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The changing face of restaurant ownership
There's nothing new about pub groups owning restaurants, or restaurants operating under pub licences. Such arrangements offer more operational flexibility than regular restaurant or refreshment licences, on how drink can be served.
However, some recent business moves appear to be underpinning what many in with the licensed trade have known for some time; that the once sharp division between wet-led bars and food-led restaurants is rapidly becoming a thing of the past.
Alan Gordon examines the trend for serving higher-class fare in your average Scottish pub…
Many established independents and national multiple-site operators are putting a renewed emphasis on food operations in several of their bars, particularly in the wake of the smoking ban. What's interesting is that not all of the outlets serve food that would meet the traditional definition of 'pub grub'. Over the last couple of years we've started to see the emergence in Scotland of the gastro pub – a place that may operate as a bar but that serves food that's worthy of a good restaurant.
The last few years have also seen a minor revolution in Scottish pub catering in general, again bolstered by the 'needs must' element provided by the smoking ban. Many bars that formerly had no food provision are now introducing entry-level offerings, and others that had a basic menu are striving to increase quality and choice.
The latest high profile example of a major operator moving into food in a big way is the bid by brewer and pubs firm, Greene King (owner of Belhaven) to acquire the Loch Fyne oyster bar chain, reportedly for £70m.
Greene King is obviously impressed with the strength of the Loch Fyne brand, and is happy to spend royally on a food-led concept with cash it might otherwise have used to acquire still more pubs.
There's also the fact that the equivalent of a Britain-wide chain of Loch Fyne's apparent strength can't easily be found in the pubs sector. Greene King is still acquiring pubs, of course, but its willingness to buy into what's primarily a restaurant and fine- produce retail brand may be a particularly clear indication of how quickly the licensed trade is changing.
Operators of a certain size like to add new and potentially complementary wings to their businesses, meaning that in future it may become increasingly common to see pub-landlord companies adding 'restaurants' to existing sectors, such as managed and leased pubs.
And in some Greene King/Belhaven pubs it's not impossible to imagine that we may begin to see Argyll-sourced seafood and venison appearing on bar menus, which can only be a good thing for the Scottish industry as a whole.
Alan Gordon is a Partner in DM Hall Chartered Surveyors.
This article has been edited from its original version. For the complete feature please see Catering in Scotland magazine September/October 2007.
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