With August fast approaching and many sectors leaders heading for their summer break, MCA caught up with a few of them to gauge their impressions of the year so far. Discussing their thoughts on successes, surprises and challenges of 2018, and their predictions for the closing months, as well as countering some misconceptions about the sector are: TGI Fridays’ Karen Forrester, Gerry Carroll of Hawthorn Leisure, Amber Taverns’ James Baer, Nick Collins of Loungers, Bistrot Pierre’s Nick White, Simon Potts of the Alchemist and Scott Collins of MEATliquor, among others.

Clive Chesser, chief executive, Punch

What are you most proud of within your business so far this year?

Being so new to the business I can claim no credit, however the entire Punch team should feel hugely proud of how they have successfully managed through considerable change over the past year. They have dealt with all the uncertainty of a change of ownership, worked with the HUK business to transfer 1900 pubs with minimal disruption, whilst at the same time moving our distribution network over to Marston’s. In addition I would like to thank our publicans for dealing with the same changes in such a positive and supportive manner.

Is there anything you hoped to achieve that has so far been frustrated?

We are keen to further increase the level of capital investments with our publicans, and the team are now focused on accelerating an intensive programme of investment delivering genuinely transformational schemes for our publicans.

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

I think that every year throws up unexpected challenges but most recently we have all had to manage through the C02 issue. This created a real risk to our business at a time when the English weather and football team were both exceeding our expectations, but the Punch team dealt with these issues excellently and we had very minimal impact on our pubs.

Is there anyone in your business that you would like to highlight as having performed above and beyond expectations so far in 2018?

I would personally like to thank my CFO Steve Dando for holding the reins so professionally during his stint as Interim CEO.

What do you hope to achieve before the end of 2018?

We have many internal goals to achieve this year, but primarily ensuring that the Punch business is now set up to thrive in an exciting future full of opportunities.

Do you feel more or less optimistic about the sector now than you did at the start of the year?

The sector is facing significant headwinds with rising costs and the economic and political uncertainty caused by Brexit, however I remain confident that the public’s love for the Great British pub has not diminished and, when delivered at its best, is stronger than ever. We all know that well run businesses can still win market share and deliver outstanding growth.

When MPs return from their summer break what should they be discussing that would significantly support the sector?

As an industry we pay disproportionately high levels of tax when compared to others. I believe that MPs should be looking at ways to support us through Business Rates, Duty, VAT etc whilst recognising that the cumulative effect of all of these taxes makes it more challenging for us to continue to invest in local communities and to offer much needed employment opportunities to people of all ages.

If you could counter a common misconception in the media / consumer mindset about the sector, what would that be?

I think the industry is making great strides however we still need to work harder to portray a career in hospitality as being an aspirational career in a professional and dynamic environment.

Karen Forrester, chief executive, TGI Fridays UK:

What are you most proud of within your business so far this year?

My Fridays Family - they make me proud every single day. Over 25,000 pieces of individual recognition have been awarded for far this year .

It IS who we ARE !

Is there anything you hoped to achieve that has so far been frustrated?

Our greatest enemy is the sun, this prolonged heatwave has interrupted our growth story but we know it will return as our guests will be craving their Fridays ‘fix’ . Newsflash …. our Trafford Centre Restaurant beat its all time daily sales record on Saturday!

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

Only the extended heatwave , compounded by England’s excellent World Cup performance. Effective sales forecasting has been a real challenge. Great for pubs, but not for us .

Is there anyone in your business that you would like to highlight as having performed above and beyond expectations so far in 2018? If so, why?

Our operations team and front line managers have been heroic in leading , developing and inspiring our teams to deliver outstanding guest experiences within our 4 Walls as well as continuing to open fantastic new restaurants - our latest opening in Romford has just taken 65k net in its first full week of trading .

What do you hope to achieve before the end of 2018?

Setting new records in team engagement and guest satisfaction and smashing sales records across the country .

Do you feel more or less optimistic about the sector now than you did at the start of the year?

