Question: I recently took up the offer of a lease on a pub. It is owned by a relative and they offered a reasonable rate and given the lack of other opportunities these days I decided it was worth a go. I don’t have specific experience of running a pub but I do have a good business background. Of course I have some experience of the customer side of the counter too. The pub was operating on a ‘part-time basis’ opening for a few hours during the week and longer on weekends. We are located in a small town (name supplied) that I’d rather you not name. It is typical of the trade country wide – things are pretty tough. I’d like to think I can bring an enthusiasm and good level of customer service in my approach. I have already extended the hours and addressed simple issues like interior décor, standards of the toilets and overall cleanliness. What else might you suggest I consider in the short to medium term to try and ensure that there is a long term for me in this endeavour.
Answer: I’m impressed with your ‘enthusiasm and Customer Service’ intentions and I will come back to these issues later. You have a business background, so you know the basics; Revenue – Costs equal Profits, and Cash Flow is king. You got a reasonable rate on the lease. Good. You should formalise that agreement and, if you can, extend it well into the future. We often hear of people returning from foreign holidays with tales of dinner for two with wine costing only €22 – I’ll bet they were in premises that was family owned (no high mortgage or lease payments), they were served by the owner’s daughter and the owner was cook. Issues like your utility charges, supplier’s rates/discounts, staff costs, insurances and of course lease rates are all matters for your greatest attention. Plus you have to manage your cash – poor cash flow management is the most common reason for business failure. Here’s a question: You don’t drink and drive do you? Running this business is a lot tougher than driving a car. So I suggest you should never drink in your own pub.
On the issue of Enthusiasm and Customer Service …I talked to a couple of successful publicans (yes there are some) and they made some great points. The pub is not a job it is a vocation. Forget the 40 hour week; forget getting someone else to manage it for you. ‘Tis said “you have to have your heart in the business and the business in your heart”. In essence YOU are the business, you have to get to know your clients, it is how you make people feel that dictates success. I loved the story one told me how he had to throw someone out “because they got a bit stroppy” and then he dropped them home, “Sure he couldn’t drive in that state”. Another mentioned the simple idea of a greeting and smile for everyone who walked in and a; “Thanks and good luck” for all leaving.
Never underestimate the value of a free drink – you’ve heard of the ‘Christmas Drink’ – but you don’t have to confine it to one time of the year. If you knew of an upcoming birthday (remember I said you must get to know your clients) … wouldn’t a free birthday tipple be a nice surprise?
How else are you going to build revenue levels … get people in the door, get them to stay and come back again? Consider the music you play in the pub… live entertainment … a performance venue for local talent … a card school … table quiz nights … darts competitions … karaoke … speed dating … bonny babe / boyo competition … birthday parties … a pick up/drop home service … after work specials … excellent coffee … a great bowl of soup … a Facebook page to keep clients/followers up to date … your front window as advertising billboard … you said you addressed décor – how welcoming does the outside look …open your mind, be creative, try things, if they don’t work try other things.
To summarise, it was Walt Disney who said; “Give the public everything you can give them, keep the place as clean as you can keep it, and keep it friendly”.