Flair of smaller pub operators leaves big boys trailing

Of course, that doesn’t mean doom and gloom — it’s not like the larger operators are dropping off a cliff, they’re just not growing as fast.

But it does present something of a conundrum for those operators, particularly in the light of legislative changes, and the way they are responding to those opportunities or threats.

There’s always been something very individual about the pub sector, partly driven by that small-business, entrepreneurial flair. If you ask the average punter what their ideal pub would be, individuality would be high on the list. No one wants to walk into every pub on the high street or in the village and find them the same; the same decor, the same drinks, the same staff, the same food.

Yet, the bigger you get, the harder it is to find that individuality. Process is key, setting up systems that enable your operations to run smoothly means sacrificing a fair chunk of that flair.

And with more operators thinking about switching to that managed model in response to the market rent-only option (MRO), are we only going to see more of that cookie-cutter template being stamped out across the country as the big operators implement their new strategy? I would argue a degree of that is inevitable.

But as with all things, market forces will rule — consumers will become fed up with that templated approach and companies will have
to react if they want to grow their businesses.

However, for those smaller operators, and especially the individuals with greater control, you could argue that this time is golden. As the big players shift to the operationally focused managed approach, those smaller operators — like the members of our PMA500 Club — can really get to show off their individuality, their passion and flair.

I’d argue that for future innovation in pubs and the trends going forward, it’s the smaller and individual operators that will be setting the pace during the coming years.

Meanwhile, if we are to see those operators really flourish, then we need to focus our energies on campaigning for a reform of business rates. The recent arguments around the beer duty cut have highlighted the frustration for many operators in the trade that we need to address the more meaty matters that really impact on them.

Yes, no one is going to turn down a cut in beer duty, but when we have some operators literally breaking down on the phone about how it will do nothing for them, while business rates climb hugely, we perhaps need to look to some more broader action to help the operators and make a real and noticeable difference to their bottom lines.

The recent CAMRA report that claims a failure to cut duty could lead to pub closures is worrying​. But I do wonder why no change in duty could have such an impact, yet the 5p to 6p average increases many brewers have imposed goes unremarked. If zero change in duty is going to cause such suffering, how many pubs are now threatened by brewery price hikes?

And why isn’t CAMRA addressing that?