Star launches buying club to cut licensee costs

With 52% of licensees seeing cost inflation as the biggest issue facing their business, Star Pubs & Bars is launching a buying club to help its operators save money and boost their top line growth.

The company estimates that the average pub could make savings of £7.5k per year through the club’s deals with key suppliers.

The scheme will be launched at the company’s nine annual regional licensee conferences, which are taking place in cities around the country this autumn.

Star has used its increased buying power – due in part to its development of its 120-strong Just Add Talent managed operator estate – to negotiate preferential commercial terms on a wide range of goods and services for its leased and tenanted licensees. Unusually in the leased and tenanted sector, Star will receive no financial benefit from the scheme and all savings will be passed onto licensees.

The club provides discounts on big-ticket items used by all licensees and includes recently negotiated agreements with suppliers including Biffa, Nesbits, Sky, Initial, A-Cask and PHS Greenleaf.

The company will monitor suppliers’ performance to ensure Star licensees receive excellent service.

For ease of access, the buying club is hosted on Star’s online platform, which is used by licensees when ordering beer.

Steve Dancer, Buying Director, Star Pubs & Bars, said, “By cutting licensees’ costs, the buying club will increase their profits and make their businesses more sustainable. This is the just start – we’ll be listening to our licensees at our autumn forums and throughout the year. We will be looking to develop the club further in line with their feedback.

“The deals are struck on the back of our JAT estate. They demonstrate once again how this small group of managed operator pubs is providing commercial and competitive advantage to our 2,700 L&T pubs.”