Under the terms of the agreement, the pie-maker will provide kitchen equipment, products and marketing support to the Enterprise Inn outlets over a five-year period.
Tristain Hogg, founder of Pieminister, said the pubs would be able to sell all of the company’s range of pies, as well a number of starters and puddings.
Currently installed in three outlets, the open kitchen concept is being rolled out to a further five sites in addition to the Enterprise deal.
Lower costs
Hogg explained that GP on the food averages at 60%, but wastage and staff costs are much lower than in a standard kitchen.
He said: “As the pies can be cooked to order or put on a hot-hold counter, wastage is only around 2-3%. And because you don’t need a qualified chef, staff costs are only 10%.
“The other important factor, which really appealed to Enterprise, is that people stay long in pubs when they’re having some food as well. That extra pint can really make a big difference.”
According to Hogg, Pieminister works closely with each individual site put to make sure the fixtures “meld” into the pub environment.
He said: “We don’t just steam in without any consultation. Before anything, we make sure the pub fulfills our 20 to 40 core consumer age-group target market, and that the publican is genuinely interested in a long-term commitment.”
Hogg added: “We specifically target wet-let urban pubs. This concept doesn’t really work in a village pub, because people are looking for a broader offer.”
Flexible set-up
The company is able to work with pubs without kitchens, and depending on the amount of work required set-up costs vary between £10,000 to £25,000 – of which 10% is charged to the pub.
Pieminister also takes a 10% royalty fee of net sales generated.
“That pays for our mystery shoppers, quarterly meetings, marketing support and menu innovation,” Hogg explained.
“You only have to look the St James Tavern, in Bermondsey, where food sales have jumped to 25% of overall sales – when before it was zero.
“I would say that the 10% fee more than pays for itself.”