Definitely more optimistic. Recent months have been tough but people continue to eat out and always return to distinctive and trusted brands.

When MPs return from their summer break what should they be discussing that would significantly support the sector?

Continue the focus and progress on free movement post Brexit .It is imperative in supporting the continued growth of our industry.

If you could counter a common misconception in the media / consumer mindset about the sector, what would that be?

With nearly one in ten people working within the hospitality/tourism sector it is such an important employer for the UK. Many believe that we offer “ quick to learn “ jobs for people who are still deciding what to do in their working lives. I believe that we offer excellent development and growth opportunities for all. We develop our people so that within a couple of years they can grow from a front line team member to leafing a £1m business with a team of 60.

Nick Collins, chief executive, Loungers

What are you most proud of within your business so far this year?

Our teams managing to ensure every single site opened on the various snow days. It seems a long time ago given recent temperatures, but it really demonstrated their willingness and commitment.

Is there anything you hoped to achieve that has so far been frustrated?

Not really

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

Plastic straw-gate took us a bit by surprise, but it’s a great outcome for the environment.

Is there anyone in your business that you would like to highlight as having performed above and beyond expectations so far in 2018?

The list would be too long.

What do you hope to achieve before the end of 2018?

More of the same

Do you feel more or less optimistic about the sector now than you did at the start of the year?

More

When MPs return from their summer break what should they be discussing that would significantly support the sector?

Rates, VAT and Brexit

If you could counter a common misconception in the media / consumer mindset about the sector, what would that be?

That the high street is dying. We are opening on thriving high streets across the country and see successful regeneration projects that are making a real impact. Hats off to the local authorities who are making it happen.

Simon Potts, managing director, The Alchemist

What are you most proud of within your business so far this year?

The acquisition of the St Martin’s lane site is an important landmark for the business, it’s a big step and statement of intent for the ambition we have as a young management team, it also represents a tremendous amount of work on the part of our property guys. Secondly the partnership with foodinate we launched in May the #eatmealgivemeal scheme is brilliant - it’s a collaborative effort that allows us to directly impact those in need in each of our local communities – in two months we have donated 6,093 hot meals

Is there anything you hoped to achieve that has so far been frustrated?

We had hoped to announce a further location in London at the start of the year but were frustrated by local planning and licensing conditions

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

We’ve been surprised by the remarkable run of hot weather – it’s shifted peoples habits over the last couple of months and has highlighted the fact we need a better balance of seasonality in our venues and the value of external space

Is there anyone in your business that you would like to highlight as having performed above and beyond expectations so far in 2018?

One of our long standing General Manager’s – Hannah Martin has relocated to London as an area manager to give us a proper operational capacity and focus for the upcoming venues in the capital later this year . It was a brave move and is a fine example of the appetite we have at all levels of the business. She has had a fantastic impact in the southern venues already and is engaging with the wider hospitality community in the city. I expect her to excel in her new role and believe she’ll be one to watch in the future.

What do you hope to achieve before the end of 2018?

We have done a good job of growing the brand’s footprint around the country over the last 18 months, but have done so at sensible rate, without losing focus on our mature sites – we strive to maintain that focus each and every day and if we continue to deliver performance from that part of the business, as well as the shiny new venues – then we give ourselves a real platform for long term, serial success.

Do you feel more or less optimistic about the sector now than you did at the start of the year?

More, I know we’ve gone through a very tough period and I’m not revelling in the demise of some of the casual dining brands by any means – but I believe that good, focussed operators are reacting and delivering overall a better offer to the consumer. The market has forced everyone to improve and innovate or else fail.

When MPs return from their summer break what should they be discussing that would significantly support the sector?

The unwieldy and poorly applied planning and licensing process that restrict growth and diversity of the night time economy. Writ large in Hackney right now, this is an issue that effects almost every location in some form or other.

Nick White, chief executive, Bistrot Pierre

What are you most proud of within your business so far this year?

