Pub chain Fuller’s hopes for bumper summer from World Cup and staycations | Business
The boss of pub and hotel chain Fuller’s has said evening kick-off times for World Cup matches will hit a double whammy for business over the summer window as the group prepares to “garden ready” for fans ahead of the tournament.
Simon Emeny, chief executive of Fuller, Smith & Turner, said there were strong pre-bookings for the World Cup and its 337 pubs, hotels and inns were beautifying garden areas for a bumper summer.
As the World Cup is co-hosted by the USA, Canada and Mexico, kick-off times for UK viewers will be throughout the evening.
Kick-off times for England’s group matches against Croatia, which begin on 17 June, will be 21:00 or 22:00 (BST).
“I think it will be a very different World Cup compared to previous events, because of the start times,” Emeny told BBC Radio 4’s Today programme. “What we’ve seen before is that if kick-off times are 1pm, 3pm, 5pm, it can undermine the normal summer trade. So later kick-offs could potentially work very well for pubs. We’re looking forward to an excellent summer and hope England stay in the tournament long enough to really benefit pubs.”
Emeny said that the chain also experienced an increase in domestic tourism and that holidaymakers preferred accommodation instead of international trips this year.
“The next three-month summer period will be our busiest period of the whole year,” he said. “And of course the World Cup is an important part of this. But that’s not the only part. We are seeing a huge jump in the number of accommodations and growth in domestic tourism. UK customers are choosing not to go on overseas holidays and short city breaks due to the extra cost of traveling abroad. “We see that many local tourism professionals prefer to go to places such as the Cotswolds, New Forest and take trips to London.”
Emeny’s comments come as the company reported strong results for the year to the end of March.
Fuller’s reported revenues rose 5.7% to £398 million and adjusted pre-tax profits rose 28% to £34.6 million; This boosted the share price by up to 10% in early trading.
Emeny said the chain, which operates mostly in London and the south-east of England, was popular with high-income households earning more than £75,000 who continued to spend despite the rise in the cost of living.
“This group is fiercely protective of their discretionary spending on going out,” he said. “Providing these world-class customers with a great food, drink and accommodation offer and exciting reasons to visit ensures they continue to choose us as they spend their free time.”
The company also updated the valuation of its property portfolio to £991 million, almost £400 million above its current book value.
“Fuller’s has frequently looked at operating performance and ignored its real estate portfolio,” said Dan Lane, Robinhood’s chief UK analyst. “The high valuation of its property suddenly reasserts the importance of its bricks and mortar – the next chapter for the group may not be selling more beer or rooms. If the company can persuade the market to see itself as a high-quality hospitality operator rather than a collection of pubs, its property portfolio may not be the only thing rising in value.”
