PROPERTY ROUND-UP
BOXPARK and Alcotraz set to open new sites
Why the pub remains the hub
ADVERTISEMENT
By Colin Lambert, associate director in the licensed leisure team at Savills
The first half of 2022 generally saw robust trading conditions for pubs, with many operators reporting a bounce back in trade and LFL sales above pre-Covid 2019 levels. At the same time there has been a gradual improvement in city centre trade due to the partial return of office workers and younger customers being attracted back to the buzz of urban nightlife albeit still below pre pandemic levels.
Reported by Barclaycard, consumer spending in pubs saw growth of just over 10% in July 2022 compared with July 2021. Their data also shows that the spend in pubs has outperformed the total consumer spend from the initial reopening of hospitality in April 2021 to date, illustrating the resilience of the sector and how customers value their visit to the pub.
Despite the post covid recovery in sales, the sector is facing significant operating cost headwinds. Increases in labour costs have already had an effect on operating margins. However, as a consequence of the Ukraine/Russia conflict, energy, transport and fuel costs are all set to have an impact in the second half of this year and well into 2023 and beyond.
The full effect of energy price rises is starting to be felt in the pub market and, given wider inflationary pressures, operators have sought to pass on some of the operating costs to customers through higher prices, tightened cost control and adapted menus where possible.
On a month-by-month basis spending in pubs in July saw marginal growth on June suggesting the rising cost of living has not yet filtered into consumer spending decisions with consumers continuing to value their social experiences. Mirroring this data, the ONS has released daily card spending data from financial technology company Revolut which highlights for July and early August an upward trend in leisure-related spend. Historically, leisure spend and, in turn, occupational and investment demand, has shown a degree of recessionary resilience.
So what does this mean for the pub sector going forward? Well, having navigated the last few years of the Covid pandemic, the sector has and continues to show its resilience and adaptability.
In the face of the pandemic, the sector witnessed a number of emerging trends which appear to be here for the foreseeable. These include the increased popularity of al fresco drinking and dining, the uprising of technology and consumer demand for an environmentally and socially sustainable drinking and dining experience.
Operators have adapted accordingly; providing well invested outdoor trading areas, in some cases doubling overall capacity, and taking advantage of the streamlining of the ‘pavement licensing’ process; the development of app ordering, which
which in turn has helped to ease pressures on staff; and focusing on localisation, sourcing food and beverage locally to minimize the carbon footprint through the supply chain.
The fundamentals of the pub market remain sound, as illustrated by the post Covid recovery, and despite the headwinds, the value of the pub occasion to consumers, should mean the sector will adapt and prove resilient.
BOXPARK to launch sixth site next year
London-based operator BOXPARK has announced its sixth site and first development outside of the capital as it heads to Liverpool in 2023.
BOXPARK has agreed a 15-year lease with Terracotta Asset Management Limited for the Canning Hall site in the south of Liverpool city, which sits within the Baltic Triangle district, forming part of the Cains Brewery Village estate.
Built in the 1980s, the portal frame warehouse building will be transformed into a food and entertainment destination, featuring a large internal space with units set over the ground floor, a small internal mezzanine and an external terrace.
The venue spans 16,000 sq. ft and holds 400 internal covers plus 200 external covers. The proposals for BOXPARK Liverpool will include around 10 kitchen units and three internal bars with additional external bars.
In addition, there will be a 5,430 sq. ft external terrace to offer al fresco dining and intimate events.
BOXPARK chief executive Simon Champion said he was “thrilled” to announce such a fantastic location for the next venue.
He continued: “Our team have searched extensively for sites in Liverpool since 2016, having considered multiple locations across the city.
“As a dynamic and fast-growing business, we hope BOXPARK will be an exciting addition to Liverpool’s buzzing food and drink scene, offering an all-day food and entertainment destination.”
Barrio Familia launches new venue
Barrio Familia is opening its first out-of-London venue in Watford, Hertfordshire, today (28 October 2022), promising Latin-inspired cocktails, Mexican eats and live entertainment.
The new venue will hold space for up to 200 guests to enjoy a new cocktail menu and Latino party vibes. The outside terrace has been turned into a tropical yard, creating space for another 80 guests.
Barrio Familia managing director Jim Robertson commented: “We are incredibly excited to be taking our Latino party outside of London for the first time.
“This is a fantastic venue, and we can’t wait to welcome the residents of Watford into the Barrio familia and bring the party!
“I believe Barrio will be a fantastic addition to Watford High Street that will suit all type of occasions and bring a feel-good bar that welcomes everyone.
“We have some amazing things planned for Barrio Watford, so watch this space and get ready for the biggest fiesta in town!”
17th century inn hits market
The Angel Inn, located in Corbridge, Northumberland, will be sold by Christie & Co.
The 17th century pub is surrounded by shops, cafes and boutique stores, and contains an alfresco dining patio as well as a bar, lounge and dining restaurant.
There is also an unused restaurant in the rear which would lend itself to conversion to further bedrooms. There’s also a large car park outback, and the property has 10 en suite bedrooms and a two-bedroom apartment.
Christie & Co director Mark Worley said: “Given the Angel Inn’s hugely desirable location and excellent reputation, this is a fantastic and very rare opportunity for potential buyers.
“There is potential to extend the building and convert certain features of the property, which would provide options to increase the already strong levels of trade and profits.”
Alcotraz to open biggest penitentiary yet
This November, Alcotraz is set to open its largest penitentiary to date, complete with expanded storylines, three expansive cell blocks, 30 individual cells and seven secret rooms.
The business is renowned for its storylines in which guests play a part of the story. Customers – or ‘inmates’ are tasked with smuggling liquor past the warden and getting it into the hands of Alcotraz’s inmates, who then transform the contraband liquor into cocktails.
