Surviving as a smoke-free pub

Come the smoking ban next summer, pub tenants are likely to be the most vulnerable group. Running community locals where most customers like a cigarette and will go home to eat, they may also lack the resources to develop the outdoor areas that could help them keep their core clientele.

It's an issue that their landlords seem to be well aware of, however, and most are encouraging their licensees to find a solution.

Larger players such as Punch Taverns have been able to learn from their experience in Scotland, where the ban has already been in place for six months. All its leased and tenanted pubs are receiving special visits from their business relationship managers (BRMs) to kick-start the planning process, talking through the change in the law, how to implement a no-smoking policy and the regulations on what constitutes an enclosed public space.

BRMs are also presenting the pubco's findings from Scotland and pubs in Ireland, which banned smoking more than two years ago. "It's one thing for Punch to stress the importance of preparing for the ban, but it's even more impactful when other licensees make the point," says Punch's customer services director Francis Patton.

"One theme licensees keep on coming back to is being prepared. Only operators who have taken early steps will be able to reap the rewards.

"Pubs need to work out how they can appeal to non-smokers and where possible create facilities to accommodate people who still want to smoke."

Punch has consistently urged its licensees to consider the ban as an opportunity rather than a threat and has devised a number of solutions to help manage it. "Never forget that around 73 per cent of the UK population doesn't smoke," says Francis. "Many people also avoid visiting pubs because of second-hand smoke. Take that smoke away and there is a whole new target market you can entice back into your pub."

Service standards and the whole retail offering - product range, food, speciality coffees, activities and entertainment - are part of the solution for Punch. If you can't make physical changes to your pub, getting the offer spot-on for your target market is vital.

Some solutions do involve making physical changes or additions to the premises, though. "In Scotland we successfully developed schemes to create smoking gardens, which are ideal for a quick cigarette, and 'outside inns' - bigger scale facilities that are basically partially covered extensions of the pub and suitable for a longer sit-down experience," explains Francis.

"They have worked really well in Scotland and the same sort of schemes will be made available to Punch sites in England and Wales - in addition to our ongoing commitment to invest in and refurbish pubs.

"For every pub refurbishment done over the past six months a smoking solution has been considered. We will do the same for all additional projects between now and the ban. But that doesn't mean other sites can't get support - smoking solutions and the upfront investment to make them happen are available to all."

The sheer scale of the work required is one reason Punch is pushing retailers to review their smoking plans now rather than closer to the ban.

"Schemes will require planning consent and the sooner those applications are lodged the better," Francis points out.

Punch is maintaining a regular flow of information on the ban. A monthly newsletter is keeping pubs up to date on the legislation, while a series of roadshows, complete with a free smoking ban seminar for all attendees, kicks off in Bristol on October 11.

BRMs continue to work with their pubs and have provided lists of recommended suppliers for smoking ban essentials such as umbrellas and patio heaters. They will also be encouraging operators to share best practice, for example, with visits to pubs with a completed smoking solution or smoke-free policy to see how it works.

"This is a huge change for the industry but being part of a larger pubco means our retailers don't have to tackle it on their own," adds Francis. "We are on hand to guide them through the process, plus they can benefit from the extensive experience our estate has from handling the ban in Scotland.

"Some pubs have already opted to go smoke-free and are doing very well as a result, but even taking some small steps now will help educate the consumer and ease them into the new regime. Start by banning smoking at the bar, then a few months later make a percentage of the drinking area no-smoking. Increase that percentage over time and when the full ban starts it won't be such a culture shock."

Enterprise Inns is taking a similar proactive approach. All its tenants have been sent a four-page publication, Smoke-Free Solutions, with advice, ideas and a form for a SWOT (strengths, weaknesses, opportunities, threats) analysis that will help them plan a strategy.

Field staff are also taking roadshows out to licensees, encouraging them to act soon, based on the company's experience in Scotland where pubs that moved first to provide outdoor smoking areas have seen their takings rise rather than fall.

"We are not providing our licensees with a single solution," says Enterprise's Peter Grieve. "There are lots of options and it will be different for every pub. Many will end up with a capital development but it's not just the outdoor areas - it's the whole retail proposition - and we are seeing it as an opportunity to invest."

Admiral Taverns, meanwhile, has a more structured strategy in place and has launched six different solutions to help its estate of 1,800 pubs prepare. Tenants and lessees will be invited to view the solutions at six pilot sites.

"Our aim is to offer a genuine alternative for licensees to help them accommodate customers who smoke," explains estate manager David Carter. "We have designed a mixture of canvas and more permanent structures that can be adapted to suit the available outdoor space. All six solutions provide good shelter and heating to ensure year-round use."

Without a clear start date for the ban, some pubs may not be focused on starting their preparations, David fears.

"Planning regulations and the need to consider the potential impact on local residents are both issues licensees may need time to address and anyone leaving their preparations too late risks not being ready when the ban comes into force." he says.

"By being well prepared, publicans will be in the best shape to protect their profits. Having a good solution for smokers will help retain customers and may also bring in new trade from less well-prepared pubs, as word of mouth spreads."

"One theme licensees keep coming back to is being prepared. Only operators who have taken early steps will be able to reap the rewards"

"Many pubs will end up with capital development, not just the outdoor area but the whole retail proposition. For us it's an opportunity to invest "