Friday, 11 October 2013

The Personal Licence System Works. So, Why Ditch It?

As I blogged previously; the Government has launched a consultation on the possible abolition of Personal Licences. No idea where this latest government gem came from, but they claim it's about "reducing red tape". More likely it's about mending something that isn’t broken!

The proposal should be opposed, as the new idea they have in mind to replace the existing system is a potential disaster, and has attracted much criticism from just about all informed industry players.

HMG suggest that, in place of Personal Licences, they envisages that licensing authorities are given greater flexibility to impose conditions on premises licences at a local level, for example, for staff to undergo training. Imagine doing away with national vehicle driving licences and letting local authorities set local training for drivers? Good idea?

Some local Authorities might decide it would be best to drive on the right-hand side, and introduce training courses and qualifications thus to do. Now that would be really progressive (well, until you drive into the next 'LA' territory!).

Most industry players see the Personal Licence as one of the better innovations of the 2003 Licensing Act. It offers a national standard of knowledge, challenges bar staff to study and prove knowledge of the law and how to sell alcohol responsibly, gives them a step on the ladder of professionalism, protects customers from violence and drunkenness, protects children from harm and neighbours from nuisance - and is recognised across the country.

Pretty good objectives in my view! So why change it?


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

Wednesday, 2 October 2013

Pub Sales Increase By 10-23% As A Result Of Tax Parity Day

Around 15000 pubs took part in the Tax Parity Day last Wednesday, a campaign (see previous blogs) to seek to have a reduction in VAT for pubs - thereby giving tax parity with supermarkets.

The 15000 pubs reduced their prices on the day so that the new price reflected what would happen if VAT was reduced to 5%, and what do you know? Sales went up!

Many operators recorded increased sales, with Amber Taverns up between 10% to 23%, St Austell up 10% and JDW boss Tim Martin reporting that "Tax Parity Day was an outstanding success with sales up approximately 20%". Many others reported similar success stories.

The theory remains the same; reduce VAT in pubs to give parity with supermarkets and sales will grow. This will create more jobs (700,000 more jobs created in countries that have so far bitten the bullet and reduced VAT) this in turn will increase tax revenue (each extra £3 pint sold in a pub produces £1 in tax and £1 in wages).

A long hard slog, but eventually...??


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

Friday, 27 September 2013

Tips for Promoting Pub Trade When The Sun Stops Shining

It has often been said that the greatest salesman for the pub trade is the sunshine. No doubt about it, a sunny day encourages many to pop down the pub for a refreshing pint. So what do we do when the clocks go back, the sun stops shining and those dark dreary nights are upon us? Well, what we do is lay on great events for pub goers to enjoy!

Do you know that eight out of ten people count themselves as “pub goers” and that fifteen million (yes million) visit the pub once a week. The campaign “Its better down the pub” (see my previous blogs) continues to encourage people to support their 'local' more.

There are some great dates coming up: Halloween is now the third largest party date in the pub calendar (after Christmas and Easter), followed by Bonfire Night - when many pubs lay on a firework display. The month of November is re-named “Movember” when men across the world grow moustaches to raise money and awareness for male health charities - much of which happens “down the pub”. 'Cask Ale Week' happens to promote the quality and variety of Cask Ale. And then of course the Christmas season. These are all 'special dates', and so many pubs now lay on really imaginative fun activities to celebrate them.

So look out for what is happening in your local and get on down there!

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

Monday, 23 September 2013

Should We Scrap Personal Licences And Risk Lawlessness in UK Pubs?

Personal Licences were introduced as part of the new Licensing Act 2003 (introduced on November 24th 2005) to effectively provide a qualification by way of training and examination, thereby ensuring those who sell alcohol (and authorise others to sell alcohol) actually know the law of the land and how to ensure alcohol is sold responsibly.

Sound thinking and sound rationale, which replaced the previous system where new licencees had to appear before a magistrate's bench and be challenged on their knowledge of licensing laws - with no national standards of interrogation. So far so good. Thousands of bar staff, off-licence staff and supermarket staff, etc, have achieved the required qualification which in turn has given them a foot on the ladder of professionalism in our industry. So why now should HMG believe it is not fit for purpose? Is it because local authorities have been so depleted of resource, they cannot cope with the administration? Is that what is really behind it?

