Creative solutions offered at Publican event

Licensees need to create an exceptional experience to justify rising on-trade prices and to win more customers, according to industry leaders.

People from all sides of the trade listened to business advice at The Publican's Driving Footfall conference held in London in May.

The pub industry may have lost 2.1 million customers over the past year but Guinness marketing director John Roscoe said this should be seen as an opportunity. "Imagine finding out today that the combined population of Birmingham, Glasgow, Cardiff (twice) and Macclesfield has just opened up as new markets," he said.

But to make the most of these opportunities licensees need to adapt.

Do or die​

Francis Patton, non-executive director of Cains Brewery and former customer services director at Punch Taverns, started the day with a 'Do or Die' speech, warning that: "If you don't accept change you might as well get out."

He added that pubs should benefit from the difficult economic climate.

"People want havens when times are tough - a sense of community will re-emerge.

"It's us against the world, we're going to sort this out - that's what 'local' is all about," he said.

But Patton also chastised the on-trade for being too introverted. "All we do is chill, super chill or freeze the same products so you can't taste what you're drinking. We're too introverted, we don't look to others," he said.

Off trade lessons ​

Continuing that theme, Adrian McKeon, Cobra Beer chief executive, described the on-trade as more "risk-averse" than the off-trade and he urged publicans to do more to identify new trends.

"If you have less people in the pub, the experience needs to be better," he said. "The brand needs to make the quality products but the pub needs to enhance the experience."

He added pubs should learn from other high street retailers such as Starbucks.

"This fear about the £4 pint, I just don't get," he said. "You can buy two-for-one jars of Nescafé cheaply in the supermarket but pay more in Starbucks for froth and very little coffee. I think the experience justifies the premium."

To back his case, McKeon pointed to the recent success of Peroni lager - suggesting that in the current climate consumers will go for quality over quantity.

Maximising profitability ​

Meanwhile, Geronimo Inns commercial director Ed Turner, said the key to success in economic insecurity was to have a good range of products.

The Phoenix, tucked away behind London's Victoria Station, has increased its weekly turnover from £3,500 to £27,000 - after a spend of £120,000. There is more to the rise of the Phoenix, though, than new décor, as Turner explained.

"What's the point of having 15 beers if they are all roughly the same price? We got the range and pricing right which means we attract a variety of customers who can trade up to something premium - or down when they haven't got the cash.

"It's also about attention to detail, which is something that gets missed by larger companies. When there is less disposable income about, you have got to make sure your standards are impeccable, because people will pick and choose where they go.

"I know there is pressure to cut corners at the moment but in our experience this is the time pubs should be investing in standards, not cutting back."

First impressions count​

A warm welcome from friendly staff is no longer enough, said Martin Dinkele, senior partner at Cardinal Research. "Too many pubs in the UK look uninviting from the outside. Too many are tatty and set the wrong tone for the industry," he said.

Dinkele suggested publicans should consider what their signs say about their menu. 'Succulent steak' printed in bubbly colourful writing actually suggests microwaved food while

local ingredients listed without

hyperbole invite a more discerning consumer, he said.

"Publicans and pub companies should think long and hard about exteriors, maybe having as many tick sheets for the outside as they have for their toilets," he added.

Food​

Last year, pubs were told that food could be a cure-all for the pressures that came with the smoking ban. But Alex Salussolia, managing director of Glendola Leisure, said there is no single solution for every pub.

"Don't always look for the gastropub solution," he said. "There is no point developing a very fancy menu if you're a tourist pub and they want fish and chips." At its Des Vins wine bar in London's King's Cross station Glendola had a small space but big competition from a number of premium take-away food outlets. It opted to cut staffing and food preparation costs by securing premium deli food which needed just one person in the kitchen to plate up.

Salussolia said: "If it's not right, it's not right - we have tried to be too clever in the past but have learnt to first look at the space and see what's right. Don't try and shoehorn one bar into another."

Events​

With an increasingly enhanced experience in the home due to high-definition TV, new computer consoles and the pull of the internet, John Roscoe, Guinness GB marketing director, added that publicans need to create "appointment-to-go-out events".

He said events such as St Patrick's Day, St George's Day and the start of the barbecue season are all pre-existing dates that pubs can make more of.

Martin Dinkele agreed, adding that Jack Daniel's birthday and Foster's Australia Day both increase footfall.

And Mike Clist, operations director of Fuller's tenanted division, added that customers could be rewarded with loyalty cards. "We will often put our hands in our pockets and buy our customers a drink," he said. "But for goodness sake, have fun with your customers. Don't guess what they want - ask them."