McMullen & Sons’ co-managing director Heydon Mizon tells MCA he has seen the group’s London pubs continue to perform well, with future expansion focused on the capital and other prime locations in the Southeast.
The Hertfordshire-based pub operator has recently converted two building societies in St Albans and Cambridge, but more recently purchased a trading pub in Stevenage.
“The trading pub was up and running quicker than we could even consider a planning application in the other two,” Mizon tells MCA.
“We are close to signing a deal on another large conversion property, but our focus is very much on trading pubs and hotels in the current climate.
“After a good period of solid growth, we are in the fortunate position of being able to move swiftly when the opportunity arises.”
The pub group is completing its sixth refurbishment since October, and hopes to acquire at least two freehold pubs in 2024.
“As it stands, growth on last year is great, there are some wage headwinds ahead, but a good summer always makes things seem so much more achievable,” Mizon adds.
Elaborating on recent trading, the managing director says, “London has been fantastic.”
“Christmas parties were back; tourism is buoyant and there has been a continued positive buzz in the capital.
“Train strikes and protests have naturally hampered sales, but overall London continues to perform well.
“We increased from two to eight trading London pubs with many of the pubs due to join the estate in 2020 and 2021, clearly the timing was more than a little suboptimal, but last year and this are making up for it,” he adds.
However, Mizon says that generally, the business has found pubs on the high street “more challenging” than other locations.
“Our high street venues sales are flat with last year, profit is better.
“We opened a new high street venue in St Albans which has traded ahead of expectations, its existing nearby sister pub unexpectedly grew sales despite the additional competition.”
Whilst the business felt some price shocks last year, Mizon says the last six months have seen some food prices reduce and that increases, where seen, “have felt more reasonable.”
“While we hope that the biggest shocks are over, international unrest can deliver unintentional consequences, unsettling supply and therefore prices.
“With cost increases calmer, wage inflation in April is now something that will take focus to adapt the business around.”
Mizon also noted, ”There is no doubt that the cost of eating and drinking out has increased significantly in the last five years, this must lead to greater consideration before throwing on your jacket and popping to the pub for a spontaneous drink or meal.”
McMullen’s own brewed beers continue to grow and deliver around 20% of the group’s draught range mix.
“Begrudgingly, given the price, Guinness continues to perform well and just keeps growing, kudos to Diageo though,” says Mizon.
He adds that non-alcoholic lager on draught is “working well” where it is being trialled.
For menu innovation, the business is finding inspiration amongst street food operators and small independents.
“Our pub estate is eclectic and so too are our food variants.
“Of late, I was inspired by the like of Brewski and Wolf at the Door for our high street food offers, where “dirty” food just works so well with beer.
“Amongst our more mainstream pubs, despite best efforts to innovate, pub classics and Sunday roasts continue to lead the way,” Mizon adds.
