GUEST BLOG: Publicans and their P + L

By Alan O’Neill, managing director of Kara Change Management

In the ups and downs of the business world, we’re all very used to dealing with opportunities and threats that come our way. When the threats are as significant and forceful as in recent times, then the learning curve can be very steep indeed.

Publicans however have had to cope with a bit more than others due to legislative changes. The smoking ban and the more stringent drink driving laws have directly affected footfall into pubs. The knock-on impact has changed our drinking habits but not necessarily reduced our alcohol consumption. It just means we have shifted our buying pattern and the off-trade is reaping the rewards.

Whether you agree with the legislation or not – publicans still have a business to run and they have to answer to their P+L. So what can they do? Is it about more events and promotions – is that the answer? Not likely. Even if the event was the most innovative and interesting idea ever, it could fail if the basics are not right.

Reach for a mirror

Before developing ideas to drive up the footfall, publicans might take time to look at the business from a customer’s perspective. Even if with a magic wand they doubled your numbers, that doesn’t guarantee success. Like with any business, the objective for a publican is three-fold, they want customers to spend money today. They also want them to come back again sometime in the future. And of course they want them to tell their friends about the positive experience. So a good place to start is with the basics.

That might begin with a fresh look and a reminder of the DNA of the pubs own brand. Thinking about the customer base and profile, what kind of customer experience is appropriate? There’s a place for everyone, whether that’s three, four or five star. But once it’s been decided where to best fit in the competitive marketplace, then the experience has to live up to that aspiration.

Focusing on the environment – consider what is important to a customer? From the car-park, the exterior, the entrance, the interior including the toilets, what message is being conveyed? Of course safety and standards of housekeeping and hygiene are critical. What does the customer see in terms of décor, layout, seating and colour? What do they hear? Is it appropriate to the time of day and desired customer profile? What can they smell, now that the smoking ban has cleared the air?

These things are so basic you might wonder why they’re even mentioned here. Yet there is much room for improvement. Publicans themselves will acknowledge that standards need to improve in the industry at large. But rather than criticising others, they also need to hold up the mirror. Regardless of whether the offer is premium or not, it’s never acceptable to have poor standards.

Female customers in particular will be greatly influenced by such standards and will vote with their feet. Following a recent workshop with publicans, one pub saw an increase in female customers and longer dwell times, after improving their standards.

Get the product mix right

Rather than the obvious line-up of branded beers and spirits, what can a publican do to achieve a point of difference and stand out from the competition? What about having the best pint of Guinness? Some publicans have developed niche categories such as the most interesting cocktails… a great choice of craft beers… the best selection of wines by the glass and so on. It’s interesting too to see that DAA/ARI had the vision to specialise with their Irish Whiskey collection in Dublin Airport. Why wouldn’t a publican also become the destination for great whiskies, where customers can taste, experiment, learn and share great whiskey stories?

In pubs that serve food, there are similar opportunities to differentiate. Sheridan’s near Tuam in Galway have the best seafood chowder around. They promote it well and customers travel from far and wide to enjoy it – and undoubtedly stay a bit longer too.

Tickle the bar staff

Irish pubs are known the world over for the atmosphere, the range of drinks and not least, the bar-staff. That’s for a number of reasons, including their efficiency and their friendliness. No customer wants to spend time in a pub with a grumpy or rude bar person. So if it means tickling them at the start of the shift and every hour thereafter, then it mightn’t be a bad idea! Or alternatively, they might be told what is expected of them and the implications of the impact they make on customers.

Drive footfall, increase dwell-time

After getting the basics right, only then is it time to think about creative and inspirational ideas to drive footfall, with full confidence that customers will get a good experience. Not only will customers stay longer and spend more money on the day, they’ll come back. And they’ll tell their friends too.