A renewed focus on data and insight at Stonegate has led to a material shift in the group’s strategy and estate management, CEO David McDowall tells MCA.
When Stonegate acquired Ei Group in 2020, it was part of a plan to leverage the large leased & tenanted estate for its managed and operator-managed divisions.
However McDowall explains these conversions are not a one-way street, with pubs also being converted to leased & tenanted.
“From a decision-making perspective, I was very keen for us to think about how we took a more data and insights and analytics led approach to some of the decisions we’re making, whether that be around pricing, which format works in which location, what’s the optimal business model for this particular pub. I think that has been quite a significant shift and step forward.”
As a result, Stonegate has been converting managed pubs to leased & tenanted and operator-managed model Craft Union, alongside the more well-publicised conversion of L&T pubs to Craft Union and managed.
“The overall strategy of how to get the right pub in the right operating model has been very influenced by that detail [data & insight].”
Despite this focus on data, McDowall insists the on-the-ground, personable management style of Stonegate founder and former chairman Ian Payne, who retired from the business last month, is still alive and well.
“I learned a lot from Ian, his nuts and bolts understanding of the sector and that real operator’s gut feel of walking into a pub and just knowing in your heart what’s right for it, he is better than anyone I’ve ever met at that. There’s a load of that still in the business.
“Sitting alongside that is a really clear data and insights led approach to decision making, which I think is helping us make the right decisions.”
Paying tribute to the man who hired him as CEO, McDowall describes Payne as “proper legend” and an inspiration to many in the company and wider sector.
“The legacy he leaves behind is this absolute determination to create opportunities for people, this bar to boardroom culture. That’s my story as well, and it’s the story of so many hundreds of people that I see in the Stonegate business day in and day out.”
McDowall was reflecting after a year in charge of the pub group, a period he says the business has achieved “quite a lot” and navigated a tough time “really well”.
During this time, the company has developed a new mission, strategic pillars and values for the business under its new CEO, with a slightly more focused strategy.
“Over the last six months or so we’re really starting to see some strong signs the strategy is working, and that we’re starting to drive incremental profit,” he says.
“It’s been a busy year, despite everything that’s been going on around us, we’ve made really quite significant progress.
“Mostly I’m proud of how the team have responded and thrown themselves with some real energy and vigour at some pretty big projects.”
