TCG, the pub and bar business backed by Alchemy Partners, plans to ratchet up “low spend but high impact” investments in its estate and introduce a new value food concept in the following financial year.
The company is to spend around £1.5m on 20 sites in the 12 months from September, compared to 15 in the current financial year. An average of £70,000 to £75,000 will be invested in each venue, chief operating officer Nigel Wright told M&C Report.
“We’ve kept the capex spends relatively low and we’ve seen some relatively good returns from those investments in meeting the demands of those local customers.
“What we’re pushing on with from September onwards is another tranche of relatively low spend but high impact investments.”
Wright gave examples of the kind of investments and sales uplifts from the current financial year.
Food sales at TCG’s Comedy bar in London’s Piccadilly increased from £1,500 to £5,000 per week after a traditional food offer was added in an investment of under £100,000. A similar investment that created an extra 25 covers at the St James Tavern, also in Piccadilly, saw food sales rise by about 50% to £6,000-£7,000 per week.
And a £35,000 refurbishment at the Mosaic bar in Exeter increased capacity and added about £5,000 onto weekly sales.
“For those limited amounts of money we’ve got some big impacts out of the estate,” said Wright. “We’re not flushed with capital but the capital we do have we’re working really hard with.”
Meanwhile, TCG is eyeing 15 sites for the roll-out of its “big plate” food offer called King’s Feast. Dishes will include pies weighing a full 1lb. Meals will cost around £5 to £8.
The offer goes live in the first week of April at the George Staples in Sidcup, south London, then one week later at the King’s Arms in Morecombe, Lancashire.
Wright said food sales across the estate are rising by 8-10% each year but the company had identified a gap in its community pubs for “evening food, early evening food, family food and weekend food”.
“We’ve identified up to about 15 sites where we think the concept of big value will work well. They perform well on food but need an added value menu to finish off the day part.”
He said Alchemy, and TCG’s bank Allied Irish, have been “really supportive of the business”. “It’s been a tough time for them individually but they stuck with the management team and I think they are seeing the benefits of that patience.”
There’s no timetable for expansion, Wright said. “I wouldn’t say any of us are looking to expand rapidly when we have an estate that we’re not maximising yet but the time will come when we should be in a position to grow that business model.”
