Tight financial controls and successful marketing are the key ingredients to running a profitable pub, licensees were told at a trade seminar today.
BII Licensee Of The Year, Philip Davison, told Federation of Licensed Victuallers conference delegates that many licensees often failed to understand the money side of running their business.
"You have to be aware of the financial situation in your pub regarding sales and profit margins.
"It is not simply a case of saying that this is the job of the accountant," he told hosts at the meeting in Blackpool.
"It's you who has to understand the finance because It's pointless getting more people into your pub if it to does not increase your profit."
He urged licensees to explore new areas of revenue and instigate new marketing ideas to drive their business forward.
Staff training was also a vital element in keeping a pub business running smoothly.
"Your staff are not just there to serve drinks and deliver food to customers.You have to use your staff as a sales team because you have to sell more products to customers to help your business increase its profits," he said.
Davison said customer was now king and innovative marketing essential to deliver the products which they demanded.
"Research has shown licensees want help in marketing to get more people through the door.
"Is increasing profit a reality of a fantasy?" he asked.
"Many licensees might have the right knowledge but often they cannot apply it in the right way," he claimed.
"You have to action your ideas to make things happen because there has got to be right work ethic in your pub.
"Its the great ideas that keeps pubs evolving.
"What reason do you give people to visit your pub?
"What you offer in your pub will not suit every customer so you have to trade to your target market but the vital ingredient is always to market what you do and what you offer."