JDW stubs out 5 smoking pubs
by The PMA Team
The first five "smoking" JD Wetherspoon pubs have been converted to non-smoking on the same day national non-smoking day (9 March).
Prior to these conversions, all three current JDW non-smoking pubs have been new openings.
The early conversions ahead of a further 58 on 19 May is an attempt by JDW to more fully test the water. Most analysts claim the ban, two years ahead of a national ban, will hit sales.
A JDW spokesman said: "Logistically, it is impossible to open all our non-smoking pubs on the same day. There is a day or so for refurbishment involved and the need for new signage, for example."
The first smoking pubs to be converted are: the Pennsylvanian, in Rickmansworth, Hertford-shire; the King of Wessex, Bath; the Welkin, Liverpool; the Back of Beyond, Reading; and Wetherspoons in the Metro-Centre in Gateshead.
The Draper's, a new non-smoking pub in Peterborough, also opened on the same day.
In addition, the Old Manor in Bracknell will become a completely non-smoking pub on 21 March. The rest of the estate joins them in May 2006.
Meanwhile, the latest batch of 16 JDW pubs to be sold provide an interesting indication of what leasehold sites at the bottom of its estate are worth.
Excluding the one freehold in the batch (on the market for £900,000), the leasehold venues (see table below) are being offered for a total of £2.819m. This works out at an average of £187,000 each compared to book value of around £654,000.
Bargain of the bunch must be the Company Inn, a Lloyds No 1 in Nottingham. Opened almost four years ago, it's available, with a public entertainment licence for 660 people, for just £99,000. Its average weekly sales are £22,435 but has an annual rent of £141,000.
JDW chief executive John Hutson has admitted that there are a few newer pubs that "haven't worked for us" being sold in the latest round of disposals. He added: "You're not going to get your money back in the current market."
