The much-criticised area manager is a vital part of the formula for successful pubs, but does he feel empowered or emasculated?
As the industry continues to fight on an ever increasing number of fronts and the marketplace gets squeezed
like never before, the relationship between the pub and the owning company is becoming ever more important.
In my last piece I talked about the role of pubs in society and the vital importance of licensees in the success or failure of the pub. I stand by that, the licensee is, and will always remain, the key to success.
The other role crucial in this jigsaw is that of the area manager, business development manager or whatever new fad for their title is in fashion. They are a much-maligned breed, whether by licensees, who criticise them for their lack of knowledge, involvement or ability, or by head-office teams who can never contact them, never get them to do the vital piece of work that always needs doing now.
Today they have never been more important, they are the link between the licensee — be he managed or leased — and the support networks available from the pub companies and regional brewers. Good licensees accept the value a good area manager can add, as do companies, and yet still there is an issue. So are they empowered to add value and make decisions or have they become emasculated, unable to deliver?
From years in the business, I know that the vast majority of area managers are passionate about their job and their pubs and unanimous in recognising the crucial role of the licensee. They view their own role as one of support and motivation, adding value through good business advice; they value continuity and commitment in the relationship. They are disappointed by the neglect of the sector and frustrated by their lack of power to get things done for their licensees. They are wary of the companies' over-reaction to — and sometimes insensitive imposition of — the "latest" idea and are keen to see attitudes change. They dread the latest government legislation leading to the inevitable new checklist that they must fill out.
They need more flexibility to take local action and respond to local conditions, and they advocate the "liberation" of pubs by incentivising and giving more autonomy to licensees. Above all, they crave time to actually be able to do their job. They feel emasculated.
Look at what they have to achieve — selection, appointment, training, motivating, monitoring, health and safety, environmental health and legal requirements; ensuring prem-ises are maintained to company standards; monitoring the performance of outlets and setting and achieving profit targets; making investment decisions; promoting company products; broadening awareness of markets; and being at the beck and call of both host and head office 24-7. Being a jack of all trades, master of none leads to an approach that only scratches the surface.
So what can be done about this? How to recognise the vital role they play? Maybe it's time to be radical. There has long been a discussion, particularly in the leased/tenanted sector, over reviewing the number of pubs per area manager. Over the years the average has risen and fallen, but never by more than 10 or 12 around a base of 50.
The model as it exists today is much as it has always been, with the area manager as key contact, but much of the support and decision making based at head office. There is a view that this half-way house can maintain the status quo, but never really grow the business.
So what if you cut back on central support teams and reinvest that money — and perhaps more — into area managers, cut the number of pubs to say 30 or even 25 and really give the area manager the opportunity to spend quality time with his licensees? If, in addition, we truly empowered him to make decisions without permanent recourse to his line manager and "the company", suddenly you have an effective force for change. This obviously comes at a price, but is it worth the risk?
I hear the cry from licensees: don't waste your money on area managers just reduce the rent. Well, that is a short-term approach. I have had the privilege to work with some fantastic area managers over the years and they really do add value. The future lies with those who want to develop their business and who want real support to do that, and this can and should be delivered by the area manager. So let's give him the authority and ability to deliver and, if 30 pubs per area manager is a step too far, then at least giving him that authority and power would be a step in the right direction.