Pubs diversify as recession bites
The vast majority of licensees have tried new ideas to boost business — particularly around food — as the recession bites, a new survey shows.
A huge 94% have done so over the past 12 months, and the remaining 6% plan to do so shortly, according to a survey of BII members.
Food was a major area were licensees have expanded their offering. Adding meal deals was the most popular new service — 70% of respondents did so — while providing a takeaway service (34%) and breakfast (12%) were also popular.
Other popular ideas were: adding wi-fi access (50%), activity nights such as quizzes and book clubs (38%), offering room hire (32%), hosting weddings (28%) and hosting games events such as Wii (24%).
Other replies included adding waiter service, live music and camping facilities — and even providing a secure wetsuit and surfboard drying area.
Meal deals were seen as the most profitable by 38% of licensees. Eighteen per cent said theme nights were the most profitable, while 12% went for hosting weddings.
The survey also shows most licensees invested relatively modest amounts on their new ideas, with 52% paying under £1,000.
Nearly one third (32%) spent between £1,001 and £5,000. Just 2% spent over £25,000.
More than half — 52% — expect a return on investment within six months, while 30% expect it to be between six months and one year. Four per cent believe it will take more than five years.
The findings have been released to accompany a new report Licensed Hospitality 2009 — A Labour Market Review of the Pubs, Bars and Nightclubs Industry report by People 1st, produced in partnership with the BII.
The report says the trade does not suffer from recruitment problems in general. However, one in five employers are struggling to recruit chefs with the required experience and skills. In total 6,200 more chefs were working in pubs, bars and nightclubs in 2007/2008 compared to 2004/2005 — a rise of 33%.
Also one third reported difficulties recruiting bar managers with the right experience.
However, training opportunities for staff are increasing. Nearly three quarters (71%) of venues now arrange or provide training for staff — up 7% on 2005.
BII chief executive Neil Robertson said: "As the professional body for the licensed retail sector, we see many examples of excellence and success through diversification within our membership.
"Yes, times are tough for some, but licensees with entrepreneurial flair who use their initiative and take a few calculated risks can reap the rewards. This industry is unique for budding entrepreneurs in the current climate; there is enormous scope for their talents.
"Let's also not forget that this is a team effort. The best results are more often than not achieved when all staff members are consulted and involved in the growth and development of a business.
"A great licensee is one who really values his or her staff and actively encourages their training and career development, as well as constantly reviewing their own skills set."
