venues across the UK including the Tiger Tiger bar chain, said that in the six weeks to January 2, 2011, like-for-like sales rose 7.9 per cent as advanced bookings rocketed, fuelled in part by a rise in the number of corporate customers hosting parties throughout the Christmas and New Year period.

Novus' London bars were up 13 per cent over Christmas, with its Tiger Tiger brand up three per cent.

Steve Richards, the group's chief executive, said web traffic on the company's Late Night London booking site rose 55 per cent, with advance bookings now accounting for 78 per cent of the group's revenue.

Corporate sales were up 24 per cent over the Christmas trading period, with one party, held by an un-named financial institution, costing a whopping £122,000. The group meanwhile hosted 16,000 30th birthday parties in 2010, according to Richards.

"We've worked hard to improve our booking systems and sales service. We're not the cheapest venue in town, with the average price of a cocktail coming in at around £8. However if you simply trade on price and walk-in trade you're going to suffer I this market," he said.

Novus was already working towards Christmas 2011, Richards added: "We've launched our menus for next Christmas and will start taking the first bookings next month."

Having splashed out £12m in capex on two new bars, the group planned to open three more bars in the first quarter of 2011, Richards said, and was "active in the market".

"Looking for 'prime prime' locations is still a challenge, because landlords are in a stronger position. But they are still keen to get in groups like us with good covenants."

Richards said he saw good prospects outside London, despite the capital almost being an economy unto itself. "We're pretty confident. Places like Manchester, Leeds and Cardiff are doing well for us. The regions are not dead and if you can take market share, as we can, then you can do well," he said.