Barracuda sets sights on 25 openings a year

Pub chain Barracuda has set it sights on having 400 pubs, opening at least 25 a year, it said today.

The ambitious expansion plan was unveiled as the company, formed out of the acquisition of 35 pubs from Enterprise Inns for £50m in July 2000, reported a rise in profits and turnover in the past six months.

In the 26 weeks to 27 March, turnover rose to £46.3m, from £40.4m, with gross profit up £32.5m, from £28.1m at the same point last year.

Like-for-like profit growth was running at 7.7%, with like-for-like sales up by 2.4%, said chief executive Mark McQuater, and margins up by 0.5%.

The chain, now 153-strong, also reported strong growth in food sales, up by 28% across the company.

Food sales now accounted for 11.4% of total sales in the period, up by 1.2 points on last year's 10.2%.

Since the half-year end, overall like-for-like sales growth had been ahead by 4.2%, he added.

During the period, seven pubs had been opened and two since the end of the half year.

The group's first Scottish site, in Perth, had opened this month and there were now 63 Smith and Jones format pubs.

Six sites were in the pipeline and a further seven had licensing and planning permissions, added McQuater.

"The brands are clear, fresh and well-defined, focussing on secondary towns and university centres. We believe that by building over 25 new pubs each year the company has the potential to develop over 400 quality sites ultimately.

"The company has over 50 property deals under negotiation currently and a substantial development programme can be confidently anticipated," he said.

A new Varsity format pub will open in Plymouth next month and another one is due to open in Swansea.

by Nic Paton

Buy this week's Caterer magazine for more industry news and analysis