Star Pubs & Bars lessees get the cream of coffee support

31st July 2014

Star Pubs & Bars has negotiated an exclusive coffee supply and support arrangement on behalf of its lessees with Italian Coffee Roasters Kimbo1 which it believes is the best available across the licensed pub trade and changes the dynamic of coffee supply in the leased pub and licensed sector.

Unlike other machine agreements which have onerous long-term contracts of three to five years and commit licensees to buy high volumes of coffee or face expensive penalties, the arrangement with Kimbo guarantees credit for Star Pubs & Bars lessees, offers the best coffee training and ongoing support available and allows them to terminate their agreement without penalties.

Lessees will have access to a range of free on loan machines suited to different types of operation from small to barista models. Kimbo will provide lessees with a choice of premium authentic Italian best in class coffee beans and capsules, including a one stop comprehensive coffee offer. Lessees will have access to merchandising, helping to distinguish their offer them from their local competition.

Chris Jowsey, trading director of Star Pubs & Bars said of the arrangement: “We are always looking to improve the support we and our third party suppliers provide our lessees. Coffee is an increasingly important revenue stream for pubs with excellent profit margins of 80/90%. We want all our pubs to offer real coffee. To gain a meaningful share of the coffee market pubs need to compete with a premium offer, necessitating good machines and great coffee at affordable prices.

“Licensees have been stuck between a rock and a hard place with coffee suppliers until now, having to tie up a lot of capital to invest in buying a machine outright that they won’t get back for some time or run the risk of committing to an onerous contract that may not work for them. The deal with Kimbo is groundbreaking and changes the dynamic of coffee supply in the leased pub and licensed sector. Our lessees recognise the value of this deal with 150 already expressing interest and we’ve only just started to tell them about it”

Angus McKenzie, managing director of Kimbo UK said:

“Kimbo is delighted to have been chosen by Star Pubs & Bars as their preferred coffee partner for the UK market and proud to build on our long-term relationship with the Heineken Group in Europe. We are committed to funding a long term machine investment programme on behalf of Star Pubs and Bars lessees, thereby removing the barriers that in the past have prevented lessees from challenging the high street coffee chains for a share of this ever growing market.

“ Pubs already sell in excess of 3.6m cups of coffee a week. We expect this number to increase exponentially in the coming years as pubs are at the centre of their communities and many have free parking and wi-fi. With the coffee shop chains looking to their potential for alcohol licences, our partnership with Star Pubs and Bars could not have come at a better time strategically for licensees, helping them increase their income from business and leisure customers.”

 

1Whilst relatively new to the UK market, Kimbo is one of Italy’s four great major coffee brands, still family owned after 50 years. Today Kimbo is present in 40 countries throughout the world. The factory in Naples produces 23 million kilos of roasted premium coffee per year.

Issued on behalf of: Star Pubs & Bars

For further information: Siobhan FitzPatrick 07956 542558