Making future plans

Five pub companies are tackling the smoking issue head-on with a five-year plan to phase in restrictions. Daniel Pearce reports.

Wetherspoon's Tim Martin may say an all-out smoking ban is now inevitable, but that's not the message coming from the rest of the trade. In one swift move the pub industry has wrestled back the initiative on smoking from the government by laying down the foundations for some radical, concerted action.

Among a series of pledges made in a letter to health secretary John Reid, the five signatories are promising to work towards a ban on smoking at the bar before the end of 2005, and to restrict smoking to just 20 per cent of pub trading space by 2009.

The letter, delivered to Mr Reid on September 9, was a response to a meeting in July which heard Mr Reid and trade secretary Tessa Jowell suggest the pub trade needed to provide something stronger than the Charter if it was to show it was giving the issue the weight it deserves - and if it was to stave off an all-out ban.

Fewer than 5,000 of the 22,000 pubs affected by the statement are managed. The main challenge now facing the companies involved is to persuade tenants, lessees and franchise operators, as well as the country's 16,000 freetraders, to take up the cause.

The campaign will be helped by the promised addition of more signatories to the "statement of intent" in the weeks to come.

As Enterprise Inns chief executive Ted Tuppen underlines: "These are good proposals - they will protect employees, the economy, and pubs as we know them. If the ban comes in, the government will have to explain why - we have explained why it doesn't have to introduce a ban."

Second wave​

A second wave of pub company signatories to the statement could come as early as next week, according to Spirit Group chief executive Karen Jones, one of the prime movers in the project.

"We are all talking to others," she tells The Publican. "It's very important that we all go out and talk to our colleagues. We've all got to get behind it. This shows real intent, and we've got to push for it - we haven't met much resistance yet.

"I don't believe in a national ban because my customers have said that is not what they want," she continues. "I do believe that if we can phase in restrictions, we can take our customers with us in a way that protects them and helps us to mirror society."

Rob Hayward, chief executive of the British Beer & Pub Association (BBPA), believes that the companies involved have set a ball rolling that will now gather so much momentum that the rest of the trade will not be able to resist being dragged along with it.

"I expect further companies to come forward and commit to the policy," says Mr Hayward. "I think we'll find that more people within the hospitality sector - such as hotels and restaurants - will be signing up to it too."

Spirit, in fact, is implementing the policy ahead of timetable and will have banned smoking at the bar at most of its 2,500-odd managed outlets before Christmas.

But the tenanted and leased companies involved in the initial pledge - Enterprise Inns, Punch and Scottish & Newcastle Pub Enterprises - are confident, too, that many of their pubs will buy in to the proposition.

All three companies say that time constraints meant they weren't able to speak to many licensees before the statement was put out to the national media.

"We are writing to all our licensees now, explaining the situation," says Martyn Gray, marketing director at Scottish & Newcastle Pub Enterprises.

"The timeframe [between the July meeting and the proposal] was very tight. We didn't have the time to consult all our licensees in the process."

But Mr Gray makes it clear that, while the programme of educating and encouraging the S&N franchisees starts here, licensees remain free to set their own policies on the issue.

"We have 1,100 pubs and they will make their own decisions about what's right and wrong for their business. But we're going to do our very best to get them to buy into the proposition over the next few months," says Mr Gray.

"We're hopeful that can be achieved, where it is possible. In some pubs the layout might mean it cannot happen, but we hope the government will get the message that we are serious about this. We believe we have put forward a position which is credible to the government."

Mr Gray says one of the things S&N would be emphasising to licensees during consultation was the potentially positive aspect of smoking restrictions.

"We've always feared the downside of a total ban, but there could be a positive impact on pubs if more people start going to their local venue," he explains.

This point is also emphasised by Ted Tuppen, who believes that the majority of pubs can buy into the new policy. "I'm a great believer in the fact that the industry currently doesn't recognise how many people are being driven away by smoke," he declares.

Enterprise is planning to consult with every one of its licensees in the coming months over the issue - not only to discuss the strategy on the table, but to look at options and alternatives as well.

"We got to the stage of launching a consultation with licensees a few weeks ago, but there were a few tweaks to be made before we decided what letter to send to the government," says Mr Tuppen.

"Our regional managers are fully briefed - anyone wanting further information should contact their regional manager to discuss the situation.

"It's my belief that these are very sensible proposals, which may well be workable for a large majority of our pubs and can be applied over time," continues Mr Tuppen. "But we do recognise that some can't comply."

Mr Tuppen also underlines that by making the statement, Enterprise has shown it is "acutely aware of the implications of the employer's responsibility to employees" with regard to passive smoking.

"This is a real issue on employee welfare, that needs to be addressed," he says. "We signed up to it because we think our licensees may be taking a risk that they may not be fully aware of."

Punch Taverns is also committed to educating licensees about the issue, and has already begun the consultation process on the statement of intent.

The company says a letter went out to all its pubs, outlining the same proposed restrictions and targets which the five companies have now committed to.

The issue has also been raised at the Punch retailer forums, while the company's retailer newsletter also offers regular updates on smoking, including policy recommendations and relevant reports.

"Punch is working with the government, trade bodies including the BBPA and the Association of Licensed Multiple Retailers (ALMR) and, of course, its retailers to find the best solutions," says the company.

Taking it seriously​

The head of the industry's Charter Group, Nick Bish - chief executive of the ALMR - has commended the five pub companies for the new policy.

"What this shows is that some very important people in the industry are taking the issue seriously, and making commitments which can only be applauded," he says.

"Every hospitality company should deal with smoking in a way that is consistent with their staff and their business needs. Smoking restrictions are the political and social reality - and everybody ought to do something significant about it now. If pubcos are making these ambitious targets, it's because they believe that this is the way the industry is going."

Mr Bish urges the pub companies to offer licens