Project Update 7: All change

The pub had a fabulous relaunch in May, and trade was picking up at the venue, the rural representative in our Sell More, Save More project. But now licensees Anne and Alastair Dowson-Park have decided to sell the freehouse to pursue other business interests - which just goes to stress the live nature of the project.

While the category champions are continuing to offer them advice, the couple's priorities are now changing as they look for a buyer.The licensees have learnt a great deal from the pub, which they took over in the summer of 2006.

"We are now looking to take forward one or two other business ideas," explains Anne. "Our family has put an awful lot into this pub, and now we're looking at taking a break."

The hugely successful relaunch night, which saw the pub raise more than £900 for a local charity and featured in local newspapers, had helped put the pub on the map before their change of heart.

Anne and Alastair will continue to put the advice of the champions into practice in the months before they move on.

Sale strategy​

Of course, it is a fact of life that any publican will eventually come to sell their business.

Our business development champion, Carl May of Catered 4, comments that he has always recommended that even when licensees are buying a pub, an "exit strategy" should be thought about in their business plan.

"Buying your pub is down to two main decisions; whether you want to have somewhere to live and work and spend the rest of your working days - or whether you want a hectic three to five years before selling up to make your money," he says. "These decisions will greatly affect your approach to your business plan."

Carl advises Anne and Alastair and other licensees selling their business to take some simple steps to make the process as smooth as possible.

"Along with the obvious modest refurbishment and keeping all areas as neat and tidy as possible, your accounts are crucial," he says.

"Many estate agents will advise potential sellers to reconsider their decision to sell until they have got their accounts in a healthy condition. This, however, can be a chicken and egg situation: the reason to sell can be because of poor sales and poor sales bring down the potential selling price."

Anyone putting their pub on the market should keep all spending to a minimum and be even more stringent with their wage bill.

"But it is an ideal time for quick and cost-effective ideas to drive turnover, such as themed evenings, food tied to drinks promotions and a loyalty scheme - in short, anything that could increase footfall with the minimum of investment," says Carl

"At the Hack & Spade I have recommended that Anne and Alistair push really hard to promote the pub to the surrounding areas, and make a real, concerted effort to spread the word through flyers produced on their own computer.

"It can be an uphill struggle, especially when your motivation and drive are slipping away, but put on your motivational head and keep focused, and you can greatly affect the selling price of your business."

FOOD

Any food-led pub should be having a close look at their menu at this time of the year, and the Hack & Spade is no different.

With September just around the corner, Brakes development chef Mark Irish went back to the pub recently to help develop the menu implemented earlier this year. 

He has advised Anne and Alastair to consider a more relevant autumn/winter menu including lots of warming dishes such as sausage and mash and hot puddings, ahead of a planned launch in October. 

"We'll be changing the menu slightly," says Anne. "We've discussed a few things and we'll be working some more on the menu next month."

BEER MONITORING

Beer sales have been consistent at the Hack & Spade since the relaunch - but the Brulines data suggests sales are being spread across too many brands.

Brulines brand quality monitoring account manager Peter Cockerill advises Anne and Alastair to rationalise their range, to avoid any wastage and to ensure optimum quality in the beer they sell (see graph below).

He also suggests the licensees look again at uprating their bottled range, particularly in the light of the new back-bar display that Alastair put together earlier in the year.

Peter adds that the latest data from the project shows beer dispense temperatures have been consistently achieved at the pub.

"It is well known that research shows consumers move their custom if quality is poor. Therefore the value of this information is immense," he says.

"Being able to pinpoint which brands are at the wrong temperature allows the pubs to effectively target technical service support where necessary and make stocking decisions based upon specific information."

SNACKS

The total crisps, nuts and snacks category is booming and nut sales growth alone is up 16 per cent in the past three years. And yet snacks are regularly the last consideration in any licensed outlet. Perhaps it's fitting, therefore, that this is the last point on the agenda for the Sell More, Save More campaign.

Jonathan Barr, marketing manager for our snacks champion, Sun Valley, says it is the right time for the Hack & Spade and other pubs to focus on what should be a core profit-driving sector, especially in light of the smoking ban.

"At Sun Valley we saw a 15 to 20 per cent spike in snack sales following the introduction of the ban in Scotland, and are predicting similar figures for the first quarter following the July ban," he says.

Snacks can be a key factor in ensuring continued loyalty from an existing customer base in pubs following the smoking ban."

At the Hack & Spade - and other rural pubs where the back-bar area is limited in size - merchandising snacks in the right way is paramount.

"The key here is to totally exploit this, as the chance of upselling is often greater on passing trade rather than with regulars - even if your pub is a destination pub for food," says Jonathan. "Consumers buy with their eyes, so the priority for pubs is to address their range in terms of visibility," he says.

"Display snacks at the front of the bar in a prominent and inviting position, rather than hidden away beneath the bar or unceremoniously dumped in a bread basket at the back of the bar under a dripping optic."

Sun Valley offers the following five tips to the Hack & Spade and other rural pubs:

1. Merchandise - display your wares prominently; it will speed up decision-making.

2. Upsell - it's only a question: "Would you like some nuts with your drinks?"

3. Point of difference - be brave and opt for new and innovative brands and products.

4. Knowledge - know your customer base. Do they want choice and variety?

5. Range - focus on nuts and crisps and exploit consumer trends BUT don't be afraid to try something new.