Bar operator Orchid ups food focus as earnings dip

Published: 28 September, 2012

Food-led pub and bar operator the Orchid Group has seen sales grow by 3.7%, while EBITDAR fell by 5.4% in the full year to December 2011.

The group's turnover hit £179.6m, up 3.7%, while EBITDAR was £40.6m, falling from £42.9 million in the previous year. It improved its underlying gross margins by £2.3m, or 1.9%.

Following refinancing through Deutsche Bank, it has started a capital investment programme, aminly focused on moving its wet-led outlets to have more of a food focus, of £20 milion.

Chief executive Rufus Hall said: "It has been a significant period of progress for the company, and one that has seen us continue to move forward on every level.

Hall said food now accounts for over 40% of the sales mix, up from 28% in 2006, "reflecting our focus on food-led occasions and recognising changing customer trends".

The company has a major focus on staff, and came fifth in the Sunday Times Best Big Companies to Work For index in 2011. Almost a quarter (23%) of its general managers have been promoted from within, and a further 25% of our area managers were similarly promoted. Staff turnover fell by 9% and it is starting a major puch on apprenticehips - it currently has 17 apprentices and wants to increase that to 150 in the next year.

Hall added that the firm has "continued to perform ahead of expectations for the first three quarters of 2012".

"This performance has been very encouraging given the on-going pressure on consumer spending and the wettest British summer for 100 years. This resilient performance is the perfect platform for future growth driven primarily by our recently commenced £20m capital investment programme."

Orchid owns and operates 256 pubs and bars.

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