Sadly in the last 10 years beer and cider sales have dropped by 14 per cent in the on and off trade. At the same time, other alcohol sales have increased by 24 per cent. During this period the off-sales market in beer and cider has grown at the expense of the public house.
One might ask: "What is the future of the British pub?" I am pleased to say that public houses have diversified into food, while many other initiatives attract customers. Whilst I believe more outlets will close in certain areas, I do believe that there is still a future for the public house, but only where changes are made to meet the public's requirements.
What was acceptable last year will no longer be accepted next year unless you are in a catchment area that does not require changes as often (i.e. the young people's market). Business reviews must take place on a regular basis and action taken where required.
In June and July 2010 the World Cup will take place. With England's luck in the draw there is an opportunity not to be missed. But how many licensees will take advantage of the African Nations Cup earlier in 2010? Some of the teams playing will be in the World Cup as possible England opponents. Certain players, like Didier Drogba, can attract possible customers but only if when it is advertised will people visit your outlets.
Twelve months ago I went to discuss with a licensee on a Monday his proposed rent. He told me that the Saturday trade had been poor due to the X factor on the TV. He said that customers had stayed at home to watch the programme. If he had read the back route map for success, which I had drawn up with Rodger Vickers, he could have had it on the public house TV with something else to attract customers, like low cost food like pie and peas or sandwiches.
A few years ago whilst on holiday in Holland, staff bought round cocktail sticks with both cheese and onions, free of charge. I am quite sure even free cocktail sausages would create a talking point and encourage some extra customers... I still meet licensees who say they cannot provide even the basic food as they have no kitchen. Yet they provide for gamer teams. Others say there is no demand, yet down the road we have a caravan selling food for a profit. Where pubs sell food they need to review their menu on a regular basis and ensure the wording makes it attractive (i.e. crispy batter).
In the book there are many points in how to not only bring in to the pub new customers, but also how to retain them. These have been used by some members already to benefit their trade. There is also an article of self-assessment. To me this is a must. You start on the outside and go right through the business and it is important to do so with open eyes.
Another important area is staff training. Failure to train can result in prosecution or even being sued for some incident. It can also lead to customers failing to return through bad manners or poor service. Yet how many businesses even fail to do an induction session before any new staff start their employment.
I recently did a two hour session with a member's senior staff. They all said it had opened their eyes to weakness in the business which they could now resolve. Yes, the pub industry will survive if we regularly review the business.
We have recently seen national off-trade sales businesses folding. Would some of their outlets have survived if they had changed the style of their business to offer other goods for sale? Whatever your business, the customer must have a reason for calling. The old saying is failing to plan is planning to fail. A pub can offer something a supermarket cannot offer.
Tony Payne CBE is to retire as chief executive of the FLVA at the end of the year