UP THE JUNCTION: Why Clapham’s pubs seem to be recession-proof
Few London neighbourhoods can stir up conversation like Clapham does.
Known for its cringey nightclubs and spawning array of trendy coffee shops, the region has long served as a first home for junior account execs and recruiters arriving in the capital to begin their careers and get a taste of city life. It’s also got a strong Antipodean presence – including, at one point, an unknown actress by the name of Margot Robbie in a house-share of six.
Have economic concerns put an end to all-day sessions, post-Common pints or misjudged trips to Inferno’s in south west London? Not a bit of it.
You need only speak to Mark Reynolds and Tom Peake, the owners of Three Cheers Pub Co – a chain of some of Clapham’s most popular bars – to get an understanding of how lucrative supplying booze to London’s young workforce, who are keen to shake off the stress of their 9-5s can be.
Since 2003 the pair have grown to operate nine pubs across South-West London along with their fellow childhood friend, Nick Fox. Some of their most popular bars – The Avalon or The Abbeville in Clapham, or The Bedford in Balham can see queues spilling down the road each Friday and Saturday night and staff pull up to 17,000 pints each week across their estate.
“Over 20 years we’ve seen pretty strong trade year on year. We’ve always been busy. If I had to pick any place to open a pub or a bar I think Clapham would be pretty high up on that list,” Peake said.
Decades of gentrification have tranformed Clapham from another south London high street into a haven for professionals looking for a quick commute into the City. Even the 2008 financial crisis didn’t stop that – Reynolds and Peake say the area, and their business, rode out that period of economic stress thanks to the presence of the Northern Line.
“It’s just a dynamic space because of the young people,” Reynolds said.
“We didn’t really notice the recession of 2008. The only time we’ve really struggled is when we’ve been forced to close because of Covid-19,” Peake added.
As the group gears up to celebrate their 20th anniversary in June, Reynolds, a Clapham local, credits the success of Three Cheers to “location, location location”.
“This was our sort of stomping ground and our patch. And I think we just capitalised off of it,” Reynolds explained.
Over the past few years demand to live in Clapham and its surrounding areas has skyrocketed with the average price of a room to rent in the area now costing £900 per month. Moreover, as hybrid working continues to prove popular, the pair said they have noticed a trend of people staying local on a Friday night instead of traditionally splashing their cash in the City.
Reynolds said: “On a Friday, people tend to start [coming to the pub] earlier we get more people coming in here at five, six o’clock, whereas in the old days, they used to get back from the city, go home, have a shower, and then come out at sort of 7:30-8pm whereas now we are finding people are coming in at 5:30-6pm which is great.”
However, as energy bills and food shortages continue to rise, both Reynolds and Peake, confessed that they have not been immune to the struggles most small pub groups are facing at the moment – but remain confident about Three Cheers outlook for the year – with revenues per year remaining at their average £17m price point.
Peake said: “We’ve been quite fortunate on the energy prices, as we signed a fixed contract, but it’s all going one direction, no question. it’s not a time anyone’s able to be complacent. We managed to sign a contract on our energy supply in 2020, before prices started going ballistic. So we’ve been very lucky.”
Like many businesses the pair admit that they have had to raise prices putting 20p on a pint last October and in April, however Peake said that they are now experiencing a “cooling off” on costs.
Peake said: “I’m already talking to Massimo, my executive chef about vegetable oil prices dropping. So hopefully, we are seeing the start of things moving down.”
Vegetable oil might be trending downward, but for all of Clapham’s critics, thinks look to be moving ever upward for the area’s pubs.