HEINEKEN has changed the name of its S&N Pub Company to Star Pubs & Bars, and has revealed that it is extending its range of agreements and increasing the flexibility of its existing leases. A new 3 year Business Start-up Agreement has been created for pubs where operators have the opportunity to significantly increase trade. Entry now starts at £10K which includes a flat £3Kdeposit. And for the first time operators can terminate their contract with three months’ notice at any time.
The name change to Star Pubs & Bars is designed to reflect the change in the pub business over the past two years which has seen the company integrate into HEINEKEN UK’s on trade operations, purchase its pubs, creating a wholly owned venture with direct control over its estate, and further rationalise its property portfolio to focus on long-term sustainable pubs.
In support of this ambition, a First Year Support Package is being launched for pubs requiring additional financial backing to fulfill their potential. The package is designed to assist with cash flow in the crucial first year, giving operators the time to establish themselves and build up trade. Measures to keep cash in the business are tailored by pub ranging from payment of business rates and Sky license fees to additional discounts on beer. The agreement also incentivises and rewards success; beer sales exceeding target attract an additional discount and cash bonuses of up to £5,000 will be paid for high scores in mystery visits.
The company is changing its standard agreement from a five to a rolling three-year term to offer greater flexibility to operators. Terms of 10, 15 and 20 years are being introduced as standard options on its FRI (Fully Repairing and Insuring) agreement and all such agreements can now be assigned after two years.
The new name also marks the start of a 12 month roll-out of new initiatives to help existing and future lessee partners increase profits, reduce overhead costs and decrease time spent in the back office so they can focus on driving their businesses forward. The first of these will include: a comprehensive food support programme providing a range of off the shelf menus backed up with the kitchen investment and training required to make a real success of food; a choice of high quality coffee solutions; on line training so lessee partners do not have to leave their pubs to benefit and a new support focused website for existing lessees.
Taken together, these developments mark an important stage in the journey for Star Pubs & Bars in its ambition to become the most successful and sustainable leased pub business in the UK. A goal it intends to achieve by attracting and developing outstanding talent, supporting its lessee partners with industry-leading retail advice and investing in one of the industry’s best leased estates.
Ken McGown, Operations and Sales Director North for Star Pubs & Bars, commented “Our new Star Pubs & Bars identity is not just a name change. It is intended to reflect the many developments behind it that make a real difference to people’s businesses; both in terms of attracting new talent into the industry at a time when business confidence is low and bank lending tight and making it easier for all our lessee partners to build their businesses by creating further ways of increasing profits and reducing costs.”
