App ordering here to stay at Young’s pubs with punters able to buy drinks at the bar from June
Some of the changes brought about by the Covid-19 pandemic are here to stay at Young’s pubs, including use of the app to order food and drinks to tables.
Speaking to Morning Wire this morning, Patrick Dardis, CEO of Young’s, said the app, which the group began developing five years ago and by sheer good luck started testing in January 2020, was here to stay, as well as some pubs going permanently cashless.
The business now takes around 95 per cent of its revenue via the app and tablets. Dardis said tills were becoming redundant, and for some areas of the business like taking payments, the pandemic had accelerated progress by around five years.
“We were testing the new tech in January last year, and little did we know we’d be hit by a pandemic, so we were well advanced,” he said. “There has been lots of changes in the last year, and changes for the good.”
The boss said the Young’s app drives more people towards premium products, and tends to generate more tips for staff.
With all that said, bar service will return and walk-ins will be encouraged, he said, adding: “When the day comes, and I hope it’s June 21, people can go to the bar.
“You’ll see the true pub back, and the return of spontaneity. The idea of having to book has to go. Our main focus for the next two months is to get the message out there, that when you come, we’ll have to take your details, but come, walk in, and we’ll find a place for you.
“The message about having to book is a no.”
Business as usual by end of June
The boss predicted the business will be back at pre-Covid levels of trade by the end of June, assuming the government’s roadmap continues uninterrupted.
He has sound reasoning for his optimism – when the group opened around 144 of its circa 220 pubs in April, it managed 85 per cent of normal trading compared with the same period in 2019, despite only being able to serve customers outside.
The pub group was hammered by Covid-19 and the subsequent restrictions.
Having only been able to trade for four months in the 52 weeks ended 29 March, group revenue was down by nearly 71 per cent to £90.6m, resulting in an operating loss of £35.1m.
Following serious disruption to the business, the group will not offer a dividend this year.
Patrick Dardis, CEO of Young’s, said the last year was the group’s most challenging in its 189-year history.
Nevertheless, the boss was confident about the near future – assuming the government’s roadmap out of lockdown continues without disruption.
“We are confident with the steps we have taken to ensure Young’s continues to be in a position of strength and there is potential for a strong recovery this summer,” he said.
“April has started better than planned, with future bookings also looking strong. With this in mind, the board expects the business to get back to pre-covid-19 levels of trade and margins by the end of June, assuming the roadmap, and in particular the 21 June ‘freedom day’, is not compromised.”
In the last year the business secured additional financing of £88.4m through an equity issue and £20m through a new bank facility.
It also spent £17m upgrading its estate, including upgrades to outdoor trading spaces and buying two new pubs; Enderby House in Greenwich and Alban’s Well in St Albans.