The gastro pub is reaping the benefits from the modernisation of an old concept that smells of the stale beer on which it trades. By Lucy Allen
The new breed of gastro pubs are continuing to take the fall out from the decline in the old-fashioned pub market.
As Trevor Shelley, of Shelley Sandzer points out: “The local pub has had its day, and the main story is the success of gastro pubs and the modernisation of something which is increasingly no longer required.” The gastro pubs are bringing the traditional English pub up to today’s standard, which is becoming more local bar than local pub.”
Despite the fall in tourist numbers and the slowing of the gross domestic product, which have both impacted on the restaurant market, initial indications are that Christmas period 2001 was strong and spending remains strong. Shelley reports a greater demand for prime sites in central London due to a drastic reduction in properties coming on to the market, with queues of clients forming for both premises with late licenses and those sited on the prime pitch. Yet away from the prime pitch the secondary sites remain notoriously hard to shift.
The trend in London for turning pubs in key residential streets into local restaurants is being rolled out nationwide into the regional city centres, where demand is still strong for the prime sites. Yet Shelley urges caution. He states that in certain areas there will be some effects where a scenario of very few restaurants has moved to too many too fast.
“So many restaurants have been put into city centres in the past few years that the local population have created a situation of fallout of the weaker players until these cities reach an equilibrium,” says Shelley.
Kelly Freeman, director at Davis Coffer Lyons, believes brands with one identity will be better placed to ride the market than those owned by multiple operators, which have several different pub and restaurant chains under their belt. She advises operators against being jacks-of-all-trades and masters of none.
“The city doesn’t favour the multi-branded operators because they are unable to achieve the operational standards necessary in today’s economic climate,” she says. “The multi branded restaurant, pub and bar operators have too large a number of brands. It’s very important that the city sees a brand as performing well in the market if they want to invest in it.”
Freeman agrees with Shelley that this means the weaker players in the middle market without the right concepts will be cut out. “Brands will need to be consistent. The sophisticated consumer wants value and personal service in today’s climate.”
Colin Wellstead, director at Christie & Co says that because the pub and restaurant market is so large and diverse, there are so many things happening that it is difficult to be specific on current trends. “Some multiple pub brands are doing well, others are doing less well,” he speculates. “The sector is buoyant, but you can’t generalise about it.”
Other agents predict that in order to survive what may prove to be a troublesome year, operators will need to offer top quality and attention to detail in 2002. Shelley says: “Everybody in the industry needs to focus on quality and price. Those are the main issues.
“At the beginning of 2002, the market was fragile and a number of operators sat on the fence,” he explains. “But since the beginning of February this year, there have been a number of people on the acquisition trail and the market is no longer quite so sensitive.”
Shelley advises caution. “The public are not willing to be ripped off in what might prove to be an unstable year. There will be slow growth, but it will be fragile.”
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Pub and restaurant deals of 300m2 and over |
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The year will see slow growth, but it will still be fragile |
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Address |
Tenant or purchaser(agent) |
Landlord or vendor (agent) |
Unit size in m2 |
Price paid (premium) Rent pa in £ |
