Could Urban Pubs’ recent successes signal sector recovery?
Was it a gloomy Christmas for all pubs? Not according to London chain Urban Pubs and Bars which runs 66 venues across the capital. The group saw sales over the festive period grow 14.5% compared to the previous year.
Details of the company embarking on another acquisition spree suggests that some city centre pubs could be a sound investment and insulated from various economic pressures – from business rate rises to energy costs increases – if they have enough footfall.
This could be a big if as operators might need to secure substantial financial backing to draw customers as operators, such as Urban Pubs and Bars, invest heavily in the pubs acquired with expensive refits in large, heritage sites.
Food is a massive driver
“Food is a massive driver at the moment,” says Neil Walker, head of marketing at the Society of Independent Brewers and Associates, “and it’s not just a London thing but a city thing – you have to have [pubs near] people who are willing to spend money.
“There’s examples of [operators] spending millions on pubs and they’re always heaving. The food’s better, the interior’s better and they attract a different demographic.”
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Walker believes this isn’t a city v village issue, though, and the pubs that can struggle the most are suburban neighbourhood pubs, which can’t draw from a tight community found in smaller rural areas.
Urban Pubs took over sites from the Barworks chain, which specialised in craft beer, and Antic, which had faded boho-style exteriors – but ensured the sites were in affluent metropolitan areas.
Heritage retained
The Antic pubs particularly, according to a few sources, needed investment in the interiors but Urban Pubs made sure these heritage buildings retained their traditional feel as well as being modernised.
“Pub companies are being cleverer and are going back to how pubs used to look,” says Walker. “In a pub near me in Surrey they did a massive renovation and managed to make it look older by putting in partitions and stained glass windows. People want tradition but they also want clean and modern.”
And it’s not just in London. Walker points to the re-opened Highland Laddie in Leeds, named Britain’s best pub by the Good Food Guide, and Titanic Brewery’s Bod chain in and around Staffordshire, which mixes coffee shop and boozer vibes. The formula it seems is sympathetic refits bringing a wider demographic to pubs. “You’ve also got to have a real talent for finding the venues,” Walker adds.
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