I am very proud of the way the whole team has responded to a number of new initiatives which we have developed to help cut costs or grow sales. Ultimately everything we do filters through each GM and restaurant team and they have all been brilliant at the day job and reacting to new things.

Is there anything you hoped to achieve that has so far been frustrated?

Yes, we have wanted to make a number of changes to our loyalty, email and database systems and this has taken much, much longer than I had hoped

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

We have never discounted, and January and February were tough for us as everyone around us, even brands that hadn’t historically discounted, reacted to the market. I’d say we were un prepared and had to react very quickly

What do you hope to achieve before the end of 2018?

We are a small but growing business and my first 6 months as CEO have been about building people capability in key roles and getting a longer-term strategy in place. We are almost there on both counts. I’d like to tick both boxes by Christmas

Do you feel more or less optimistic about the sector now than you did at the start of the year?

More

When MPs return from their summer break what should they be discussing that would significantly support the sector?

Sort Brexit, one way or the other. Be sensible with NMW increases and consider taxing online retailers, such as amazon that don’t pay much tax, at the point of sale ie with a higher VAT rate.

If you could counter a common misconception in the media / consumer mindset about the sector, what would that be?

Two things. First, we desperately need migrant workers to fill the gaps and there are many. Second, that this is a low paid industry. With a good distribution of tips everyone can earn above the NMW.

Scott Collins, managing director, MEATliquor

What are you most proud of within your business so far this year?

Not going under

Is there anything you hoped to achieve that has so far been frustrated?

Retiring

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

An actual English summer

Is there anyone that you would like to highlight as having performed above and beyond expectations so far in 2018? If so, why?

Martin from M restaurants for trying to buy every restaurant group entering a CVA

What do you hope to achieve before the end of 2018?

A holiday

Do you feel more or less optimistic about the sector now than you did at the start of the year?

I’m drinking no more or no less so I’d say about the same

When MPs return from their summer break what should they be discussing that would significantly support the sector?

It’s more WHERE they should be discussing these issues… Preferably in one of our venues so we see some of their expenditure.

If you could counter a common misconception in the media / consumer mindset about the sector, what would that be?

Hospitality is not a job, it’s a lifestyle (someone cleverer than me said that)

Gerry Carroll, chief executive. Hawthorn Leisure

What are you most proud of within your business so far this year?

Hawthorn Leisure has been operating for four years and, within this short space of time, we have built up an extremely credible company. I am very proud of our team; from the head office and field team, to our Partners and Managers who are at the heart of everything we do. Everyone who has joined our business has really bought into our company values and that is something that really is quite unique. Our edgy energetic spirit means we think differently to other pub companies. This, in addition to our other values, make it happen, think different “the crazy ones”, winning together and respect, have guided the way we conduct business and supported our reputation for great people, great pubs and great propositions.

Our values are our cultural way of doing business. We have built fantastic relationships with our Partners and Managers, which has contributed to Hawthorn Leisure outperforming the market over the last three years. I’m humbled to say that we have had people turn down working for bigger businesses and on better salaries to come and work for us, simply because they want to work within the culture we have designed.

Is there anything you hoped to achieve that has so far been frustrating?

When you start a business from scratch, there are multiple times you could reflect back on and say I wish I’d done it differently. Naturally, you have lots of obstacles that are thrown your way and the ultimate success or failure of the business depends on how you approach overcoming those obstacles. It’s very easy to look at it the other way around and then get clobbered by challenges that result in heads going down and the business performance starting to spiral down. Our approach is if we see a challenge or problem, we tackle it head on and try to look at it positively. If something is going the wrong way, there is always an opportunity to think about it differently and act on it.

We had lots of challenges within the first 12 to 18 months and if you could have listed all the things that could have gone wrong, they probably did go wrong. However it’s about finding the positive through that and if you can, then ultimately, you will end up with a really strong and successful business.

