The Wetherspoon challenge

As if one Wetherspoon in town wasn't enough, what do you do if a second opens up? Tony Halstead visits Stourbridge to find out whether or not it's all doom and gloom.

The Edward Rutland has become an accepted part of Stourbridge's town-centre drinking circuit since JD Wetherspoon (JDW) brought its food and drink offer to the town back in 2005.

Over the five years that the Lloyds No.1 outlet has been trading, licensees have learned to live with the constant low prices and promotions that are the cornerstone of the company's trading philosophy.

But the news last year that Wetherspoon was set to open a second outlet looked guaranteed to set off a new wave of anxiety among hosts in an already over-pubbed town centre.

Nor was it a move that anybody could seriously oppose, despite the fact that the town's cumulative-impact policy should have meant little prospect of new pubs being granted licensing consent.

For the site of the new venture was a former Chicago Rock venue that was already licensed and where Wetherspoon's bid to open the pub proved a mere formality.

When the new-look Chequers Inn opened its doors last May, the trade held its breath to see just what im-pact it would have on the existing town-centre pubs.

Six months on, while reports of trade annihilation might have been exaggerated, there is plenty of evidence that neighbouring licensees have been hit hard by the effects of JDW's low food and drink prices.

Chairman of Stourbridge Pubwatch Alastair Rose says there was great surprise when news of the second Wetherspoon broke.

"I don't think many expected a second Wetherspoon in a relatively small town like Stourbridge.

"Some traditional wet-trade pubs have been hit hard, but there is a fair bit of diversification among the town-centre pubs and clubs, and many target specific audiences and offer different attractions.

"Chicago Rock was a very busy late-night venue, but it has been replaced by a totally different pub," he says.

Rose says his own venue, Heavens Club, has played to its own specific market and has not suffered any repercussions.

Dean Rock, licensee of the town-centre Glasshouse, says the new pub hit rival businesses, and also dented late-night trade.

"Most pubs have carried on doing their own thing. Some may have taken a fresh look at things, but a lot appear to have been fairly resilient.

"The loss of Chicago Rock, however, has hit late-night trade in the town particularly on Fridays as it appears many clubbers are now going into Birmingham instead. It's definitely quieter later now," he reveals.

Licensee Dave Craddock, who runs two pubs in the town, says Wetherspoon's low prices have hit his businesses.

Craddock runs the town-centre freehouse Duke William, a dedicated cask-ale pub, and also the Plough & Harrow, a Punch leased premises, on the outskirts of the town centre.

"We opened the Duke William last December and got off to a good start, but the arrival of the Chequers Inn last May made inroads into our business," he admits.

"We simply cannot compete with Wetherspoon's rock-bottom beer prices and nor are we going to try.

"Our standard bitter price is £2.65 and we are not going to compromise our margins by reducing the cost of our beer.

"What we have done is to maintain our existing client base by offering eight different cask ales and ensuring the quality is always spot on.

"We are not trying to chase Wetherspoon customers even though we might have lost a few who prefer to drink on price.

"We have continued to hit our bottom line every week and remain profitable, but on some occasions what would have been a good night in the past is now only an okay

night," he reveals.

"There is a fear that parts of Stourbridge could soon resemble a massive poundland, but we will carry on putting quality first and do what we do really well.

"The new Wetherspoon has slowed us down at the Duke William, but that is all. Trade at the Plough & Harrow has continued to go well."

Reducing beer margins to survive​

Licensee Matt McMaster runs the Glass pub in Stourbridge town centre, located just 120ft from the newly-opened Chequers and only 50ft from the Lloyds No.1 Edward Rutland.

McMaster, who is a Greene King tenant, says he was "devastated" when he heard a second Wetherspoon was on its way because he knew what its low-pricing policy might do to his business.

"We were managing to survive, but the appearance of a second JDW pub has put a dent in our trade. We do not even try and compete with their drink prices because they can sell it cheaper than we can buy the stuff.

"We tried to do food and put on different and more unusual dishes, but it didn't work. People appeared happier taking advantage of Wetherspoon's curry nights and other offers," he reveals.

"I've been in this trade since 1991 and am not afraid of competition, but what we are seeing in Stourbridge at the moment is ridiculous."

McMaster says he could only get deals through Greene King on a limited line of products including IPA, which he now sells for £1.99.

"But when you see Wetherspoon selling bitter for as little as 99p at times, you wonder where it is all going to end.

"Our lager is now £3 a pint, but we are up against JDW selling Foster's at £1.70, which tells its own story," he complains.

He has managed to get a rent reduction from Greene King, but says it has only had a marginal effect. "When we have to pay out for doormen and other expensive overheads it eats into our bottom line. We have reduced our GP on beer now to 38%, which is far too low."

Loyal regulars keep the Old Crispin afloat​

The Old Crispin Inn sits right across the street from Wetherspoon's Chequers pub in the heart of Stourbridge town centre.

Licensee Stuart Bayles expected his trade to be hit when the Chequers opened its doors last May.

But despite losing customers Marston's tenant Bayles says the impact has not been as bad as he first feared.

"Yes, we've lost a few regulars and other customers do spend some time there, but overall our trade has stayed steady.

"The bulk of our customers have remained loyal to us and it proves that not everyone

drinks on price as many people might assume.

"We keep a traditional sort of house here and enjoy support from a fine band of regulars," Bayles reports.

The Old Crispin Inn is 100% wet and Bayles has run the pub for five years.

"Despite running a totally wet pub, I have never been tempted to try and match JDW on price — it would be suicide if I tried.

"There was major surprise in the town when a second Wetherspoon was announced and I, for one, could not understand the logic of them opening a second venue here," Bayles adds.

"The loss of Chicago Rock means Stourbridge has lost its major late-night venue and it has hit footfall in the town generally.

"The first Wetherspoon was good news for town-centre licensees because it brought a lot of new customers onto the circuit.

"But now that the Chequers has opened up and Chicago Rock has gone, a lot of late-night trade has gone too."

A price deal through Marston's means that Bayles is able to offer a pint of bitter for £2 from Monday to Thursday, but even so it is still well above Wetherspoon's rock-bottom rates.

Normally his customers pay between £2.50 and £2.70 for ale and between £2.90 and £3.10 for lager.

"We are moving towards more of a younger person's venue later in the evening, particularly at weekends, now that there is a big gap left by Chicago Rock," he reveals.

"It's something Wetherspoon does not cater for, so we try and fill the void."

He goes on: "It's difficult to judge how much trade we have lost through the recession and how much is due to the Wetherspoon factor, but we are keeping our heads above water."

Looking for gaps in the local market​

Licensees need to capitalise on their strengths as a means of competing with cut-price tactics of rival pubs, says Federation of Licensed Victuallers Associations op