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£1m tonic aims to put pub trade back on top

Monday, October 19, 2009, 09:20

PUNCH Taverns is investing £1 million in North Staffordshire pubs.

The chain has been hit hard by the smoking ban, the recession and falling property values.

And there have been criticisms pub giants hold licensees to ransom, charging too much for stock and rent.

But Punch says it will plough around £1 million into improvements at 25 as yet unidentified North Staffordshire venues.

Adam Smith, regional operations manager for Punch, said: "It works out as an average of between £40,000 and £50,000 per site, so there are some positives to look forward to.

"The fact we're talking about that sort of investment means that the future could look quite rosy.

"Stoke-on-Trent does seem to be a particularly challenging area.

"It could do with a lot of Government investment, and that has been the case for a good while now.

"The plus side is there are a lot of very pro-active licensees who are determined to bring in trade."

Mr Smith is responsible for around 270 sites in Staffordshire, Cheshire, Shropshire and North Wales.

He said the firm had introduced new policies to help publicans, including rent discounts and promises to match insurance quotes.

He said: "The good thing is that our new managing director has seen a need for the business model to evolve.

"We call it the Pathway to Partnership and it involves things like the insurance matching and a lot of tailored business support, like advice or sales-building activities, not just rent discounts."

Last week Punch, which has more than 7,600 pubs across the UK, revealed annual losses of £405.7 million after slashing £663 million from the value of its estate.

Underlying profits fell 39 per cent to £161 million.

Research by the British Beer and Pub Association shows more than 50 pubs are going out business each week.

But Mr Smith believes imaginative and determined licensees who offer excellent customer service will survive.

Punch licensee Keith Elliott, who runs the Black Lion, in Trent Vale, with wife Jackie, agreed.

He said: "It's about giving your customers what they want.

"We have started pool teams and darts teams. We started with just one darts team and now we've got three.

"If you look after your regulars that helps evening trade and then our other big selling point is proper, locally-sourced, home-cooked food.

"Location is also quite a lot to do with it and we're fortunate because we are right on the A34.

"Punch are coming in and they are trying to help us in the direction we want to grow."

How is your business beating the recession? Email us at businessdesk@thesentinel.co.uk

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CASH INJECTION: Punch to invest in North Staffs pubs

 















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