Better management can save three quarters of failing pubs

A hospitality 'mentor' has claimed that three quarters of failing UK pubs can be saved by following a few basic rules.

With trade bodies and licensees alike highlighting the closure rate of pubs in the UK, consultant David Hunter said the greatest challenge facing most hospitality businesses was a lack of commercial understanding in the management team.

"People open a restaurant because they can cook or run a pub because they enjoy being a host. These are vital skills but they are not enough without the essential business acumen that keeps the management elements flowing," he said.

Hunter said that simple accounting procedures can make all the difference.

"Too often, businesses don't even have monthly profit and loss accounts, as I would recommend - most are disappointingly only doing this annually. You just can't pick up problems in time from an annual P&L. Profitability is key, and is often under-analysed, meaning that the operator doesn't know where he needs to improve things."

Poor stock control was also a problem, Hunter warned, including both over and under-ordering - both of which, he said, can cause problems with customer satisfaction.

"And finally there is poor staff management, whether it is the wrong staffing levels, or the wrong people, it can be a disaster for any establishment," he added.

Following a few key rules can make all the difference, Hunter said, and 75 per cent of pubs that are struggling could be saved through better management.