Food sales on the rise

Respondents to The Publican Food Report 2009​ have told us how the credit crunch, another dodgy summer, the soaring beer tax and, yes, that old favourite the smoking ban have all hammered their sales over the past year.

Yet against this backdrop - not to mention a national media that would have many consumers believe that the Great British pub is on its way out - the majority of pubs have not seen a drop in food sales over the past year.

The facts are:

• more than four out of 10 pubs (43 per cent) have seen food sales have rise

• three out of 10 (31 per cent) say their food sales are the same as they were in 2008

• fewer than one in four (23 per cent) have seen food sales drop in 2009.

It's not exactly reason to crack open the bubbly and claim the pub is on the way back - but it's a set of statistics that should at least offer up some inspiration to licensees that if they can get the right combination of quality food, customer service and value for money in place.

So how are​ pubs rising to the challenges?

Whilst licensees are clearly flexing their prices to compete with other foodservice operators - there has to be a response to the recession of course - the cuts have not been as dramatic as they might have been.

More than one in four (26 per cent) of pubs are now offering '2 for 1' or other discount deals, a leap of nine per cent on 2008.

And, as is pointed out elsewhere in the Food Report, the average price of a pub meal has fallen - but not dramatically so.

Chris Cannon, head of marketing at Heinz Foodservice, offers some robust views on why pubs and their menu prices.

"Why should pubs maintain their prices if costs are going up? All it does is suppress margin," he says.

"They shouldn't cut the rug from under food - that's simply not a long term sustainable strategy.

"Look at the high street for example - even McDonalds has switched from a Poundsaver menu to a Saver menu, because it put the price of a cheeseburger up to £1.29.

"Don't be afraid to put up your prices. If you are still value for money, and are strong in other areas, customers will come with you."

His view is that as the economy slowly turns around, foodservice operators such as Pizza Express are already attempting to move away from the discount deals - which will make it easier for pubs to move on too.

" 'Two for ones' have had their spike. Price is only one element of the total food offer, and it's the lowest common denominator. If you are a pub operator and you are trading on price then you are cutting every other consideration from the customers' decision tree."

The Food Report has revealed a significant rise in the number of pubs latching on to the big national events and using them as marketing tools to lever extra sales - suggesting that most licensees are well aware of the need to use other mechanics to lift their food sales.

From BPEX's British Sausage Week to The Publican's own Proud of Pubs Week, British Food Fortnight to National Yorkshire Pudding Day, every one has seen a rise in pub participation this year.

Catherine Hinchcliff, marketing controller at 3663, says that marketing your menu is just as important as putting it together in the first place.

"You need to ensure that your customers are aware of your food offer, and are reminded about it frequently enough to tempt them, and get them into the habit of paying you a visit when they are thinking of eating out," she advises.

"You can also take the opportunity of a menu change or a key event like British Food Fortnight, British Sausage Week or Mother's Day to make more a noise about your fantastic food.

"Treat promotions with care, advertising them to attract new customers, or to encourage your customers to try additional dishes or drinks they wouldn't otherwise have bought."

Maintain the margins​

The hardest challenge, surely, is maintaining a decent margin in these conditions. The statistics bear this out.

The number of pubs maintaining what most food operators would take as a healthy margin - between 66 and 75 per cent - has dipped five per cent to 16 per cent, a clear reflection of the challenging conditions.

So how can pubs keep their margins up?

One way has been through taking advantage of increased support available from suppliers, as Scottish & Newcastle Pub Company (S&NPC) food development manager Ben Bartlett points out.

"Manufacturers like Knorr are offering multi-base products that can be used for several dishes," he says.

"Food wholesaler Booker has three meal dishes every month you can sell for £2.99 that can make you at least 65 per cent GP. And S&NPC has recently launched a food website exclusively for our lessees/chefs featuring regular supplier offers that can be used with the on-line menu printing service.

"One of the most popular sections is WIGIG (When It's Gone It's Gone) where you can request free food samples and POS. We have recently had free tubs of crisps from Glennans, British Sausage Week POS kits and our own "Recipe for Success" guides."

Heinz's Chris Cannon also backs up this viewpoint.

"We haven't cut back on the amount of support we have offered the pub industry and we have continued to help drive sales throughout the recession," he says. "We believe our brands can offer an endorsement for a pub outlet."

As for the smoking ban - Ben Bartlett can't believe that publicans are using it as an excuse for challenging sales.

"Get over it! We all knew the ban was coming. In fact the number of adult smokers has been dropping for years," he points out.

"Pubs are now cleaner and an enjoyable place to work. This is really good news for food houses. Upbeat pubs are looking at new markets such as the three F's: Females, Families and the over Fifties."

Will the three Fs that will help pubs drive their food sales in 2010?

It will be true for many - and for many more it will simply be about doing what they do better than their local competition.

Either way it's clear that the Food Report offers some real inspiration for those pubs that can find the offer that is right for them in the year ahead.