Heineken is set to spend up to £30m upgrading its Star Pubs & Bars estate by the end of 2015 – a 60% increase on the figure in 2014.
The company has already spent the same amount across Star pubs as it did in the whole of 2014.
It is also on course to double its investment with multiple operators from £5m to £10m on 51 projects, compared to 28 in 2014.
The capex programme for 2015 will affect 25% of the estate, compared to 15% last year. This will include 117 major refurbishments and average spend of £175,000.
The focus of most of the refurbishments is to improve the food offer, towards the company’s goal of achieving 50% of sales in its pubs to come from food by 2020. There will also be over 100 external signage and redecoration schemes.
Star said it was introducing flexible zones to allow pubs to cater for private dining, parties and meetings, as well as provide additional space for customers at peak trading times.
Chris Jowsey, trading director of Star Pubs & Bars, said: “This investment is a reflection of the continued confidence we have in our pubs and our operators. Lessees are seeing returns on investment of over 31% on capex projects and their demand for and our commitment to invest in them is evidence of confidence on both sides in the pub market and the economy as a whole.
“We’re leasing more pubs to multiple operators than ever before, with 60% of leases in the first half of this year in this category, double the number two years ago. This is in part due to the level of funding Star is able to provide as multiples don’t have to tie up their capital allowing them to expand more quickly.”