Triple the size of its previous home, the latest penitentiary will span 5,000 sq. ft and house up to 180 inmates at any one time.
Located on the backstreets of East London, Alcotraz will offer three different experiences – brought to life by a cast of actors.
Depending on which cell block inmates are sentenced to, they may find themselves in a parole hearing in the Warden’s Office, smuggling liquor in the laundry room with inmate Cassidy, meeting their lawyer on the other side of visitation or in the middle of an interrogation in the interrogation room. Maximum security inmates may even find themselves in Solitary Confinement.
Inventive Productions founder and Alcotraz creator Sam Shearman commented: “We cannot wait to open Alcotraz in London this November.
“After five years of developing the Alcotraz brand and opening venues across the country, it feels incredible to put the focus back on London, the city where it all started, and launch a truly incredible flagship venue.
“This will be our biggest project yet and offers scope to expand our storylines and offer an ever-increasing unique experience to guests.
“We are also truly excited about the charity partnerships that we have on the horizon which will help raise awareness of real-life issues within the justice system and provide support to a fantastic UK charity.”
Red Oak Taverns pub gets makeover
Red Oak Taverns have completed a refurbishment at high street pub the Vaults in Middlewich, Cheshire.
Both the interior and exterior of the site have been redecorated with the outside area improved, creating additional seating and an external TV and lighting.
The pub, which is managed by long-serving operator Bev Bryning, worked with the pubco to ensure the new look suited the community.
Inside, the pub has also been completely renovated with new toilets and six large screens featuring Sky and BT sports.
The interior is air conditioned throughout and has new furniture and flooring, fixed seating, high tables, a dance floor and brand-new bar and product range.
Bryning said: “We are overjoyed at the refurbishment. The pub is one of two halves with the older crowd in the week and the younger ones at the weekend and it now has everything for all of them.
“The new bar and toilets are a complete transformation.”
Red Oak Taverns business development manager Barry Lee added: “Bev has operated the pub since 2008 and she knew what the pub needed and what the customers wanted so together we were able to achieve a great renovation that will serve the local area for a long time in the future”.
‘Unique’ renovation for landmark pub
The Inn Collection Group has completed a “unique” renovation and expansion of its flagship pub – the Bamburgh Castle Inn – located in one of Northumberland’s most popular seaside towns.
With views across Seahouses harbour and a coastline towards the Farne Islands, Holy Island and Bamburgh Castle, the renovation has been designed to help customers experience Northumberland’s sights.
The addition of a raised, glass-glazed terrace has more than doubled the inn’s outdoor seating capacity. The new decked area stands on Corten steel posts and projects outwards towards the harbour.
Furthermore, a previously unused access road has been turned into a light-filled glass atrium room, housing a second bar for the inn, as well as a seating area complete with a log burning stove, rustic timber panelling and nautical themed décor.
Sean Donkin, the Inn Collection Group managing director said: “The Bamburgh Castle Inn really does have one of the best seaside locations in the UK. When people come to Seahouses, that’s what they want to experience – it’s about sitting outside and having that view of the harbour and sea beyond.
“Individuality is the beating heart of each of our pubs and it’s all about embracing that and enhancing it for greater customer experience. Adding the terrace is all about giving as many people as we can the experience of drinking in the views the inn has in spades.”
The addition of the second bar has created an informal area away from the main dining area that has the ambience of a traditional pub. The bar in the main dining area has also been extended from 7.5 metres to 25 metres to reduce waiting times.
Furthermore, the development has also seen an adjacent building Coble Cottage purchased by the Inn Collection Group in 2020 repurposed to include 14 ensuite rooms, increasing the Bamburgh Castle Inn’s capacity by 30% and raising the site’s total number of bedrooms to 60.
Infrastructure has also been carefully considered within the refurbishment. Behind the scenes, a purpose-built kitchen can accommodate the increased cover capacity and cater for the rise in meal numbers.
Donkin added: “Quadrupling the service size of the inn goes hand in hand with what goes on behind the scenes. Factoring in the infrastructure to provide high levels of customer service and quality was a massive part of the project and one we are proud to have got absolutely right.
“As a group, continual evolution over time is vital to us, to keep up with modern requirements from local customers and visitors – whether that’s bedroom facilities, the public dining and bar areas or our outside spaces.
“We are absolutely delighted with the end results. It’s good news for everyone – creating a new and vibrant addition for Seahouses and the surrounding area.”
Trophy house comes to market for £9.75m
Savills, on behalf of a private client, has brought to market the Prince of Wales pub in Covent Garden, central London, for £9.75m.
The site is arranged over ground, basement and three upper floors, and the sale represents a net yield of 3.11%.
The entire property is let on a 30-year lease, expiring on 23 June 2034 at a current passing rent of £323,672 per annum, to Spirit Pub Company (Managed) Limited, and guaranteed by Spirit Intermediate Holdings Limited, which forms part of Greene King.
The venue is situated on Drury Lane, a short distance from Covent Garden underground station. It’s surrounded by tourist destinations including Oxford Street, the British Museum and the Strand.
Savills licensed leisure team director Paul Breen commented: “This is an incredibly rare opportunity to acquire a trophy freehold public house in a prime Covent Garden location.
“London continues to be recognised as one of the worlds safe havens for property investors with demand for assets remaining incredibly strong, particularly for buildings which are let to strong covenants on long leases.”
- To find out about pubs for sale, lease and tenancy go to our property site.
- If you have any information regarding new openings or property details you think could be used in this weekly round-up section, along with hi-res landscape images, please emailnzryvr.znhevpr-wbarf@jeoz.pbz before midday on Tuesdays.
