Heineken invests up to £30m in Star Pubs & Bars
Heineken is on target to invest up to £30m in upgrading its Star Pubs & Bars estate by the end of 2015, a 60% increase on 2014.
In the first six months of 2015, Heineken has spent the same on Star Pubs & Bars as it did in the whole of 2014, which the company said was a demonstration of the its long-term commitment to the leased pub sector.
By the end of 2015 it will have more than doubled its 2014 investment with multiple operators from £5m to £10m pounds on 51 major projects, compared to 28 in 2014.
A quarter (25%) of Star Pubs & Bars' 1,050 pubs are set to benefit from the capex programme, which will include 117 major refurbishments with an average spend of £175,000, creating around 1,000 jobs in pubs around the country.
The majority of refurbishments focus on improving the pub's food offer furthering the company's ambition that 50% of sales in its pubs will come from food by 2020. In addition, there will be over 100 external signage and redecoration schemes.
The company said its approach was to attract new customers for different occasions throughout the day, from breakfast through to dinner, for coffee and wifi, or for events and entertainment such as watching live sport. Star Pubs & Bars is introducing flexible zones to allow pubs to cater for private dining, parties and meetings, as well as provide additional space for customers at peak trading times.
Chris Jowsey, trading director of Star Pubs & Bars said: "This investment is a reflection of the continued confidence we have in our pubs and our operators. Lessees are seeing returns on investment of over 31% on capex projects and their demand for and our commitment to invest in them is evidence of confidence on both sides in the pub market and the economy as a whole.
"We're leasing more pubs to multiple operators than ever before, with 60% of leases in the first half of this year in this category, double the number two years ago. This is in part due to the level of funding Star is able to provide as multiples don't have to tie up their capital allowing them to expand more quickly."
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