InnSpired - aiming to make licensees' lives easier

Peter Brook, chief executive of InnSpired, likes to get out into the field as often as possible and sets aside at least one day a week for pub tours.

His next visit to Bristol might prove eventful, a clutch of the city's tenants are less than happy with their lot, according to the local evening newspaper.

There have been reports that the company is making excessive margins on its tied beer and cider and one discontented licensee has set up a website called unInnSpired.com.

While it is not perhaps the ideal marketing tool for InnSpired, out of more than 1,020 tenants, it is worth noting that only two, or less than 0.2 per cent, have taken the time to share their "unsavoury" experiences.

So it would seem the disgruntled are very much in the minority of the InnSpired licensee register.

While the complaints, if true, should not be ignored, one suspects the negative report was the result of one editor's struggle to fill a newspaper rather than an endemic problem - InnSpired is not the first large pub company to be dogged by bad press, and it will not be the last.

The story that appeared in Bristol, where the company has 102 pubs, was not the first piece of adverse publicity and InnSpired is keen to improve its message.

The company has allocated a PR and marketing budget and has recruited Stephanie Boventer to head up the team.

Stephanie is to give the current website a face-lift which will include a strong on-line recruitment drive.

InnSpired says it is doing as much as any pub company in the sector to improve the life of the licensee. It has launched a number of initiatives aimed at making day-to-day pub management easier.

It has introduced a management service that oversees all issues involved in running a pub such as maintenance, insurance, business rates appeals and advice, and gas safety checks.

Perhaps more significantly, Project Freedom, a code-name the George W Bush administration would be proud of, is part of the new tenancy lease that allows licensees access to a range of drinks brands and other products. Historically, all tenanted houses were tied to Ushers and Courage with regard to beer, cider and soft drinks.

"We felt very strongly that licensees should pick and choose what they want - tenants can now choose the number one product in any market," said Peter. "All leading brands are available as are locally brewed beers, so each licensee can choose the products which will give the best possible sales."

Just a year after the launch of the project, 80 per cent of the estate has signed up. Each tenant agrees an individual annual barrelage target with the business development manager and a bonus of £15 a barrel is paid. This is for every barrel sold, not just those above the target threshold.

Nearly 40 per cent of tenants have received at least one quarterly payment and last year the company paid out £627,000 in total through the scheme.

The single biggest recipients, Margaret and Stephen Coxhead, were awarded £6,346. Safe to assume the Coxheads will not be logging on at unInnSpired.com. The company is in the process of establishing a central technical service team, a crisis management focused service aimed at those who need help quickly. This will include a 24-hour help desk, available 365 days a year.

Urgent problems will be resolved within six hours and all issues within 24. "This is a one-stop shop," said the InnSpired chief. "This is another step towards making the tenant's life easier."

The company recognises the importance of customer contact and, through its BDMs, regularly holds get-togethers with central-based staff and licensees. These meetings might involve a day at the races or a trip on the London Eye.

Formed out of the estates of Ushers of Trowbridge and the Alehouse Company in January 1999, InnSpired set out to transform itself into a dedicated tenanted pub company. It closed the Ushers Brewery following an unsuccessful buy-out - the brewery management were set to take over but could not secure the financial backing.

The Ushers brands were sold to Refresh UK, a start-up which had the beers contract-brewed.

The brewery site in the centre of Trowbridge closed and was converted to offices, housing and shops.

Peter, who previously headed Ushers' tenanted estate, took over as chief executive in April, replacing Robert Breare who quit to lead a takeover bid for Wolverhampton & Dudley Breweries.

In the past year alone InnSpired has bought more than 200 pubs. Its estate currently stands at just over 1,000 pubs, a figure Peter wants to see double. "We want to get to 2,000 pubs as quickly as possible," he said. "We want to cherry-pick our way to that number. That is the initial target and once we get there we will stop and re-assess our strategy."

Most recently it bought 13 pubs from Noble House, Robert Breare's new venture.

In its former life, InnSpired securitised its pub estate it raised a lump sum of money through a bond based on its future income from rents. It recently undertook a tap issue on the pubs it has added to its estate since securitisation - raising a further £100m.

This war-chest is set aside for further acquisitions. The company is backed by Alchemy Partners, the venture capitalist that tried to buy Rover last year.

How Alchemy plan to exit the business is a valid question. The likelihood is this will be through a trade sale or by taking the company public.

Along with a string of other pubcos, Peter said InnSpired will watch with interest as events unfold at Punch Group next year. Punch plans to be the first securitised pub company to attempt a stock market listing.

InnSpired, meanwhile, is to embark on a marketing drive to bolster its identity in the market place. One of the key drivers behind the initiative is to attract new licensees to the business.

"I think everyone accepts recruitment in this business is a problem," said Peter. "We are investing time and money to find the right people."

The company is looking to recruit not just from the pool of existing pub operators but also from those considering joining the trade. Those on InnSpired's books who have already made the leap of faith include actors, steelworkers and single mothers.

Perhaps keeping all tenants happy, all the time, is an impossible task. But pubcos are moving away from the outdated notion that they are property groups. That companies such as InnSpired, and Punch, offer the support they do should perhaps be celebrated.

As for the newspaper report, Peter and Stephanie have since arranged a meeting with the said journalist to put the record straight.

Peter Brook on...​

• Smoking:​ "A ban is the doomsday scenario and I don't think it will get to that stage. It's about what the customer wants - if they want no-smoking areas, install one."
• Tax:​ "We are completely out of kilter with the rest of Europe."
• Recession:​ "History tells us that pubs are fairly robust. People trade down from restaurants but pubs need to widen their offering, therefore widening their appeal."
• Ale:​ "Cask Ale is a significant product. We need to ensure it is served properly and that the highest standards are maintained."
• Licensing reform:​ "It's something that needs thinking through thoroughly. Socially responsible licensees should be allowed to close when they want."