How to trade up your pub

The couple had been running the Travellers Rest in Harrogate, a roses-round-the-door pub with a good wet trade and reasonable food business, but wanted to make a step-up to a site that offered more revenue streams.

They settled on the White House, overlooking the North Sea and the sixth green of a popular golf course just outside Whitby — the North Yorkshire town famous for its associations with Captain Cook, its role as a location in Bram Stocker’s Dracula and the destination of a twice-yearly pilgrimage for goths.

“We were looking for a new challenge and it was an exciting pros-pect because it was on the coast,” says Linda.

Though it was somewhat run down, the Galeas saw the potential in the White House, but it needed some drastic measures to turn it
into a success.

Sorting out the priorities

The main attraction was the 10 letting rooms, an aspect of the business that was new to them, but it was staffing levels and transforming a flagging food trade that quickly became the priority.

“It was taking £300 a week on food and spending £88,000 a year on chefs’ wages so that was a major challenge immediately,” says David Galea.

“It had 35 staff, so it was vastly over-staffed and the business had died. How? We didn’t really know.”

The Galeas went back to the Travellers Rest to recruit their old chef and removed 20 people from staff numbers at the White House in a bid to make the basic operating figures make a bit more sense.

“We implemented a very similar menu to the one that had worked for us at Harrogate and it started to turn round almost overnight,” says David. “We also introduced better standards for the remaining staff and brought in some new people.

“We set our own goals for staff to attain, and introduced better training to get them doing their jobs really well.”

Three members of the team are being supported with hospitality apprenticeships, and staff were encouraged to take Star Pubs & Bars’ online training in topics such as food hygiene.

Star managing director Lawson Mountstevens says that thorny staff issues can be one of the most important aspects for the new owners of a pub business to tackle, even if it’s not the most pleasant task.

“You may be inheriting staff from the previous licensee who aren’t enthusiastic about the change,” he says. “Identify those who need coaching, those you want to retain and those you want to ease out.

“Recruit the best possible people and share your vision and expectations from the outset. Spend time with your staff and invest in their training.”

Importance of training

Online recruitment website CV-Library says training is an important building block to success in the hospitality industry and that the desire to pick up knowledge should be one of the main attributes sought in new staff.

Managing director Lee Biggins says: “Regardless of their level of experience, a candidate should be able to show an interest in the business, passion for service and willingness to learn.

“Watch out for candidates who have a good understanding of customer service and are enthusiastic about learning the tricks of the trade.”

Training opportunities are also key in keeping good people. Biggins adds: “Our research shows that 96.4% of hospitality workers would be less likely to leave their current employer if they were offered comprehensive training and development opportunities.”

But at the White House, it wasn’t just the team members who faced a steep learning curve. Neither David nor Linda had hotel experience so the accommodation side of the business was all new to them.

Making bold changes

Even without that background, the couple weren’t afraid of making bold and instant changes to move the business forward.

Rather than appealing to high-spending holidaymakers, the pub as they found it was set up to reach a different part of the market.

“There were some silly offers of £29 a night and, at those sorts of rates, it was attracting all the wrong customers for the location,” says Linda.

“The accommodation was spruced up and extra attention given to marketing, particularly through social media and an online hotel booking website where weekend rooms are now listed in a range between £70 and £100 per night, depending on the season.”

The White House is now scoring an average of 8.6 out of 10 from more than 700 reviews on the site.

“It’s worth investing in the rooms themselves and justifying being able to charge more,” says Linda. “If rooms are too cheap it sends out the wrong image about the place.”

Again, setting out clear values and expectations for staff was important to the Galeas. Now into their third year, the accommodation is handled by two duty managers and two housekeepers, but the owners keep a keen watch on things.

“It’s important to be hands-on,” says Linda. “A lot of licensees just put a manager in and say ‘off you go’, but people like to see that you are involved.

“Although we now have a team to look after the accommodation, one of the first things we did when we came in was to do all of the tasks ourselves so we had an understanding of how people are doing their jobs.

“You can’t take on something like this unless you have first-hand knowledge of how it works.

“It has been a challenge but we’ve learnt a lot and it’s getting more successful,” says David.

Paul Frost, tenant of Admiral Taverns’ Colston Arms, in Bristol, made a transition of a different sort in June 2014, trading up to become co-owner of a pub after eight years working as assistant manager and manager in larger pub businesses.

“The main difference is having sole responsibility for the relationships with customers and service,” says Frost. “And it’s just a lot more fun. It’s great putting all those ideas into practice that you had before but couldn’t do anything about because you had someone above you.”

The pub aims to be a modern take on a traditional pub with “real food, real ales and real people”.
It hosts a cinema club, regular quiz nights, live music and televised sport and shouts about its Sunday roasts with “Yorkshires the size of a Chihuahua’s head”.

Importance of personality

Frost says: “We try to do things with a bit of humour. Personality’s very important in a successful pub, especially when so many are built around a centrally created offer.”

The personality of the Colston Arms has been expressed in big developments — such as the refurb of one of its three rooms from an “atmosphere that was a bit like a function room to a gentlemen’s club type feel”, says Frost — to smaller details such as Simon, a mannequin who was installed in one corner to display items of clothing regulars had left behind.

Frost says that takings are “at least double” what they were when he took over fewer than two years ago.

And what’s the secret of that success? “Love, passion and caring about the business and the people who come in,” he says. “We also have staff who care and love what they do.”