MD Frazer Grimbleby credited the performance to “keeping community at the heart of the business” as the estate reaches 650 pubs, adding that Craft Union is “consistently outperforming the market”.
Grimbleby, who co-founded Craft Union in 2015, said the business has scaled by “standing firm” on the principles it started with.
“We have grown from zero to 650 pubs, but the most important thing is that we continue to stand by our values,” he said. “Craft Union keeps community at the heart of the business, no matter what our size or scale. Every pub will always be led by a local hero and play a vital role in its community.”
Investment approach
Craft Union invested £5m in its trading estate during the last financial year, which ended in September. Grimbleby said investment is focused on “keeping the proposition fresh and relevant” and maintaining quality amenity across the estate.
This has included upgrades to audio visual (AV) equipment to better late-night trading, improved sports viewing, development of function and community rooms, and a small number of projects to refurbish letting rooms above pubs. Accommodation, he said, is “an opportunity in some pubs, not all”.
Investment in new sites continues to be tied to performance rather than a fixed estate target. “The success of every new pub gives us permission to go on and deliver another new pub,” Grimbleby said.
Craft Union’s strategy is built around four “pillars”: winning on weekends, winning with sport, innovation, and partnership with people.
Sport, a sales driver
Sport remains a major sales driver, supported by enhanced AV and a more social, event led approach to match days. “Delivering an unrivalled sports viewing experience with an energised atmosphere is key,” Grimbleby said. “Our game time sales are currently driving 5% growth.”
Late night trading is also outperforming. Like for like sales after 8pm on Fridays and Saturdays have grown over the past 12 weeks, with neighbourhood pubs benefitting most. “People want to stay local but still have a late-night experience,” he said.
Innovation includes pushing new entertainment formats and campaigns such as the new Sunday Social, which aims to create social occasions, reduce loneliness and support local causes.
“We want Sundays to feel like a great place to get together,” he said. Early results from the first two weekends have shown “good momentum and strong interaction”.
Upcoming community campaigns include a January programme where teams “give back” through volunteering, and a February Love Your Local campaign supporting fifty local charities.
Grimbleby described Craft Union’s operator retention as the highest it has ever been. The partnership model, he said, is built on transparency and shared responsibility.
“We stand shoulder to shoulder with operators,” he said. “Craft Union carries the majority of the cost pressures, which enables operators to focus on serving their communities and driving sales.”
The division continues to see high levels of interest from prospective operators. “We have never had more enquiries,” Grimbleby said. “It shows we are doing something right.”
Looking to the next year, he said the pub group will continue to develop its offer through the four pillars while prioritising reinvestment in the estate. “Our aim is to keep delivering sustainable sales and profit growth,” Grimbleby said.
“We enter Christmas with real optimism, and we will use the strength of our partnership with operators to face the headwinds together.”
