Baer, founder and former CEO of Amber Taverns, told The Morning Advertiser the decision to bring in ex-RedCat Hospitality CEO Lewis was based on his knowledge of the sector and role but stated the community-based, wet-led pubco model would remain as it is.
Join our WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner!
He also said he welcomed the new Prime Minister Andy Burnham’s move to give pubs a further relief on business rates and added there had been an uplift in customer confidence since the former Mayor of Manchester took the reins in Westminster.
On the appointment of Lewis, Baer said it was down to: “His experience, his understanding, his effort to take time to get to know the executives... some excellent references, and clearly he’s done a great job both at Greene King and in the transformation and sorting out of RedCat.
Ambitious and supportive investors
“His priorities will be to continue the expansion and to speed it up if we can find the right sites at the right returns. We’ve got very ambitious and supportive investors who will back us to go faster for the right opportunities but their overriding principle is ‘don’t dilute the quality of the estate we’ve built up over the years’.”
Lewis stated there is potential to double the 191-strong pub estate and Baer explained this is a long-term goal with Amber looking to raise its pub acquisition numbers from about 18 annually to possibly 25 but again cautioned: “The overriding driver will be maintaining the quality of the estate. It’s not a numbers game. It’s not that we have to get these pins on a map, it’s about good sites in good locations that give local communities a great offer.”
Additionally, with the pub company “super-focused” on its wet-led, community-driven approach, Lewis’s success with RedCat does not mean he will be changing the model to alter the estate to have a food-led set-up.
On his move to a non-executive role of chairman having been CEO, Baer said Lewis will be “driving the train” after a brief handover period with the new man starting duties officially on 14 September.
Customers being squeezed
Trade is good currently, Baer said, despite a slight hangover after the World Cup, which was particularly good, especially when England or Scotland were playing.
“That spend can only be spent once and customers are still being squeezed,” Baer said. “There’s been a boost in consumer confidence since Andy Burnham took over as PM, which is good, but people need to see more money in their pockets and have greater disposable incomes. We’re happy with trade and looking forward to the start of the football season, which is a big part of the offer.”
On the future for community pubs, Baer said as long as pubs continue to be relevant and offer great value, people want to go to them and it is up to Amber Taverns and other operators within the space to give customers what they want at a price they can pay and they perceive as good value for money.
