Wet-led Amber Taverns shows value of doing simple things well

18-Apr-2012 - Last updated on 23-Apr-2012 at 14:12 GMT

Related tags Amber taverns Bar Public house

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Reports of the demise of the regional community pub have been greatly exaggerated, as I was explaining to DJ Paul Braithwaite on BBC Radio Cumbria’s Drivetime show just the other day (the PMA is big in the Lake District, don’t you know).

According to the inaugural Zolfo Cooper Profit Tracker, produced in association with M&C Report, the near 100% wet-led Amber Taverns is the top-performing pub company in the UK.

The appearance in the Profit Tracker’s top 10 pubs of Eclectic Bars, B@1 and Tokyo Group would also suggest that food isn’t a necessary ingredient of licensed retail success.

Profit at the 76-site, Lancashire-based Amber Taverns grew by 69% in the three years to 2011. Its EBITDA (earnings before interest, tax, depreciation and amortisation — in case you were wondering) of £4m on a turnover of £18.5m in the year to January 2011 revealed a pretty solid margin too. Investors have noticed. Amber is planning to expand its estate beyond 100 pubs after securing a new funding package.

So what is the secret of this distinctly unfashionable (at least in terms of the zeitgeist) operation? As with all well-run businesses, it all seems so simple. The company’s policy is to buy struggling pubs, to refurbish them to a high standard and to give their customers what they want — a selection of the best-selling drinks brands and Sky TV — in a safe, friendly and relaxed atmosphere.

And its mission is to own and maintain the best pubs in its operating areas, provide an outstanding value-for-money offer, to be innovative, dynamic and working hard to deliver the best service possible in its pubs and to strive for excellence in everything that it does.

Is there anything in what you’ve read so far that is controversial or cutting edge? Is there anything in this business plan that is beyond the wit of any pub operator?

Frankly, no. But success doesn’t lie purely in having the right strategy or the right mission statement — it lies in the execution of those things. By definition, not everyone can operate the best bar in town, and not everyone can have the strongest profit growth, like Amber Taverns.

But they can work hard to improve their operation by doing the simple things well, before necessarily joining the gold rush to serve food, which — if they can’t get their core drinks offer right — is only likely to compound their problems.

We should salute the efforts of Amber Taverns to show that the Great British community pub is both relevant and viable. If you can make a success of your community pub, good luck to you. If you can’t, I know a company that will take it off your hands (particularly if it’s a freehouse located in a market town north of the Birmingham area).