Business
Franchise Accreditation
Franchise Accreditation.
About this update from Marston's Plc
[{"type":"text","content":"\n \nRNS Number : 8840H Marston's PLC 06 June 2011 \n \n\n \nMARSTON'S PLC \n6 JUNE 2011\n \nMARSTON'S AWARDED FRANCHISE ACCREDITATION FOR ITS PIONEERING \nRETAIL AGREEMENT\n \nMarston's PLC (\"Marston's\"), a leading national pub retailer and brewer is pleased to announce that the British Franchise Association has awarded Marston's Retail Agreement franchise accreditation. \n \nMarston's introduced the Retail Agreement to Marston's Pub Company, its tenanted and leased estate, in 2009 to address the challenging market conditions in the tenanted pub industry. \n \nThrough this highly innovative approach, Marston's Pub 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 Pub Company is responsible for other costs. Benefits to customers include improved standards, and consistent value for money offers. \n \nIt is the Group's intention to convert approximately 600 tenanted pubs to the Retail Agreement by the end of 2013. Around 230 pubs have been converted to date with encouraging results, and the Group remains on track to convert a further 100 additional pubs by the end of this financial year. \n \nThe average expenditure per conversion is around £50k per pub, with a minimum target return on incremental capital expenditure of 20%. Marston's Pub Company remains on track to achieve these returns. \n \nCommenting, Ralph Findlay, Chief Executive of Marston's said:\n\"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. \n \nOur recent research has found the number of applicants for the Retail Agreement to be three times higher than those for a traditional tenancy, with 30% of applicants coming from outside of the industry. Franchise accreditation represents a further step in the development of the Retail Agreement, and will help us to attract more high quality people to operate our pubs.\"\n \nENDS\n \n \nENQUIRIES: &...