Caterer and Hotelkeeper 100: Mike Tye, Spirit Pub Company
Overall ranking: 31 (NEW ENTRY)
Pub ranking: 6 (NEW ENTRY)
Mike Tye - Snapshot
Mike Tye is chief executive officer of Spirit Pub Company, which demerged from Punch Taverns in 2011. Spirit operates more than 800 managed pubs, targeting the eating out market, including the Chef and Brewer, Taylor Walker, Flaming Grill and Fayre and Square brands. The company also has an estate of around 550 leased pubs.
In the 52 weeks to 18 August 201, its first year trading independently of Punch, Spirit reported EBITDA up 5% to £146m, with pre-tax profits up 16% to £51m.
Mike Tye - Career Guide
Mike Tye, 59, first took responsibility for the Spirit estate in July 2008, when he joined Punch Taverns as managing director for the managed estate. Following the demerger of the two businesses in August 2011, he initially became deputy chief executive officer of Spirit, and replaced Ian Dyson as chief executive in December 2011.
Tye began his career as a graduate trainee at United Biscuits, where he spent three years in sales and marketing roles before running his own wine business. After joining Whitbread as marketing director of the Stowells of Chelsea business, he held various roles including stints with the Thresher's off-licence chain and Beefeater pub restaurant business.
He later moved to Forte's restaurant division and in 1995 became sales and marketing director at Welcome Break. In 1996 he joined contract caterer Aramark as managing director of its food services division.
Tye returned to Whitbread as sales and marketing director of Whitbread Inns, and in 2001 became managing director of Costa Coffee. He also worked on the integration of the Premier Lodge business with Whitbread's Travel Inn, to create Premier Inn.
Mike Tye - What We Think
In a way, Mike Tye and the pubs that make up the Spirit Pub Company are, in a very fitting phrase, kindred spirits. Tye's career has seen him navigate a wide range of blue-chip hospitality brands over a period which has seen the break-up of some empires, such as Forte, and the transformation of others, such as Whitbread.
Spirit's pubs have been on a similarly interesting journey. Punch Taverns established Spirit in 1999 as a division to run managed pubs acquired by Punch alongside its primary target, tenanted and leased pubs. Punch demerged Spirit in 2002, and the following year the newly-standalone operation made two high profile acquisitions, the Tom Cobleigh pub restaurant business and, most notably, the 1,400 strong Scottish & Newcastle retail business, which included the flagship Chef & Brewer brand.
Punch reacquired Spirit in 2006, only to demerge it again last year. With Punch focused on the challenges facing the tenanted sector, the decision to separate the two operations leaves Spirit with and estate that has, over the years, been refined, trimmed and focused to create a powerful competitor for rivals such as Whitbread and Mitchells & Butlers.
They won't have underestimated the challenge. The managed pub sector is one of the most competitive in the industry, with margins tight and consumers still looking for bargains. The latest incarnation of Spirit is off to a good start. The Chef & Brewer brand has been refurbished, and the Taylor Walker city centre pubs refreshed with new menus and a strong focus on pub grub and cask beer. Behind the scenes, there has been investment in infrastructure, importantly including online bookings.
Investment in people is also underway on both sides of the business, with a much-admired training programme in the managed business which was expanded this year to include a Level 3 Advanced Apprenticeship in Leadership and Management, as well as new ‘entrepreneur' training to improve the business skills of licensees in the leased business.
Announcing Spirit's full year results, Tye summed up: "The consumer environment remains tough but our on-going focus on delivering retail excellence sees us well placed to make further progress in the year ahead."
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