Speaking at the Pub Retail Summit last week, Martin said this causes both an unwillingness to adapt their businesses and failure to support positive pub industry campaigns.
He gave the example of his company’s early adoption of real ale, for which there was “so much demand” but “the existing players either couldn’t see it or didn’t want to do much about it”.
Similarly, all-day food was “a simple idea” for Wetherspoon’s that “wasn’t exploited by the big companies”, while its introduction of cappuccinos has helped it compete with coffee shops.
Martin also highlighted that JD Wetherspoon was among the first companies to introduce no-smoking areas in sites and later smoke-free pubs.
“Non-smoking pubs did not exist, so there was a gap there and a reluctance to get involved in a controversial area.”
Martin said the “reluctance to take on something new” is a “characteristic of the industry”.
“The gaps are still there now in many ways. You wonder why these gaps exist in our industry.”
Denial
He pointed out that the big pub companies from 20 years ago, such as Allied Breweries and Grand Metropolitan, no longer exist and 10,000 pubs have closed in the past decade.
Martin attributed it to “a level of denial” and said the industry likes to blame other factors, such as changing economic conditions, “nicer” homes and even the weather.
He also criticised pubcos’ “remote boards”.
“Often the people who get to run pub companies at a higher level don’t actually like pubs,” he said. “On a Saturday night they prefer to go to a restaurant. They aren’t dyed-in-the-wool pubgoers, which is a problem.”
Delusion
Martin said parts of the industry are also out of touch on political issues. For example, the decision to shift control of licensing from magistrates to councils was opposed by 95% of publicans, but supported by major pubcos.
“There’s a level of self-confidence or delusion, I think, among those at the top, that they know better. Does that make sense?”
He criticised the “negativity” around the campaign to cut VAT headed by “Jacques the lad” [Jacques Borel].
Martin said “mistakes have been made” in the campaign and “that’s natural”, but urged the industry to “get real” on the lack of tax parity with supermarkets and “make the turn” to support the campaign.