Pubcos lag behind in investment measuring

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Related tags: Research

Pub companies are lagging behind other leisure and retail operators when it comes to testing the rationale for investment programmes across their...

Pub companies are lagging behind other leisure and retail operators when it comes to testing the rationale for investment programmes across their estates, according to new research.

A survey conducted by researchers Martec International of several operators whose combined estates totalled around 5,000 outlets, found that in contrast to most hospitality and retail firms no pubco used any form of testing for outlet refits.

Only a third used testing to assess the return potential for new product launches.

"Leading players in the pub trade 'get' measuring investment potential," said Phil Marsland, head of Europe for Applied Predictive Technologies, which commissioned the research.

"But not one pub company tested across the three areas we see as vital for this kind of analysis: marketing; investment and operations," he added.

Large sums of money were still being invested without the proper due diligence being applied, Marsland said.

"However, we're seeing an increasing sophistication as companies are using more data. The pub sector isn't the first in that class but the opportunities are very significant and there's a recognition of this," he added.

Related topics: Other operators

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