Overpriced Drinks = Less Customers

I had a business meeting yesterday at a certain establishment in Cheltenham. I had a £3.50 pot of Tea (proper tea with leaves), and the person I met with had a 500ml bottle of beer.

Here is what the brewer of the beer says about the brew; it is a tastefully dry, crisp and full-flavoured ale, brewed with skill and passion using the finest organically grown Pale Ale malt and organically farmed English hops. It contains wheat and barley malt. 5.0% vol. Knowing the brewer as I do and knowing the price they charge if you order on their website at around £2.10 a bottle - well worth it say I. Not sure the £6.50 I had to pay for it in this particular hostelry had £4.40 worth of “added value” though.

On getting back to my office I reflected on the price I had been charged and thought “surely they made a mistake?”, and so I sent a polite email asking if the price was correct. I had a prompt and courteous reply assuring me it is indeed their price point at £6.50 (for slightly less than pint).

On my way back to my office I had to then fill up with Diesel, which was £1.32, a litre. So: A gallon of diesel is around £6 and a gallon of beer in this particular establishment is around £59.

I have always thought that Diesel was more difficult to find, mine, produce, refine and transport half way across the world than beer. Firstly, to produce Diesel; fossil fuels are mined in the form of crude oil. The oil is extracted from inside the earth, lots of other processes happen and then shipped across the oceans. This, versus beer brewed in Bristol with the main ingredient being wheat, malted barley, yeast, hops and water and delivered 50 miles up the M5. I wonder if the owners of the said establishment ever consider why there were only two of us in the place enjoying the pleasure of handing over £6.50 for a beer (about one hours work on minimum wage) and paying around 9 times the price of Diesel.

I have withheld the name of the place as their lawyers probably earn a lot. But whilst we train publicans how to make profit we also train them how to price competitively and how to ensure customer come back! I shall NOT be rushing back!


Martin Read CMBII
Managing Director of www.inn-dispensable.com Personal Licence Courses

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

£90 Million Boost For UK Tourism (and Pub Trade?)

More good news for the hospitality sector; HMG has committed a further £90 million to help promote the UK as a place to visit and do business in. Forecasts are that some 32.6 million people will visit these shores during 2014, spending some £21.5billion!

New markets for our visitors to come from include China, Malaysia, South Korea and Mexico, and new (relaxed) visa regulations are forecast to see a step change in visitor numbers from these countries.

Now being that pubs are in the center of hospitality in the UK and being that "to visit a British Pub" is often on the list of reasons to visit the UK, it seems to me there is a few quid to be made here by our over-worked, under-paid (apparently) licensees.

I have tried to work out on my calculator that if say 20% of the £21.5 billion is spent in pubs and that there are some 50000 pubs left, how much could each see in their tills? Unfortunately my calculator does not allow for such large numbers, all it tells me is that there is plenty to go around!

Which pubs will benefit the most? I'll bet it's those that market their businesses the best! 'Hospitality' is the Bedrock of the UK economy, so says a report from Visit Britain and their GREAT campaign; The Great British Pub is at the heart of it!!


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