By Ian Neubauer
A recent series of discount offers at ivy, Establishment and other high-profile Sydney venues run by Merivale do not represent a departure from the group’s premium-pricing policy, according to CEO Justin Hemmes.
Commenting on the introduction of a happy hour offering $5 drink selections between 5:00pm and 7:00pm on weekdays and a Winter Feasts promotion offering three-course lunches with a glass of wine or beer for $35 per head, Hemmes said the promotions conformed to Merivale’s ongoing strategy.
"Merivale is a premium product although we increasingly recognise the need to provide value added offerings to remain attractive to our regular customer base, and attract new patrons who may have considered us out of reach," Hemmes told TheShout today (Jun 10).
"Clearly this is in response to the economic downturn. However, Merivale is in the fortunate position to be able to adapt to the current economic climate and provide such value added offerings in order to remain attractive to the greater market."
Hemmes again denied reports that Merivale was under pressure from its lenders to improve debt gearing and the profitability of its venues, saying the group was performing better than expected in a challenging environment.
"There is no truth whatsoever to the rumours that we are under pressure from our banking partners," he said. "To the contrary, Merivale Group is consistently performing above budget expectations, with ivy delivering particularly strong results."