Heineken is to invest £18.5 million in its Star Pubs & Bars estate in 2014, the biggest programme of capital expenditure the estate has ever received.
A sixth of the company’s 1300 pubs are set to benefit from the programme which will include 60 to 70 major refurbishments with an average spend of £135,000 as well as over 100 external signage and redecoration schemes.
Every pub to serve food
The development of food will be a common feature of the projects furthering the company’s ambition that every pub in the estate will serve food and that it will account for 50% of sales by 2020.
Wi-fi and superb coffee will be added at every major project site and Heineken’s new Smart Dispense system installed to maximise beer quality. Lessees will also benefit from three days of coaching, support and staff training tailored to their specific requirements to ensure a smooth, successful relaunch of their pub.
Good returns and premium positioning
Lawson Mountstevens, UK Sales Managing Director, On Trade, Heineken, says, “The scale of the investment is testimony to the strong track record of Star Pubs & Bars at developing pubs and generating good returns for lessees and the company alike as well as to the keenness of many lessees to invest. By accelerating investment all parties are able to benefit earlier.”
“Heineken is committed to the long-term future of the great British pub. Continued investment is essential to this, enabling us to meet and exceed customer expectations as well as to maintain the Star Pubs & Bars estate’s premium positioning with great pubs and strong businesses which appeal to skilled operators.”
Case study: Station Tavern, Lytham
Star Pubs & Bars’ joint £175k refurbishment of the Station Tavern at Lytham with lessees Debbie and Simon Malings (pictured above) is typical of the company’s investment approach of creating additional income streams at redeveloped pubs. Part of the railway station building, the Station Tavern is in a premium position five minutes walks from the main high street and the redevelopment is intended to appeal to the broad cross section of people who frequent the area.
The pub will be totally refurbished updating the décor to a stylish but traditional look. Inside the project will involve complete redecoration including new toilets, a kitchen upgrade and improved coffee offer and will create a dining area, soft furnished area for coffees and snacks and a space for the pub’s entertainment programme.
The exterior of the pub is also being redecorated and an outside area for eating and drinking made more comfortable and prominent with new seating and signage. The improvements will enable the pub to maximise trade from the railway station where there is no café or shop for travellers. The investment will also attract shoppers and office workers wanting refreshment during the day whilst still appealing to the wide range of customers who use the Station Tavern in the evening.