Pubs at the heart of new communities

John Porter looks at how some of the UK's smartest operators are putting pubs at the heart of brand-new communities

The proud announcement from the new Westfield Stratford development in east London that it attracted more than four million visitors in its first month of trading will undoubtedly have prompted the odd twitch of jealousy from operators not at the site.

Brands trading at the £1.4b "gateway to the Olympic Park" include Harry Ramsdens, Las Iguanas, Pizza Express, and Gourmet Burger Kitchen. Also among them is Geronimo Inns, which has opened the Cow at Stratford as a sister pub to the Bull, located in the Westfield London development in White City, which opened in 2008.

Geronimo became a division of Young's Pub Company at the start of 2011, and part of the appeal to Young's was undoubtedly the smaller company's expertise in successfully establishing pubs within larger property developments.

Investment
Along with the two Westfield pubs, Geronimo also operates three sites at Heathrow Airport, and the much admired Betjeman Arms at St Pancras International Station.

However much such success may appeal, it's worth remembering that being a part of such developments is a gamble, which usually involves committing to investment when the project is little more than a set of architect's drawings.

George Barnes, property and tenanted trade director of Shepherd Neame, recalls that he was "knocking on the door" of the developers of the King's Hill estate in West Malling, Kent, eight years before the family brewer and pub operator opened the Spitfire pub in 2002 (see opposite).

"Looking back, I probably didn't expect it to take that long," he says. Having subsequently been involved in the new-build Wharf pub on a business park near Bluewater, and most recently the conversion of a former workshop into the Ship & Trades at the Chatham Maritime development, Barnes advises that a long-term view is essential both before and after opening.

"The level of investment is pretty high with a new-build, or conversion such as the Ship & Trades. You're only going to do it where you expect the pub to still be there in 30 years' time. With the Spitfire, we went in relatively early, as we later did with the Wharf, being aware that with plans for further development, the sites would become increasingly profitable."

For a regional operator such as Shepherd Neame, such opportunities are becoming rarer. "Seven or eight years ago I'd have said there's a pipeline of developments in Kent we wanted to be a part of - for example plans for a series of villages close to Bluewater - but of course the financial situation has meant they just haven't happened."

Trading nationally means more opportunities, and Marston's Inns and Taverns, the managed house arm of the brewer and pub company, has made a speciality of new builds. The business is on target to build 20 new pub-restaurants by the end of 2011, with 25 more planned for next year.

This year, eight have been built on or near residential estates, with others on retail parks, business parks, or close to a complimentary development such as a Travelodge. Marston's Inns and Taverns estates director Ed Hancock says: "If we are building on residential estates, we look for high visibility plots, with a high traffic volume going past.

"We assess every site, and a good residential development nearby ticks boxes, but it is essential for them to be on a main road and not tucked away inside the estate. If they have high visibility, they are always very successful."

relationships with developers
In London, Young's sees clear advantages in forming relationships with developers. The company looks for upmarket residential schemes which will attract its target customer demographic, and which also allow development of "wow factor" pubs with riverside or green space frontage - rare in the Capital.

Its partnership with developer Berkeley has enable Young's to open new-build riverside pubs at Putney Bridge, Battersea and Imperial Wharf, Chelsea. Last year saw the opening of the Dial Arch in Berkeley's Royal Arsenal Riverside development. (see below).

David Turner, property and tenancy director at Young's, says: "In a commercial world most developers are interested in hearing from end-users who can add something to the overall vitality of their scheme. Commercial elements such as restaurants, pubs, doctor's surgeries, and convenience stores are becoming more attractive to developers as they attempt to create more social and sustainable communities.

"We target developers who are forward thinking about the vitality of their schemes and not just a ‘sell and move on' scenario. The quality of the buildings and the layout and design are critical to our interest."

There are, of course, potential pitfalls. Some high-end developments in London can be sold to investors who do not occupy. "This can create a semi ghost town where although all units are sold there is not a full complement of people living on site," says Tuner.

As with any pub or restaurant, operators all look at footfall, demographics and location when considering signing up to a development. Barnes at Shepherd Neame stresses: "The most important factor is longevity and good prospects for continued trade. There's no point in having a shooting star that does well for three years and then falls away."

THE SPITFIRE

West Malling, Kent
Shepherd Neame
Opened: 2002
Managers: Phil and Tracy Roberts

The Spitfire is a contemporary new-build pub in the modern Kings Hill development, built on the former Battle of Britain RAF base at West Malling. The development includes businesses and residential properties, and the pub has established itself at the heart of the community.

The Spitfire is built on two levels, with the overall design aiming to recreate the feel of an airfield watchtower. George Barnes, property and tenanted trade director for the pub company, says: "We probably invest more than some other operators in new-build pubs, because we like each to be individual.

"I wouldn't be interested in opening in a metal shed on a retail park because in 20 years that won't be looking great; but an individually built pub should still be looking fine."

The Spitfire includes a mix of comfortable seating areas, a feature fireplace, conservatory dining and a second floor dining, function area and outdoor play area, overlooking the King's Hill central Liberty Square area.

Manager Tracy Roberts says: "Lunchtimes are very busy as we are surrounded by offices and businesses and we pride ourselves on prompt and efficient service."

To drive community use, Phil and Tracy have introduced live music on Saturday evenings and the Spitfire hosts an annual summer all-day music festival. The pub is also used as a base by many community groups, including football teams, Rotary, Kent Speakers and parent teacher associations.

The dial arch

Royal Arsenal Riverside is a prestigious residential development by Berkeley, on the site of the historic home of British defence and munitions production in south-east London. The development includes Grade II-listed conversions, plus modern buildings.

Further homes, office space, shops, restaurants and a hotel are planned, with facilities including a residents' gym, on-site pier with riverbus links to the City and Canary Wharf, a Tesco Express - and a Young's pub and dining venue, the Dial Arch.

The original building on Dial Square dates from 1720, and is significant not only for its military associations but also for the foundation of Arsenal Football Club, which began in 1886 as the Dial Square Football Club

The Dial Arch offers breakfast, lunch and dinner, with a gastro-style menu including pizza from a wood-burning stove, as well as traditional pub favourites such as fish & chips and steak & ale pies made with Young's bitter.

Young's chief executive Stephen Goodyear says: "It is lovely to go to Dial Arch on a Sunday morning to see people sitting there having their breakfast and reading the newspaper. It's very much what the future is about. Pubs have got to be more versatile than they have ever been, and you have got to create the right ambiance. Nobody wants to sit in a dingy boozer and have a cup of coffee at 9 in the morning."

The meadowlark

The pub-restaurant was built earlier this year on one of the main arteries through Southend-on-Sea, trading in Marston's value for money Two for One food format.

The pub is opposite an Asda and near a residential estate with 250 new houses and more to come.

Marston's Inns and Taverns Estates Director Ed Hancock says that while concepts such as Two For One are not community pubs in the traditional sense, "It's helpful to have a percentage of the population who can walk to a pub-restaurant - and it provides a good community facility for them."

Manager Jenny Dorrington says: "Our main business comes from Shoeburyness itself - a large residential estate with a beach. When the sun shines here, we're deserted - but we can do between 500 and 600 covers on a Sunday, which sounds busy, but it really isn't so bad!

"We have quite a steady trade in the week and are usually bang on target," says Jenny.