MA300: Branded managed operators 'perform stronger in recession'

Speaking at the MA300 event in London, Stephen Oliver, former managing director of Marston’s Beer and Pub Company, said: “As money has got tighter during the recession and the post-recession years, consumers have become much choosier about where and how they are going to spend their discretionary pound.

“There’s less propensity to take risks which is why the big winners of recent years have been the branded managed house pub chains where controls and a consistency guarantee of standards are more likely.

“This is one of the reasons why tenancies and freetraders have found things so challenging.”

Pubs to offer consistency​

He also emphasised the need for pubs to offer customers a consistency as well as value for money to compete with the stay at home market.

Oliver said: “The biggest competitor for many of you is the home - the TV dinner, the takeaway and four-pack from Tescos.

"So why will they get in their car and drive across town and come to be served by your staff? Crucially, what is it within that product experience that has to be delivered par excellence to gain loyalty and repeat purchase? Don’t underestimate the importance of the consistency of the offer.”

Whole experience​

He added: “It’s not just about customer service anymore, but the whole experience of eating or drinking out. If consistency varies from visit-to-visit, pint-to-pint, it’s a sure-fire way to undermine your customer’s confidence. Ensure that your training, your systems, your controls ensure repeatability and high standards.”

“The same is true of the customer experience in pubs and in restaurants,” he explained. “As money has got tighter, during the recession and the post-recession years, consumers have become much choosier about where and how they are going to spend their discretionary pound. There’s less propensity to take risks which is why the big winners of recent years have been the branded managed house pub chains where controls and a consistency guarantee of standards are more likely.”

Oliver is now managing director of Trigpoint Coaching and Development Ltd and is non-executive director of Bateman’s Brewery.