Friday 31 January 2014

Sign Up To Scrap the Duty Escalator

Ahead of the forthcoming Budget the battle has been joined by a new campaign to see the end of the hated Alcohol Duty Escalator!

The Chancellor last year decided not to implement the escalator on beer, and what do you know, as a result, the latest figures show that beer sales have grown - showing consecutive growth in two quarters for the first time in ten years. This in turn has raised more revenue for HMG, protected jobs and seen new investment in the sector. And now Wines and Spirits please!

Do you know that some 79% of the cost of a bottle of spirits and some 60% of the cost of a bottle of wine goes directly to HMG in one tax or another! The alcohol industry in general employs some 2 million people, is a glowing example of excellence, helps tourism, raises billions in tax and at pub level is at the centre of community life. So any action to hold prices down must surely be progressive?

Now there is a new campaign; "CALL TIME ON DUTY" and you can see all of the details on their website: www.calltimeonduty.co.uk

You can also contribute to the campaign by sending the following letter to your MP (courtesy of the campaign). The more they receive the better! So if you want to see the price of your pint, glass of claret and glass of gin not grow once again by 2% above inflation, get an envelope, print off the script below, sign it and down to the post office you go (or maybe email it to your local MP?)


Dear xxxx

I am writing as a constituent to ask you to write to the Chancellor of the Exchequer on my behalf. I would be grateful if you could urge him to call time on his alcohol super tax (the Alcohol Duty Escalator) in the 2014 Budget.

I am supporting the campaign because I cannot believe how unfair the current alcohol tax system is. I find it incredible that if I buy an average priced bottle of spirits, more than three-quarters (79%) of it goes to the Chancellor in tax. The tax on a bottle of wine, nearly 60% of the cost of an average priced bottle, is also ridiculously high, especially if you compare it with France where I would pay 20% or Spain where I would pay 21% in tax.

I just cannot see how it is fair to hit hard-pressed consumers with an alcohol super tax that keeps on rising by 2% above inflation, year on year. Surely the cost of living is already high enough without the Chancellor taking the tax on a bottle of spirits to over 80%, which is what will happen unless he calls time on his unpopular alcohol super tax in the next Budget.

George Osborne talks about creating new jobs and cutting taxes. Calling time on his super tax would do both. Independent research shows that 6000 new jobs could be created and £230 million of additional public finances generated to pay for schools and hospitals if he does the right thing and scraps his super tax.

The fact that my local pub would benefit too is really important. I was pleased when I heard the Chancellor wanted to support pubs, but then I learnt that he increased their tax bill by £34 million in 2013 through his Alcohol Duty Escalator on wines and spirits. This simply does not make sense when 26 million people drink wine in pubs, bars and restaurants, and wine and spirits already account for almost half (42%) of their alcohol sales.

Almost two million people depend on the alcohol industry for their livelihoods, while the industry generates £38 billion for the economy annually and pays £17 billion in tax.

Responsible drinkers deserve a freeze in alcohol duty, not another inflation-busting tax hike. Please could you urge the Chancellor to use his 2014 Budget to do the right thing and scrap this deeply unpopular super tax? I look forward to hearing from you and to receiving a copy of the Chancellor’s response to your letter.

Monday 27 January 2014

APLH Personal Licence Holder's Online Mock Exam

Inn-Dispensable are pleased to announce the launch of our FREE online Personal Licence mock exam. This is a great interactive tool to test your knowledge prior to taking the full APLH exam at one of our many fantastic training sites across the UK.

bii-mock-exam

This online test contains 20 multiple-choice questions which are randomly selected and are typical of the exam subject matter and mirrors closely the 40 questions which appear within the real BII (APLH) Level 2 exam - so you can test yourself again and again to help build your knowledge.

Available on all devices, from desktops to mobiles.

Friday 24 January 2014

Campaigning To Stop Further UK Pub Closures

The time is coming that "something" really needs to happen!

We have lost around ten thousand pubs in recent years, and if we are not careful we will lose many more in the not too distant future. There is of course lots going on to try and fight off the demise of our treasured pub institution, but frankly all of the effort in the world, other than getting more people to use pubs more often, will come to nought unless 'pub-going' gets back into fashion.

Government is also now realising that if more people stay at home drinking and purchasing alcohol in supermarkets there is a loss in revenue terms to the exchequer, this along with the social impact and high street demise. Pubs are important, stupid.

So what part does "the cost of going to the pub" play in the greater scheme of things? I think "more and more" is the answer.

I have blogged before on my 'hobby-horse' about our culture of 'round-buying', and I continue to believe that it is detrimental to our industry. I hear many people say that they avoid certain pubs at certain times because they know they will get involved in a round-buying group where a round can cost £20 or more. For those who want to go on doing it "fine", but let us create a culture where it is perfectly acceptable for those who want to "buy their own" to not be considered as skinflints or social pariahs!

Onto the VAT disparity twixt supermarkets and pubs. It is outrageous that supermarkets pay no VAT on food when pubs pay (and therefore you dear pub customer) 20%.

