Everards of Leicestershire is very much a family business. Julian Everard is the sixthgeneration Chairman and his dad, Richard, is still involved in the business, with sister Charlotte part of the next generation.
This family feel runs through everything we do, and it’s something we refer to as The Everards’ Way. You instinctively know if somebody has it — a people-first philosophy. This is what matters most to Julian and the family, and it radiates throughout the entire business.
A lot of companies say they are people-first, but the proof is whether it is acted upon. A good example of how we behave is when the National Insurance increases were announced: we could have simply emailed our business owners and moved on, but that is not how we work. Instead, we brought our business owners together on a group call, with myself, the Property and HR Director, to discuss what it really meant.
In preparation for that meeting, we calculated the actual impact and were Andy Wilson with Sam Hagger, Beautiful Pubs Collective able to present our business owners with the facts — and it stopped the panic. Some had thought it would have meant putting up prices by £1, but we demonstrated that the increases needed were only around 8p on liquor and 17p to 19p on food.
Having the data and the support meant they could take decisions and act with confidence. That is The Everards’ Way: we do the work so that we can look people in the eye and help them make the best decisions.
The culture here is friendly but hardworking. Everybody does more than one job, and we all muck in. I love that. I am the MD on the one hand and also the Operations Director on the other, and I still get involved in other areas of the business. We all know we have two or three things to do, so we work together to make life as easy as possible for each other.
That people-first thinking also sits behind the Beer Hall [Everards’ flagship food and drink destination venue at Everards Meadows, next to the brewery]. Five years old this year, the Beer Hall showcases our beers and more — there’s a restaurant and bar, the brewery, shop, café and cycling facilities. In the summer, people are outside playing cricket, walking dogs, having picnics and then popping in for food, coffee or a beer.
The development is a one-off, and in five years it has grown to be one of the top tourist attractions in Leicestershire. The Beer Hall is also brilliant at raising awareness of our beers and we encourage our business owners to bring their customers here for brewing days and tours. We have 20-25 different beers available in the Beer Hall at any one time, eight cask and the rest keg, and we find that visits often lead to increased engagement.
It surprises people to learn that, in the last year, we have brewed over 140 beers, with a mix of large and small batches. Last summer, for instance, our Head Brewer, Jon Elks, said let’s do something with blackberries, so we all got picking and we made a fast-selling blackberry beer!
We like to be proactive and fast acting as a business, and we look to work with the best entrepreneurs: people who have the energy and ideas to take the pub to the next level. It’s about having a growth mindset, something Julian embraces.
We are fundamentally a leased and tenanted (L&T) business, and always will be. We have around 145 pubs, with 130 as L&T sites. And, it is really important that we fit the right business owner to the right pub.
Our Business Relationship Managers (BRMs) know their pubs and business owners very well and we are happy to invest. We find some operators, on taking on the business, will want to make significant changes from the outset, whereas others prefer to see how the first nine months goes. We are cool with both, and investing is something we will do alone or in partnership.
We offer agreements to suit different styles of operators too. For example, Project William pubs have more freedom on their beer range. When we work with multiple operators, such as The Beautiful Pubs Collective, which has four pubs with us, we will shape the agenda around what they want to achieve.
Another example of how we work flexibly to suit different styles of operators is at The Aberdale. We attracted a great business owner who’s family are part of the local community. They’ve embraced the area, offering great Indian cuisine, and resulting in a five-fold increase in sales. It’s now a popular and successful pub that attracts a diverse customer base, with people coming not just for the food, but for the sport and beer.
Through our Project Nebula, we are starting to offer franchise agreements. The Royal Oak — one of just five pubs operating on this contract — is the latest to open on what is a very profitable business model for the operator.
It’s about the long-term view, and we always begin by making sure the business owner can operate profitably. We know we will get our rent and beer income, but we also ask “will they make enough money?”, and we check they are happy with the numbers. I think that is a quite different approach from others in the marketplace.
Keeping the estate in good condition is important too, and we carry out regular repairs and redecorations, but we always ask the business owner what they want. Very often, they will say: “While you are doing that, could we also look at this?” And we will work it out together. Our investments are paying back at just over 15%, which we’re happy with.
We believe in the enormous social value of pubs. There is not a city, town or village in this country that does not have pubs dating back centuries. People meet in pubs, celebrate births, mark deaths, raise money and look after each other within a pub. It’s the reason I believe pubs will always survive. They will change and offer different things, but they will always matter. Our job, as guardians of these pubs, is to keep them alive by implementing new ideas.
Growth comes from helping business owners see and take the opportunities. Sometimes it is as simple as more tables in the garden, an outside bar, a pizza van to take pressure off the kitchen, or a better beer range. None of it is rocket science — keep moving because you can’t afford to stand still.
We start each year with a capital expenditure plan, but by the end of the year it always looks different. We like to be nimble and if somebody has a great idea and it is the right thing to do, we will try to do it, regardless of budget. That long-term vision is really important, especially when the trading environment is tough.
National Insurance, minimum wage, alcohol duty, VAT and business rates all add pressure. And personally, I believe the Government has let us down. Business rates in hospitality are unfair, especially when you compare pubs with online businesses and there has to be a better balance.
I also worry about the environment Government increases have created for young people. Currently, there are too many under-21s out of work. Hospitality is perfect for giving them a start, but due to the rises in minimum wage and NI contributions, there are operators opting to only recruit experienced people. That’s the wrong approach. Young people bring fresh blood and often it is better to train someone from scratch than retrain an older person.
Investment in pubs also helps to create jobs. At the Royal Oak, Rothley, for instance, dozens of new roles have been created: those people pay tax, spend money and contribute to the economy. If the Government wants growth, it needs to encourage businesses like ours to invest more.
Over my career, I have been lucky enough to work with some brilliant businesses before joining Everards two and a half years ago: Whitbread, JD Wetherspoon, Caffè Nero and Greene King. I learned a lot from all of them. Yet, the common thread through all of these great businesses was always the people. Great businesses look after their people — and Everards definitely does that.
The next five years will be about working with the best entrepreneurs and helping them to take their businesses to another level. I love new ideas and when I see one, I don’t think “we could never do that”. Instead, I say: “How can we make it work?”
That is the Everards’ mindset. Let’s grow. Let’s try things. And, if they don’t work, we learn and move on. But when they do work, they can make a real difference — to the business owner, to the pub and to the community around it.
