Butlin's burgers after rank deal?

By Gaby Huddart

Visitors to Butlin's holiday camps may soon be able to feast on Burger King burgers and other high street offerings if talks between the Rank Organisation and Compass pay off.

Following last month's opening of Rank Leisure's LeisureWorld complex in Hemel Hempstead, Hertfordshire, where Compass was brought in to open two Burger King outlets, the company is now considering further departures from its traditional policy of self-managing its catering operations.

Rank is looking at bringing Compass in to open restaurants across a number of its divisions, so the LeisureWorld scheme may be repeated not only at Butlin's camps but also in the Haven, Warner and Odeon Cinemas arms.

"This is a coup for us. Rank said to us it was traditionally staunchly self-operating with regards catering, but it now realises the need for high street brands and we can deliver that," said Mark Sykes, business development manager at Compass.

Mr Sykes said the two LeisureWorld Burger King outlets were set to turn over a combined £1.5m in the first year alone. The current talks with Rank could mean hundreds of further restaurant outlets for the company within the next five years, he added.

"We are now focusing on various divisions of Rank and the possibilities. For example, we might be able to introduce food courts at Butlin's," he explained.

Nick Basing, marketing director for Rank Leisure, said the company initially turned to Compass because it wanted branded food operations at Leisure World managed by a partner. "We will treat that like a pilot and if it goes well we will introduce it at other sites," he said.

"It's not our core business to run restaurant operations, plus we don't have the guardianship for any brands. Compass offers solutions to both those issues," he added.

• Rank Organisation's leisure division was the company's best performer during the eight months to 1 July, pushing operating profits up 25% to £33.6m. New openings and increased margins at the Hard Rock Café chain contributed to the result.

The seasonal loss in the holidays division was smaller than last year at £4.7m compared with £6m. Group pre-tax profits were up 14% to £162.9m and turnover improved by 5% to £1.35b.