Strong Food Sales Boost Trading - Orchid Goes from Strength to Strength

By The Orchid Group, PRNE
Sunday, June 27, 2010

LONDON, June 28, 2010 - The Orchid Group has announced a 2.7% increase in like-for-like sales for
the 14 weeks to 5th June across all its trading pubs and restaurants*.

Orchid, which intends to aggressively increase its number of food led
businesses, saw like-for-like food sales rise 5.5% and drink sales 0.6% over
the period. The company also saw an increase in gross margins, re-affirming
their decision not to enter into a strategy of deep discounting.

Like-for-like sales rose most steeply in invested pubs, reinforcing
Orchid's successful 'Project Shine' investment programme. This will see a
further 40 businesses invested in this year with capital investment ranging
from GBP10,000 to GBP250,000.

    Examples include:

    - Justinlees, Dalkeith, Modern British, 40% like-for-like growth
    - Bold Forester, Southampton, Value Carvery, 49% like-for-like growth
    - Spyglass Inn, Weymouth, Value Carvery, 22% like-for-like growth
    - Three Nuns, Mirfield, Free House Dining Two for One, 23% like-for-like
      growth

CEO Rufus Hall is particularly pleased to see an increased movement
towards food, with the mix currently running at 44%, up from 41% in 2009.

He explains, "With supermarkets using cheap food and drink deals to drive
footfall, a clearly defined strategy for driving quality and innovation in
food is now more important than ever. Instead of reducing dish specification
we have actually improved the quality of our food across our portfolio whilst
either holding or reducing the retail selling price. Customers have responded
well to this and it shows in our strong like-for-like food performance."

Food has always been at the forefront of the Orchid business model and
with a recently opened food development kitchen in Warwick, Orchid is now
even more committed to driving quality and innovation.

Growth platform

To add to the success of the Orchid model - a varied portfolio of great
individual pubs, bars and restaurants, backed by a strong management team -
Orchid plans to add another 50 to its portfolio by the end of 2010, with a
further 100 in 2011.

Having already successfully acquired and invested in several new
businesses, including The Bread & Cheese, Benfleet, The Snow Goose,
Farnborough, The Crown Point, Sevenoaks and The Cock Inn Wing, Orchid sees
potential for further growth across its Carvery (both value and
contemporary), Dragon, Free House Dining and Modern British segments.

*Figures relate to the Orchid Group's core trading estate excluding
Premium Bars & Restaurants

Contact Katherine Sparkes, +44(0)117-9688-090, pr@orchidgroup.co.uk

Contact Katherine Sparkes, +44(0)117-9688-090, pr at orchidgroup.co.uk

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