Editor: It is hardly surprising that the reopening of indoor venues, the warm and sunny weather amid the less seasonable showers and, of course, the Euros have led to a serious boost in the performance of some operators.
We are social animals and after nearly 18 months of restrictions, the much-discussed ‘pent-up demand’ is finally starting to find the release valve.
However, I, like many, am interested in what happens when this demand has been fully released into the market and appetite for leisure and social experiences has stabilised, and temporary measures of support have been fully removed.
With no benchmark for ‘normal’, the question of fair maintainable operating profit is a particularly challenging one for valuers.
There might be a temptation for businesses to reduce their capital expenditure in the name of short-term profits or firefighting after a challenging year and a half, but to do so risks eroding the quality of the customer experience and the long-term viability of businesses as a result.
Businesses such as PureGym, Hollywood Bowl, Incipio Group and Loungers are on the expansion trail – this may seem counterintuitive right now, but it is the right thing to be doing.
There’s no such thing as an eternal summer and now is the time to invest in your business and develop your offer to meet the expectations of your customers – before your competition beats you to it.
Gavin Brent, principal, managing director – leisure, Avison Young