Covid-19 / 15 March 2021
SBPA reveals devastation to pubs and brewers one year on from first COVID-19 lockdown, reiterates Government must ensure pubs can operate without restrictions as soon as possible One year on from the First Minister ordering the first COVID-19 lockdown, which forced pubs to close, the Scottish Beer & Pub Association has revealed the devastation the nations’ brewers and pubs have faced. The trade association has revealed that 200 pubs are estimated to have been lost forever, 210 million pints in beer sales lost due to a full year of either forced closure, or trading under severe restrictions, and £820 million in trade value wiped out from the sector in beer sales alone. Since the first lockdown in March 2020, pubs and other hospitality businesses have been amongst the hardest hit. They have also faced severe restrictions to their trade during other periods of being “open”, including level restrictions that ultimately forced many to stay shut or open but under conditions that made their trade unviable due to the closing times and other rules. Looking ahead to the First Minister’s expected announcement tomorrow, the SBPA has urged the Scottish Government to give the sector hope by aligning closely to the unlocking plans in England, which indicate that pubs will reopen outdoors from April 12th, followed by indoors from May 17th and with all restrictions lifted by June 21st. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “Our sector has been devastated by COVID-19 and the lockdowns. It has been a year to forget for the Scotland’s pubs and bars. “It is estimated that 200 pubs have been lost forever. 210 million pints in beer sales have also been missed, wiping out £820 million in trade value from the sector. “Sadly, we still haven’t seen the full extent of the damage yet and won't do for some time until things really do go back to normal. And by normal, I mean a return to what life was like pre-covid. “Whilst we continue to assess the full damage to our sector, I urge the First Minister to give our businesses the hope that they desperately need by providing a viable route out of lockdown tomorrow. The previously levels were entirely unviable for the majority of hospitality businesses, and they are desperately hoping for a more straight-forward approach to unlocking this time. “We also hope the Scottish Government will look at providing more support for our wet-led community pubs who, although grateful for all the support they received, will not benefit from the VAT cut to food in the same way restaurants will. Local wet-led pubs have been amongst the worst affected by the virus so it's important the Government goes that little bit further for them. “It is becoming all the clearer that the Government must ensure all our pubs are fully re-opened as early as safely possible. This is when their recovery will really start and until then we stand to lose more pubs and community assets.”
Read moreBrigid Simmonds | 08 July 2016
This week, the PMA held its first Pub Skills Summit; a timely subject amidst the current economic uncertainty in the UK - the need for training, skills and retention of staff could not be more important. As Barry Flack, a global HR expert remarked: “Technology can aid the lives of you and your team, but it does not replace the human element”. After a fascinating introduction to the use of ‘Big Data’ from CPL Training, where 240 computers use ‘Thor and Roxie’ to look at structured and unstructured information (the latter mainly social media), we then had four wonderful presentations giving us practical examples of workplace development from individual pub companies. Natasha Waterfield from the New World Trading Company described ‘Tribes’, a programme to unite colleagues working on 14 sites, where 426 miles separate their Glasgow HQ and their site in Farnham. 7 out of 14 sites are more than 90 minutes from HQ. They wanted to make sure that their pubs did not act as silos, and encourage employee engagement, ensuring they felt part of the company. They developed six ‘tribes’; Discovery, Endeavour, Adventure, Orbiter, Kingfisher & Mayflower (your test for the day is to work out which explorer sailed each of these ships)! They then split their teams into 6, across all their sites, and engaged through an online tool which provides competitions, and incentives for qualifications and a healthy lifestyle. At the end of the year, the winning tribe of 300 colleagues is given two extra days of paid holiday. Jill Scratchard from Oakman Inns explained ’Oakmanology’, which encourages knowledge and craftsmanship. Through an online application, it is mobile, rewarding accessible, measurable and structured, something you can do in 5 or 10 minutes at a bus stop. Dawn Browne from Fullers explained their ‘service coaches’ drawn from 3,000 employees. They started with 25, doubled a year later and now have so many that they cannot host them in a Fullers’ pub. They help them train others when they refurbish a pub, troubleshoot when a venue has a problem and act as mystery shoppers with competitors. The Service Coaches receive more than 120 hours of coaching, and as a result, customer satisfaction is higher in pubs with a service coach and turnover of staff is lower. They clearly make a difference to their business. Michael Soderquest from Star Pubs & Bars explained how in 1996 the tenanted and leased estate were poor relations to managed houses, and how they introduced a 5-day residential induction for all new lessees. All have to buy a CPL training licence and must undertake the induction at least 4 weeks before they enter the pub. They are asked, for example, to create a rota, to cost it up and work out their own wage percentage. They look at scenarios of adding 2% to their GP and then add 2% to expenses; the cleaner comes in and turns on all the lights before having a cup of tea, for example, which will impact on their initial predictions. The chef heats up all the equipment three hours before they need to use it, etc. It illustrates how day to day actions affect profitability, and the scheme has dramatically reduced the first year failure rate. Finally, Paul Dickinson and Gavin Sinden, who won the Chef of the Year award, talked about the recruitment of chefs, their apprenticeship programme and how they have attracted new chefs and strive to retain existing ones. Clearly still for many, attracting and retaining chefs is essential. We need pubs to be seen as attractive as working in a silver service restaurant. It was certainly a good start to a subject which affects us all and requires creativity, investment and focus. The advent of the Apprenticeship Levy, increased costs through Living and Minimum Wage and the auto-enrolment for small companies into pensions means that everyone will want to attract, retain and train their teams. Learning from others who are achieving this is important to all.
