Trade boost for ex-L&ESG pub

A former tenant of London and Edinburgh Swallow Group (L&ESG), who bought his freehold, has reported massive barrelage discounts and a boost in trade.

David Grundy and his son, Daniel, took over the Plough Inn at Bruntingthorpe, Leic-estershire, six years ago.

The freehold of the Plough was owned by Flodrive, which is the property vehicle of the Khalatchi family

"We have had six landlords in six years, ending with L&ESG and Oxford Inns and Hotels," said David Grundy.

"When L&ESG collapsed, we were left in despair. The pub had been our home for six years. It wasn't that we wouldn't find another pub - it was simply that we didn't want to leave this one."

The Grundys negotiated a deal with Flodrive and purchased the Plough freehold for £475,000.

"We've already noticed a huge difference," said David Grundy. "The lack of ties and absence of high rents means that we have increased our gross profit margin from 40% to 65%."

The Grundys are no longer tied for beer and David reported being able to buy an 11 of Fosters for half the price he previously had to pay.

"It's great because we're 100% wet-led and that's our unique selling point for this area - so we didn't want to change. There was no chance of us making money when we were tied.

"We even stopped opening during the day because it wasn't viable. But we can start doing that again now."

Grundy senior pays the same amount now that he owns the building as he did when paying rent to L&ESG.

"We're making big plans for the smoking ban and now that we've generated extra money, we're looking into extending the games room and adding patio doors to a covered outside area."