Pubs innovate to stay in business, report finds
More than 90 per cent of publicans have introduced innovative ideas to pull in business during the recession, a poll of British Institute of Innkeeping members has found.
In addition to serving drinks and food, 94 per cent of publicans said they had diversified into new areas such as offering accommodation, post office services and hosting community groups in their pubs over the past 12 months with another 6 per cent claiming they were planning to do something shortly.
The Licensed Hospitality 2009 – A Labour Market Review of the Pubs, Bars and Nightclubs Industry report, produced in partnership with hospitality skills council People 1st, found that 84 per cent of publicans had invested up to £5k in introducing new ideas with 52 per cent of respondents expecting a return on their investment within six months and 30 per cent expecting dividends within a year.
Community pubs have been amongst the most innovative businesses during the recession. Earlier this year, 500 publicans signed up to a scheme launched by Use Your Local.com which enables customers to pick up parcels from their local pubs. Others have offered cut price food and run themed events to pull in extra trade.
“Whilst this has been a challenging year for the licensed hospitality industry, along with other industries, the report clearly highlights that those who innovate, diversify and match their offer to customer demand can do well,” said Brian Wisdom, chief executive of People 1st.
The report also found that while more pubs were offering food and had seen an increase in the number of chefs working in pubs than over the past three years, recruiting chefs was a problem for one in five operators, although recruitment in other areas was not a problem.
Training opportunities for pub staff are found to be increasing with 71 per cent of pubs, bars and nightclubs offering employees training compared to 64 per cent in 2005.
Neil Robertson, chief executive of the BII, said pubs that introduced both new ideas and invested in staff would inevitable reap the most rewards during the recession.
He said: “The best results are more often than not achieved when all staff members are consulted and involved in the growth and development of a business. A great licensee is one who really values his or her staff and actively encourages their training and career development, as well as constantly reviewing their own skills set.”
The full report can be found at www.people1st.co.uk or www.bii.org.
Find out how one landlord has been getting on after erecting a post office in his pub, courtesy of Kent TV:
