Star Pubs boss: Gov must stick to biz rates reform vow

Caren Geering, Central Operations Director, Star Pubs
Consider the knock-on effects: Caren Geering, central operations director, Star Pubs (Mark Lewis)

The Government must follow through on its pledge to revamp business rates, according to Star Pubs central operations director Caren Geering.

Geering, who began life in the pub trade since birth, told The Morning Advertiser pub operators have a lot of their plates currently and Westminster needs to step up and help the sector.

She said: “We need the Government to stick to their commitment to properly reform business rates.

“We were disappointed on the decision to cut business rates support in the Budget in October and that will present a huge challenge for our pubs.”

She added the Government needs to look at the sector as a whole – not just pubs – and consider the knock-on effects to the supply chain and to analyse the sum of costs placed on businesses and not just individual issues.

She said: “While minimum wage will increase disposable income and spending, in contrast, the additional costs being passed through are being passed through to consumer so it’s becoming a really delicate balance.

“We need the trip to the pub to remain an affordable luxury but that’s becoming hard to keep that balance and we really need Government to back the great British pub at the end of the day.”

Geering, whose role includes recruiting pub operators, and offering training and support, talked about the biggest challenges facing Star Pubs operators at the moment.

Cocktail of costs

She said: “It’s definitely the cost of doing business. Along with employer national insurance changes, business rates, minimum wages and recruitment, now we’ve got EPR (extended producer responsibility). It’s adding more confusion and complexity.

“To quote Kate Nicholls, ‘the cocktail of costs’, which adds so much pressure to pub operators.

“There’s the changing consumer landscape, that stay at home customer, the low & no market – we’ve got the backing of Heineken so we’re really fortunate that they have all this insight data we can use to support our licensees.

“Our licensees are having to really balance delivering quality and service while having to, in reality, cut costs and roles in some areas and that margin management is really key while trying to remain competitive.

“We’ve do have the backing of industry bodies. We’re continuously lobbying government to really urgently review these costs but we don’t have the solutions at the moment.”

On trade currently, she admitted: “It’s a real mixed bag. As always, there’s a quiet start to the year, but I think the Six Nations starting a bit earlier has brought that real boost.

“We’ve had drier weather in the past few weeks and I’ve heard licensees and the buzz during the rugby talking about how they had good weekends with the rugby because everybody was out in the pubs so that’s really great to hear.

“A bit of better weather is what we need and is always a big boost. In March, you got St Patrick’s Day, Mother’s Day, Easter etc and that will provide that more opportunity.”

Adapting and being resilient

She added that when out talking to Star operators, they say it is tough.

“We are navigating through what is a challenging economic landscape, particularly with employer national insurance contributions, minimum wage and business rates,” Geering stated.

“But at the same time, what I do hear is a more positive outlook as well and that’s why I mean it’s a real mixed bag. We know it’s tough. We know there’s challenges but I am seeing operators are trying different things, trying new things, they’re adapting and it goes back to that resilience.”

She explained recruiting operators is really positive for the pubco.

She explained: “Despite all the challenges we’re seeing at the moment and all the headlines, we’re still getting a lot of applications for people to run pubs and are attracting operators into the business.

“It’s really encouraging that people are still seeing pubs as a great opportunity to be part of something big whether that is being part of the community and showcase their skills as well.

“It’s about giving people reasons to get out of their houses and into the pubs and socialising.”

What does the future hold? Geering said: “In the long term, by adapting and being resilient, I still see a positive and great future for our pubs so long as they are well invested and run by skilled and motivated licensees. We wouldn’t be in this industry if we didn’t believe that.

“Pubs that innovate, offer unique experiences, great food, live events, etc. mean I have every confidence that this industry will always find a way through and I remain passionate about this industry definitely.”