Redcomb Pubs, the multiple operator led by Dan Shotton and Mark Draper, is looking at a couple of pub “package deals” as it plans to further expand in the south east, MCA has learnt.
It is understood that one of which involves three pubs, of which one may be done as another joint venture with Downing Finance. Last year, Downing and Recomb formed the Apollo joint venture to build an estate of freehold pubs.
The 14-strong Redcomb is on track to generate turnover of £16.8m this year and is looking to grow its estate to 25 within the next two years.
The combined portfolio today is a mixture of just a few tied leases, some free-of-tie and some freehold. The estate is also balanced between country pubs with accommodation (the group has 100 rooms across 6 sites where they account for around 25% of sales, achieving an average room rate around £82 – or £95 for business guests - but generate 8-9% of total group turnover); country pubs with food; suburban pubs in south and south-east London and a couple of central London freeholds.
Shotton told MCA that the minimum criteria for potential Redcomb pubs is that they take an average of £25,000 a week, are in areas with lots of chimney pots and provide other reasons to visit - for example the lake with swans at the group’s latest site, Worplesdon Place Pub & Hotel near Guildford, Surrey.
Shotton said growing the number of Redcomb sites to 25 in the next two years is an achievable aim, especially if the group’s new Paddington model proves successful.
He said that the group’s new casual dining concept will add another avenue of growth as it continues to seek expansion in its core pub estate. The group hopes to launch its Lock House format in Paddington’s Merchant Square in September, following a £1.3m investment.
He said he was already looking at further sites for the concept – which will feature around 15 street food-inspired dishes and a grab-and-go element – and hoped to open another three to five sites next year if the debut proves successful.
He said: “Some people think you should centre on one thing, but I don’t agree with that, especially for a company our size. If the weather is good, our sites with outdoor space do well but those without don’t, so it is good to have that spread.”
