Wind of change
The Windmill looks and feels like a wine bar/coffee shop and yet it is still being run by Ron and Sonia Colbron like a boozer. Ali Carter reports
Not much to go on. As I approach the Windmill I am struck by the smart, contemporary exterior with modern logo and yet two things stand out — a blackboard headed "What's on" left empty (clearly nothing is on at the Windmill) and a row of empty hanging-basket hooks. Ron tells me he can't afford the £18 a week he has been quoted from the horticultural company — this isn't Kew Gardens, whatever happened to DIY?
Maybe Ron and Sonia just need to get the detail right to complete their offer? The Windmill is an Admiral Taverns 28-year lease. Ron and Sonia took it because they spotted an opportunity — there is a massive shopping development planned right on their doorstep, with one of the big supermarkets and a pedestrianised walkway right outside the front door (they have already submitted their request for pavement seating to the council).
The problem is they have gone ahead and had a much-needed refurbishment — five years ago the pub was used by local gypsies who brought their ponies into the bar. This has added an extra £900 a month onto their rent, but with the development opposite being delayed for another 18 months they are struggling to increase their trade to match the higher rent and to pay the bills.
The refurbishment alone has generated no extra footfall and weekly turnover stays hovering around the £4,000 mark.
No food
Dartford is not a hugely wealthy place — the demographic report shows incomes are quite low. However, it does highlight pubs as relatively popular places for eating out. The problem here is Ron and Sonia don't serve food.
They have a domestic kitchen which has been given the EHO seal of approval for a bar snack-style menu and yet it is still unused, in fact they have been putting it off because the very thought of doing it makes them quake; introducing food will make them step well and truly outside their comfort zone as neither has any experience. I explain that if they keep it simple and grow the food trade gradually they have nothing to fear.
With a background as a CIU club manager Ron is brilliant at organising darts, pool, karaoke, quizzes and a bit of live music, and the couple are getting so many things right.
Ron says: "The weekends take care of themselves — it's the rest of the week that's the problem."
He is not alone, but needs to change his focus from thinking beer, beer and more beer!
Team players
Ron and Sonia have been busy trying to fill the pub during the week. They have an admirable amount of teams: two darts teams on Mondays, two pool teams on Tuesdays, alternate pool and darts on Wednesdays, a quiz every fourth Thursday and live music/karaoke on a Friday. They have a brilliant TV system to relay these in-house darts or pool matches around the L-shaped bar. But the pub remains largely empty all day.
The problem with the Windmill is two-fold — firstly, with such a male customer bias, not surprisingly the biggest selling product is draught beer and lager on which Ron reckons he makes just 43% GP. Put into real terms this means that by the time he has taken account of VAT, the cost of the beer, paid his rent (his combined rent and rates are approximately 26% of turnover), paid his staff (about 5% of turnover as Sonia and Ron do most of the shifts themselves), and paid the utility bills there is very little left in terms of net profit.
In fact, given the high percentage of costs and rent/rates they would be lucky to make £8,000 net profit from their beer sales of 150 barrels in a year — not much for all those hours.
Product mix
With such a low margin on beer and lager, I explain to Ron and Sonia that they need to improve their product mix and start selling higher-margin products. Instead of thinking of the Windmill as a pub I ask them to think of themselves as a shop and consider what other products they could sell.
If you look at retail success stories such as Tesco, you realise it is not just a chain selling food. It also sells finance, insurance, white goods, leisure goods, clothes and more.
They are certainly missing a trick by not selling coffee. With high retail margins and the opportunity for some selling on of cakes and pastries, this could be a way to encourage women into the Windmill. The décor is certainly female friendly and lends itself to this option.
Their soft drinks offer is quite sparse too and is not displayed prominently enough (currently all on the bottom row with the glasses taking pride of place at eye level).
Re-merchandising their bar is a must — they need to promote higher-margin products. Most women don't know what they want to drink when they come to the bar — a well merchandised display can seduce them into purchasing more than they intended or to trade up to a larger size or higher price item.
Ron and Sonia currently have a display of china dragons at "pole position" on the back bar, these need to be relocated and replaced with block displays of wines and spirits.
Target take
I ask Ron and Sonia what they need to improve their trade so that they can hold their heads above water. Ron says £1,000 a week. This is totally achievable — they must focus on their dead times, target a specific group of customers and deliver an offer that will appeal to them.
Ron and Sonia look exhausted by the time I get up to leave. They are already working long hours and will need to dig deep for a last push. Some time management to focus on business priorities will pay dividends.
Livening up those dead times
Breakfasts — Ron objects to this as there are two cafés close by that open at 7am and have parking. I suggest, however, that he doesn't rule it out. He can make his breakfasts much better and with the option of a bucks fizz or a bloody Mary.
Coffee and cake — Mid morning is really dead and yet there are plenty of shoppers (particularly women) buzzing around just a couple of hundred yards away.
Lunch — Sonia and Ron really do need to bite the bullet and get on with doing food. It is probably the single biggest way they can increase turnover. I suggest they steer clear of a "bog standard pub grub" style menu, but focus on doing a few things really well. A signature dish is a must, even if it is just a "special toastie" or a "stack of home-made onion rings". They need to stand out from the rest, particularly as they are limited to a snack offer only. They could do worse than to study the Subway business model for inspiration.
Shoppers — Getting the message to Dartford High Street could take some imaginative marketing as the high street is a couple of hundred yards away. I suggest they take their wares to the people of Dartford — "Ramsay-style" — by taking nibbles of their food for people to try. I also wouldn't rule out a sandwich board person to get the message across.
Pre-school pick up — Another great opportunity to sell coffee or even a glass of wine. The Windmill is spacious enough for buggies and children are welcome.
Early Doors — The road outside carries people home from work. Getting them to stop needs some good marketing and a grazing offer such as tapas. Perfect for the "snack" restriction imposed by EHO.
Poker — Ron says it's not really something they want to do. I'm surprised as his regulars are always popping round the corner to the betting shop and clearly enjoy a flutter. I suggest they arrange a taster session to see what happens.
Take Away Food — Chips or sandwich to go. People buy sandwiches from filling stations, newsagents and even chemists (Boots), why not from the pub?
Events — Any evenings that need filling because there is no darts or pool could feature something to excite customers, whether it's a themed night, a celebration or maybe an open-mic talent show night. Never leave the "What's on" board empty.
SMART ways to hit
