Scottish & Newcastle Pub Company (S&NPC), the leased pub operator, has announced plans to invest £24.5m across its c.1,300-strong estate over the next two years. The programme will include 205 substantial developments with an average expenditure of £70,000, as well as other smaller projects. S&NPC said investment will be focused on adding additional income streams. Two thirds of the pubs involved will receive kitchen improvements. Three out of four projects with an expenditure above £30,000 will add high quality coffee offers, and half will add Wi-Fi. Letting rooms are being created at 11 pubs. S&NPC said the company has rationalised its supplier base and is using its group buying power to “achieve the best possible value for lessees in 2012”. “Generic tendering and fixed prices have also been extended to all areas of capital improvements from construction costs to fixtures and fittings. As a result, S&NPC believes its lessees will benefit from savings across the widest range of development costs in the leased sector,” the company said. Key performance indicators have been introduce for all CAPEX work, and supplier success rates will be publicised in a league table format “to encourage competition and high standards”. Chris Moore, S&NPC trading director, said: “Projects can be quickly and accurately budgeted and tendering times eliminated allowing work to begin on site much more quickly. “In an economic downturn, businesses tend to focus on sales building activity. Equal effort needs to be put into reducing costs. This is an area where pub companies can really help lessees by using their procurement scale to buy better on their behalf, securing them significant savings in high expenditure areas such as refurbishments.” “The S&NPC estate is focused on quality pubs in good locations with multiple sources of income and the ability to charge full prices. Continued investment in our sites is essential to maintaining this position and ensuring our pubs offer excellent long-term business opportunities for our lessees. Our new supplier management initiative means lessees can be assured that they are getting excellent value and strong returns from this capital expenditure.” The move follows the acquisition of 918 pubs from the Royal Bank of Scotland by S&NPC's parent company Heineken last December. The pubs were already operated by S&NPC, but the company has said the freehold ownership is an incentive to invest.