New Services On Tap As Publicans Diversify

Enterprising publicans are turning their hand to far more than pulling pints and catering, as they capitalise on opportunities presented by the recession and the changing landscape, a new industry report from People 1st highlights.

The ‘Licensed Hospitality 2009 – A Labour Market Review of the Pubs, Bars and Nightclubs Industry’ report – produced in partnership with the British Institute of Innkeeping (BII)¹ – found that over the past 12 months, more publicans have been diversifying into new areas.   Whilst many have added extensive food offers, accommodation, post office facilities, and hosting community groups to their repertoire of customer services, others provide more unusual offerings.

This is supported by a recent poll amongst BII members some of whom offer camping facilities, secure wetsuit and surfboard drying areas, and foreign exchange facilities.  94% of respondents said that they had tried out new ideas for their businesses in the last 12 months, with a further 6% planning to do so shortly.   84% had invested up to £5,000 in introducing new ideas. Over half (52%) of respondents expected a return on their investment within six months with a further third (30%) expecting dividends within a year.

The Licensed Hospitality 2009 report provides a definitive snapshot of the licensed hospitality industry - its contribution to the economy, its ownership structure, the main drivers of change, current operating conditions, and the labour market.  It concludes that the structure of the industry has experienced ongoing change over the past ten years and more is to come, with major implications for skills development and recruitment.

“Whilst this has been a challenging year for the licensed hospitality industry, along with other industries, the report clearly highlights that those who innovate, diversify and match their offer to customer demand can do well,” said Brian Wisdom, chief executive of People 1st.  

The report identifies several core skills as lacking in the industry - customer handling, technical, job specific, team working and problem-solving skills.  The shortfall in people management and finance skills, in particular, seems to be hampering the industry.  A third of survey respondents reported difficulties in recruiting bar managers.  Whilst there is no shortage of applicants, many do not have all the required skills, attributes and experience. 

Generally, the industry does not suffer from a recruitment problem.  However, one in five employers are struggling to recruit chefs with the required experience and skills at a time when more pubs, bars and nightclubs are offering catering services.  6,200 more chefs were working in the pub, bar and nightclub industry in the UK in 2007/08 compared to 2004/05, an increase of 33%.²

Over the last ten years the shift from managed outlets towards freetrade and tenanted operations has had implications for skills development as the latter are less likely to take up training opportunities.

On a positive note, training opportunities for staff are increasing year on year.  Nearly three quarters (71%) of pubs, bars and nightclubs now provide or arrange training for their staff compared to 64% in 2005 – a 7% increase.  Whilst the industry acknowledges that qualifications are needed to professionalise the sector, employers’ views on qualifications are fairly mixed.

Looking to the future, the ‘golden decade of sporting events’ will be a major driver of labour and skills needs for businesses located in certain areas. The ‘welcome’ and service received by visitors for these events will have wider implications in terms of the perceptions of the UK as a world class tourist destination.  

“In this brave new world, more of the same is not always the best option.  Businesses that will be best placed to leverage any opportunities are those who diversify, improve their marketing and continue to train and invest in their staff,” concludes Brian Wisdom.

His comments were echoed by Neil Robertson, chief executive of the British Institute of Innkeeping:  “As the professional body for the licensed retail sector, we see many examples of excellence and success through diversification within our membership. Yes, times are tough for some, but licensees with entrepreneurial flair who use their initiative and take a few calculated risks can reap the rewards.  This industry is unique for budding entrepreneurs in the current climate; there is enormous scope for their talents.

“Let’s also not forget that this is a team effort. The best results are more often than not achieved when all staff members are consulted and involved in the growth and development of a business. A great licensee is one who really values his or her staff and actively encourages their training and career development, as well as constantly reviewing their own skills set.”

Download an Executive Summary of the ‘Licensed Hospitality 2009 – A Labour Market Review of the Pubs, Bars and Nightclubs' report.

Download the full ‘Licensed Hospitality 2009 – A Labour Market Review of the Pubs, Bars and Nightclubs' report.

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¹ Extensive research was conducted by People 1st with further support from the Federation of the Retail Licensed Trade Northern Ireland, the Association of Multiple Licensed Retailers and BPPA.

² 2007 National Employer Survey

• People 1st (www.people1st.co.uk) is the sector skills council for the hospitality, leisure, travel and tourism industries focusing on transforming skills in the sector through the development of world class qualifications in management and leadership, customer service and craft skills.
• The licensed hospitality industry is a substantial generator of wealth and employment for the UK, accounting for around 3% of the UK’s economic output.  It provides employment for approximately 1,245,000 people.

Contact

Michelle Luscombe, BII Corporate Communications Manager
Email: michellel@bii.org
Telephone: 01276 417863 or 07795 394660