Length of lease in years or tenure (F = Freehold) |
|
Churchills Bar & Restaurant, Tylers Avenue, Southend On Sea, Essex |
Regent Inns plc(RSP Associates) |
Private Owners (Chesterton) |
372 |
Close to asking price of £3m |
F |
|
Jack Straws Castle North End Way Hampstead Heath NW3 |
Six Continents plc |
(Chesterton) |
1,510 |
£3m |
F |
|
331 Old Street & 40 Hoxton Square, London N1 |
Private(Shelley Sandzer) |
FlipTop Ltd(Bailey Cox & Edwards) |
650.3 |
925,000 |
n/a |
|
113/114 Shoreditch High Street, London E1 |
Private(Shelley Sandzer) |
Audiobon Ltd |
353.02 |
70,000 pa |
25 |
|
12 West Smithfield, London EC1 |
Helmwall Properties Ltd(Shelley Sandzer & Atis Weatheralls) |
Carluccio’s |
418.05 |
120, 000 pa |
25 |
|
2&3 West Smithfield, London EC1 |
Helmwall Properties Ltd(SS & Atis Weatheralls) |
Living Ventures Ltd |
557.4 |
135,000 pa |
25 |
|
69-73 St Johns Street, London EC1 |
Belgo Group Plc (Shelley Sandzer) |
The Small Restaurant Company Ltd |
334.44 |
150,000/70,605 pa |
Assignment of existing leasehold interest, expiring December 2018 |
|
21 Essex Road, London N1 |
Frogmore Developments |
La Tasca Ltd(Shelley Sandzer) |
314.6 |
90,000 pa |
25 |
|
Whitefriars House, 6 Carmelite Street, London EC4 |
LP Estates Ltd |
Chez Nico Restaurants(Shelley Sandzer) Ltd |
371.6 |
86,000 pa |
25 |
|
175 Westbourne Grove & 3 Westbourne Grove Mews, London |
Whitbread Plc(Shelley Sandzer) |
Kropifko Properties Ltd(Gerald Eve) |
371.6 |
1.1m |
Held for a term until May 2007, subject to rent review May 2002 |
|
Sun Court House, Essex Road, London N1 |
Derwent Valley Property Trading Ltd(Shelley Sandzer) |
Living Ventures Ltd |
613.14 |
175,000 pa |
25 |
|
2 Northside, Wandsworth Common, London SW19 |
Private Fund |
Lode Ltd(Shelley Sandzer & Adlers) |
371.6 |
700,000 |
– |
|
2-3 Silver Street, Trowbridge |
Luminar Leisure Ltd(Rear Of) |
Tribecka Estates Ltd(Shelley Sandzer) |
687.4 |
85,000 pa |
25 |
|
50-51 Marylebone High Street, London |
Fish! Plc(Shelley Sandzer) |
Howard De Walden Estates Ltd (Carter Wassell Murdoch) |
366.5 |
100,000 pa |
25 |
|
Vine Tree, Norton, Wilts. |
Private |
Private (Roberts) |
n/a |
385,000 (50,000) |
|
|
The Red Rose, Aylesbury |
Private |
Private (Smith & Co.) |
325 |
100,000 pa |
|
|
The Crescent, Wimbledon |
Six Continents |
FISPAM (Molyneux Rose) |
1,068 |
195,000 pa |
|
|
Glydegate Square, Bradford |
Inventive Leisure T/A Revolution |
Leeds & London (Knight Frank) |
641 |
76,000 |
25 |
|
Glydegate Square, Bradford |
Brook Leisure (Burnley) Ltd T/A Livingstones |
Leeds & London(Knight Frank) |
1,183 |
114,525 |
25 |
|
Glydegate Square, Bradford |
Regent Inns plc T/A Walkabout(Jeremy Rubin) |
Leeds & London(Knight Frank) |
887.5 |
128,000 |
35 |
|
Royal Baths, Harrogate |
SFI Group plc T/A Bar Med |
Royal London(Knight Frank) |
911 |
95,000 |
25 |
|
Royal Baths, Harrogate |
J D Wetherspoon plc (Van de Berg) |
Royal London(Knight Frank) |
845 |
110,000 |
25 |
|
2/4 Catherine Street, London, WC2 |
Loch Fyne Restaurants Ltd |
Groupe Flo (UK) (Berkeley Simmons Davis Ltd) |
400 |
£135,000 pax Premium Paid |
25 |
|
24 Tombland, Norwich |
La Tasca |
Dawes Investments(Berkeley Simmons Davis) |
508 |
£85,000 pax premium paid |
25 |
|
Dome, 33/34 St Andrew Street, Cambridge |
Nandos Chicken Land Limited (Berkeley Simmons Davis) |
Laurel Pub Co(Christie & Co) |
300 |
£77,500 pax Premium Paid |
14 |
|
Gresslins, 13 Heath Street, N3 |
Private |
Private(Berkeley Simmons Davis) |
300 |
£900,000 |
Freehold |
|
335 Sauchiehall Street, Glasgow |
Pat Hines |
Grovemore Properties(Berkeley Simmons Davis) |
400 |
£60,000 pax |
25 |
|
63/65 High Street, Seven Oaks, Ltd |
Loch Fyne Restaurants(Berkeley Kent Simmons Davis) |
Strathmore Properties(Malcolm Hutton) |
300 |
£65,000 pax |
25 |
|
Staines – Two Rivers Unit T2 |
Eldridge Pope t/a Toad(Goadsby & Harding) |
MEPC/Aberdeen(Healey & Baker/ Lunson Mitchenall) |
600(2 levels) |
£110,000pax |
25 |
|
Staines – Two Rivers Unit T4 |
Oriental Restaurant Group t/a Yellow River Cafe |
MEPC/Aberdeen(Healey & Baker/ Lunson Mitchenall) |
300 |
£72,500pax |
20 years |
|
Staines – Two Rivers Unit T6 |