Brigid Simmonds | 06 July 2016
A recently published report by the Royal Commonwealth Society, in partnership with leading aviation tourism and industry groups, is recommending that India is added to the UK’s latest £87 two-year visitor visa scheme. Over the last ten years, fewer Indian tourists have been coming to Britain. France has now overtaken our country as laying claim to being the number one European destination for Indian tourists, welcoming over half a million of them each year. Reforms to the visa system could help reverse the trend and help re-establish the UK as India’s premier European destination, whilst sending a strong message that Britain is still open for business in the wake of the EU referendum result. Prime Minister David Cameron recently announced a pilot scheme offering Chinese visitors a two-year visitor visa for £87, and the Royal Commonwealth Society report recommends affording the same opportunity to Indian tourists. Currently, visitors from the sub-continent are granted a six-month visa costing £87, and have to pay £330 for the two-year option. The proposed reforms are especially important as 2017 has been designated the UK-India year of Culture, and will mark 70 years of Indian independence through artistic, musical and business collaboration. This celebration will be enjoyed between two nations that share deep economic and cultural ties, not least through the Indian diaspora in the UK of 1.4 million, but also through business - Indian business visitors contributed over £200 million to the UK economy in 2015. More Indians are travelling abroad than ever before, with numbers growing 10% year-on-year, and these proposed changes could offer an attractive incentive to travellers and help the UK capitalise on the huge growth potential of Indian tourism. The overseas tourism market is, of course, hugely important to British brewing and pubs. Visiting a pub is fourth on the list of things to do when tourists come to the UK, and seven out of ten overseas visitors come to a pub whilst they are here. India Pale Ale, an historic, world renowned style known more commonly as IPA, has been shipped to India since the 1820s, and, currently, beer exports to India from the UK are worth circa £300,000, a seven-fold increase since 2011. Keeping ties with India will undoubtedly benefit beer and pubs, so the BBPA very much supports the extension of the two-year visa to India. In uncertain times in the UK, both politically and economically, keeping our Commonwealth links will be vital, and helps to show Britain as a country which is still open to the world.
Philippa Borrowman | 21 June 2016
Creating a safe and vibrant night-time economy has been the Holy Grail for both local authorities and the trade throughout the UK, and has increasingly appeared at the forefront of the agenda. Yet seven local councils have now adopted a Late Night Levy, a decision that seems to neglect the collaborative vision supported by the trade. The Levy is a discretionary power, introduced through the Police Reform and Social Responsibility Act 2011, and allows licensing authorities to raise contributions from late-night alcohol suppliers to help fund policing of the night-time economy. Levy charges are based on the rateable value of the property where the premises licence is held. Whilst the power is discretionary, local authorities work within a framework that is established at a national level and can then adjust certain aspects to suit specific localities. Yet it has recently come to light that Cheltenham Borough Council will consult on the Levy that is currently in place. Cheltenham was the second ever local council to utilise the discretionary power but may now choose to abandon it altogether. If a decision is made to end the Levy, it will cease to be effective from March 31, 2017. The consultation follows a vote from local businesses in Cheltenham, supporting the establishment of a Business Improvement District (BID). The policy reversal would raise questions over the effectiveness of the Levy to achieve desired outcomes - and so it should. In practice the Levy has proved inflexible and unworkable. The BBPA has been vocal on this point and has responded to a number of local council consultations on the Levy, as well as producing a joint report on alternatives to the Late Night Levy. In essence, a number of fundamental flaws exist. Firstly, the Levy can only be charged between the hours of 12am and 6am. This has led to a vast number of local businesses enacting minor variations to scale back opening hours, unveiling a sobering reality in which Levy revenue has fallen far short of local council predictions. Furthermore, legislation dictates that only 30% of Levy revenue can be allocated to local councils, with at least 70% allocated to police. A combination of the two aforementioned factors has led several councils to reject the Levy on the grounds that net revenue from the Levy will be insignificant when factoring in administration and implementation costs. Cheltenham Borough Council raised less than 39% of the £199,000 figure that had been predicted in the first year. Most important of all, in its most basic form the Levy is a direct tax on local business, and one which unfairly disadvantages pubs. Pubs are at the centre of local communities up and down the UK and many are small, independently-run local businesses. What is more, pubs are leading the charge when it comes to championing a safe and vibrant night-time economy. The key criticism of councils that adopt the Levy is that they have not truly engaged with the local