Pub chain's £3m investment to create 120 jobs

by Stephen Cape - 21/10/2011

"A PUB chain is spending more than £3m renovating 14 pubs across the North East in an expansion that is creating 120 jobs with more to follow."

The Spirit Pub Company, which yesterday announced a 17% increase in profits to £48m, said it was making an £80m investment in its nationwide portfolio, which includes 93 managed pubs in the region.

Marketing director Clive Briscoe said: “I suspect the number of pubs we are investing in across the North East could double. So far we have spent around £250,000 on each pub”.

Many pubs are getting a complete makeover with new bars, furniture, redecoration and 3D television.

In total 120 extra staff are being recruited.

And it appears to be paying off with food sales up 5% and drink sales up 5.4% in the last eight weeks. The company said it outperformed the market in the recent autumn heatwave with the success story being put down to branding, pricing and staff training.

“Our aspiration is to be the best pubs company in the UK and that is why training is so important. Guests want an experience with friendly staff, good quality food and drink,” said Briscoe.

The company has six brands that are crucial to the business. Five are used in the North East, such as the John Barras pub, which concentrates on families and food. The Flaming Grill model turning out steaks and burgers and the Original Pub Company which is geared to sports fans who can eat, drink and watch their favourite teams on large high-definition TVs.

But Briscoe recognises that the economic climate remains ”challenging” not helped with higher energy costs. “Unfortunately increased costs in food, drink and energy have to be passed on to our customers” was the all-too familiar message as family budgets continue to be squeezed.

The profit announcement was welcomed by the markets with an 8% rise in the company’s share price.

Analyst Gary Fawcett, of Brewin Dolphin in Newcastle said: “This is a turnaround story. The company realises investment in pubs pays off at a time when many are closing. But there is a lot of investment to do. Historically in the North East, pubs have been places that simply serve alcohol, but food is now a very important part of it.”

Later today the Spirit Pub Company is reopening the Black Bull in Front Street, Benton, after a £250,000 makeover and the County at Gosforth was back in business yesterday. At the end of the month, the Fountain at South Shields will be the latest pub to undergo a £200,000 renovation.

General manager Robert Teasdale said: “We see the investment as a new beginning for the pub; an opportunity to become a community hub where families and friends can enjoy good food drink and entertainment.”

More Details: http://www.nebusiness.co.uk/business-news/latest-business-news/2011/10/21/pub-chain-s-3m-investment-to-create-120-jobs-51140-29635383/