ON-TRADE NEWS: May 2007

Ban not so bad after all, as the smoking ban gets closer, new research into the existing ban in Scotland suggests that the effects may not be as bad some expect…Drink to Fortnum’s, the second phase in UK department store Fortnum & Mason’s £24 million refurbishment has started. One of the highlights of this second phase is a new restaurant portfolio, created by designer David Collins…

Ban not so bad after all
As the smoking ban gets closer, new research into the existing ban in Scotland suggests that the effects may not be as bad some expect.

The research, conducted by Key Note, may not be entirely positive, but it does remain optimistic. It states that since the ban took effect in Scotland in March last year, pubs have experienced a decline in sales, but have also attracted more non-smokers.

Additionally, research found that “consumer usage of pubs has not changed dramatically, even since the introduction of the new Licensing Act allowing longer opening hours”.

The report also states that the benefit of the ban will be a continued increase in food sales. It cites evidence from 493 Punch Taverns pubs in Scotland, reporting higher food sales, “but ‘some declines’ in income from beer and fruit machines.”

Key Note’s report concludes that the full impact of the smoking ban in the UK “is unlikely to be confirmed until 2008”, owing to the impact of varying weather conditions on consumer behaviour.

The report predicted an increase in turnover in UK pubs of 0.9% in 2007, followed by a 3% decline in 2008, the first full year of the smoking ban.

Drink to Fortnum’s
The second phase in UK department store Fortnum & Mason’s £24 million refurbishment has started. One of the highlights of this second phase is a new restaurant portfolio, created by designer David Collins.

The first of these, entitled 1707, opened late last year, offering any wine from the store’s wine department for £10 corkage. The restaurant is designed to resemble an intimate wine cellar.

Another four restaurants are planned for this year – replacing the three existing restaurants. When it re-opens in August, the existing Fountain restaurant will be open to late night diners for the first time. The Patio restaurant will become known as The Gallery, and will feature ingredients from the Food Hall.

The new restaurant, The Parlour, will resemble a 1950s ice cream parlour, including bar stools and table seating. A range of sundaes will include a grown up selection such as Bloody Mary and peach with Prosecco.

This extensive refurbishment is part of the department store’s 300th birthday celebrations in November. The first phase included the launch of a new wine department and wine bar.

Punch buys into Matthew Clark
Punch taverns acquired a 50% share in Constellation-owned on-trade wholesaler and distributor Matthew Clark last month.

Punch, the UK’s biggest pub company, is investing £35 million in cash, with a further £50m being raised by the issuance of debt by the joint venture.

The move, according to a statement from Constellation,  will “reinforce Matthew Clark’s position as the UK’s largest independent premier drinks wholesaler and distributor serving the on-trade drinks industry”.

The company’s managing director, Steve Thomson, and his management team will continue to run the business.

The capital raised will be used to “shorten the development period”, according to marketing and business planning director Graham Donald.

The company will supply a number of Punch pubs with a range of wines and spirits, and will eventually become the preferred supplier of the remaining tenanted pubs.

Latest openings
Camino is the latest offering from Richard Bigg, founder of Cantaloupe. Opening in London’s Regent Quarter this month, this restaurant promises a down to earth Spanish experience featuring wine and seasonal food. Camino chef Miguel Masero will be providing an authentic menu of Spanish favourites.

The Highwayman in Lancashire has been the subject of a more than £1 million refurbishment by Ribble Valley Inn, the team behind The Three Fishes at Mitton. The pub, situated near Lancashire’s borders with Yorkshire and Cumbria, will serve food with an emphasis on regionality. The drinks menu will feature Thwaites ales and affordable wines.

The latest opening at Heathrow is Bravo! Bravo!, part of recently-opened Park Inn Heathrow’s conference centre. The cocktail lounge, bar and restaurant will place significant emphasis on their drinks offerings. In addition to original house cocktails, there will be a choice of 21 beers, an extensive wine list, and a number of non-alcoholic options, all served from Heathrow’s longest bar.

Notting Hill fish restaurant Geales reopens this month after refurbishment. The restaurant first opened in 1939, and has since gained a significant local following. Now under new ownership, the original feel has been retained, but now includes a Ruinart Champagne Bar.

The Barracuda Group’s fifth brand Cape launched last month in Nottingham city centre. The brand, representing an investment of £500,000, promises to bring a “spirit of South Africa” to the city. The drinks offering at Cape will include a number of South African wine and beer brands.

Pitcher & Piano’s expansion continues in earnest, with yet another outlet opening in Worcester. A large VIP party was held to celebrate the occasion.

© db May 2007