Spur(Hammond Phillips) |
MEPC/Aberdeen(Healey & Baker/ Lunson Mitchenall) |
580(2 levels) |
£87,500pax |
25 years |
|
Touchwood, Solihull |
Su50d Oriental Restaurant Group t/a Yellow River Cafe(Healey & Baker) |
Lend Lease(CB Hillier Parker) |
315 |
£60,000pax |
15 years |
|
1 New Fetter Lane, Pizza Express, London EC4 |
Pizza Express(Briant Champion Long) |
Delancey Estates(Healey & Baker) |
342 |
£82,500 pax |
25 years |
|
RU1, Parkfield Street Islington London N1 |
Wagamama(Graeme Waite) |
Centros Miller/Delancey(Healey & Baker/Collyer Coxhead/David Coffer Lyons) |
300 |
£81,100 |
25 years |
|
Unit 2A City Point, Ropemaker Street London EC2 |
Corney & Barrow(Healey & Baker) |
Wates City Point Ltd(DTZ) |
450 |
£125,000 pax |
15 years |
|
135 Wardour Street, London W1 |
S&A Foods t/a Ophim |
Greycoat |
920 |
£300,000 pax |
25 |
|
Hermitage Wharf, Wapping |
Mezzanine Group t/a Smollenskys |
Private |
700 |
£175,000 pax |
25 |
|
27-29 Endell Street, London WC2 |
Les San-Clotts |
Private |
557 |
£135,000 pax(£250,000) |
15 |
|
Ex-ABC Cinema, Baker Street, London W1 |
Wetherspoons |
London Transport |
557 |
£250,000 pax |
25 |
|
High Street, Henley on Thames |
Loch Fyne |
Individual |
325 |
£65,000 pax |
25 |
|
2-3 Creed Lane, London EC4 |
Faucet Inns |
Morley |
329 |
£55,000 pax(£275,000) |
12 |
|
59 Berkeley Square, London W1 |
Chorion Plc |
Spirit Group (Punch) |
315 |
£155,000 pax |
12 |
|
Upper Richmond Rd, Putney |
Tootsies |
Private |
400 |
£65,000 pax |
25 |
|
Units 1 & 2, Suffolk Wharf, Camden Lock, London |
Wetherspoons |
London Buildings |
882 |
£310,000 pax |
25 |
|
Finchley Road O2 Centre, London |
Wetherspoons |
Marylebone Warwick Balfour |
1200 |
£255,000 pax |
23 |
|
Battersea Rise, London |
Individual |
230 |
£55,000 pax (£250,000) |
22 |
|
|
Tootsies Radisson SAS, Glasgow |
A Fitness Plc |
Marylebone Warwick Balfour |
1393 |
£138,000 pax |
25 |
|
191 Portobello Road, London |
Soho House |
Monsoon |
557 |
£150,000 pax |
25 |
|
Home,1 Leicester Square, London |
Regent Inns |
Receivers |
3250 |
n/a |
n/a |
|
29-30 Old Burlington Street, London W1 |
Embassy |
Legends |
557 |
£132,000 pax(£800,000) |
17 |
|
Unit 6, |
Wetherspoons |
Spirit Group (Punch) |
929 |
£152,000 pax |
25 |
|
Tokyo Joe’s, 85 Piccadilly, London W1 |
Individual |
City Bars & Restaurants |
557 |
£150,000 pax(£200,000) |
17 |
|
226 and 227-231 Kingsbourne House, High Holborn, London |
Pizza Hut |
Prudential |
603 |
£220,000 pax |
25 |
|
High Street, Oxford |
ASK |
Private |
425 |
£175,000 pax |
20 |
|
Canary Wharf, Docklands, London |
Mezzanine Group Plc t/a Smollenskys |
Individual |
600 |
£175,000 pax |
25 |
|
Southampton Row, London |
Starbucks |
Private |
325 |
£85,000 pax (£175K) |
23 |
|
St Peter’s Gate, Nottingham |
Tootsies |
700 |
£125,000 pax |
25 |
|
|
North Hill, Highgate, London |
Berkeley Homes |
Private |
2000 |
n/a |
– |
|
Three Mile Inn, Newcastle |
Rindberg |
Private |
1200 |
£1.65 |
m |
|
Wheelers Group Sale |
Marco Pierre White |
Various |
Various |
n/a |
|
|
44-46 Guildford Street, Chertsey, Surrey |
Individual |
Individual |
500 |
£360,000 freehold |
|
|
Grainger Street, Newcastle |
Sports Cafe |
Individual |
557 |
£185,000 pax |
25 |
|
120-124 King Street, Hammersmith, W6 |
JD Wetherspoon(Vandeburg) |
Boulder Investments Ltd(Matthews & Goodman) |
560 |
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Warehouse K, ExCel, E16 |
London & City Taverns(N/A) |
Mount Bay Investments(Matthews & Goodman) |
1250 |
£145,000 pa |
25 |
|
The Connaught Tavern, ExCel, E16 |
London & City Taverns(N/A) |
Mount Bay Investments(Matthews & Goodman) |
7,300 |
Confidential |
F |
|
UGC Complex, Renfrew Street, Glasgow |
Regent Inns Cinema |
Entrust(Matthews & Goodman) |
2800 |
Confidential |
35 |
|
10-18 John William Street, Huddersfield |
JD Wetherspoon |
Pearl Assurance plc |
745 |
£90,000 pa |
35 |
|
3-14 Church Street, Preston |
Six Continents |
Lloyds TSB plc |
1,400 |
Confidential |
F |
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*asking/estimated price |
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