The World Cup is coming, and pub chain Fuller's is hoping for a bumper summer. With evening kick-off times, the chain is anticipating a double-hit of business, as fans flock to their garden areas for a summer of football. Simon Emeny, the chief executive of Fuller, Smith & Turner, is confident that the World Cup will boost their already strong results. But what makes this World Cup different, and how will it impact the chain's business?
Emeny believes that the later kick-off times will benefit pubs, as they avoid the traditional 1pm, 3pm, and 5pm slots that can cannibalise summer trading. By sprucing up their garden areas and offering a fantastic food, drink, and accommodation experience, Fuller's is positioning itself to attract a wide range of customers. The chain is also experiencing a rise in domestic tourism, with staycations and short city breaks becoming more popular due to the extra cost of travelling abroad.
The World Cup is an important part of Fuller's busy summer period, but it's not the only factor driving their success. The chain is popular with higher-income households, who continue to spend despite the rise in the cost of living. Emeny notes that these customers fiercely protect their discretionary spend on going out, and Fuller's is delivering a fantastic offer that ensures they remain loyal. The company's strong results for the year to the end of March, with a 5.7% increase in revenues and a 28% increase in adjusted profit before tax, reflect this loyalty and spending.
Fuller's is also focusing on its property portfolio, which has been valued at £991m, almost £400m above its current book value. Dan Lane, the UK lead analyst at Robinhood, suggests that this valuation highlights the importance of Fuller's bricks and mortar. The chain may not be solely focused on selling pints or rooms, but rather on becoming a high-quality hospitality operator. By convincing the market of this, the property portfolio could see a significant bump in value.
In conclusion, Fuller's is well-positioned for a bumper summer, with the World Cup providing a double-hit of business and a rise in domestic tourism. The chain's strong results and focus on its property portfolio suggest a bright future, as they continue to deliver a fantastic experience to their customers.