A key focus for us is our Partners’ profitability. We realise if we are the only ones making money, then it means our business hasn’t got a long-term future. We think it’s because people see us being committed to the profitability of our Partners that they trust us and know it builds positive relationships. We’ve tried to reinvent the Leased and Tenanted model, into a much more positive, dynamic way by building trusting relationships with our Partners, whilst giving them the reassurance that they are never going to get ripped off.

Is there anything you’ve been forced to react to that you never expected at the start of the year and/or has had a significant impact on business?

The Co2 shortage is an example of something you can’t really prepare for. However, by working together and using our great supplier relationships, we engaged with them and worked through it sensibly together. The issue affected some pubs but, in the end, this was managed through in a positive way with suppliers, other pub companies in the industry and our Partners all supporting each other. Ultimately, we act quickly but think about things and engage with others before we act.

Is there anyone in your business that you would like to highlight as having performed above and beyond expectations so far in 2018? If so, why?

One of our values at Hawthorn Leisure is about “winning together”. We know our success is down to the power of the team. Every single person has played their part in the business and I couldn’t single one individual out.

Every month we have an internal huddle meeting, where we identify people that have done a great job and reward them with a bottle of Prosecco. It’s not about the value of the prize, but recognising their hard work and appreciating what they do for the company. By doing this, it creates a culture of people wanting to do things in a positive way and they care and support Hawthorn Leisure.

What do you hope to achieve before the end of 2018?

As you will remember, Hawthorn Leisure was acquired by NewRiver REIT plc in May this year so our primary focus for 2018 is continuing the integration of Hawthorn Leisure into the NewRiver family. The integration is progressing well and is on track for completion in early 2019. We are working with the combined team to look at how we can apply Hawthorn Leisure and NewRiver strategies, taking a best of both approach to the integration.

There are clear synergies between Hawthorn Leisure and NewRiver and the strong business culture and ethos that we share. One of the great things about the NewRiver and Hawthorn Leisure integration is that NewRiver also put people at the very front of their thinking. Therefore, there is really strong alignment on these values and the NewRiver team sees a great opportunity in developing much stronger relationships with the Partners and the pubs. We have also created a strong team within Hawthorn Leisure, and are keen to support the combined estate to achieve the best possible results. Of course, we are in the early stages of unlocking the potential for the combined estate, but the future is set to be exciting.

Do you feel more or less optimistic about the sector now than you did at the start of the year?

For our business, we are massively optimistic because we have already had an incredible four years and are now moving onto our next stage with NewRiver. Effectively, we are part of a combined portfolio of 627 pubs, unlocking new opportunities for both the Hawthorn Leisure and NewRiver businesses. We are very confident that over the next couple of years, the business is going to continue to grow substantially. We will be very focused on developing our relationships with our people and the pubs, getting the proposition right and investing in the estate.

We will continue to benchmark the competition, but we don’t follow the crowd. We’re comfortable in going our own way and making it happen.

When MPs return from their summer break, what should they be discussing that would significantly support the sector?

Politicians need to understand the impact their decisions on business rates has had on our industry. High Street chains are failing every week, together with a large number of restaurant groups. This is largely down to the government policies, which have increased costs for all businesses, rises in business rates and increased costs dealing with red tape

The reality is that they need to deal with the business rates debacle now. They need to consider, before they apply any new initiative, what the cost impact on businesses could be, or better still have a cost neutral policy with a pre-requisite that any new policies do not increase the cost burden for business. How they think they can double a fixed charge, such as business rates, without it having an impact on a business is just senseless.

If you could counter a common misconception in the media / consumer mind-set about the sector, what would that be?

