Swimming against the tide – East Street Pub Company

Bar and eatery chain East Street Pub Co is set to become a double digit multi-site hospitality business this year; having grown rapidly over the past 24 months. Its latest venture is a very modern interpretation of the public house and will launch in time for the 2025 summer season. We find out how it has achieved such rapid organic growth and the idea behind its latest venue

Started as a single-site traditional pub in Newton Abbot, East Street Pub Company has evolved into a diverse group of pubs, bars and eateries – all with their own distinct personality. As the company has acquired new sites, it has tapped into new customer markets one location at a time. By approaching the market this way, it has been able to grow while other operators in the same area have closed. It has taken a bottom-up rather than a topdown approach, redesigning each venue around the needs of the local population instead of rolling out a fixed format – the opposite of how many franchise businesses operate. However, since the back-ofhouse operations are similar, it has still managed to achieve economies of scale. It’s a model that is customer-centric, efficient, and regenerative for the local economy.

Their latest project was also their most ambitious yet and involved the redevelopment of a 700m² Victorian  building overlooking Torquay harbour. The concept for the venue incorporated a new all-day format that brought together a range of social, dining, and drinking guest-experiences – all under one roof. It is a modern interpretation of the public house, where serving alcohol is just one of many reasons why guests visit – alongside enjoying quality family time, casual socialising, group gatherings, intimate dining, and nights out. The emphasis is on range of social experience, quality hospitality, and great products – all delivered within an exceptional setting.

The tide is turning

There has been a seismic cultural shift over the last 5 years that has altered customer lifestyles and consumer habits (the post-pandemic and cost of living crisis era). As well as a surge  towards e-commerce, attitudes towards alcohol consumption have changed, support for local commerce has grown and flexible working has led to new recreational habits. A 2021 report from Barclaycard found that nearly 9 in 10 consumers planned to continue shopping more locally to support their communities. In 2024, two-thirds of pub visits were to independent establishments and quality-of-experience became the second most selected reason for choosing a venue (Arla Pro – 2024) – indicating a strong preference towards personalised experiences and venues with unique character. Moreover, many consumers now either don’t drink alcohol or drink less, yet still visit pubs and bars regularly.

Since alcohol is no longer star of the show, the focus has shifted to the environment, along with the range and quality of food and non-alcoholic drink options. Figures suggest that this is the case for a growing number of consumers – alcohol consumption has fallen across all age groups and the number of alcohol free trips to pubs and restaurants now exceeds 1 in 3 (KAM – 2023). Moderation is no longer just a dry January thing, it’s a mainstay across the year. Plus faced with cost pressures, customers are prepared to spend but are placing more emphasis on the quality of experience and are more selective – hence fewer pub visits but higher spend. Whether it’s a midday coffee and cake after a leisurely stroll, an early evening catch up with friends or a big night out, guests want and expect a high-quality experience. The onus is on the hospitality operator to evolve and facilitate this – it’s adapt or die. To accommodate these needs and cycle of day- and night-time socialising habits, East Street Pub Company’s new format features several distinct yet complementary guestexperience zones. Each zone has been designed with something quite different in mind, giving customers more options for different occasions. Like a chameleon, the venue adapts to the needs of each group of guests.

Giving ideas form

Successful hospitality venues focus as much on the environment as they do on service and product. The quality of the environment directly influences the guest experience, which, in turn, drives business performance. If customers like what they see and how a venue makes them feel, they are more likely to visit, stay longer and become regulars. East Street’s business is fundamentally about delivering the right guest experiences in the right locations. Furthermore to contribute positively to the company’s financial well-being, as the group expands, it has to get this right consistently. As Steve Narvidge of East Street Pub Company explains.. “Our ideas and the quality of our environments are a big part of what make us different. As such, we have been quite hands-on in the past. Over time, however, we have developed a good understanding of what external assistance is needed to move our business forward.” The latest project was especially ambitious as they wanted to create something genuinely unique within a fairly densely populated hospitality quarter. “Our initial ideas were vague, and they needed creative input and direction. Additionally, we were working with a historic building that was likely to require structural remodelling. To help us develop new hospitality design concepts for the venue and create an interior that excelled both aesthetically and functionally – we needed a more specialist and hybrid skillset than an architect.” East Street Pub Company determined that a combination of consulting and hospitality design, architectural and interior design, along with fit-out and build expertise, was required. To reduce management overheads and costs, the preference was to find all of these skills within a single team. “We decided to engage Gutxi and have been extremely pleased with our choice. They had all of the skills that we were looking for in-house. Their ideas, attention to detail, and quality of work are second to none. These projects require skill and discipline. The little details have to be right to produce something of high quality within budget. Having the right partners on board is therefore crucial. Gutxi has brought an excellent mix of commercial, creative, and technical expertise, and they work well with our suppliers. We consider them a strategic partner.”

Achieving sustainable growth

Small details matter a great deal to East Street and it is this attention to detail that has no doubt contributed to their success – customers know and trust that when they visit, they will have a good time. It’s about great products, service, and environment – and, of course, having fun.To keep the magic alive, East Street will need to nurture the culture that has led to its success. It is one thing to draw customers to a venue, and another to develop long-term relationships with them. Without unwavering quality, the amount of repeat business and organic growth will be lacklustre. To achieve both organic and acquisitive growth, the company will need to maintain high standards as it expands. With solid foundations already in place, East Street Pub Company is wellpositioned to face and overcome these challenges. The new venue is set to open in time for the summer season of 2025. It will offer a range of dining and drinking options, from low-key casual settings to premium and event-driven experiences. Spanning four sections across two floors, the venue will cater to various social occasions. Downstairs, a casual traditional pub and main hub will serve as the central gathering space, while a snug area at the back of the venue will provide an intimate setting for smaller group gatherings. The upper floor will focus on premium and family dining, featuring a sit-down food and drink service and a cocktail and champagne bar. The venue will also host a distillery, offering guests a variety of immersive, bookable experiences, including gin, rum, vodka, and liqueur tasting sessions. The entire venue will pay homage to the heritage of the building and the local area—a coastal town steeped in Victorian history.

Sources

Arla Pro
https://www.arlapro.com/en-gb/stories/five-things-to-know-about-the-pub-and-bar-market-in-2024/
Guardian
https://www.theguardian.com/business/2024/dec/30/number-of-pubs-in-england-and-wales-falls-below-39000-for-first-time
https://www.theguardian.com/food/2024/jan/05/why-no-and-low-alcohol-drinks-are-the-future
Opus business advisory group
https://opusllp.com/report/hospitality-sector-report-a-continued-decline-in-sector-finances/
Youngs Brewery Instagram
https://www.instagram.com/youngspubspeople/p/DDZn_I8Iijo/
Guardian
https://www.theguardian.com/business/2021/mar/23/uk-local-grocery-shopping-could-last-beyond-pandemic-poll-small-stores-food-drink
ONS
https://www.ons.gov.uk/economy/economicoutputandproductivity/output/articles/internationalconsumercardspendingukandabroad/2019to2024
KAM Low+No 2023: The Customer Perspective
https://kaminsight.com/wp-content/uploads/sites/2044/2023/07/LowNo-2023-REPORT-FINAL.pdf