Marston's granted franchise endorsement
Wolverhampton pubco Marston's has been awarded franchise accreditation for its retail scheme. The company said it aims to convert about 600 tenanted pubs to the agreement by the end of 2013.
Marston's initially introduced its franchise policy to Marston's Pub Company, its tenanted and leased estate, in 2009 to address the challenging market conditions in the tenanted pub industry.
The company has responsibility for the retail offer, including drinks brands sold, food menus and retail standards.
The franchisee earns a percentage of revenue and is responsible for staff costs.
Marston's has now been officially awarded accreditation for the scheme by the British Franchise Association.
About 230 pubs have already been converted to date, and Marston's said it remains on track to convert a further 100 additional pubs by the end of this financial year.
The average expenditure per conversion is around £50,000 per pub, with a minimum target return on incremental capital expenditure of 20 per cent.
Ralph Findlay, chief executive of Marston's said: "The retail agreement is proving to be an appropriate and successful response to the challenges faced by many operators in the tenanted pub industry. It encourages entrepreneurialism amongst licensees, enabling them to manage successful businesses with the benefit of our support, economies of scale and retailing expertise."
