The boss of pub and hotel chain Fuller's has said that evening kick-off times for World Cup matches will provide a double boost to business during the peak summer period, as the group prepares its gardens for fans ahead of the tournament.
Simon Emeny, chief executive of Fuller, Smith & Turner, reported strong advance bookings for the World Cup and noted that the company has spruced up garden areas across its 337 pubs, hotels, and inns to cater for a busy summer. With the World Cup co-hosted by the US, Canada, and Mexico, kick-off times for UK viewers are expected to be throughout the evening.
England's group matches, starting with Croatia on 17 June, have kick-off times at 9pm or 10pm BST. Emeny said, "I think it is going to be a very different World Cup compared to previous events mainly because of the kick-off times. What we have previously seen is that when you have kick-off times at 1pm, 3pm, 5pm it can cannibalise normal summer trading. So the later kick-offs could potentially play very well to pubs. We are anticipating an excellent summer and are hoping England stay in the tournament long enough to really benefit pubs."
Emeny also highlighted a rise in domestic tourism, with holidaymakers choosing staycations over foreign trips. "This next three-month summer period is our busiest period of the whole year. And clearly the World Cup is an important part of that. But it is not the only part. We are seeing a big jump in staycations, growth in domestic tourism. UK customers are electing not to go on foreign holidays and short city breaks due to the extra cost of travelling abroad. We are seeing a lot of domestic tourism elect to go to places like the Cotswolds, the New Forest and make trips into London."
The company reported strong results for the year to the end of March, with revenues up 5.7% to £398 million and adjusted profit before tax up 28% to £34.6 million, lifting its share price by up to 10% in early trading. Emeny noted that the chain, mostly operating across London and the south-east of England, is popular with higher-income households earning over £75,000, who have continued to spend despite the cost of living rise. "This group fiercely protects its discretionary spend on going out. Delivering a fantastic food, drink and accommodation offer, and exciting reasons to visit, to these premium customers ensures they continue to choose us when spending their leisure pound."
The company also updated the valuation of its property portfolio to £991 million, almost £400 million above its current book value. Dan Lane, UK lead analyst at Robinhood, said, "Fuller's has often looked at operating performance and ignored the property portfolio. A hefty valuation of its property suddenly brings the importance of its bricks and mortar back in – the next chapter for the group may not be about selling more pints or rooms. If the company can convince the market to see it as a high-quality hospitality operator rather than a collection of pubs, the property portfolio might not be the only thing that gets a bump in value."
