Marston's sets new-build pace
Marston's, the brewer and pub operator, is planning to maintain the pace of its new-build openings into 2013 after seeing a continued rise in takings at its new-build sites in the most recent trading period.
Average weekly turnover among Marston's new-build outlets hit £27,000 for the 42 weeks to 23 July, compared to just under £15,000 for
the Inns & Taverns managed division as a whole, chief executive Ralph Findlay told the Publican's Morning Advertiser.
He said the company is on-track to open 20 sites by the end of this financial year. Eighteen of the 25 sites earmarked for new-build developments next year have already been acquired, Findlay revealed.
"We are looking at 25 the year after that," he added.
"That's quite a significant development programme for us."
Findlay said new-builds are likely to increase the food mix across the managed estate from about 41% now to about 45% within the next couple of years. The new-builds' average wet:dry split is 40:60.
Marston's reported a 2.9% uplift in sales in its managed arm, with food sales up 5% and wet sales up 1.7%.
Marston's approach of expanding its managed business by growing the new-build estate is in contrast to Greene King, which has focused on buying existing pub operators, most recently its £70m swoop for the London-based Capital Pub Company.
Findlay said: "I'm not persuaded by geography. Geography is not the driving
force behind our investment plans. London may be hot at the moment, but it's one part of the UK. We look at what's around; what fits; and if the right returns are available."
In its leased and tenanted division — Marston's Pub Company — Findlay said that its 300 sites on the franchise-style Retail Agreement have experienced "double-digit growth".
The deal sees licensees earn 20% of turnover to pay themselves and staff, with Marston's buying everything else and paying bills.
Marston's also said that those pubs expected to stay on traditional agreements for the long-term are trading ahead of last year.
