The performance of Stonegate’s late-night Bars & Venues arm has been turned around in the past year, with the division now in positive like-for-like growth, chairman Ian Payne has told M&C Report.
It comes as Stonegate launches a second trial of its new late-night template following a first trial at the renamed Label in Newcastle.
Payne labelled the 58-strong division Bars & Venues as “our success of the year”. The division includes brands such as Reflex, Flares and Babylon, plus its gay bars.
“We set it up as a separate division at the [company] conference last year. It was in negative growth - we’ve turned that into like-for-like growth. The team has done a really good job. We are very, very pleased with Bars & Venues.”
Three Bars & Venues outlets received major investments in the year: Salsa in London’s Charring Cross Road; Colours, a gay club in Basildon, Essex: and RBs in Chester, a three floor, 1,400 capacity site that it to be refurbished over three years at a total cost of £750,000.
Explaining the success of the division, Payne said: “Paul Wright [operations director] has done a great job putting that team together. They’ve got their costs under control, which in late night can run away with you.
“Secondly they work really hard with their DJs. We run DJ forums [and] the DJs meet on a regular basis. We are emphasing the importance of them. They will make or break a night.
“We haven’t spent a lot of money behind it. They are just managing it better - in fact they’re managing it considerably better.”
In February Stonegate’s Babylon in Newcastle was re-opened as Label after a £200k investment. It was a trial of a new concept that included private booths, a premium drinks offer and a greater focus on pre-booking.
A trial at a second site is expected on the south coast.
“It needs tweaking,” said Payne. “We didn’t get it right the first time. I always say, ‘what’s the point in doing a trial if you know the answer?’ We got some things right, we got some things wrong. It’s improving on a week-by-week basis but it’s not where we want it.”
Payne said Stonegate’s 75-strong Slug & Lettuce brand continues to be in double digit growth.
Meanwhile, Payne said he expects to convert “quite a lot” of sites to its new local pubs concept next year following the launch of its first template at the Red Lion in Wednesfield, West Midlands, in April. The concept includes camera-linked dart boards so customers can see games from other parts of the venue. There are also stages for entertainment and TV screens.
A second site, the Sutton Fields in Hull, opens in early September.
“It will be very similar [to the Red Lion],” said Payne. “It’s a massive darts pubs, it‘s already got a big games area, it’s already got live entertainment on Saturday night. It has a lot of similarities with the Red Lion.”
