Managing director James Nye told The Morning Advertiser’s sister publication, MCA, the 10-strong operator still has capacity to grow through its current estate, which has contributed to the bulk of its growth over the past five years.
He said: “We’re taking stock to see what we can do to minimise the cost to the business.
“The aim of the Budget was to grow the economy, but how do you grow by squeezing the biggest employers out there? We have to face up to the music and figure out what we’re going to do.”
Price rises will inevitably burden the consumer, although Nye is firm that ACI will avoid passing on all costs and reduce volumes as a result.
Funds that would have previously contributed to growth capital will see a reduction, while the group will also review its supply chain and upskill employees to increase productivity.
Invested heavily
Nye spoke to MCA after the business reported a 14.1% uptick in sales to £20.6m for the year ended 31 March 2024.
Profit before tax stood at £364,573 – but the Budget will have a substantial impact on the bottom line, he said.
ACI has nevertheless invested heavily into the basics over the past few years, such as induction processes and performance reviews. This has driven staff performance and engagement considerably, according to Nye.
Improving and promoting the premium food offer has also helped.
“We don’t want to be too expensive, a good pub is accessible to everyone”
Nye continued: “This year certainly hasn’t been straight line trading. We’re busier – that’s where we’ve seen the growth – and the net average is encouraging.”
Quieter times of the week and year are more noticeable, but ACI continues to diversify to encourage footfall.
Its primary revenue stream will remain “really good pub food,” but this is supplemented by on-site event spaces, brunch, coffee shops, and so on.
The White Horse in Holme-next-the-Sea, ACI’s latest addition to its portfolio, will house a bakery to provide a more accessible lunchtime offer, for example.
“Our strategy is to have different revenue streams to underpin our primary revenue from full-service dining,” Nye explained. “We try to be accessible as well.”
Reasons to come back
Footfall seems to be stronger in premium sites; pre-booked venues were more resilient while walk-in, convenience-driven sites saw lower traffic due to Storm Bert, for instance.
Similarly, the group’s staycation-led sites in Norfolk were fairly resilient despite bad weather over the summer.
Even while promoting its premium food, ACI will continue to prioritise an accessible pub offer, according to Nye.
“We don’t want to be too expensive, a good pub is accessible to everyone”, he started.
While footfall is flat, average spend has gone up and Christmas bookings are strong, meaning the group has refrained from substantial price rises.
Also on the horizon is a revamp of the loyalty scheme.
Nye detailed: “We’re making the scheme a bit simpler. It’s just about making sure we reward people and give them reasons to come back.”
