Going clubbing with Punch Taverns

When Punch Taverns announced the launch of its online purchasing portal for lessees last year Andy Slee, director of the Punch Buying Club (PBC) and the man charged with pushing the system, said he would eat his hat if take-up was less than 1,500 by Christmas.

Bless him, he needs to find a knife and fork and perhaps some seasoning, but to be fair with 1,100 already on board since the system went live in September last year and around 450 lessees waiting to join it would be harsh to expect Slee to tuck in.

Besides, it would have achieved its target but for some gremlins. "We had one or two technical issues which meant a number of people couldn't sign up," he explains. These have been sorted, apparently, and the site has been 'de-cluttered', making logging on easier. The goal now is to get 2,000 lessees on board in the coming months. Slee hopes that with non-drink products becoming available later this month the PBC will gain more followers.

Comparisons

According to Slee, the average order via the PBC website has come in at around £1,800. "People think we are poor in value-for-money terms when it comes to non-beer supplies, but we're very competitive on things like wines and spirits," he says, pointing to the website where price comparisons across a number of key lines show how savings can be made.

Historically, Punch has stated that it will compete for its lessees' business by offering a one-stop online shop at competitive prices delivered direct to their pubs. Slee says there is more to it than just this.

"There is the transparency. Some items can be found cheaper elsewhere but the difference is a matter of coppers."

With regards to draught beers the PBC offers no comparative data but Slee says this is not an issue: "It's about access [to products] through the new lease deals and 'how to' advice."

Part of new lease

Membership of the PBC is a part of taking on a new lease with Punch, but Slee argues that it isn't a case of tying in lessees yet further to the company.

"With this system people come to realise how competitive we are on price. We've always been competitive, we just haven't shouted about it.

"The PBC is not just a website; it's part of a system designed to make our partners feel they can get the support and help they need on a scale only a big company can offer," he explains.

Slee says the system can be used to check things like rental accounts, plus a lessee's adviser - say an accountant or stocktaker - can be nominated to log on to the PBC site and analyse the figures for them.

And cash-with-order lessees can use the PBC, paying via debit card, or credit card with a surcharge. Slee says "a couple of hundred" such operators have logged on recently, and the service will be promoted to more in the coming months.

Expansion

Other areas in which the PBC will expand its remit are cask ales and beer festivals, says Slee.

"Not everyone 'gets' beer festivals. This is about de-mystifying the process," he says. "It isn't just about cask ale, either. It's also about an opportunity to re-promote the pub, like updating your food menu and getting in a good soft drinks range."

Slee acknowledges the pub industry has been slow off the mark where the internet is concerned, but that it is catching up rapidly with other retail and leisure sectors.

"A year ago we were having a debate surrounding the internet. A year on and we've now got 1,100 signed up for the PBC," he says.

So with lessees being encouraged to buy their supplies online will the PBC lead to job losses at Punch's HQ? Not according to Slee.

"The call centre is more focused on telemarketing now and a number of individuals are supporting the PBC function. We definitely don't want to lose the human touch."

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New agreement​

This week Punch rolls out a new lease agreement offering free-of-tie pricing on tied beer as standard, or the option for licensees to take lower discounts on beer in exchange for a lower rent.

Roger Whiteside, managing director of Punch Partnerships, says the new agreement represents "a fundamental change of approach as we aim to dispel the ambiguity about how the tied pub model works whilst setting a standard for the industry and building our reputation for trust and value".

Referring to the Punch Buying Club, Whiteside says it is developing into a community where licensees become part of a shared forum for ideas and best practice.

Justin Kelly, licensee at the Bramshall Inn in Uttoxeter, Staffordshire, says opting for the PBC lease resulted in a "slight increase in rent" but that paying less for his beer meant he could make more in the way of profits.

Plus ordering online meant a better use of his time. "The pricing on my non-tied products is very competitive so I can see myself using the site more and more. The paperless invoicing is also much easier to manage," he adds.