M&C Report’s departing group editor Rob Willock reflects on the seismic changes he has witnessed in the pub sector during his time at the title - including the pubs code, the extension of the pub business into previously uninhabited day parts and ever encroaching red tape.
By the time you read this, I’ll be on my way to the airport, bound for pastures new (well, deserts new) in the Middle East.
I’ve spent nearly three and a half years as group editor of M&C Report and the Publican’s Morning Advertiser. And while – for the latter – that represents just a fraction of the venerable title’s 221 year existence (1/64th to be precise), those 174 weeks have felt like a long time in the pub sector.
For the casual dining and food-on-the-go operators among you, please forgive the pub focus of this valedictory article, but the sector is front of mind for me following last week’s Publican Awards.
I joined William Reed Business Media in November 2011, and no sooner had I arrived in the group editor’s chair than the government issued its response to the Business, Innovation & Skills Committee’s Report into pubcos’ relationships with their tenants.
It said: “The government is not minded to intervene in setting the terms of commercial, contractual relationships… Legally binding self-regulation can be introduced far more quickly than any statutory solution and can, if devised correctly, be equally effective.”
Fast forward to March 2015 and that same government is intervening in quite a serious way, putting the finishing touches to a ‘statutory solution’ which, followed to its logical conclusion, will break the beer tie.
Lots of other things have happened on my watch, including: three consecutive beer duty cuts (good news); the introduction of Early Morning Restriction Orders and Late Night Levies (bad news); and the creation of Assets of Community Value (depends on your perspective).
Some other things haven’t happened, at least yet, notably: the proposed up-to-4,000% PPL music license tariff increases (good news); a cut in VAT for hospitality businesses (bad news); and the introduction of minimum pricing for alcohol (depends on your perspective).
But what is happening right now is a sustained economic recovery from a long and deep recession, which, more than any legislative tinkering, will help to secure the future of the pub sector. Estimates put per-pub sales growth at 16% over the next four years, with the winners being those who innovate their way to becoming increasingly relevant for today’s modern, adventurous, but promiscuous and easily distracted consumer.
Which brings me on to another theme of my tenure – the extension of pub businesses into previously uninhabited day parts. By developing breakfast, brunch or coffee and cake offers outside the traditional trading windows, savvy retailers are now sweating their assets harder, creating new revenue streams and keeping staff more gainfully employed in what would otherwise be down-times.
And in doing so, they are becoming all things to all people. Being a café/restaurant/pub/nightclub, depending on the time and day of the week, opens up so many more sales opportunities, and increases the potential relevance of pubs to a broader cross-section of customers.
Much has been made of the phenomenon of hybridisation in the on-trade, led – arguably – by the likes of Loungers and Wetherspoons. But it’s more than that for the very best operators. It’s ‘chameleonism’ (if you’ll let me coin a phrase, as my colleagues at Allegra Foodservice like to do), by which clever venues change their personalities (via their menus, product mix, lighting, music, furniture and layout) from session to session or according to a specific event or group booking.
Because of their relative informality, pubs provide versatile spaces that lend themselves to almost any gathering in almost any circumstance. But most haven’t yet fully exploited that advantage against their often more one-dimensional restaurant competitors.
Concepts like Stonegate’s Common Room, the New Inventive Bar Company’s Revolution and Revolucion de Cuba and Bar Holding’s Sports Bar & Grill – all finalists in last week’s Publican Awards – flex their spaces effortlessly, morning, noon and night. And I’m sure you can think of many more examples.
Talking of the Publican Awards, I can honestly say it was easily the most buoyant, positive and exciting event of my time as group editor. As they say it’s always good to go out on a high.
If it is at all representative of what is happening in the wider market, I am pleased to report that, after surviving an unprecedentedly tough few years, the pub industry has finally, fully relocated its mojo (with apologies to the aforementioned Allegra!), and is back with a vengeance.
That confidence is manifesting itself some very tangible ways. Our awards judges – myself included – witnessed fantastic levels of innovation among our finalists, whose customers are responding with more frequent visits and higher levels of spend. And we saw some bold, creative investment projects that are generating stunning returns.
Provided we avoid a business-confidence-sapping election result in May, the next few years are going to be a great time to be in pubs – either as an operator or customer. Sadly for me – for a while at least – I won’t be part of it. There isn’t a pub scene as such in Dubai – alcohol can only be served within the confines of a hotel bar – though I am told the expat Friday brunch is a tradition worth upholding, and I understand that particular day part is well served.
If you’re ever in Dubai, do look me up. I’ll be at a hotel bar reminiscing about the great British pub, and will be very pleased to see you there. I reserve a special place in my affections for M&C Report subscribers – a discerning group of senior industry professionals, if ever there was one.
It’s not as exclusive a club as it was when I joined the business – which is a good thing, as the number of subscribers has more than doubled in that time, despite an increase in competition. There are lots of ‘information services’ vying for your attention and inbox space, but in my humble opinion, M&C Report remains the benchmark – a trusted, independent, consistent source of exclusive news and meaningful insight. Sometimes I wonder what all the ‘churnalists’ would cut and paste if the M&C Report team took a week off. Which they never do. Editor Mark Wingett and his team are the best in the business, and it’s been a pleasure to work with them – your publication is in safe hands.
It’s also been a privilege to get to know you all over the past few years – across the whole eating and drinking out spectrum. What a great industry this is, what fabulous businesses you run, and what amazing people you are. I will miss you greatly. So until I return one day and try to find my way back into this sector – if you’ll have me –thank you and best wishes.
