Country pubs have lost their charm for hospitality entrepreneur Ross Sanders who is diverting £15 million away from the sector and towards acquiring town and city sites.
The Stratford-on-Avon-based founder of Urban and Country Leisure (UCL) has switched his focus to the urban rather than the country side of his portfolio, predicting tougher times ahead for the rural pub.
The decision sees the firm shift its acquisitions strategy for the next three years, reversing a £15 million pot earmarked last year for expanding its country pub operations.
Instead UCL plans to pump £20 million into rolling out 15 more venues in towns and cities around the country based on its boutique hotel and restaurant model trialled in Warwick under The Lazy Cow brand.
It will seek “fewer and more selective country pub acquisitions,” the firm said.
Funding for the hotel and restaurant acquisitions will come through private investment raised through its joint venture with Innventive Property Holdings, chaired by former investment banker Sir Aubrey Brocklebank.
Mr Sanders, who previously owned the collapsed Bar Room Bar chain, said the cost of getting out to a country pub was one of the reasons for the change.
“The last two years have changed the face of the pub industry quite dramatically,” he said. “One of the main reasons is the cost of getting to and from a pub.
“Police are very aware of drink-driving, so there is the cost of taxis to get out there.
‘‘And then we are trying to compete with larger town centre operations to try and get people out to those country pubs.”
He added:“We’ve found that rather than it being The Dog and Duck down the road, our competitors now are very much Sainsbury’s and Tesco.
“Trying to compete with them on the price of alcohol, and then when you add into that Sky TV, it gives a bit of a dismal outlook on how you can keep reinventing reasons to visit a country pub.”
UCL has worked with Birmingham advisers Odyssey Corporate Finance on its strategy, with director Mike Yiannis acting as non-executive director at the pubs group. Mr Sanders now plans to roll out The Lazy Cow chain nationwide.
He is converting a pub in London and has just taken the keys for a venue in Salisbury, as well as actively seeking sites in Birmingham and Stratford-upon-Avon. He said there were advantages to owning venues in town centres where there is a much higher level of footfall.
“In a pub you get hits from noon to 3pm and then between six and ten, but your costs are the same all day,” he said.
“Whereas in The Lazy Cow I get the pre-work breakfast from 7am, mid-morning coffees with mums or suits, we get a strong trade at lunch and we get after lunch and afternoon teas, early dinners, late dinners and then late bar.
“What I don’t get in the pubs in the rural locations is a busy bar because of drinking, driving and taxis. That can make a significant difference to your sales and that’s down to location.”
