Case study — Clear Pub Company
At a stroke last July, newly-formed Clear Pub Company (CPC) acquired the leaseholds
of 25 former Spirit managed houses, thereby becoming one
of the largest multiple operators in the country.
CPC is run by managing director Duncan Ward and operations director Andy Wilkinson — both ex-Punch senior managers. CPC's 26 pubs (it added a Punch tenancy not long after the original deal) are scattered across eight different Punch operational regions, involving 26 different business relations managers (BRMs).
This has led to a fresh approach being adopted in the business relationships between the two. Punch regional operations director Alan Kennedy is charged with being the focal point of the pubco's dealings with CPC.
Information from the 26 BRMs is fed through their regional managers/directors and ends up with Kennedy, who meets every month with Ward to discuss strategic matters and how the relationship is working. He has another monthly meeting with Wilkinson to discuss operational and practical issues. To encourage closer relationships at venue level, BRMs are given a series of business-building tasks to discuss with the pub managers. These tasks are agreed between Ward, Wilkinson and Kennedy and cover topics such as promotions, special events, etc.
Kennedy remarks: "There is always a focus during the BRMs' calls, whether it is talking about business building or offering support for the strategies that Clear wants to put in place."
Kennedy has also been given sole power by Punch to implement any of CPC's proposals that make business sense. This, says Kennedy, has speeded up decision-making immeasurably. To reduce the lines of communication, there is one point of contact for telesales at Punch, a dedicated person for machines, and a dedicated contact that CPC can use for Punch's key suppliers.
Kennedy observes: "It is still early days and we are trying to understand all their goals.
"We are treating Clear as a pubco in its own right. It is important that we understand the strategies of multiples. They are still learning from us on how to deliver volume and value."
Ward comments: "I think Punch has been very fair and accommodating and is trying to learn about what drives our business. And having a central point of contact is a great help."
CPC's MD says that it is almost inevitable that there will be differences between any lessee and landlord over certain issues such as the tie and rent, but adds: "We have a very strong relationship and we can be very open about matters to one another. Although we may have differences, it is never bad tempered."
A measure of the synergy between the two can be gauged by the fact that they are looking jointly for more sites to fit CPC's business model of operating larger urban outlets, under its Cookhouse banner, and unbranded wet-led city taverns.
