The brewpub and accommodation operator said that while it had managed to take out around 50 jobs through natural attrition, the need to keep a lid on headcount is putting pressure on existing staff and businesses.
“We’ve reduced our workforce to less and less people, doing more and more hours,” he said. The cost implications of a large pool of staff has also meant that it no longer has “the luxury” of being able to employ 16 or 17-year-olds, for example, on a Saturday afternoon.
“We just don’t have the capacity for it, and that’s a real tragedy,” he said.
Referencing the government’s latest U-turns on winter fuel payments and benefits cuts, Gumbrell said: “Wouldn’t it be lovely if they climbed down on national insurance and realised the damage it does, to inhibit growth and stop job creation?”
“It’s crippling, absolutely crippling,” he said of its impact on the sector. “It’s absolutely extraordinary, clumsy and misinformed, and really demonstrates what a lack of understanding they (Government) has of our sector. But we as sector have to fight back… we have to keep shouting.”
New concept
Gumbrell said Brewhouse & Kitchen currently had vacancy rates of around 3-4% and its staff turnover levels were low, with the business priding itself on its apprenticeship programme, and being able to develop its staff from within.
“It’s going to be harder to do that now, I’m not going to cut back on developing people, because that’s just fatal and short sighted. It just means that we have less job opportunities within our business. And our pipeline will be a bit smaller now, which is frustrating.”
Brewhouse & Kitchen recently launched a new concept called Craft House, which it has rolled out to three of its existing sites, with plans to expand it further.
The smaller format concept has seen the removal of the microbrewery from the venue to free up space for more covers, with the new Craft House conversions adopting a more modern British pub interior, to appeal to a wider demographic.
So far, Brewhouse & Kitchen has converted its Horsham, Bournemouth and Hoxton pubs to this format, with the sites in growth against where they were the prior year.
Gumbrell said the business was still trying to refine the model but that it is “looking to roll the Craft House concept further”.
Boost flat sales
“We have got nothing immediately identified, but there are potentially two or three more that we could do within the next 12 months.
“We don’t see it as a big part of our estate – but as another tool in the toolkit of our business.”
The business is also looking at developing its room estate and is pushing forwards in its brew sites with products like its 0.5% Pale Ale, which Gumbrell said has been “absolutely flying for us”.
It also launched a very successful cask ale promotion in February, in order to try and boost relatively flat sales, which he said was “one of the best things we have ever done”.
“We have expanded that range, and because we brew on site we have a very high margin which we can flex, so we can offer £3.50 pints from opening until 6pm Monday to Friday. That’s been absolutely fantastic for our business.”
This story was originally published in The Morning Advertiser’s sister publication MCA here.
