Tuesday, 24 December 2013

Priced out

I wrote recently about how Robinson’s had been carrying out a cull of their pub estate, and suggested that there were one or two more that didn’t look long for this world. However, one that I didn’t see as being vulnerable was the Baker’s Vaults on Stockport Market Place. It’s a prominent pub in a distinctive early-Victorian Italianate style which over the years has gained a considerable reputation for live music. It also many years ago hosted a Christmas meal for the local CAMRA branch at which the late, great Michael Jackson was the guest speaker.

However, it is reported that it closed its doors last Saturday night, with the tenants blaming “the costs of Robinson’s beer, the high cost of renting the building, the extortionate cost of business rates from Stockport Council, and the ridiculous cost of utilities.” Now, I suspect Robinson’s may try to find new tenants for this one, given that to my mind it still does have a strong innate appeal, but it does highlight a problem that affects many Robinson’s pubs in less well-heeled areas.

Traditionally, Robinson’s, unlike some other family brewers, never set out to be cheap as such. Their prices were typically comparable with, or maybe just a little below, those of the national or quasi-national brewers such as Wilson’s, Tetley’s, Whitbread and Greenall’s, who in many of their trading areas were their main competitors. However, as the Big Six metamorphosed into pubcos, and they started winnowing out their estates in town centres and inner-urban areas, over the years Robinson’s found that the competition in places like Stockport town centre had turned into Wetherspoon’s, Sam Smith’s, Holt’s and various free trade operators running pub company cast offs. What all of those have in common is that they are significantly cheaper.

It seems that the cost structure Robinson’s offer to their tenants makes it very difficult for them to be competitive in such an environment. The Baker’s Vaults was probably charging about £2.60 for a pint of bitter, but you have to have a good reason to go there when you can be paying just £1.80 across the road in Sam Smith’s Boar’s Head, and £2.15 a couple of minutes away in Wetherspoon’s. I was told a story of how a group of friends had started getting a taxi to a free trade pub for their regular Friday night out because the beer was 80p a pint cheaper than in their Robinson’s local, so they didn’t have to drink that much for it to pay for itself.

Obviously with any pub closure there is usually more than meets the eye, and some Robinson’s pubs not too far away like the Arden Arms and the Red Bull still seem to thrive despite charging a price premium. However, there’s plenty of anecdotal evidence that their tenants are often struggling to be remotely competitive on price. It’s not so much of a problem for their dining pubs where typical prices are higher and price competition is not so intense. But unless Robinson’s can come up with some way of offering their urban tenants a better value-for-money proposition we are likely to see more closures in the coming year.

10 comments:

Paul Bailey said...

£2.60 a pint sounds a bargain to me! In this neck of the woods it's not unusual to pay a pound, or more, on top of that, so what are people moaning at?

Curmudgeon said...

I don't want to overplay the "grim up North" card, but people here aren't on average as well-off as in the South-East, and regular drinking in pubs, as opposed to once or twice a week, is probably more commonplace. And there certainly is a widespread feeling that Robinson's pubs are not price-competitive.

Anonymous said...

Just how thick are some blog observers re pub closures.
I and many friends use to spend
7 nights a week in a local Robinsons Pub
We now only go in for Funeral Receptions etc 2 or 3 times a year
Do we have to spell out why we have deserted the pub scene.
Oh before we forget,Robinsons and many other breweries are surviving by selling their propeties,but for how long?

Still time yet

Tyson said...

I hope that Robbies do find someone for the Bakers as I've always liked t. But you make a good point about Robbies pricing. They saw themselves as a Cheshire brewery and didn't consider themselves in direct competition witht he likes of Holts. They seem to be struggling with tje modern trading conditions.

Cooking Lager said...

I think it is as Tand often says about the "offer"

Robbies have some decent smart outlets where £2.80 a pint is a bargain. They have some spit and sawdust outlets where £2.80 is overpriced.

The criteria is whether you'd take your bird in. If the answer is yes then it's smart and you pay for that. If you're with your mates then it's a matter of whether your mates are on the pull or not, then it's smart again. Otherwise you're roughing it. The beer in the cheaper rougher pubs is just as good so long as your mates are there to look after you.


Anonymous said...

Does anyone have the precise figures for Pub Closures within the Robinsons franchise since
(dare I mention)July 2007.
My guestimate would be 250-280.
Many more will follow when the property values are more realistic
Unless some common sense emerges in the Westminster blindfolded elite.

Curmudgeon said...

I don't think Robinson's ever had more than about 400 pubs in total, so I'd be surprised if the number closed/sold off in the past few years exceeded 80-100.

Alan Winfield said...

Robinsons web site lists 340 open pubs,i wrote a letter to Robinsons in late 2004 asking for a list of their tied estate,they kindly sent me a list which had 405 pubs on it.

So it seems they have sold off around 65 pubs since 2004.

Curmudgeon said...

They've also bought maybe 10 new pubs from the pub companies, mainly dining pubs in more affluent areas, so the total of closures will be around 75-80.

Jamie_t_83 said...

Shame about bakers, it was always busy when i was in plus i never had a bad pint there. There were often decent rock/metal bands playing too.

Theres not many pubs left on the market place sadly.