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• How confident is Orchid as we face 2012?
Cautious optimism is the name of the game. With the economy on the brink of a double-dip recession and unemployment set to grow, Orchid knows there are tough times ahead. Further increases in product costs and no likelihood of a VAT reduction will only add to the problem.
That said, the leisure industry has fared well despite difficult times and Orchid's continued focus on food, coffee, women and wine, reinforced by exceptional management, will ensure the business continues to move forward as a success story.
With Olympic fever also set to sweep the nation and Orchid's pubs all geared up for a summer of sport, the picture might not be as bleak as many economists paint it.
• What challenges lie ahead for both Orchid and the wider pub trade?
With no VAT reduction on the horizon and stiff competition from the supermarkets, which do not pay VAT on food and continue to sell alcohol as a loss-leader, the challenges to finances are great.
Consumer confidence is also a major issue. People will continue to eat out but want an exceptional experience and real value for money when they do, putting added pressure on service levels and offerings.
• What is Orchid doing to prepare for 2012?
Orchid is ready to meet the challenges of 2012 head-on.
The estate will continue its move towards a food-led business model, delivered in an informal pub setting. Around 12 businesses will be repositioned from community wet-led pubs to food-led businesses as part of the Pizza, Carvery and Dragon divisions.
The focus on people will remain strong, with a continued dedication to training and development and retaining the best people. Retail Eyes will be rolled out everywhere to ensure each pub, restaurant and bar consistently offers exceptional levels of service and high-quality food and drink and NPW will get more measurement and focus across the group.
The sanity vs vanity approach will be maintained, ensuring each business is protecting its profit line rather than giving it away to drive sales.
All these measures will ensure Orchid remains profitable and popular even during more tough times.
• Orchid's future predictions
Premium steak is on the way back up with people starting to understand aging and different cuts. Steak will be the hero on the plate and stand out in its own right – not just covered in tomatoes and onion rings like a 1970s Berni.
Restaurant theatre will see the art of cooking take centre stage, such as in Pollen Street Social's dessert bar and glass kitchen.
Gone are the days of tuna and cucumber sandwiches – soft bread and tortilla wraps will evolve into more exciting and exotic choices such as Vietnamese Banh mi and Chinese Bao.
Korean food is on the rise so expect to see kinchi become the new wasabi as an easy and accessible dish without going the whole hog.
Mums and dads are back in fashion! The focus on healthy, affordable kids' meals will continue to encourage cash-strapped families to ear out. Look for more kids-eat-free promotions, more emphasis on healthy children's menus, and more "adult" things for kids to eat (and drink) along with their food-savvy parents.
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