However, he said greater competition means there will also be higher turnovers and more choice for consumers, if operators have capital to spend.
Speaking at the MA300 Business Club in Manchester, Derry said he is “not a huge fan” of regulation as it “often causes problems you don’t expect”.
“I do not think there is a real need for action to be taken. I think the conversation about it has caused enough discussion that, in actual fact, we are looking at more free-of-tie pubs and companies selling off properties that others can buy.”
Expansion
However, he said he has seen the upcoming legislation as a chance to change his company’s offer and cited it as the reason for Brasserie Bar Co’s pub expansion.
The company plans to open 20 new pubs within the next three years and Derry said he is looking for free-of-tie leases and sites with capacity for at least 100 covers.
“We will probably open one or two new brasseries but not many. The pubs achieve higher sales and higher volumes, and we’re taking advantage
of the change in the market,” he said.
He added that he prefers the attitude of their pub customers, who tend to be “pretty forgiving and pretty laid back”.
“In a Brasserie Blanc, people imagine we set quite a high bar with the Raymond Blanc name on it and they are keen to share with you where you slip off,” he said.
“In the two original pubs, we haven’t had a complaint in a year and a half. And I can’t say that about the brasseries. Same food, same pricing. Just different buildings, different attitudes.”