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Punch and the Falcon Division


At Punch we feel we have developed a model of operating pubs which has created a formula for financial success, Publican satisfaction and, most importantly, a reconnection of pubs with their customer base and communities. We believe this allows us to put ourselves forward as the Pub Champion for 2016.

Falcon’s formula of success is based around;

• The intensive training and development of Publicans, passionate about delivering outstanding hospitality in a pub that is just right for them.

• A significant and innovative capital investment programme which gives the communities surrounding Falcon Pubs what they want and is not tied to a specific look or feel.

• An independence in drink and food ranges.

o Falcon pubs provide the widest possible choice of beers originating from any brewer, and allows a real focus on local or regional Brewers giving true choice to pub consumers.

o The same applies to food provenance where a Falcon pub can make a real contribution to community support through sourcing and selling local products.

• Impeccable standards, a consistent delivery of offer - taking the best managed house principles that allow our Publicans to focus solely on delivering the very best customer experiences.


How it Works

Our Falcon Retail Contract is a five-year arrangement where our Publican is self-employed, operating our pub business and receiving an agreed percentage of all net weekly sales. With Punch taking responsibility for all of the back of house functions, our Publican’s can focus on establishing a great team of people to deliver an outstanding pub offer. From the weekly management fee, the Publican pays themselves and their staff, and remains responsible for paying the council tax for living accommodation, insurance, and paying any licences that may fall due relating to the private accommodation.

Every other expense is picked up by Punch.

Our expectations of an efficient day to day business are clearly specified in our operator manual. Punch will retain responsibility for all repairs, investment, other bills, including food and drinks purchases.

On top of receiving an agreed percentage of the weekly Net Sales, we also reward our Publicans further for delivering expected profit levels out of the pub. This is in the form of a twice yearly profit incentive payment for on target delivery of pub profit.

Our Area Operations Managers, running approximately twenty pubs each, will supply everything our Publicans need to get up-and-running in advance, so the pub is ready to trade with the appropriate food and drinks menus format already set up.


Key elements of the Falcon Retail Contract?

• There is a low cost to enter this arrangement – deposit only of £5,000
• Minimal burden of day to day bills and subsequent cash flow worries
• Great selection of pubs in prime locations across the country
• A great portfolio of retail products
• Free of charge Training course
• Tried & tested menus, designed by our catering executives
• Dedicated support from local Area Operations Manager
• Specific Punch operating guidelines & procedures

Key Results of the Falcon Retail Contract

• Over 100 pubs operating under the Falcon model
• Over £14 million spent in capital expenditure
• Over 100 separate Publicans trained as part of the Falcon Foundation week course
• 25% sales volume uplift compared to like for like sales prior to the Falcon Retail contract conversion 
• 10% improvement in customer advocacy (as measured by four weekly mystery visit programme)

Dedicated Contact

Every Falcon publican has a dedicated Area Operations Manager (AOM) who is a Publican’s personal point of contact, with local experience and wider industry knowledge. Our Publicans receive regular visits, advice on growing business and competing in the market.

Service and Support Teams

Punch provides the most comprehensive back office and business support service in the industry. Our specialist support teams cover everything from catering to marketing. We make it easy for our Publicans to get in touch, by phone or online.

Training and development

Induction training is an important part of setting our Publicans on the right track. We require all our Publicans to follow the induction programme (even if they have run a pub before) because, in our experience, it makes a big difference to the chances of success and welcomes them into the Punch culture and ways of working.  From retail standards to managing and training people, we also offer Apprenticeships for our Publicans and their teams for further on-going support.

Capital investment

We have invested significantly in our Falcon division since its inception, with over £14 million spent on pub refurbishments.
Each development looks at the individual opportunity at a pub and then introduces a look and feel that complements that opportunity.
We have introduced some of our highly successful retail concepts, such as Champs, Brewed and Baked, and Mighty Local into the Falcon estate to great effect, but we also ensure that any development is right for the customer base.


Case Studies

Bulls Head, Countesthorpe, Leicestershire

Coming from a background in the night time economy, Kelly Henfrey and Jimmy Ross took over the Bulls Head in November 2015.

A pub which had become alienated from its village customer base and had issues with drug use is now the centre of its community, providing high quality drink, food and entertainment.

A capital spend of nearly £200,000 revived the pub whilst maintaining a classic traditional feel.

Kelly and Jimmy have developed with Punch and through the Falcon system to taking on a new challenge of the Criterion in central London, whilst also recommending their successor at the Bulls Head to ensure it remains in good hands.

Click here to hear from Kelly.

Green Man, Willington, Staffs

Matt Feeney is an existing leased and tenanted publican with Punch with over twenty years’ experience in the Pub trade.

Matt also has a Punch lease at the Malt Shovel, Aston on Trent.

Having always wanted to run the Green Man in Willington, when the opportunity came with Falcon, Matt along with his wife Karen and business partners Barbara and Ade jumped at the opportunity.

A much smaller spend of £17,000 on the Green Man added a sparkle to the new venture.

Total sales are in growth at 58%, (l4l v last year) with volumes in growth on ale, cider and lager at 22%.

Click here to hear from Matt

Champs, Urmston, Manchester

Champs in Urmston Manchester demonstrates the commitment to high level investment, innovation and people within the Falcon division.

Formerly known as the (insert name), Champs underwent a large scale £550,000 investment developing from a tired traditional pub losing out to the competition into a thriving high street hub at the centre of the day and night time economy in Urmston.

As part of the development we utilised the Punch “Champs” sports bar concept (the seventh of its kind in the UK, the other six being part of the leased and tenanted estate) as it ideally suited both the demographics and location.

Existing Publican Matt Price changed from his lease to the Falcon retail contract in order to join Punch with its vision for the pub.

Centred around live sport and entertainment, with a premiumised drinks offer and casual dining food menu, Champs has achieved startling results since the development.

• Average turnover since opening of £28,000 representing an increase of 460 per cent.
• Average drinks turnover of £22,400
• Average food turnover of £5,600

Click here to hear from Matt

Summary

The Falcon division and the retail contract has led directly to the revitalisation of pubs around the UK making them flourishing business within their local communities.
Rather than restricting ourselves to one concept or one way of doing things, we have been able to look at each opportunity, on its merits, and utilise our capital investment to create great Pubs.
Across the UK we have created highly successful Falcon pubs fitting into our Brewed and Baked, Mighty Local and Champs concepts as well as individually designed and developed pubs suited to their location and who their customers are.
Individuals and couples with no experience join us as well as those from other companies. We also have our existing Publicans changing their agreements to move into the Falcon concept. With our support they are being rewarded for running busy, profitable pubs.