Giles Thorley has insisted Punch Tavern's managed division will continue to innovate in a bid to beat the tough trading climate. To this end Spirit Group – the company's company's managed division – has launched a new menu concept called Grill House Kitchen which will be introduced to 50 pubs. The new initiative uses a charcoal oven to cook food and Thorley says the results of the trial have been 'phenomenal'. The group has reopened the 125-cover Nag’s Head pub in Mickleover in Derbyshire under the new format following a £400,000 investment. Thorley told M&C Report: “We are trialling a new charcoal oven and the quality of the food is just phenomenal. “It takes 45 minutes to heat up and when it is stoked it lasts for 10 hours. It cooks meat at 50% higher temperature than a conventional industrial gas oven. It's incredibly efficient.” Punch said the idea behind the new Grill House Kitchen concept was to focus on freshly prepared food served in modern surroundings, which while remaining at the value end of the company’s brands aims to target customers interested in quality and healthy produce. The menu will include a range of items cooked on the innovative indoor chargrill grill, with average spend per head of £8. The company plans to roll out the format across a selection of its local pubs, with the second site to reopen under the new concept in Burton-on-Trent in July, near to Punch's headquarters. Thorley also added Spirit will not be affected by rising food costs because of the long term contracts the group has already secured.