That there is very little positive news about the leased and tenanted model and I think there is a real misconception on this. If the model is managed and applied fairly within the sector, then it’s a really fantastic model. It allows people to set up their own business, in a very low-cost entry way, and if the relationship between the pub company and the Partner running the pub is a proper partnership, where both parties recognise you are trying to build a profitable business for both of you, then it really does work – and in Hawthorn Leisure, we deliver on that. We have very good relationships with our Partners and invest heavily into our estate. We give real business advice; we run our pubs on a very low ratio of BDMs to pub, so that the BDM can spend time with the Partners to build long lasting relationships. Our expectation is that our BDMs visit our pubs at least once a month and have a proper business discussion with our Partners. Typically, it is often a lot more than this, especially if we are investing or if someone has got a particular difficulty, we would expect the BDM to be in there within that week. You can only do this if you invest in your people – and we are able to do this because we have more BDMs per pubs than most other pub companies. We invest in people, not pamphlets. What I mean by this is having BDMs who have the skills and knowledge to talk to our Partners and help build profitable and valuable businesses.

There is a lot of trust, and trust is only built by actions. If we say we are going to do something, we do it and we really empower our BDMs as they are the ones making the decisions. Sometimes they are right, sometimes they are wrong, but we make the decision and support it. You have to have the right type of BDM that can work with the Partner to build the business.

Other comments

The World Cup, along with the weather, has been a great launch pad for pubs this summer, especially community pubs. I think it has brought them back front and centre within a lot of communities. If local pubs can have the right offering, then we really should be trying to use it as a springboard to re-establish community pubs where they may have lost contact with locals over the last few years.

Eddie Holmes, managing director, Chop’d

What are you most proud of within your business so far this year?

Keeping product quality and province market leading staying true to our brand not panicking with trading fluctuations

Is there anything you hoped to achieve that has so far been frustrated?

Nothing significant although my search for the perfect Negroni still continues

Is there anyone in your business that you would like to highlight as having performed above and beyond expectations so far in 2018? If so, why?

To many to mention I am so lucky to work with such dedicated professionals in all aspects of our business especially the guys who work so hard produced the best salads in the country

What do you hope to achieve before the end of 2018?

Opening new stores of which we have a number sites in negotiations

Do you feel more or less optimistic about the sector now than you did at the start of the year?

More optimistic

When MPs return from their summer break what should they be discussing that would significantly support the sector?

Agreeing to nullify the 2016 referendum as clearly the electorate was lied to, accept that leaving the EU is nonsensical and stop the whole process so they can get back to running the country properly

If you could counter a common misconception in the media / consumer mindset about the sector, what would that be?

Plastic is not the problem, people’s behaviour is

James Baer, managing director, Amber Taverns

It has been a mixed year so far with the beast from the East disrupting trade in the spring and then a good World Cup.

Our challenges , in common with most of the industry , are mainly round costs .

Business rates need to be addressed but a) Government has a few other things on its plate and b) there’s no votes in it . Worryingly I see beer duty is one of the ways the Governmentt is thinking of raising money for its NHS splurge.

I feel reasonably positive about the rest of the year provided the Governmentt sort out a way through Brexit and we avoid a Corbyn take over of the country.

As ever this year has been a team effort .

Mark Lilley, chief executive, Abokado

What are you most proud of within your business so far this year?

My team has done an extraordinary job reinventing core Abokado ranges and not only bringing them up to date but leapfrogging the competition. This is such a tricky, even risky exercise when it involves ranges you’re famous for and which are the backbone of your business. But through a combination of extensive market research, thorough in-store testing (this is key!) and superb execution and marketing, the relaunches of our core sushi and salad ranges have been incredibly well received by our customers, both new and old. Our salad sales alone are running at +40% year on year!

When MPs return from their summer break what should they be discussing that would significantly support the sector?

I’m getting increasingly concerned about the prospect of a no-deal Brexit. We all fought so hard in the sector to combat the cost inflation that hit after the Brexit vote and the consequent shift in Sterling. Two years on and we’ve just about absorbed this. To face another, potentially more serious, shock to ingredients prices next year would not be welcome and for much of the sector possibly not sustainable. The reality is that the UK can’t be 100% self sufficient for fresh ingredients such as fruit and veg which can’t be stockpiled. At Abokado we use a lot of these! So as a country we absolutely need to be able to trade with Europe. I’m still hopeful however that the UK will end up with the right result.