M&C Report speaks to operators from across the pub, bar and restaurant sector to ask their views on the biggest challenges and opportunities for 2014.
Question 1: What do you believe will be the biggest challenge faced by your company/the sector in 2014?
Stephen Goodyear, chief executive, Young’s
The challenge, as always, is to continue to delight our very discerning customers – that is fundamentally what running a successful pub is all about. There’s no doubt that the economic recovery is underway and that is very welcome, but it would be a mistake to be too complacent about this. We will be sticking firmly to our strategy of investing heavily in our premium, managed pub estate, of making sure that the food, drink and ambience we offer is absolutely top-drawer, and of using the imagination of our pub managers to keep the experience fresh, fun and relevant.
Jens Hofma, chief executive, Pizza Hut UK
With lots of restaurant operators chasing ambitious new store opening targets, we are collectively at risk of highly inflated rents and overcapacity in the market.
Peter Marks, chief executive, Luminar
The biggest challenge is further legislative headwinds and associated costs. The late night industry has carried the blame for many of society’s problems rather than seen as part of the solution to a safe and fun night out which we as a society have been doing for generations. We remain in the belief that we are the best people to provide the best and safe night for the vast majority of people but are often seen as the fall guy and the easy target for local politicians and police forces looking for headlines.
Ian Payne, chairman, Stonegate Pub Company
Vince Cable.
Simon Wilkinson, chief executive, La Tasca
Maintaining market share while new openings continue at pace throughout the UK. And the World Cup, which devastates sales for a month.
Chris Welham, managing director, Spirit Leased
The BIS [Department for Business, Innovation & Skills] consultation and its outcome – this is causing uncertainty and potentially could impact our plans for the future which isn’t helpful when in our view self regulation is working. The unintended consequences of some of the proposals could be seriously damaging to growth and jobs for the pub sector in general.
John Leslie, chief executive, Intertain
The biggest challenge remains the lack of growth in personal disposable income. It is good to see more positive messages over economic growth which will help confidence and I hope this will drive footfall growth.
Alex Reilley, managing director, Loungers
People. With 15 sites due to open next year getting good people will be our biggest challenge - the talent pool is quite shallow and with more brands stepping up their roll out competition for the best people has intensified.
Brandon Stephens, founder, Tortilla
The biggest challenge for the company, as always, is securing good quality property at the right deal.
William Lees-Jones, managing director, JW Lees
Maintaining growth and finding new sites that hit our spec without having to compromise.
James Baer, managing director, Amber Taverns
The health fanatics, unless they make a New Year’s Resolution to put their own house in order before criticising others.
Jamie Barber, co-owner, Cabana and Hush
Site acquisition.
Phil Thorley, operations director, Thorley Taverns
I think our biggest opportunity continues to be with our food-led sites, where we are pushing forward with both margin and turnover.
Question 2: What do you believe will represent the biggest opportunity for your business in 2014?
Ian Payne, chairman, Stonegate Pub Company
To persuade those young people entering the job market that our industry offers them the greatest career opportunity.
John Leslie, chief executive, Intertain
We have a number of great opportunities in 2014, the top three being:
a) To build on the Walkabout brand evolution work completed in 2013 and continue the investment programme
b) To drive benefits from our digital strategy including the new website and booking engine launched at the end of 2013
c) FIFA World Cup!
Jens Hofma, chief executive, Pizza Hut UK
Biggest challenge for Pizza Hut: intensely competitive marketplace.
Biggest opportunity: biggest ever investment programme to transform the experience of millions of Pizza Hut guests.
Alex Reilley, managing director, Loungers
Availability of great sites and a steadily increasing consumer confidence.
James Baer, managing director, Amber Taverns
a) Not just the World Cup but four English teams into the last 16 of the Champions League and a really exciting and unpredictable Premiership that will go the wire
b) The opportunity to develop more pubs that demonstrate that with the right model, wet-led has a future
c) To build on the growing awareness of politicians that supporting our industry is good for the economy.
Simon Wilkinson, chief executive, La Tasca
Retaining and developing people.
William Lees-Jones, managing director, JW Lees
Being quicker and better than our competitors.
Brandon Stephens, founder, Tortilla
The possibility that the Tories may loosen the restrictions on A3 Planning! If that happens you’ll see a proliferation of restaurants on the high street.
Stephen Goodyear, chief executive, Young’s
For Young’s and Geronimo, our focus will be on maintaining the momentum we achieved in 2013 and building on the strong like-for-like performance we have already delivered. Alongside this, we’ll be looking for selective acquisitions to complement our existing managed estate, and we think there is more to go for in terms of improving the performance of our smaller tenanted estate. Overall, we feel pretty positive about the year ahead.
Peter Marks, chief executive, Luminar
We believe our opportunity lies with further investment in our businesses that are delivering for both the customer and the company.
Jamie Barber, co-owner, Cabana and Hush
The World Cup in Brazil (given, obviously, that we are a Brazilian restaurant group).
Chris Welham, managing director, Spirit Leased
All of our licensees delivering a first class guest experience.
Phil Thorley, operations director, Thorley Taverns
I think the biggest challenge we have going forward continues to be our fight with people staying at home.
And finally…
Stephen Wall, co-founder of Pho, said: “Good staff and good sites on both counts.”