There are flaws in the Personal Licence system, for example a pub could legally get by with just one Personal Licence Holder (who might also be the Designated Premises Holder, the person in overall charge of the day-to-day running of a Licenced Premises) then have another 6 staff who sell alcohol under the authority of the Personal Licence Courses Holder (you still with me?) but those 6 staff would not have need to have a CRB check (part of the Personal Licence requirement) at all and so could be villains galore.

Maybe the answer is that ALL those selling alcohol should have a Personal Licence, not do away with them?

If our industry is serious about raising professionalism, then understanding the Licensing Law is a vital start point. There's no point in studying: customer service, cellar management, financials controls, wine dispensing, menu planning, employment law, marketing, merchandising, chalkboard skills, pricing strategies, competitor activity - and about another 30 items that a real professional licencee or bar person needs to know - if the first thing you do is to serve someone under-age, or someone who appears to be intoxicated, or serve someone outside of permitted hours, only to find yourself heavily fined or sent to Prison!

Once again we see the UK Government looking to interfere where interference is not needed!


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

Friday, 13 September 2013

Pubs to Drop Drinks Prices on September 25th

The campaign for a VAT reduction to 5% for the pub industry (Tax Parity Day) is hotting up!

The planned day of action looms where thousands of pubs are due to reduce their prices by 7.5% which would mirror the effect of the reduction of VAT to 5%, the anticipated effect of the action days is to see growth in sales of 8%. Sorry about all of the numbers, but it is a mathematical equation to underpin the message that a permanent VAT reduction would see growth of employment and development in the leisure sector.

Tax parity twixt pubs and supermarkets is the goal in all of this, which in turn would likely persuade more people to visit the pub rather that sit lonely at home supping Ale!

Here is the argument; Supermarkets in effect pay little or no VAT on food whereas pubs pay 20%, this enables supermarkets to subsidise their sales of alcohol, this in turns results in a huge gap between pub and supermarket prices. The VAT Club, headed up by Jaques Borel (see my previous blogs) are seeking to have VAT in pubs reduced to 5%, and their case is; Since a pint in a pub is three to four times more expensive than a supermarket the cash VAT per pint levied by the government would be similar in supermarkets and pubs if VAT was reduced as they suggest.

Just one issue, it apparently would cost HMG £12 billion to do it!

Support your pub, visit it on the day of action, put Wednesday 25th September into your diary!

Friday, 6 September 2013

Newcastle Introduce Minimum Alcohol Pricing

"Call me Dave" (Cameron) couldn’t get it introduced, and so Newcastle City Council have gone alone and have introduced a minimum price per unit of alcohol of 50p as a price condition for all new licensed premises - in the on and off trades across the city.

Licensing solicitors John Gaunt suggest that this is not mandatory as the council says that it will 'encourage' compliance and says "it will be interesting to see what happens if and when the Licensing Authority choose to impose such a condition, and whether it will then stand up to the scrutiny of the higher courts".

Newcastle first, the rest of the country tomorrow?

Interesting eh?

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

Monday, 19 August 2013

Is Now The Right Time to Buy a Holiday Home…or Pub?

Just returned from holiday in Spain. Great golf, weather, wine and friends - all adds up to happy days!

Took the opportunity to view a number of the (reportedly) 1 million properties for sale (most of them empty), and gee whiz talk about “over-subscribed”. Amongst many, we viewed one sensational Penthouse, original asking price 850,000 Euros, now asking for 300,000 Euros (and I reckon if you offered them 250000 you would get it).

Rented a brilliant apartment situated on the 18th green of a great golf course, owned by a British couple who have had it for 12 years, now seeking to sell it, problem is they are asking (and need) 239,000 Euros for it, but similar properties nearby, taken in as distressed assets by the Bank, are available at half of this! Their rent levels have also dropped by 20% as more competition is driving down the amount they can achieve.

Is now the time to buy?

Any parallels with the Pub scene in the UK? Too many pubs for too few customers - or best time to take that free-house or lease?

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