Maclay Inns to expand this year

By John Harrington, M&C Report

- Last updated on GMT

Related tags Scotland

Maclay Inns, the Scottish pub operator, plans to add two or three sites to its estate in the coming year after reporting a 26% rise in operating...

Maclay Inns, the Scottish pub operator, plans to add two or three sites to its estate in the coming year after reporting a 26% rise in operating profits to £930,000 for the year to 2 October 2010.

Like-for-like sales were up 1% to £10.7m in the period for the 26-site company. Managing director Steve Mallon told M&C Report: "We've got funding in place to acquire sites and are keen to do that over the next year. I think next year we will be adding two to three more in central Scotland.

"We continue to have aspirations to double the estate over the next five years. We see that picking up more significantly as the sector improves and the wider economy recovers."

Mallon said the new sites would be like Maclay's existing venues, "food and beverage businesses on the edge of city centres".

The company attributed the rise in operating profit to "effective management of margins and commitment to providing customers with a quality yet affordable food and drink offering".

Mallon said the firm focused on "what's going on at the coalface through tight financial controls", including profit and loss accounts in the pubs on a weekly basis.

There were also changes to the product line, with value for money lagers such as Foster's and Carlsberg introduced alongside premium drinks brands such Peroni beer, along with premium wines.

Despite retailing at £4.20 to £4.50, Mallon said Peroni has "probably displaced other premium beers" such as Kronenbourg and Stella Artois that sell for about £1 less. "It's an interesting observation at a time when customers are cash strapped," he added.

Mallon revealed that sales had trebled in the period at the one site that received significant investment during 2010, Uisge Beatha in Glasgow's west end, which was relaunched as DRAM! after a £500,000 revamp. A new food menu and entertainment programme were added to the venue, which Maclay manages on behalf of Thistle Pubco III.

Mallon described 2010 as "a difficult year for the trade in Scotland".

"The recession has had a major impact on business however we have continued to make progress despite this. Underlying pressure on raw material and labour costs added further challenges to profits, however the whole team at Maclay Inns rose to the challenge and delivered sales growth and cost reductions.

"The outlook for 2011 remains tough but we are confident that we can continue to lead the business through these challenging times and we anticipate a good year ahead of us."

Related topics MA Leaders Club

Property of the week


£ 60,000 - Leasehold

Busy location on coastal main road Extensively renovated detached public house Five trade areas (100)  Sizeable refurbished 4-5 bedroom accommodation Newly created beer garden (125) Established and popular business...

Follow us

Pub Trade Guides

View more