Orchid announces expansion drive after pubs see strong sales growth

8th June 2010, 10:40am

The Orchid Group is stepping up its acquisition programme after strong quarter one sales across its 292 pubs, which the company says “further demonstrates the success of the Orchid model”.

Parkmill Pub Management, the group's specialist acquisition division set up at the start of 2010, plans to add another 50 pubs to the estate this year, and a further 100 during 2011. Parkmill Managing Director Magnus Wilson has small groups as well as individual pubs on his shopping list.

Wilson said: "Pubs are closing in record numbers, but we believe our success proves that many of these great locals can be turned around rather than simply written off. With the right passion, vision and investment we can revitalise pubs which might otherwise shut their doors for good." 

Orchid's latest success story is the Bread & Cheese in Benfleet, Essex. Following its acquisition by Parkmill, the pub has been revamped under Orchid's value carvery format. Opened on May 13, the pub more than doubled its sales in its first week of trading in the new format. Orchid expects to repeat this impressive record at its latest revamped pubs. 

The Snow Goose, Farnborough, Hants, was recently acquired by Parkmill and has just reopened. The pub previously offered no food at all, but under the value carvery format Orchid quickly expects to establish a 60:40 food-drink split. 

Pubs added to the estate are carefully evaluated to establish the right format for the business. The group's latest acquisitions, the Cock Inn at Wing, near Leighton Buzzard, Bedfordshire and the Peeping Tom, Coventry, are being refurbished as a Premium Carvery (serving Farm Assured British meats and fresh produce) and a Value Carvery respectively. 

Orchid sees strong potential for further growth of both carvery formats as well as its Dragon pub format, which combines a Thai restaurant and a great British local within a single business. 

Rufus Hall, Orchid's CEO explained more: "The strength of our formats is that they are flexible enough to preserve the character of an individual pub, but robust enough to ensure that the businesses are well-run, successful and have strong customer appeal. 

"This is an important and exciting period of growth for Orchid. We have already demonstrated that our approach can revitalise pubs in a diverse range of locations and trading styles. Following our acquisition of Premium Bars & Restaurants the end of 2009, and the launch of Parkmill Pub Management, we've never been in a stronger position to ramp up our acquisition programme."

Related Articles:

• 10 Nov 2010 - Bookings increase at Orchid pubs as customers plan to celebrate
• 06 Oct 2010 - Orchid managers volunteer in South African Townships
• 29 Sep 2010 - Pub company The Orchid Group invests in internal communications programme

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