City Diary — 22 July

Be Enterprise-ing and take on JDW

Enterprise boss Ted Tuppen was explaining in the Morning Advertiser last week that an Enterprise pub in Otley, West Yorkshire, had been sold — one reason is that it's next door to a new JD Wetherspoon outlet opening. Russell Holmes, manager of the Spotted Dog in Barking, east London, contacted City Diary: "Who is going to want to run a pub where a Wetherspoon is opening practically next door? We run a pub with a Wetherspoon's Barking Dog on the neighbouring corner. JD Wetherspoon opened up in the early 1990s against the Spotted Dog, which has been operated by Davy & Co since 1910. And our landlord is Enterprise Inns."

Former M&B man enters academia​

Mitchells & Butlers' former human resources, service and productivity director Chris Edger is now formally ensconced in the groves of academia. He has left M&B to take on a new role at Birmingham City University's Business School (BCBS). Edger has become professor of multi-unit leadership — one of two "professors of practice" who will help develop and shape BCBS as a "leading practice-based business school". Edger says: "There is enormous scope to develop courses that improve managerial capability (at unit, area and regional level) across the retail, hospitality and service sectors in the UK. Also, there is immense research potential as the psychology, sociology and economics of multi-unit leadership is under-researched and not well understood." We'll watch with interest.

The dishes with staying power​

Food research firm Horizons looks at hundreds of pub and restaurant menus twice a year to spot trends. It notes that menu favourites are, quite rightly, hard to dislodge. Among the unmovable menu dishes over the past seven years are: JD Wetherspoon's five-bean chilli, Café Rouge's moules rouge, Frankie & Benny's Sister Rosaria lamb shank and TGI Friday's Jack Daniel's ribs. There is also a list of innovative and inspiring dishes: vodka chilli cherry tomato pasta at Barracuda's Varsity; Quorn and Chianti lasagne at Mitchells & Butlers' Scream; catfish bites at Old Orleans; Brie and papaya quesadilla at Las Iguanas; Shropshire blue and quince tart at Chef & Brewer and Belgian banoffee waffle at Brewers Fayre.

Orchid planning to add 50 pubs​

Managed pub company Orchid has ambitious plans to add 50 pubs to its estate this year and another 100 next year. But where will they all come from? It's now very happy to take on tenanted pubs. Heads of terms have been signed with Punch Taverns' leased division on taking sites and the company is in negotiations with a few regional brewers on taking sites as well. Oh, and there are eight or so currently "in legals".

Le Bistrot Pierre has the micro bug​

Even swanky restaurant chains are cottoning on to the microbrewer revolution. The restaurant chain Le Bistrot Pierre is converting a former Cains pub, the Crescent Hotel in Ilkley, West Yorkshire, into its ninth bistro. But it's also opening the Crescent Pub, being marketed as a traditional look-and-feel pub, with a dining capacity for 40 people. There will also be 11 guest bedrooms, maintaining the building's traditional use. The chain plans to work alongside local microbrewers to offer real ales in the pub.

A decent year for Budweiser Budvar​

Plucky Czech brewer Budweiser Budvar had a pretty decent 2009 in the UK, according to Companies House accounts. It saw a small 1.6% volume decline in an on-trade premium lager market down 14%. Margins per hectolitre were improved mainly through improved efficiencies in distribution and a slight improvement to pricing. A report states: "We have avoided discounting and we believe the market for genuinely imported brewed-and-packaged-at-source beer will grow as the consumer tires of the bland, standardised lager produced by the international brewers."

Business rates are sky-high​

If there's one thing everyone is agreed on it's that business rates have gone through the roof this year. One pubco boss reports that business rates are higher than rent at around one in six of his pubs.

Grand Union Group eyes openings​

Grand Union Group, the London-based multiple retailer, expanded from four to nine sites last year, tripling turnover in the process. Now City Diary hears there are three more openings lined up this summer. It is taking its third Punch site, a pub in Godalming, Surrey, and a third Young's site. The Young's site, in Wandsworth, is a feather in Grand Union's cap — it's the first managed multiple company allowed to expand beyond two sites within the Young's estate.

Whittome's legacy at the £4m-a-year Hoste Arms is safe​

The inn-keeping legacy of Paul Whittome, who sadly passed away last week, is safe. He turned the Hoste Arms in Norfolk's Burnham Market, when he bought it in 1989, into a £4m-a-year business that people would travel from miles around to visit. There were rumours that the business could now be sold. But his family and colleagues have scotched the rumours. Whittome's wife, Jeanne, stepped in as chairman of his company as the extent of his illness became clear.

And managing director Emma Tagg reports that Jeanne would return after a short break to help implement plans instigated by the former boss. "There has been nonsense floating around, and there is no truth in it," she said. "Jeanne stepped in as chairman four months ago, while I and (financial director) Andrew McPherson have been with Paul for 20 years, so we will carry on his legacy. It was always in Jeanne's mind to continue the business."