One year on from the start of its company-wide multimillion-pound investment programme Orchid Group, in which private equity and trade buyers are showing an interest, has reported impressive returns across its estate.
The company, on which first round bids were due last week, said that ROI in relation to capex across its Pizza Kitchen & Bar (PKB) sites was in excess of 30%, with average food sales up from £800 a week to over £3k.
ROI in relation to capex across the 11 site under its All Inns format stands at 46%, while across its carveries, ROI in relation to capex is 42%.
The group also said that its Diamond Club, the over 50s discount scheme run by its carvery sites, continues to drive valuable sales Monday – Friday, growing at over 6,000 customers a month.
The company said that throughout its divisions the pub company has worked hard to enhance its offering, transforming pubs into traditional hubs at the heart of their community, and carefully developing concepts that meet the ever demanding needs of its customers.
“Well thought-out investments that involve spending money wisely and in the right way has brought us incredible results,” said Simon Dodd, commercial & people director at Orchid Group. “We have put money into our pubs where it is needed and backed up our spend with comprehensive messaging and local marketing plans that demonstrate the quality and value on offer at every business. Excellent returns across the divisions show that each one has its merits and can perform well in the right areas and with the right business model.”
ROI highlights across its PKB include: The Old Ball in Leeds, 64%; The Bell in Maidenhead, 45%; and The Albion in Blackpool, 52%. The group said it had another 15 PKB investments planned for the first half of 2014.
Orchid currently has 11 pubs operating under the All Inns concept with the remaining 68 pubs, which operate in the division, planned for conversion during 2014/15.
ROI highlights include: The Manor Farm in Hull, 82%; Hare & Hounds in Minworth, 51% and Lock Keeper, in Radcliffe, 52%.
ROI highlights across it carvery estate include: The Ainsworth Arms in Manchester, 128% ; The Young Pretender, Kings Langley, 68%; The Pickhurst, West Wickham, 79%; and the White Swan, Southampton, 124%.
“These impressive headline figures are echoed right through dozens of pubs in every division, demonstrating that prudent and well-planned investments work wonders for sales and ultimately conversion to profit,” Dodd said. “We are now looking forward to 2014 when we will continue to grow our All Inns, Carvery and Pizza Kitchen & Bar concepts whilst living our values of respecting every pound we spend and challenging the status quo.”
