Managing director Andy Crawford told The Morning Advertiser (The MA) the group had delivered a strong financial performance over the past year, supported by major capital projects completed across drinks, food and accommodation.
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He said larger investments of between £200k and £300k had demonstrated “good longevity”, while the £1.5m redevelopment of Dukeries Lodge continued to deliver growth two years after completion.
Wet-led focus
Pub People has just completed the conversion of a Sheffield city centre pub into its third Six Barrel Drafthouse, following two existing sites in Nottingham.
The concept focuses heavily on cask and craft beer, with the group currently working with more than 130 local brewers. Crawford said cask remained in growth across Pub People despite wider market decline, with specialist venues helping give customers greater confidence in quality and range.
“If we could find the right locations, we would definitely consider” further Drafthouse sites, he said, particularly in city centres with strong student, office and younger professional populations.
The group is also increasingly converting underused kitchens into trading space, with projects typically costing between £50k and £200k.
Several sites are being assessed for new darts, pool and sports areas, with Crawford saying returns from similar schemes had been “really high”.
The groups in house property team has already designed and installed dart areas across around 15 pubs at roughly a quarter of the cost of outsourcing the work.
Acquisitions return
Following a period when around 80% of capex was directed towards the existing estate, Pub People is also back in the acquisition market.
The business is currently in the early stages of buying a community pub in the East Midlands, although Crawford said the majority of spending would continue to support existing sites.
He added the acquisition market remained competitive, with fewer disposals coming from major pub companies and increasing competition for quality freeholds.
“There are pubs around, you’ve just got to dig them out,” he said.
Accommodation will also remain part of the investment programme, with at least 20 additional bedrooms set to receive investment over the coming year.
Crawford said Dukeries Lodge had demonstrated the potential returns from rooms, with occupancy increasing from below 50% to more than 80% following investment, while average room rates had risen from around £70 to £120.
Weekly sales at the site had also increased from around £12,000 to £13,000 previously to between £35,000 and £40,000, with site EBITDA now above £300,000.
Energy and power management will be another major focus. Pub People is using AI and improved data to monitor gas, electricity and water consumption across the estate, alongside investment in more efficient equipment and changes to operational behaviour.
Crawford said savings across the life of an energy contract could run into “hundreds of thousands of pounds”.
Selective investment
Among the next schemes being assessed are the Black Swan at Edwinstowe, where Pub People is considering additional bedrooms and converting a kitchen into a games room, and the Three Legged Stool at Worksop, which could receive a full internal and external refurbishment.
Crawford said current trading pressures meant the group was becoming more selective about where it deployed capital. Investment is increasingly weighted towards drinks, he added, although previous food focused projects had also generated strong returns.
“We’re positioning the pubs more precisely so that we get a satisfactory return on the investment. It’s interesting that we’re converting kitchens in wet pubs into trade space, whereas 20 years ago everyone was trying to do a bit of food. That’s quite a change.”
Looking ahead, Crawford said success would be measured through continued improvements to the quality and accurate market positioning of the estate.
“We want to be able to sell a quality product at a fair price,” he said. “The investments have to be reflective of that.”
