[function] strategy fy15 – fy16 · 2018-12-10 · • cutover of it systems, major processes and...
TRANSCRIPT
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Analyst Day 1st June 2015
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Agenda
Site Agenda Speaker
Miller & Carter Welcome EPOS systems Site tour Lunch Branding
Tim Jones Phil Urban Catriona Kempston
Toby Carvery Site tour
The Cock Inn Orchid – conversion and integration
Steve de Polo
O’Neill’s Informal reception
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Miller & Carter, Brookmans Park
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Miller & Carter, Brookmans Park
Open 2013
Ownership FREEHOLD
NBV £3.1m
AWT £40k
Food Mix 75%
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Toby Carvery, Whitewebbs House
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Toby Carvery, Whitewebbs House
Opened 2007
Ownership LONG LEASEHOLD
NBV £3.6m
AWT £39k
Food Mix 72%
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The Cock Inn, Cockfosters
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The Cock Inn, Cockfosters
Opened 2015
Ownership LEASEHOLD
Lease Expiry 2050
AWT* £36k
Food Mix* 47%
* Based on three weeks trading post-conversion
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O’Neill’s, Euston Road
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O’Neill’s, Euston Road
Opened Pre-2000
Ownership LONG LEASEHOLD
NBV £1.3m
AWT £54k
Food Mix 35%
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Phil Urban Chief Operating Officer
EPOS systems
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EPOS systems – GO! Technology
Key benefits: • Increased payment speed
for guests
• Efficiency: reduced management and server time
• Improved controls and integrity data
• Platform for further technological development
Tills
Integrated payment devices Scanners for
bar codes / QR codes
Kitchen Management*
iServe handheld devices*
*Brand specific equipment
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iServe
• Handheld devices for waiting team to take orders
• Order immediately appears in kitchen/ bar – reduced walktime for server
• Faster processing of orders increases table turn in peak sessions
• Guest benefits: drinks can arrive before food orders are completed
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Kitchen Management Solution
• Process for the kitchen to know what to cook and when
• Tracks guest progress from arrival to departure
• Paperless solution
• Enables all dishes on one table to be delivered hot and at the same time
• M&B the UK’s biggest user of
KMS
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Blue Sky
• Dashboard technology via tablets for all Operations team
• Communication - One stop shop for frontline
communications: one view of the truth
- Simple and consistent reporting at all levels of Operations hierarchy
• Prioritisation
- Clear visibility of prioritised tasks
- Exception reporting on key legal and compliance actions
• Efficiency
- Business checks recorded on tablets: frees up GM/ Area Manager time
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Catriona Kempston Marketing Director
Building Brands
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Growth of Branded Pub & Restaurants
£6,990 £8,267 £9,517
£12,906 £12,749 £12,327
£3,637 £4,608 £5,361
£5,372 £5,461
£5,926 £3,488 £4,094
£4,890
£17,980 £16,272
£15,497
2009 2012 2015F
Independent restaurants
Branded restaurants
Independent fast food/take-away
Branded fast food
Tenanted/Leased, Independent Pubs
Branded & managed pubs
Source: M&C Allegra, Analysis of growth in turnover across the UK Restaurant market, 2009-2015F
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Building Brands
Experience Communication
Distribution
Drink
Food
Brand
Design
People
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Food
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Food
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Drinks
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Promotion
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Promotion
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Expertise
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People
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People
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Building Strong Brands
Awareness
‘I know about it’
Consideration
‘It’s top of my shopping
list’
Frequency
‘I want to go there again’
Spend
‘I want to buy more’
Experience
‘I had a better time
than anywhere
else’
Repeat Visit
‘I want to go there
again’
Loyalty
‘It’s my
favourite’
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Toby performs strongly across brand metrics
Awareness Consideration Usage 1st Choice
37% 15% 3% 1%
68% 32% 13% 4%
76% 39% 19% 11%
77% 32% 11% 3%
Source: BrandPulse survey, CGA Peach
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Steve de Polo Programme Director
Orchid conversion
and integration
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The Business Plan
• Acquisition cost of £266m + c£40m investment capex
• Purchased EBITDA of £29m before head office costs of £8m
• Two major value creation levers delivering £6m synergy: • Overhead synergy • M&B purchasing power
• Investments delivering core EBITDA growth
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Progress so far
• 24 investments open and trading by end of May
• Strong turnaround in sales and high ROI
• Office closed and majority of overhead synergy delivered
• Major drink supply chain moves completed
• Significant change programme around IT, training and policy migration in progress
• Two way best practice transfer occurring
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Integration Process
• Organisational learning
• Plan design and maintain trading momentum July to
Sept
Oct to
Dec
Jan to
Mar
Apr to
Aug
• Migration preparation
• Christmas delivery
• Cutover of IT systems, major processes and drink supply chain
• Corporate consultation and office closedown
• SOP training and migration
• Retail consultation & payroll switch
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Case studies
• How our brands & formats can create value
- Hemlock Stone, Ember – was a traditional pub and Thai dining
- The Angel, Castle – was an independent local
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Hemlock Stone Pre-investment
Purchased AWT: £12k
Purchased EBITDA: £125k
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Hemlock Stone Now
KEY STATISTICS:
Opening Date: Dec 2014
Investment: £444k
Post investment AWT: £21k
Post investment ROI: 45.1%
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The Angel Pre-investment
Purchased AWT: £10k
Purchased EBITDA: £144k
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The Angel Now
KEY STATISTICS:
Opening Date: Feb 2015
Investment: £501k
Post investment AWT: £16k
Post investment ROI: n/a
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What Next?
• 24 investments completed and around 65 left to do
• c. 80 pubs to move to our Heartland division around October
• Further investment potential in many of these pubs – innovation pipeline
• Pizza Kitchen Bar – continue to review, learn and improve
• Pragmatic approach on playbarns
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Orchid Learning
• What did we know? - Investing in our brands can add significant value to quality
pub assets
- Our scale and operating skill can add commercial value and increase guest saliency
• What have we learnt? - Orchid had a strong people-centric culture
- Outstanding cost control and waste management culture
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Tim Jones Finance Director
0121 498 6112
James Cooper Investor Relations
0121 498 4525
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