"Only a glacier down the Taff could make this summer worse than the last one for pubs."
So said Brains retail director Philip Lay in his opening address at the first of the BII Better Business Roadshows, held in association with The Publican He succinctly summed up what has been a fairly bleak 12 months for many pubs.
This launch event in Cardiff could not have come at a better time for licensees, who are facing, as Philip suggested, not only the knock-on effects of a terrible summer, but also the impact of the smoking ban, competition with cheap supermarket deals on alcohol, the credit crunch and continued cost of red tape within their businesses.
In short, this is crunch time for a lot of pubs. But speakers at the first roadshow were confident that, in most cases, just a few tweaks might be all that is needed to turn a failing pub around.
Here is a taste of what they had to say:
Trevor Brown, the BII Business Doctor
Trevor looked at what he calls "Tweakernomics" - that is the small changes that any licensee can make to their business that can have a big impact on the bottom line.
"It is rarely about wholesale change," he told the roadshow. "The difference between a successful business and a failing one is tweaking. Success is based on getting a myriad of small things right - making what you have today just a tiny bit better."
He advised licensees to see the current financial downturn as a chance to give their business a health check and leave it leaner and fitter for the future.
His suggestions included:
- Ask for a meeting with your BDM and be open and honest with them - they are human after all
- Review expenditure - you need to know where you are before you start tweaking
- Use price comparison sites to check you are getting the best rate on loans and bank accounts - and if not then threaten to move
- Check your insurance policy is the best one for you - don't pay more than you have to
- Enter your pub into business competitions - the entry process is a great chance to look at your business as an outsider and the judges give free consultancy advice
- Go and visit your competitors' sites - the best ideas are usually someone else's
- Ignore technology at your peril - free wi-fi, pub PCs, or online take-away services can build business
- Why open late if you can open early? Breakfast is simple to produce, easy to manage and ever growing in popularity.
"Is a recession a problem? No! It is probably the best opportunity you will have this year," added Trevor.
James Smith, Matthew Clark
Wine sales are booming in the on-trade, but pubs can so easily get it wrong. James outlined the key to offering a simple wine list that is easy for staff and customers to understand but still makes you money.
He advised the three key elements were getting the range right, using the right point-of-sale material, and training staff.
"It sounds obvious," he added. "But I see plenty of outlets with not enough range and plenty with too much. A single clear description list is important and we want staff to be trained to sell up."
He advised licensees to consider:
- Stocking a rosé wine - this is a growing category and sells well year round
- Serving wine by the glass in 175ml and 250ml glasses
- Stock champagne - another growing category, and do it by the glass if your throughput allows
- Ditching 'house' wines - it offers a cheap easy choice for consumers and does not show you are serious about wine. If someone asks for house give them a recommendation
- Splitting your list into types and styles and try putting the most expensive at the top not the bottom - customers rarely reach the bottom of the list unless they are connoisseurs
- Don't get hung up on GP - money in the till is money in the till
- Using ice-buckets, blackboards and bottles behind the bar on display to advertise your list
- Training staff and offer sampling for new wines to get them interested and help them have the confidence to up-sell.
Ben Bartlett, award-winning chef
Ben offered an insight into how a pub menu can be used to boost profits most effectively.
He urged licensees to keep their menus simple, and concentrate on recruiting the right staff. "Don't let your menu write cheques your kitchen can't cash," he added. "And remember skills can be trained - look for staff with the right personalities."
He also urged publicans to make sure they advertise their food offer correctly. "Your menu is your number one selling tool," said Ben. "It has to be on every table, not under the counter!"
Key pointers included:
- Know your customer - go to www.upmystreet.com for demographics for your area
- Put your most profitable items at the top of the menu and make it descriptive
- Seasonality - change the menu at least twice a year
- Leave specials on for no longer than 48 hours
- Be aware of allergies - for more information the Food Standards Agency has packs for pubs
- Eat in your competitors' outlets and make sure you do at least one thing better than them
- Keep up with trends in the market
- Ask for feedback from guests and act on it
- Work out your GP on each dish and then train your chef to calculate it themselves
- Train staff to be the first and last to speak to a customer when they visit your pub.
"The three most important things in a good food pub are quality, having a USP and service," said Ben.
BII on the road
More BII Better Business Roadshows take place at the following times and places:
- April 9 - Wembley Stadium
- April 15 - Plymouth Pavilions
- May 28 - Nottingham Forest Football Club
- June 4 - Denbies Vineyard, Dorking, Surrey
- June 10 - National Motorcycle Museum, Birmingham
Look out for more from the BII Better Business Roadshows in future issues of The Publican or on thepublican.com. For more details contact Belinda Norris on 01276 417825 or visit www.bii.org/events