City diary

Pub trade job is just what the

doctor ordered

Who says working in the pub trade is badly paid? A medical student working in the Newcastle branch of the Living Room has told bosses she can earn more as a part-time waitress than she will as a junior doctor thanks to the tips that can be earned. Probably, to be fair, a reflection on the National Health Service rather than the licensed trade.

Taybarns covers all the food bases

The Morning Advertiser broke news of Whitbread's eat-all-you-like trial at Taybarns, in Swansea, last week. One senior managed-pub executive reports making three visits in the past fortnight. There's a 34m-long food counter offering just about everything - rotisserie, wok, carvery and pasta. "It's a food court," says one observer. Our managed johnny reports spotting three middle-aged managed executives from different companies poking around the offer. Best guess on levels of trade? (It's priced at £5.95 during the day and £7.95 in the evenings and at weekends.) It manages 8,000 covers a week and a turnover of £60,000-plus.

Little ray of sunshine for pub stocks

Analysts at Goldman Sachs - the firm that foresaw the sub-prime crisis in the United States - sees two possible rays of sunlight that might trigger a re-rating of pub stock. It points out that Enterprise is still in discussions with Her Majesty's Revenue & Customs about converting to Real Estate Investment Trust status. Positive for all tenanted stocks if it succeeds, it notes. It's also noticed a strong correlation between pub-sector shares and the UK real-estate sector: "So far this year, it is noticeable that pub companies have significantly underperformed commercial property companies, suggesting that the pub stocks may be due a period of strong relative performance for this relationship to be re-established."

Grimsby's Riverhead on the slide

Some drinking circuits that sprang up during the heady years of high-street expansion are looking a little sad. Grimsby's Riverhead development was hit last week by the closure of the Yates's bar - while the Chicago Rock Cafe has stood empty for a year. "Plagued by problems of underage drinking, violence and disorder, the area's reputation earned it the nickname of 'The Gaza Strip' among locals," reports the local newspaper.

No Candu in Huddersfield and King's Lynn

Pub-sector analyst Douglas Jack, in his mammoth annual report, suggests the nightclub sector saw a 7% reduction in capacity last year. Certainly they keep on closing. The Morning Advertiser reported the closure of Candu Entertainment's Huddersfield site a few weeks ago. We missed the closure of the firm's Zoots site in King's Lynn. Area manager David Keetley said: "It is closed pending refurbishment. It will carry on in some guise but we have no date in mind. There is nothing in the pipeline and there is nothing in the budget for any work before April. It will be May at the earliest before we start."

Thorley's fiery words of wisdom

Human whirlwind Phil Thorley, boss of Thorley Taverns, is given a whole column in the current BII magazine showcasing soundbites from a recent speech he gave. Here's City Diary's favourite. "I use the burning building analogy a lot - you're out at the cash and carry and return to find your pub's burned down, but your team are safe and sound standing in the car park. Miraculously, someone's built you a shiny new pub nearby. Who will you take with you and who will you leave in the car park? Those left in the car park - why are you employing them now?"

Fallon tables great idea at Lowlander

Jim Fallon, boss of boutique pub-finance house McQueen, is also a part-owner of Lowlander, the Belgian beer specialist trading at a couple of sites in London. In a piece in the Financial Times, he reports that his extra-thin tables caught the eye of the chief executive at another retailer. The tables allow customers to converse more easily and take up less space - the unnamed chief executive went straight out and bought some of his own.

'Critical mass' potential for Food & Drink

Analyst Douglas Jack, of Panmure Gordon, had two interesting M&A ideas in his blockbuster review of the sector out last week. He thinks Food & Drink Group would be a suitable buyer of 3DE, the company 49% owned by Luminar that now runs the Chicago Rock Cafe chain. The move would provide "critical mass" for Food & Drink Group. Meanwhile, Jack argues that Mitchells & Butlers should consider jettisoning part of its high-street circuit bars and nightclubs (M&B is still the UK's second-largest nightclub business behind Luminar). City Diary has an alternative solution. Why doesn't 3DE make an offer for M&B's high-street pubs and nightclubs and then reverse into Food & Drink Group? Surely it's time for a bit of proper consolidation on the high street now Laurel is taking out capacity?

Barracuda makes pre-emptive strike

Canny property managers at Barracuda looked like they were one step ahead of planners in Hull last week. A plan to turn the Clothes Factor store on Newland Avenue into a Varsity faced stiff opposition from 170 locals who have signed a petition - and local planning officers who had recommended it be turned out. Whatever the outcome of the planning meeting, Barracuda had already submitted an appeal to the Planning Inspectorate on a duplicate application, which was not determined within the time limit.

Young's slims down its bottom end

Young's, flushed with the proceeds of the sale of its Wandsworth brewery, is re-shaping its property estate at a rate of knots. As well as buying a clutch of pubs from Mitchells & Butlers and Capital Pub Company, it's been taking a hard look at its bottom end. The Tamworth Arms and the Fountain Head in Croydon as well as the Cricketers in nearby Mitcham have closed, with possible alternative uses being lined up. "In spite our best efforts, over time there are naturally some within our estate that are no longer viable," a spokesman for Young's says.

Spirit blows fizz budget

Spirit managers and staff are getting used to a Champagne lifestyle. The company offers pub managers a case of Champagne if they achieve two consecutive 100% monthly mystery-customer scores. It's proving a good incentive to maintain standards by all accounts - so much so that Spirit's Champagne budget is around £50,000 overspent.

Anchor's fish and chips with a twist

City Diary hears there's some great innovation planned by Spirit retail director Richard Carter at its historic Thames-facing Anchor pub in Bankside. The pub, rumoured to be the company's most profitable, is undergoing a £1m refurbishment. Work has been a little delayed by the discovery of historic gin stillages. But when the pub

re-opens in late May or early June, expect to see part of the Anchor offering fish and chips with a twist - a part of the pub will be converted to a contemporary fish and chip eatery, still identifiably part of the pub. For once, there's no need to add a little salt to a City Diary story.