Husband and wife lessees at the Prince of Wales in Moseley, Birmingham, Keith and Diane Marsden have transformed the pub since taking over in 2007.
Speaking to the Publican’s Morning Advertiser, Keith Marsden said: “For our first three years we had no business plan and we made no money, despite the pub always being busy.” A high volume of draft lager sales was not generating enough revenue for the pub, and it was in danger of going bust.
“The sad thing about this industry is you can’t build a business on beer, you just don’t make the margin,” he said. “You need to find a way to make a premium. It’s simple, if you run a pub these days you can’t be like Wetherspoon’s, you can’t be the cheapest operator.”
Firm business strategy
A change in strategy and offer means the wet-only pub now sells an extensive range of cask beers, about 40 single malt whiskeys and a large wine list. The Marsdens have also built a ‘Shed du Vin’ in its revamped beer garden, and now take £150,000 in wine sales per year. The pub is also home to a Cuban cigar hut and a tiki cocktail bar. The Marsdens also have a forensic approach to business planning and accounting.
The Marsdens were crowned Licensees of the Year at the BII Summer Event last week in London. The couple were runner-ups last year but have gone on to clinch the top spot after rigorous scrutiny including four interview panels where they were quizzed on finance, people and training, marketing and business development and general industry issues.
Differentiation
Marsden said he aimed to create a top-notch customer experience as a way to compete with other pubs’ cheaper prices. “If you’re in a lease pub there’s only one strategy in town – differentiation. Make sure differentiation permeates every aspect of your business: The staff, products, service, ambiance, everything. I tell my staff you have got to make is special, different and better than the competition,” he said.
Marsden said he strives to instill staff with passion and product knowledge. “You are only as good as your last pint,” he added.
Careers
Many staff members are graduates who are now pursuing a career in the trade. One current employee has a first class maths degree from Oxford.
Marsden said: “It’s great to be able to provide space for them to fulfil their career ambitions. People need to think ‘we can earn a good living here’. We think how can we create a great career for them? They won’t be happy on £7.50 an hour so we want to make it really attractive.” The pub offers a range of training to staff from wine sommelier courses to cellar management qualifications.
The Marsdens are also lessees at the Dark Horse in Moseley, which they took over 18 months ago and focuses on food and music.