Mixing it up in

the high street

Multiple managed house operators are putting cocktails at the heart of a strategy to take city-centre venues more upmarket. Emma Waddingham reveals the plans of some of the main players

Taking a leap into more sophisticated territory, several of the high-street operators, including Yates and SFI, are relaunching their cocktail menus to include the kinds of blends some consumers are already mixing at home and ordering in top-end venues.

Consumers' burgeoning interest in cocktails couldn't come at a better time for pubs trying to find a money-spinning alternative to fill the gulf left by flagging RTD and beer sales. And, according to suppliers, it's a remit that cocktails fulfill perfectly.

Maxxium director of sales Jim Grierson explains: "Cocktails have been around (in the high street) for at least 15 years but now consumers are willing to pay more for superior products.

"Some venues replaced RTD losses by focusing on cider and wine, but most don't want to rely on mainstream categories."

However, quantifying how much difference serving cocktails could make to the bottom line is difficult, according to Graham Page at AC Nielsen. He explains: "Venue tills often register sales individually as spirits and mixers, limiting data on the growth of cocktails."

But, he adds that changing consumer tastes could help pubs looking to expand into this area. "Consumer palates swing towards sweet-tasting drinks, providing a captive audience for the cocktail market. Women especially don't like to be restricted by wine or traditional drinks when there are more exotic products available."

Cocktails for the masses

Yates says it doesn't need hard evidence as it rolls out a new cocktail menu that it claims heralds "the age of cocktails for the masses".

Yates chief executive Mark Jones says: "We saw the trend in style bars and wanted to bring this to the masses who, per head, will spend more on one cocktail than any other drink."

And they're not alone in hoping the maths add up. Regent Inns and SFI are all investing in training, equipment and ingredients to tempt customers to the on-trade with a more sophisticated drinking package.

As well as boosting profits, SFI's food and drink manager, Jason Danciger, sees cocktails as an opportunity to make visiting pubs a more sophisticated experience and hopes its Slug & Lettuce chain will "gain from the theatrical performance of cocktail mixing" by entertaining customers.

"On-trade success relies on providing a vibrant and social atmosphere, giving people a reason to come to the high street," he explains.

Although the theory that selling cocktails equals higher margins is true in one sense, pubs on the high street need to address whether the extra time spent on making their creations is really going to pay off? Ultimately it comes down to the prices the operators intend to charge.

High quality quirky creations

Yates and Regent Inns are targeting consumers who feel intimidated by style bars or are less willing to pay for premium spirits. "Quirky creations can still be of high quality in YPVs if the bar staff have access to the right training and equipment," says Jones. "We are avoiding the use of premium spirits, allowing us to offer an attractive price for consumers."

Regent Inns brand manager John Clements says it will use a similar strategy, adding: "Nobody expects us to compete with premium spirit ingredients."

The new cocktail menus at Yates and Walkabout pubs use house spirits, including Imperial and Smirnoff Red vodka as the basis for most cocktails, with Yates's charging £3.29 against Walkabout's £3.50 (although Yates enables customers to upgrade to Absolut for an extra 25p).

"People are willing to pay more for quality drinks, so we can afford to put a bit more into mixing them. Staff are now trained to make cocktails from scratch, capturing the sophistication of successful style bars," says Clements, "Although, of course, for the busy high street, speed of service is still key."

Staff at Yates and Walkabout bars attend training sessions to learn about the cocktail process. Drinks listed on the menu are then prepared at "speed rails" on the bar. These rails allow for a quick mix as cocktail ingredients, equipment and glassware is kept in one place. Fruit and soda mixes are also prepared in bulk, in advance, to keep the process even tighter.

SFI chain the Slug & Lettuce is taking a different approach. Danciger says: "We aim to attract the top end of the high-street market, offering customers something more than the usual down-in-one experience."

Making cocktails with higher strength, more premium spirits, SFI plans to charge a higher price for cocktails that will position them at the top end of the high street, but below style bars.

Prices will differ by region

Although Danciger says the price of cocktails is still being worked out, he expects things to differ by region. "Regional tastes for certain cocktails will vary the menu ­ of course prices will reflect that."

Danciger insists that the attraction of cocktails lies in the "show" of mixology. "Trained bartenders add a bit of theatre to cocktail mixing, giving our customers something to talk about and a reason to come to the high street," he adds. He hopes that this will encourage consumers to spend more and lead to a change in the way they drink in the high street, by encouraging them to "stay all night".

But at a time when binge drinking and responsible pricing in the high street is under intense scrutiny, is promoting cocktails with higher alcoholic strengths the best way forward?

"If customers pay more for a drink, which has been created with care and attention, we hope they will treat them with the respect they deserve," reasons Danciger.

Jones agrees. "Our cocktails have sensible point-of-sale material to reflect the quality of the ingredients, encouraging drinkers to drink respectfully and responsibly."

As part of its plans, Yates will continue to use pitchers to sell cocktails in larger quantities, although the menus promise a maximum of four shots per jug, priced at £6.79. JD Wether-spoon, which is also changing its cocktail offering, is restricting shots to two per glass and four per pitcher.

However, Jones admits there will be an 80p reduction in the price of a cocktail for three hours in the evening, "though we think customers are now less inclined to down their drinks, especially if our prices are measured".

But if the cocktail market is intended as a way to give the high street a new stylish sheen, some suppliers believe price promotions should be avoided. Maxxium's Grierson adds: "This just isn't the product to place in the two-for-one market. Any approach to pricing should consider your target audience and who you are likely to attract."

How to sell more cocktails without the fuss

Most pubs struggle to keep drinks flowing on a busy night as it is, but here are a few ideas about how you can cut corners and still serve good cocktails

KEEP IT SIMPLE: Choose a small menu and perfect it to keep customers coming back.

SPOT A GAP IN THE MARKET: Take a walk along the high street to see what competitors are offering. Can you offer a niche style or theme your cocktails?

KNOW YOUR MARKET: Pitch your menu to the right audience. Cocktails are a popular choice for groups of drinkers, especially women.

ENCOURAGE STAFF: Trained staff who are able to talk up the taste or ingredients of a cocktail are vital. Spirits suppliers will be happy to help.

USE PRE-MIXED PRODUCTS: Try using premixed lines such as the Muse range from Charles Wells, which only requires staff to add alcohol to the mix. Also experiment with what you've already got. For example, Coors and Halewood International are both pushing the idea that their products, Reef and Sidekick, can be used as the basis for cocktails.

SET UP A DEDICATED BAR SPACE: If cocktail sales really start to grow, consider putting in a speed rail at the bar. The ad