There appears to be a growing sense of optimism in the UK pub and bar business. At least that was the sense coming from last week’s Pub Strategy & Investment Conference in London.
While leading financier Jon Moulton, of Alchemy Partners, painted a positive picture for investors, at the operational end there was plenty of confidence too - especially among the smaller entrepreneurial players who saw plenty of opportunities for developing niches that the big boys were not in.
The contributions of speakers such as Keith Knowles of Interpub, pioneering his St Christophers concept for packpackers, Jo Clevely of Geronimo Inns, at the sharp end of London’s gastro-pub market, Phil Broad, bringing the US steakhouse chain Outback to the UK, and Steve Wilkins, now developing his second bar chain with Thomas & Carter after selling his first Smith & Jones, summed why and how the sector can be such an attractive environment for those keen to go it alone.
It is not simply the ability to make money that drives them, more the sense of ownership that creating new businesses brings.
The ability to translate that “sense of ownership” down the line to those running the pubs, bars and restaurants is also a vital component of success.
Finding the right key to motivating unit managers across burgeoning branded estates is one of the major issues for the major groups.
One of the reasons the Outback roll-out is attracting so much attention is the partnership deal for restaurant managers, which involves a five-year tie-in and a 10% share of the bottom-line. Area managers have a similar deal, as do the owners of the UK business, which has been an incentive for Phil Broad and his team to cut overheads and run the business from the restaurants.
Interestingly, La Tasca, the tapas bar chain, has also just cut out its head office, apart from accounts, and is running its operation from the sites themselves - another tangible sign from management of staying close to the business.
Whether the big boys can ever emulate the hands-on appeal and involvement of the entrepreneur is the perennial question. But while the leading leased pub estates continue to expand, there is a strong counter argument for the biggest managed pub and restaurant operators to continue to streamline and decentralise.
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Conference will appear in the next issue of the M&C Report newsletter. To take out a subscription call Mark Walford on 020 8240 4479 or email mark@martin-info.com.
