Star Pubs & Bars agrees new deal for offering coffee

kimbo coffee star pubs bars

Lessees with Star Pubs & Bars can tap into a new arrangement with coffee roaster Kimbo which is said to change “the dynamic of coffee supply in the leased pub and licensed sector”.

The new exclusive agreement guarantees credit for lessees, offers coffee training and ongoing support and allows them to terminate their agreement without penalties.

Star Pubs & Bars, part of Heineken, said it was an alternative to other machine agreements that have long-term contracts of three to five years and commit licensees to buying high volumes of coffee or face 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 offering from their local competition.

Chris Jowsey, trading director of Star Pubs & Bars, said: “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 to 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 ground-breaking 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, added: “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 & 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 3.6million 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 wifi.

“With the coffee shop chains looking to their potential for alcohol licences, our partnership with Star Pubs & Bars could not have come at a better time strategically for licensees, helping them increase their income from business and leisure customers.”

Star Pubs & Bars is also building on its partnership with Sky to offer all of its lessees free wifi for their business and customers for two years, a deal which will save them over £1,100. Powered by The Cloud, it is part of the company’s ambition to increase the percentage of its bars and pubs providing wifi from 60 to 100%.

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