1,000’s of pubs have closed in the last few years and they still continue to close at about 25 a week.  Why? Well there are numerous reasons, but there are 4 that I believe are the main culprits. Here is the second:

Poor Retailing: Now this has to be the biggest sin of all!

How many times have you experienced the good old fashioned pub where time stood still: grated cheese sandwiches, sweet corn, tomato and iceberg lettuce garnish served with real ‘warm’ ale………. The good old British pub!!  OK, very few if any have survived the last few years (thankfully), but even now some that remain are so nondescript they deserve to go.

The publicans who believe that a good pub is one that is clean, serves great beer and nice toilets are going to be sadly disappointed. This is below the minimum requirement of any business, no matter where it is located.  There were countless of times I interviewed potential tenants who believed this was what success was all about, and I am glad to say I either tried to help them develop an identity that suited them and the market place, or I turned them down completely to save them from themselves.

You cannot hope to compete with what else is on offer today if you don’t know where you are going.  Today every pub business needs to have a focus, a point of difference that makes it stand out from the crowd, a USP, a hook to use in marketing. Why else should you spend upwards of £2.50 a drink verses £0.50p in the supermarket, or £10.00 a main course v £3.00 a ready meal?

The publicans job is one of the most diverse in any business.  What doesn’t the publican do?  Managing Director plus Director of: Sales / Marketing / Personnel / Property / Finance / Entertainment / Catering / Purchasing / Accommodation, and if you have the latter it really is 24/7 x 365!!!

Jack of all trades comes to mind, so this is why even the smallest pub needs to invest / speculate a little, to bring in skill sets that they are naturally least good at.  This in turn allows them to concentrate on the things that they do best.

Choosing the right advisor is key.  It’s no use getting a high tech marketing annalist to work on a back street boozer etc.

Put all of the above together and it’s easy to understand why the pub has a tough fight on it’s hands.  I believe competition is good. It raises standards, it increases innovation and only the strong will survive. Todays publican has to be smarter, more dynamic, better quality than ever before. What ever they do must suit the market and it needs to be marketed to them, the people who want what they offer most.  Fail these things and they will fail to survive.

I know how important it is keep costs to a minimum and to ensure good value – everything must show a return. I don’t expect to run a promotion to loose money, and I dislike most advertising, especially in newspapers.

I look at the overall retail offer in the market place the pub is situated in.  I assess the retail proposition, its suitability, if in needs to be tweaked, radically changed or left alone.  I look at the standards and service quality and I look at profitability, suggesting ways to improve (there are always some).  I look at the marketing strategy and suggest the most cost effective ways to market the business, often to the newly defined target market we have identified together.

I want to help make things happen. Need I say anymore? Pick up the phone and call me to see how I can help you, or do someone else a favour, and tell them to give me a call!

1,000’s of pubs have closed in the last few years and they still continue to close at about 25 a week.  Why? Well there are numerous reasons, but there are 4 that I believe are the main culprits. Here is the first:

Direct Competition:This has changed enormously since the late 80’s. Ever since JDW challenged the licensing law that used to require an applicant for a new license to prove the need.  A new housing estate for instance, may have been reason enough, but unless this were the case a new license in an area was almost impossible.  The only way to open a new licensed property then, was to transfer a license from a closed premises which was very rare indeed.

When JDW challenged the law and won the right to have a new license without the ‘need’ stipulation, it resulted in a plethora of new licenses, both on and off the premises.  It now seems there are more licensed premises than unlicensed in most High Streets today.  Licensed premises are found in sports centres, corner shops, supermarkets and even petrol stations.  The pub now competes directly with far more licensed premises than ever before.  In fact by 2010, the number of premises licensed to sell alcohol had grown to 166,000 – the highest total since records began in 1905.  During the past 50 years, the number of off-licenses has doubled. There are now 48,700 supermarkets and other outlets with permission to sell alcohol!

This sector would not be complete without mentioning the supermarkets specifically!  Beer (almost exclusively bottled lager) is being sold by many brewers to supermarkets at cost or less than cost. Supermarkets are often selling beer as a ‘loss leader’, below the cost they pay!  This is one of the major reasons there is such a disparity between the beer you buy in the pub and the beer you buy in the supermarket.  The practice has led to ridiculously low prices – I liken it to the tabloid newspaper wars of the 90’s, if you can remember them.  Drive the prices down for as long as you can, to the detriment and eventual bankruptcy of your competitors, but here it is for ever, as the draught prices keep the brewers afloat. I’m not blaming the brewers entirely, but they have dug themselves a big hole.  I am sure they would all love to be making a profit on their bottled beers.  It’s a hard hole for brewers to get out of, as lessening the discounts independently of their competitors will mean lost volume, and less exposure of their brands, diminishing the profitable draught sales which could lead to the loss of jobs.  I can’t see an easy way out for the brewers, but with some of the proposed government intervention like minimum pricing and a more radical look at off sales tax, there may be a way of bridging the gap.

I know how important it is keep costs to a minimum and to ensure good value – everything must show a return. I don’t expect to run a promotion to loose money, and I hate advertising, especially in newspapers.   I look at the overall retail offer in the market place the pub is situated in.  I access its suitability, if in needs to be tweaked, radically changed or left alone.  I look at the standards and service quality and I look at profitability, suggesting ways to improve (there are always some things).  I look at the marketing strategy and suggest the most cost effective ways to market the business, often to the newly defined target market we have identified together.  I want to help make things happen for you.

Need I say anymore? Pick up the phone and call me to see how I can help you, or do someone else a favour and tell them to give me a call, 07976 690 910.Speak soon.

Watch out for number 2  

CRAFT BEER - Revolution 2 in the wings?