City Diary — 17 September

Fayre & Square finding its feet

The managed business formerly known as Spirit is trialling a new concept called Fayre & Square at five pubs. The company has converted the Waggon Team Inn in Gateshead, previously a Two for One, into the concept. Two or three bad meals don't mean it's a rubbish concept. But early reviews posted on the web give the Gateshead venue what's known colloquially as a good kicking. One says: "No member of staff asked us whether we had enjoyed the meal and we waited about 25 minutes with our finished plates on the table before they were taken away. And this could be redeemed if it was busy, but the fact is that there were about 20 tables in and about 12 staff!" There's plenty more along similar lines to suggest teething problems.

Fowle's warnings on leased market​

Morgan Stanley's intrepid analyst Jamie Rollo joined a Mitchells & Butlers field trip to around a dozen of its own and other pubs in the south-east, led by new chief executive Adam Fowle. Rollo reports: "Mr Fowle, a former tenanted pub district manager at Bass, and strategic planning director responsible for selling Bass pubs post the Beer Orders in the early 1990s, thinks the tenanted model can only work if landlords are not too greedy. He reckons the proportion of pub profits taken by the pubcos has probably doubled from the circa 30% when he was running tenancies 20 years ago, and he has been questioning for how long pubcos can double rents, hike beer prices, transfer repair obligations, and still have financially healthy lessees. He believes that the leased and tenanted pub sector has become so underinvested, and managed pubs so keen on price, that the level of polarisation will only continue to widen."

M&B hits a small machine jackpot​

Folks are hungry for information on how the new £70 jackpot machines are performing. Here's an anecdotal snippet from Jamie Rollo's field trip

with Mitchells & Butlers (M&B). "The new £70 machines are being steadily rolled out across the estate, and seem to have made a material improvement in take.

One example was a machine that had taken £500 in the past five days, when it would have taken £300. Machines are around 3% of group sales, and revenues have been falling by 8%, so if M&B can get this back, this is around £5m to EBIT, which is small but not unhelpful." Quite.

Martin's Crouch End trauma​

Wetherspoon boss Tim Martin, who is celebrating the 30th anniversary of his founding the company, has less-than-fond memories of his second pub — a site in Crouch End. "I sent invitations to everyone I could think of — and many pals from faraway places duly arrived, but the pub was not ready. Suffering from great trauma, stress and cowardice, I went for a walk in Alexandra Palace and left the missus to tell the disappointed guests I'd done a runner. However, luckily for me, the people working in the company were better than I was and I gradually found a way of ironing out the problems and getting it right." Martin is having an extended break and visiting his Watford headquarters

only irregularly until October. He attended a board meeting last week, but otherwise is getting his feet up for a bit. A source says: "It's not exactly a sabbatical, but we're giving him a bit of extra time off to mark his 30 years' service."

Me Tarzan you not amused​

Martin does a good line in self-deprecating stories. The latest concerns a Sunday Times awards ceremony in 1998 when he was won Entrepreneur of the Year, which was presented by Michael Heseltine. Reports Martin: "I informed him that we had something in common since my school nickname was the same as his — Tarzan. I was sure he would find it funny, but he was not even slightly amused — and no one else laughed either."

Carlsberg's JDW deal gets kicking​

It's a supplier truism, but it's just about impossible to please all the people all the time. Take poor old Carlsberg, delighted to have displaced Coors at JD Wetherspoon. Last Wednesday's England game at Wembley gave it the chance to trumpet the link — Carlsberg advertised the brand and followed it up with "available at Wetherspoon pubs" on the pitch-side hoardings. A Carlsberg customer sent the company a stinging email: "I would like to know why I should continue with the brand in my estate when one of my main competitors can sell it far cheaper with national advertising from the brand owner."

Double celebration time at the Bull in Benenden​

Last week was quite a cause for celebration for Mark Reid and Lucy Bligh of the Bull Inn at Benenden in Kent. On Wednesday night, the Bull scooped the Great British Pub Awards accolade as the best pub in the south-east as well as being judged the best freehouse. They had just about enough time to get over the celebrations before getting married on Saturday.

City Diary hears Mark ignored Lucy's advice and participated in a dragon boat race a few hours before they tied the knot. We have also been told that Mark bought a new suit for the occasion — allegedly with pink lapels. City Diary has been promised a picture of the happy couple and that suit. We wish them every happiness and can't wait to see the photo.

Bonding time at the Pen-y-cae​

Anthony Christopher, owner/chef of the Pen-y-cae Inn, Great British Pub Awards winner, decided to give his members of staff a treat. So he closed the Brecon Beacons pub for two days and brought everyone to London for the awards ceremony. "It is the first time in four years that we have had a chance for a team-bonding session," he told City Diary before the Pen-y-cae was awarded the supreme accolade of Great British Pub of the Year. Maybe sixth sense told him that something special was going to happen on the night. By the way they celebrated, it was team-bonding par excellence.