New measures to help man the pumps

Dec 2 2009 by Chris Knox, The Journal

The UK's pub industry has suffered badly in the recession, with around 50 bars now believed to be shutting every week. Christopher Knox looks at the sector in the run-up to Christmas and speaks to two of the region's publicans who still consider their glasses to be half full.

Mix of venues is key to success

JOHN WEIR – WEIR INNS

ONE pub chain owner who is smiling through the recession is John Weir, managing director of Billingham-based Weir Inns. He has recently bought his 10th pub since setting up in April 2006, The Brittania in Houghton-le-Spring.

Mr Weir, who set up the business with former Pubmaster boss John Sands, is now looking to open up a further six pubs by Easter 2010 by taking advantage of the low prices and many closures that have blighted the industry.

He believes the chain’s emphasis on creating community venues with keen prices is the key to its success and is also proud of its food offerings, which he says rivals mainstream restaurants.

The chain, which has a turnover of £5m and pre-tax profits of £1m, has declined to confirm the prices it has paid for its most recent acquisitions, which includes The Guidepost in Springwell, Gateshead, and The New Inn in Wetherby, West Yorkshire, but has previously said it spends around £500,000 on average buying each freehold pub and then a further £120,000 on refurbishment.

He has just put the finishing touches to a deal to buy the Cross Keys pub in Washington village and has high hopes for the future of the business.

He said: “It’s been a busy year for the business and we are looking to build on its growth next year. I think the secret is that we provide a mix of establishments, all of which have a welcoming environment for all the family. The days of just getting by with a few tables, bar stools and a few drinks on draught are long gone. People demand more these days, and rightly so.”

Pub portfolio defined by diversity

TONY BROOKES – THE HEAD OF STEAM

OVER the years Tony Brookes has become a champion of bringing diversity to his pubs business.

With his flagship site The Cluny hosting everything from live music to film festivals, it’s fair to say that he has created a brand that has maintained his position as the pub of choice for the trendy youth market and the discerning drinker alike.

With the eight-strong chain each offering some of the region’s widest range of real ales and foreign lagers, Mr Brookes has, in his words “simply given people what they want”.

This year has seen him add four new venues to the portfolio, including LYH off Newcastle’s busy Northumberland Street, The Reform Place in Durham, The Cluny 2, which provides extra capacity for music, theatre and private parties at the original Cluny’s Ouseburn Valley site in Newcastle.

The group is also busy refurbishing his newest acquisition, The Central Pub on Half Moon Lane, Gateshead.

Mr Brookes said: “We have had a very active year, considering that everyone seems to be struggling at present.

“However, the industry as a whole is facing a real uphill battle at the moment, which isn’t being helped by issues over VAT and cheap supermarket prices.”