Complacency among Licensees

The majority of forecasts indicate poor trading for 2009. Do not expect much assistance, if any, from Government. Pubcos and brewers appear reluctant to be the cavalry and ‘ride to the rescue’ of the lessee/tenant.
What to do? Sitting and doing nothing is most definitely not an option. Yet increasingly I am concerned to see licensees doing just that.
Worrying about a problem will not solve it, firm action will. The need to reverse the presumed lack of trade in 2009 is paramount but will only be achieved by hard work, innovative ideas and an acceptance by licensees that the business model needs to be changed. Acceptance that the British pub has changed in so many aspects and will never return to what it was is the first major step in remodelling your business.
Licensees must look at their trading areas and try to spot if they are missing potential opportunities. To say provide a greater level of catering is, in my opinion, too simple. That’s not to say it would not be financially viable for some pubs, but the majority of smaller pubs would be unlikely to make substantial financial gains.
Perhaps some pubs need to move away from the traditional business trading method. Accept an earlier opening time, the big players are doing it and have increased turnover. Are your premises located where the supply of a breakfast catering service would increase income?. If there are no pizzerias in your immediate area how about supplying that service including home delivery? Pizzas provide one of the largest catering markets in the UK today.
The point I make is that there are opportunities out there but they have to be identified and worked at.
Do you believe your rent to be too high? A telephone call to head office or a mention to your BDM is unlikely to achieve much. Hard work will. Present your case in a professional manner to your landlord with supporting evidence, in particular from your accountant, to give yourself the best chance of winning a reduction. Anything less than a properly presented case is unlikely to bring results. Bear in mind landlords have an obligation to also return a annual profit, both to survive as a company and to satisfy their shareholders. They will not be prepared, without a fight, to forfeit income that helps you return to profit but sends them into liquidation.
What changes, if any, have taken place in your trading area? Stores, factories, offices closed down. Are they such that a cut in business rates may be achievable? Thinking about it will not help, research and hard work will.
Is that live entertainment really covering its costs? I know of a smallish pub paying £540 in entertainment costs over two nights and yet it is blatantly obvious, from simply standing in the premises, it is losing him money. I would estimate the licensee could achieve similar trading results with 50% less income on those nights, but without the band.
Staffing during poor trading periods will always lead to unnecessary expenditure, can that expense be reduced?
Reductions achieved in outgoings transposes into increased profits even with decreased income.
I may be opening a can of worms by appearing to be stating the obvious, but from my work I see too many licensees who do not appear to appreciate that only a big effort on their part will improve their business, complacency will not.