Inside Track by John Harrington
Could 2012 be the year the pub industry finally gets its act together on training? This isn’t just about the customer-facing side of things (more on that later). The past year or so has seen a quiet revolution take place around the training of business development managers (BDM) at tenanted pubcos, and changes are now beginning to take shape on the shop floor.
Last February I attended a session in Birmingham led by the BII in which its former CEO Neil Robertson was extolling the virtues of its new Level 4 Certificate in Multiple Retail Management. In the audience were individuals from a range of tenanted companies, big and small. Some were clearly open to the embracing the idea, while others were more sceptical.
But, crucially, pubco giants Punch Taverns and Enterprise Inns promised to rollout the course across all their BDMs (both firms would run the courses internally), and others have subsequently done so too.
Any operator dragging its heels has had little choice but to follow suit. The updated Framework Code of Practice, agreed by pubcos and the Government last December, said BDMs must receive training and keep a record of their progress to BIIBAS, which accredits pubco codes.
Some might say that the qualification simply codifies the good practice that already exists; the four compulsory units were effective communication in business, capital expenditure, profit & loss, and interviewing skills. But nevertheless, it was an important step to show the wider world that the tenanted pub sector is taking training seriously.
Last week Punch Taverns outlined details of the revamped training programme for its business relationship managers (BRMs), which will see them renamed partnership development managers (PDMs) with, it’s hoped, greater knowledge and skills to help its licensees compete in this difficult market.
It’s clearly a step in the right direction. It makes sense that the new breed of PDMs have greater understanding of the practical aspects of running pubs, down to food offers and wine education. It’s also logical that PDMs are required to visit their pubs during peak hours and provide feedback.
The need for such advice was spelled out in the Tenant Track survey from him! of 949 tenants from 13 pubcos, reported in M&C Report's sister title Publican’s Morning Advertiser last week. Put simply, tenants want more help than ever. On the food side alone, 47% wanted help with menu ideas, up from 34% last year, while 57% want advice on how to increase food sales (2010: 47%).
The main challenge will be ensuring that the changes are carried through on the ground. More widely, the tenanted sector in general is likely to have a job on its hands persuading politicians it’s taking BDM training seriously. The Business, Innovation & Skills Committee is clearly frustrated the subject hasn’t been tackled more urgently in the past. Its report from last year said: “Such is the deep-seated culture of poor relations between pub companies and lessees that BDM training should have been considered a priority”.
However the Government chooses to monitor industry reform, it’s clear that improvements in BDM training must form a key part of the message that pubcos are changing for the better.
Equally important for the wellbeing of the industry is staff training and the nurturing of young talent. There were encouraging signs last week that the BII is to launch a further development in its apprenticeship programme in the summer.
It’s still relatively early days, but the drive towards apprenticeships is being embraced by the pub sector. In November, Marston’s announced it would be the first company to offer the new BII Level 2 Apprenticeship in Licensed Hospitality, and others are expected to follow suit. JD Wetherspoons’ own apprenticeship scheme, launched over a year ago, has been rolled out nationally over the past six months, and the company revealed on Friday that it has already provided employment opportunities for 500 young people.
On the face of it, the industry’s own attempts to provide employment for young people have proved more successful than the Government’s own work experience programme, Back to Work. The scheme has been branded “slave labour” by critics; unemployed young people work for free for between two and eight weeks in order to keep job seekers allowance. It’s notable that two major players in the eating out sector, Burger King and Greggs, have chosen to exit the programme on the back of concerns.
There’s a long way to go, but signs are that the pub industry is showing renewed enthusiasm for training and professionalising its workforce. And, crucially, the net result will be a boost to employment at a time when the economy needs it like a shot in the arm. Perhaps that’s something the Government should bare in mind when it considers adding fresh tax burdens to the sector.
Thank God for Karen
They say timing is everything, but to have TGI Friday’s impressive full-year results appear the day after managing director Karen Forrester was named Best Individual at this year’s Retailers’ Retailer Awards, was bordering on being too good.
What they highlighted (FY like-for-likes up 7.7%, EBITDA up from £11.7m to £16m), if any highlighting was needed, was the significant strides the chain has made under Forrester’s stewardship.
Over the last five years she has been the driving force behind reinvigorating, re-energising and refocusing one of the most iconic brands in the world of casual dining. She has overseen over two year’s of continuous growth, while at the same time, the chain has continued to achieve high standards of, venue, service and offer.
It’s no wonder her peers were quick to recognise her efforts.
