Marston's new-build pub surge
Marston's is to ratchet up its opening of new-build pubs in 2012 after revealing that new-build sites are significantly outperforming the rest of its managed estate.
Chief executive Ralph Findlay said: "We built 15 [new-builds] last year, we expect to build 20 this year, and we expect to build 25 next year."
Findlay said Marston's new-builds are taking more than £25,000 per week, compared to an average £15,000 in the rest of the division.
In its trading update for the 23 weeks to 12 March 2011, Marston's said it is "on target" to build 20 new-build sites during the full year (to 30 September 2011). Five have opened so far: in Trowbridge, Wiltshire; Southend, Essex; Cardiff; Crediton, Devon; and Fakenham, Norfolk. Another three are to open in the next eight weeks: in Huddersfield, West Yorkshire; Uttoxeter, Staffordshire; and Mansfield, Nottinghamshire. Explaining the success of the new-build sites, Findlay said: "We build attractive pubs in convenient locations and put in outstanding service standards."
Like-for-like sales in the managed division rose 2.4%, with food up 4.7% and wet sales up 1.5%.
Explaining the rise in food sales, Findlay said: "We haven't increased the level of promotions. But what we have got is an everyday low-price offer.
"The key is offering not just the right price, but a combination of price of the food, the standards of the pub and the service standards. If you get all of those right you will do well."
He said the average spend per head at the managed pubs, at around £6, has not changed in recent years, but customers are getting better value. Findlay singled out the Two For One brand.
"If you buy a prime rump steak and pay £6 or £7, it's outstanding value. The simplicity of the offer works."
Marston's attributed the 0.1% rise in like-for-like profits in its tenanted and leased division primarily to the rollout of its Retail Agreement, where licensees typically earn 20% of turnover to pay themselves and staff — the firm buys everything centrally and pays all other bills.
