THE PANEL members for our Pub Food Forum all brought different perspectives to a discussion of the market in the year which saw the rest of the UK come into line with Scotland and implement the smoking ban.
Of course, it wasn't just the exile of smokers which impacted on the pub market during 2007. The bad summer, falling consumer confidence in some sectors, and rising interest in issues such as food miles and provenance in other sectors, all played a part.
On the day of the Pub Food Awards in November the panel came together for a discussion at The Publican's office in London, chaired by Pub Food editor John Porter, and sponsored by Heinz Foodservice. It covered key challenges facing pub operators as they seek to drive food sales.
Attendees
- Tim Bird, consultant, former operations director, Eldridge Pope, The Pub Food Awards Pub Company of the Year 2006
- Chris Cannon, head of marketing, Heinz Foodservice
- Paul Farr, head of food, Sprit Group
- John Porter, Pub Food editor, The Publican
- Jason Radbourne, menu development manager, Spirit Group
- Paul Robbins, catering development manager, McMullen & Sons
- Anne Sandiford, head of catering operations, Barracuda Group
- Martyn Smith, head of catering development, Barracuda Group
- Dean Snee, head of food, Orchid Group, HQ Food Champion, Pub Food Awards 2007
Smoking
Launching the discussion with some statistics from The Publican Food Report 2007, John Porter revealed that most pubs reported food sales were stable following the smoking ban.
While destination food outlets are doing well, Farr said that in the community pub market in particular there is evidence that "people are now staying in because they traditionally went to the pub to smoke". The lunchtime market is also vulnerable, with Bird suggesting that office workers who sought refuge in the pub from smoke-free workplaces no longer have a reason to leave their desk.
While the smokers have left the pub, there is also the issue that in many cases the smoke is very much there, on the walls and ceilings. "Whether pubs are refurbished or not, in many cases they still have smoky atmospheres," said Radbourne. "They still have that underlying smell of cigarettes that the pub has always had."
Orchid Group was working its way through the estate of pubs it acquired from Spirit Group in 2006 with extensive refurbs, Snee said: "Where we renovate a pub, we have seen an increase in food sales, because if it looks good, it feels good.
"Our investments went smoke-free straight away so they never had that mustiness about them. The growth at these pubs is through a new demographic coming through the door, attracted by a better food offer."Traditional pub-goers are adapting their habits in other ways to cope with the ban, such as reviving circuit drinking. Bird said: "One trend these days is for people to walk from bar to bar and smoke a cigarette on the way."
Sandiford said this habit could benefit a group such as Barracuda. "The great thing about it is you can have two of your own brands a short walk away from one another and customers will now visit both on their circuit," she commented.
Service standards
The quality of service offered by UK pubs comesto the fore as food sales increase and customer expectations change. So how important is service as a driver of sales?
Sandiford said: "Service standards have to be much better than two or three years ago. When you went to the pub to have a cigarette, were you really noticing the service standards?"
Bird said that British service standards were still a long way short of those in the US and Europe, and also crucially short of the standards many retailers now offer. The 'ladies-who-shop' market will expect the same standards from a pub they experience from successful fashion retailers.
Robbins said: "We are trying to instil service standards - the basics such as 'hellos' and 'goodbyes' - but the problem is that working in a pub is traditionally seen as a stopgap job.
"Some staff are incredibly motivated and take it in their stride, but some find the service culture hard to take on, and feel you are badgering them. They have to understand that sometimes you are aiming to deliver something which might not feel totally right, but you have to try it."
Snee recalled his days at Pitcher & Piano, where the strong service culture meant that, "with tips, waitresses would often earn more than the managers".
Smith said that training is a key factor: "Simply by taking someone off the sales floor and sending them on a course can help change the perception of pub jobs."
One issue is that while a small, entrepreneurial business can deliver good service naturally, as a company grows the formulaic 'have a nice day' approach inevitably takes hold.
Bird said it is possible to "break the big company rules" by enthusing and motivating staff.
"It's about training - because you get far more feedback if you ask specific questions," he said.
Sandiford agreed. "We have people in our pubs who are really interested in making the difference," she said. "We have 212 pubs, but still have individuals who have an entrepreneurial spirit about them, as if it was their own business. It's about empowerment."
Smith added: "If you give managers the parameters, and then let them run the business, they will use their initiative and instigate good ideas."
It is also important to tailor service to the occasion - something more challenging for pubs than for restaurants or coffee bars, which have a far narrower range of customer 'occasions'.
Farr said: "People might come in one day for a drink, they don't want food and don't want the intimidation of a staff member in their face. But on Saturday, they might want that attention. "It's about clarifying the out-and-out food occasions. To get the right balance you have to have the right approach."
Products
Expanding and varying the range of food while ensuring that core customers still get what they expect is an increasing challenge as pubs work to expand sales.
Snee said Orchid's experience is that the right offer can help pubs take on the likes of Costa Coffee and Pret-a-Manger. "We went to £3,000 a week in takings from the new delis we've introduced. We do coffees and fresh sandwiches handmade in front of customers at the bar. Office girls now come in at lunchtime for a panini."
Orchid has also successfully installed coffee machines in 170 pubs over the past year. "We have trained all our core staff in coffee preparation. The machines are front facing so they are the first thing people see when they walk through the door," said Snee.
However, Farr sounded a warning note about expanding into too many new areas too quickly. He said: "One problem is that pubs are starting to dilute existing customers' spend. For example, at our Two For One pubs, regulars won't come if you start changing too much. We are pubs after all, and we're not trying to change into something else."
Bird stressed the importance of investing in the core offer as well as new areas. "Scampi is still a pub favourite, and it hasn't moved on a jot. It sells because it is a pain to prepare at home. There are more than 100 variants of scampi out there, so why not invest in an improved product? The GP is still good and the customer will come back."
Food issues
A major question facing the pub trade is how far menus should reflect consumer interest in fresh, local produce. The delegates recognised that a focus on regional produce can work in some areas of the market, but with consumers feeling the pinch, value for money is still vital.
Radbourne said: "The media is playing a big part in people's expectations, and partly to do with the likes of Jamie Oliver."
Smith said: "We've got to be realistic. At the top end, there are peo