Diversification is set to become the buzzword for pubs once the smoking ban hits. Competition will be fiercer than ever in many areas. Aside from an increased focus on food, many licensees will have to think hard about how they are going to differentiate themselves from their competitors.
Some, however, are already stealing a march. An increasing number are branching out by offering more upmarket accommodation. Instead of just a few mangy letting rooms, pubs with boutique-style offers are popping up all over the country.
Reaping the benefits
At the George Hotel in Shipston-on Sour, near Stratford-upon-Avon, Sue Gray is reaping the benefits of having 16 boutique-style rooms to let. After buying the George last August, Sue has spent around £700,000 renovating the pub and introducing upmarket accommodation.
Sue hit upon the idea of taking a pub with extra accommodation after seeing the effect in her previous outlet the Fox & Goose. This only had four rooms, but Sue noticed the return she was making on having accommodation. "The profit we were making on our rooms was fantastic compared to what we doing on food and drink," she explains. "So we were on the look out for another pub with more space in that area."
And she is chuffed she has made the move. Since opening in February the George has been turning over around £20,000 a week. Sue sees this as just an example of people looking for a more upmarket offering, while still enjoying the laid back feeling of a pub environment. She says: "There's definitely a growing trend of people looking for more a casual environment. People are looking for somewhere to have a casual drink and some food and stay somewhere for the weekend. There's a huge gap in the market for pubs that want to take advantage."
Meanwhile at the Punch Taverns-owned Blackburne Arms in Liverpool the place has been transformed into a gastropub with a boutique-style hotel attached. The seven rooms all have different themes including Italian Baroque, French country and "Imagine" based on the video to the John Lennon song. Lessee Ivan Jenkins said the idea had taken four years to come to fruition for him and his wife Samantha. "It's the whole concept for us," explains Ivan. "We like to think we offer a more personal service than hotels. We allow people to actually check-in in the pub."
Obviously one issue that people may have staying in a pub is noise. But at the Blackburne Arms they have addressed this issue by sound proofing the rooms.
Taking time
Noise is not a huge issue at the more rural surroundings of the George and Dragon in Rowde, Devizes, Wiltshire. Here joint-owners Christopher Day, Phil and Michelle Hale have built three luxury bedrooms to cater for passing tourists. But they have wisely taken their time to develop their offer. They bought the pub in February 2004 and after spending around £50,000 on renovations opened the rooms to the public last month. However, as Michelle explains, developing the rooms slowly has been the right approach. "Ever since we bought the pub the space has been there for accommodation, but we wanted to do it properly. There was a lot of planning involved and discussing issue with the council, because it is a listed building," she says.
So far they are relying on word-of-mouth, but being near Stonehenge realise they will have little problem attracting business.
So for licensees thinking of getting in on the action and upping their offer - what advice from those that have already taken the plunge?
Sue at the George stresses the importance of getting it right first time. "You have to do it well otherwise it's not worth bothering," she says. "Design is very important and if you're not great at it, it's important to get somebody in. It's also important not to scrimp on the luxury factor and shout about what you're doing."
And Michelle echoes this. "You've got to get it right from the off - don't do it half-heartedly. If you want a five star offering it's important you don't open before your rooms are up to scratch."