'No action is not an option'

With a claimed 90 per cent of Punch Taverns' estate in possession of outside areas - whether gardens or adaptable car parking areas - chief operating officer Adrian Fawcett is upbeat about meeting the demands of the forthcoming smoking ban.

Sitting in the Bell, a pub in the hamlet of Ladbroke, near Royal Leamington Spa in the Midlands, Fawcett points out the facilities 'back and front' that will cater for the pub's smoking customers following the recent £450,000 refurbishment.

He is equally keen to emphasise the 'no-smoking throughout the pub's interior' route down which the lessees, Nick Wright and Gary Burden, have chosen to go.

"When you do a large scale refurbishment like this you are obviously minded to include work to prepare for the ban," Fawcett says.

That the Bell has adopted a no-smoking strategy months in advance of the ban's official - and as yet unannounced - introduction date is the result of a feeling that 'well, we might as well get cracking now'.

Punch has invested tens of millions of pounds in its pubs over the last two years, with around £10m being put aside specifically for smoking-related solutions.

"With something like this you have to prioritise where you want the business to head," Fawcett says.

Potential customers

"Smokers comprise 27 per cent of the population overall but nearly half of existing pub customers," he adds. "So while we want our retailers to cater for smokers we recognise that there are potential customers who we can attract with an improved - and obviously smoke-free - offer."

Lessons have been learned from the experiences of establishments already operating under smoke bans, most notably in New York and Ireland. While opinion is well and truly divided on whether an accurate picture has emerged from these markets, operators nevertheless have some trend data to go on.

"The crucial thing we took away from our observations of these markets is the need to take everything in the business up a notch, quality-wise," he says.

Pubs will increasingly cater for a wider variety of consumer, whether it's the casual drinker, the destination diner, families, the business community or the grey market, but overall, food will become the 'common denominator' going forward, Fawcett believes. "We've seen eight per cent compound growth in food across the UK market recently and this is clearly where things are heading for pubs," he points out.

This, together with the move to accommodate - hopefully - more non-smoking customers means companies will have no choice but to reappraise their operations. "One of the biggest areas to address will be the improvement in retail standards," Fawcett says. And the ban simply accelerates this, he adds.

"Focusing on retail standards is one of three key issues we believe need to be addressed. When the ban comes into effect is also a 'must know as soon as', and thirdly, once it has been rolled out, how it is interpreted by local authorities."

Along with many other operators who have witnessed a year of licensing reform this is a crucial area for Fawcett and Punch.

Consistency of application

"In terms of the ban's application, consistency will be vital. Subjects like the scope and make-up of outside space, walls, fences, can and probably will be open to different interpretation and we want a level playing field."

Another vital element is education for retailers. "No action is not an option," Fawcett says. Time and resources have been devoted to getting lessees on board with the demands of the new legislation, with support offered including the creation of a smoke ban 'action plan', together with site visits from BRMs and email newsletters.

Roadshows highlighting the impact of the ban and offering potential remedies to it have been under way for a number of weeks, tied into the group's 'Profit Through Quality' scheme.

"Retailers also need to take a look at their reliance on traditional smoking-friendly income streams such as AWPs," Fawcett warns. The impact of changes on consumers' expectations is another area to be managed.

At the end of the day he believes how a pub appraises and evolves its offer - food, soft drinks, entertainment, etc - will have a marked effect on its ability to take advantage of the forthcoming changes.

Fawcett clearly thinks Punch has tapped into the best route forward, and pubs like the Bell show how to ring in the changes.