The argument is simple: Reduce VAT for pubs – more people will visit, spend more money, create more jobs, regenerate high streets, generate more revenue for HMG. The battle is joined and growing in influence. Want to know more? Take a view: www.vatclubjacquesborrel.co.uk


Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses

Tuesday 14 January 2014

What is the future for pubs?

I keep reading the trade press and this is a question posed and answered by many 'experts', most of whom have never worked in a pub, lived in a pub, owned a pub, run a pub, been an area manger for pubs, been a director running pubs and so on. None of this makes their opinions less worthy but makes them a bit like all of the greatest footballers who are on the terraces advising Ronaldo how to kick a ball.

Some of the future is simple to predict:

There will be those nationally branded pubs offering a national script. Some driven by location, some by food, some by price, some by music, some by sport, some by image etc. All will have high standards of cleanliness, service (Have a nice day types) and procedures. None will have a predominant 'manager' stamping his or her own identity on the outlet, rather they will be programmed to deliver the company massage and brand. They will have the latest technology to market their 'product' and attract customers.

Nothing wrong with all this which works perfectly well, hugely successful brands; see JD Wetherspoon, Beefeater, Best Bar None et al.

There will be rough tough pubs catering for rough tough people run by rough tough landlords in rough tough areas, nothing wrong with this either, and can be very profitable for landlords who run them – providing they can tolerate the occasional black eye. Good for the police because they know where all of the villains will be drinking, good for other pubs because the rough guys are kept away from their doors.

There will be more high-end "posh pubs", run by posh people for posh customers in posh areas: expensive menus, expensive drinks, expensive rooms, expensive everything. Mostly 'rich mans hobbies' for those who have made a load of dosh and wish to demonstrate it and have a place to entertain their mates, pose a little and make a few more quid.

There will be niche pubs, run by aficionados of whatever; cask ale, tapas, sixties music, dating, gay, stamp collectors, butterfly collectors, who knows what. I reckon all of that lot take care of about 20000 pubs, leaving around 30000 to try and survive – and this is where the great heroes of the industry come into their own!

When I were lad and grew up in our family pub my dad used to tell me "son, running a pub is like having a party in your house 365 days a year, the only difference is that you don’t get to chose who comes to the party".

So to survive (and prosper) there will need to be "personality pubs" run by those with great personalities (like my dad!). Customers will chose to go to them because of who runs them, they will be hosts and treat customers as friends and guests, those who misbehave will be banned, the customer profile of such pubs will reflect the landlords who run them (you are who you attract). These Landlords will of course have to do all of the right things in terms of product range, cleanliness, good staff, right pricing, social marketing and everything else that more discerning customers will demand, but mostly they will have to be "The Host with the Most". This will take great energy, presence, tolerance, empathy, intelligence, drive, passion and character.

My dad also told me "son, this is show business". I well remember him and my mum looking so exhausted on a daily basis, that is until the "lights came on" (in other words the pub opened), then all were welcomed as if they had been away for three years. I know it is a cliché but it really has to be 'a way of life'.

That’s the way to do it, but can we find 30000 couples prepared to do so?


Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses

Tuesday 7 January 2014

2014s Hospitality Growth Area Predictions

And so another year begins, 2014 and all of that. Here are a few hot trends on the positive side (let's at least be optimistic for the first few weeks of the year!)

The eating–out sector will continue to grow (slowly) as more disposable income is available in many households. 'Casual Dining' outlets will be the main benefactors with consumers trading down from more formal dining; competitive pricing, more varied menus, flexible serving hours and great customer service will be the key. Pubs can certainly take advantage of this forecast.

Beer sales will continue to decline but the huge growth in Craft Breweries will continue (up some 80% in 2013). Local products produced by local people for local consumption, that’s the key, I have a great mate who runs a small craft brewery in the Cotswolds, he and his family team are going from strength to strength, check it out; North Cotswold Brewery. And of course; the chancellors decision on beer duty in the forthcoming budget (increase or not) will have a major impact on sales in 2014.

Coffee sales (in my view: amazingly) will continue to grow and the consumer will become more discerning, so investment in the top range of coffee machines and beans is vital (no more instant cups for £1).

Nightclubs will come under increasing pressure to thrive: new legislation, curtailed hours, late night levies, all conspiring to make it more difficult for them, especially as more pubs offer night club type environments without a door charge!

The 'Grey Pound' will continue to offer great opportunities as the population ages and most live longer and have more disposable income.

The B & B and hotel sector will show growth as corporate business grows and once again the +60 year old market will bring more business as they travel more and more.

The big generic trend will be in the growth of marketing via technology. Cashless payment, bookings via mobile phones, pre-ordering apps, digital marketing tools, loyalty apps, social media marketing, smartphone apps, etc. All designed to make it easier for the customer to find your outlet, see what you have to offer and compare it to others; Book a meal or room or drink, then pay for it!

What will remain the same for success in the hospitality industry? Great service, great products, great standards, great staff, great knowledge, great prices, great toilets, great smiles, great thanks and most of all great training!

A very Happy and prosperous New Year to you all!


Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses