It targets families with an extensive food menu, a well-thought-out soft-drinks range and appropriate seating. It is an excellent example of a pub where the owners spotted how the market was changing and adapted their offering.
It’s crucial for all pub managers constantly to review their offering and consider opportunities. Only 10 years ago the business benefits of having a quality food offer as standard wasn’t top of mind within the industry but now food sales make up 50% of all sales in pubs. Numbers of food-led pubs are in growth and signs are that this trend will continue.
However, this is not to say that all pubs should suddenly put on a great food menu and the profits will roll in. Pubs need to think about the broader offering when designing menus.
For example, with increased food sales come increased soft-drinks sales, so it is vital to get the softs range right. Soft drinks have a higher incidence of sales with food than any other beverage category — at 44.6% — and soft-drink sales in pubs now account for a quarter of all drinks served, demonstrating how important they are and the need to get them on the menu. Coca-Cola Enterprises (CCE) estimates that, on average, soft drinks account for almost 10% of a pub’s overall sales and 15% of profit.
Pubs need to recognise they are in competition with more than just each other. Everyone in the industry must get into a ‘retailer’ mindset and market themselves well. Staff must also be trained to sell, not just serve.
Pubs can differentiate themselves from their competitors by making the most of the space they have to offer, their location and opening times. Always think of the next opportunity.
Can you accommodate mums meeting for coffee in the mornings? What landmark consumer events can you tap into? Licensees shouldn’t forget the other opportunities ahead of the Olympics.
This June, Britain will celebrate the Queen’s Diamond Jubilee, followed closely by the Euro 2012 football tournament, so think about what you can do around these events.
We’re working hard with customers to make the most of this year’s massive summer of sport and celebration, to make it a stand-out year for the British pub. Don’t miss the opportunity. Now is the time to go and get it.
- Colm O’Dwyer, director of sales and customer development for the out of home channel at Coca-Cola Enterprises