How to boost trade and avoid pitfalls
How to boost trade and avoid pitfalls
The MA200 seminar is urged to diversify, embrace feedback and look to the future. Ewan Turney reports
Stars of the big screen In the age of diversification, pubs would do well to consider the benefits of screening films.
Filmbank commercial sales director Rachelle Peterson told the MA200 audience they could increase dwell time and spend levels by taking advantage of films.
Filmbank provides licences to screen films outside the home and regular cinemas.
There are two types of licence available — Single Title Screening Licence, where a licence is issued on a title-by-title basis along with the film copy, or a Public Video Screening Licence on an annual basis.
Licensees can also take advantage of the service and screen films before they reach DVD.
Peterson referred to a pub in London that charges £42 for a meal deal, including a bowl of pasta and a glass of Chianti, for watching the film on a Thursday. "It is full every Thursday," she said.
Another suggestion was to have a kids' film screening in a separate area, such as Harry Potter. "If the film is two and a half hours long, you have the parents for that long too, so there is potential for extra spend."
Peterson said Dirty Dancing had been the most screened film since the death of star Patrick Swayze, along with Mamma Mia!
Brulines — friend or foe?
"I am very cross and clearly you don't trust me and am disappointed you think I am thieving from you." That was the honest and frank response from Greene King tenant Trish Walters when her area manager suggested putting a Brulines i-draught system in to help reduce a £1,000 deficit from her stock-take.
Walters admits she "wasn't a happy bunny" and was "mortified" when her area manager insisted she install the system. "The Brulines guy got short shrift when he came to install it," she said.
The i-draught system offers more than just dispense monitoring, providing tenants with information on pouring yields, beer quality and cost management.
Despite her scepticism, Walters found that the i-draught system had positive results within eight weeks. She noted the system had recorded 30 pints being sold when her till showed only 25. The purchase of an EPoS till helped to improve results alongside i-draught.
Checking the i-draught website and entering the till data became part of Walters' routine after cashing up every night.
After a week, Walters discussed the situation with staff.
"I talked very openly with staff
over the figures and found they were improving."
At the next stock-take, just eight weeks later, there was a stock surplus of £200 — the first positive stock-take in two years since taking on the tenancy. "I do apologise to Brulines. I am so confident it is a success. If I move on, one of my first requests will be that i-draught is installed.
"It is absolutely my friend and I would recommend it to anyone."
Get on better with multiples
Punch director of central operations and recruitment Suzy Jackson said the company had learnt many lessons over the past year in how to build better relationships with its multiples.
Last year, the pubco undertook a survey of MA200 members on how it could improve relationships and Punch is now looking to devise a structured formula to deal with multiple operators.
Jackson said there was a "very inconsistent view" among multiples as to who should be their point of contact — whether it be a regional manager, operations manager or even a company director.
Some key themes came out of the strategy — the company had to be flexible, look at the bigger picture, and examine how the operator could improve the position of the pub in the long term, along with improvements to the partnership approach.
Jackson gave three case studies to show where it had helped multiples. Multiple A, with four Greene King sites and one Punch site, was given a reversed stepped rent after it voiced concerns over being penalised for successful trading performance. In return, a temporary tie was implemented on wines and spirits, to be released after a couple of years.
Multiple B had complained it was too difficult to get out of a tough site, so Punch took back the sites that were losing money and reduced rent at other sites alongside an investment at four of the pubs.
Punch offered Multiple C a flexible deal that suited them and invested in its second site to help maximise the partnership. Punch also said it would support single-site operators looking to expand.
Jackson said: "Tim Martin said good people in pubs do well, but I am a bit more aspirational than that. I say quality operators in pubs do fantastic."
Wi-Fi is the future
Soundnet's Tom Arundel reminded the MA200 audience how far Wi-Fi had come since its introduction in 2000 — and gave a view on how much more important it is set to become.
By 2013, 25% of all mobile phones will have Wi-Fi capability with an expected 300% increase in usage. Improved Wi-Fi speeds will open the gateway for enhanced user content and experience.
"Wi-Fi is no longer just a requirement for laptop users, the Wi-Fi mobile is becoming the easiest and most popular way to get online when away from home," said Arundel.
"For customers, free connectivity has become an expectation, but provision comes with risks and requirements. The Digital Economy Act will either place a further burden on retailers or leave them open to abuse by those wishing to bypass regulation. A managed Wi-Fi system is the safest way to supply connectivity for your customers, but costs might seem prohibitive."
Arundel demonstrated that Wi-Fi could be deployed for a minimal additional spend and help drive additional sales.
Soundnet Wi-Fi provides a managed service that restricts access to copyright material and sites with sensitive or improper content.
It also logs user details and activity to meet European regulations.
It also allows pubs to advertise offers and events via the front-page log-in for customers and captures customer details for use in marketing activity.
The company can also provide a telephone package for a flat rate of £17.99 a month, background music service and contactless payment technology.
Rent-review tips
Understand your lease, avoid RPI rent clauses and keep records of all your pubco meetings — those were just some pointers from Garry Mallen on rent reviews.
Mallen runs six pubs in London as well as representing the BII (British Institute of Innkeeping) on the Royal Institution of Chartered Surveyors (RICS) Pubco Forum and carrying out rent reviews.
Mallen pointed out that "it's worth reading" and understanding your lease, as "when it comes to obligations contained in the lease, yours are long and complex and theirs (pub companies') are generally short".
He said it is essential not to be blinded by all the acronyms contained in the lease, such as FMT, or fair maintainable trade.
According to Mallen, when it comes to FMT, pubcos will "pick the best year out of the last five years" to set as your standard. In addition if you are an exceptional operator, it will be up to you to prove it.
When it comes to rents that follow the Retail Price Index (RPI), Mallen said "the short answer is, don't do it!"
"As far as rent is concerned, RPI is an annual upward increase — and pubcos are supposed to have done away with upward-only rent reviews," said Mallen.
He warned hosts that it's "vitally important" to keep records of your meetings with your business development managers, as in future they can be used as evidence.
Arbitration should be viewed as a last resort. "I've only been through arbitration twice in 15 years of doing rent reviews. It's much better to negotiate."
Mallen expressed reservations on the BII-led Pub Independent Rent Review Scheme, saying: "The fact that it's confidential makes me think it's not working."
Feedback is key to change
Gary Topiol, managing director of customer research company Empathica, explained