initiatives that are already in place, and to which many pubs are fully committed. The most relevant example here is the BID that Cheltenham will implement, possibly in place of the Levy. A BID scheme is fairer as it spreads the burden between businesses of all kinds and undoubtedly provides for more a targeted and business-led allocation of funds. Cheltenham’s willingness to implement a BID and to consult on the removal of a Levy is perhaps illustrative of a wider concept where local businesses are no longer viewed as the problem, but instead the solution to the problem, and a number of local councils have recognised partnership working as the way forward: A 2013 report by Bristol City Council’s Licensing Policy Scrutiny Board concluded that a BID scheme would provide for more targeted spending of funds and include businesses and stakeholders in efforts to manage the night time economy. In October 2012 Havant Borough Council’s Licensing Committee rejected a levy, citing falling levels of alcohol crime and disorder which the police had partly attributed to the successful local PubWatch scheme. Weymouth & Portland Borough Council Licensing Committee rejected a levy in 2015, due to a lack of evidence to support the scheme. In a report providing evidence to the council, Dorset police highlighted that a BID was already in place and it was supporting the local Best Bar None scheme. BIDs, PubWatch and Best Bar None are just three initiatives that exist within a broader partnership framework. Other schemes such as Purple Flag, Street Pastors, Community Alcohol Partnerships and PASS have also provided tangible benefits and proven their worth in creating the night-time economy that all stakeholders are striving for. Local businesses are both willing and, more importantly, able to assist in creating a safe and vibrant local economy. With effective partnership working in place, such an environment is no longer the Holy Grail, but instead is entirely within reach. In contrast, the Levy is a step in the wrong direction.
Brigid Simmonds | 10 May 2016
It is always a privilege to be invited to judge the BII Licensee of the Year award, and I think this is the fourth year I have been involved. This year BII had 270 applicants – the most ever, and the final six were invited to meet with the judges in Staffordshire to decide on a winner. I consider this award so special partly because it is so in-depth. This year, the top 50 pubs had mystery visits, and the last six finalists were inspected in their pubs by the dynamic chief judges; John Sharratt and Ashley McCarthy, who look at everything from cleanliness through to financial sustainability. The final event took place at The Moat House, Acton Trussell, which is run by a former winner of the Licensee of the Year, Chris Lewis. If ever there was an example of what can be achieved, the Moat House is superb and the food excellent. A great atmosphere on the day, and I had the opportunity not only to take part in the formal judging, but also to meet and learn from the finalists themselves about what the real issues are for them when running great pubs in local communities. Each finalist had to present to panels on 5 topics; Finance, People and Training, Marketing and Business Development, and Industry Issues. They then had 20 minutes to answer questions. Mark Baird from Diageo and I made up the Industry Issues Team and asked questions about social responsibility, the role they play in their community, and what sort of ambassadors they would like to be for BII were they to win. We asked them all what they would most like to change in terms of regulation, with all of them mentioning VAT. Many also mentioned business rates, and the difficulties of providing consistent allergy information with changing menus. One idea was to incentivise local authorities to do more for small businesses; there was a clear pattern from all for the role of community pubs. The Living Wage and recent increases in National Minimum Wage were high on the agenda, but licensees agreed that paying staff properly, and investing in training, were important. Most did not see changing the Licensing Act as a priority, which may be down to a lack of awareness, but was also a reflection of the many food-led pubs who are not encountering problems with the police or licensing authorities, who find the regulatory regime works at a local level. Most operated Challenge 25 and were well aware of their role in looking after their customers. All were going to take advantage of the extended hours for the Queen’s 90th Birthday, with or without the international football available that evening, which depended on whether you had TVs in the pub or not! What impressed me most was the pubs’ involvement in their local communities. From providing free rooms for Parents/Teachers Associations, to working with the disadvantaged and disengaged, providing an edible beer garden, giving staff healthy meals and helping young parents with nursery vouchers, all played a big role in their local communities. All worked with Pubwatch, and many with other local business trade associations as well. They were all great and made you proud to be part of such an inspiring industry that plays such an important role in society. I won’t tell you who has won – that has to wait until the BII Summer Event on 7th June, but to Gerry & Ann Price from The Inn, West End (not far from Camberley), Robin & Lucy Brewer of the Rashleigh Arms, Charlestown, Glen Pearson at the Shibden Mill Inn, Halifax, Andrew Fishwick of The Truscott Arms in London, Melanie Carus at The Metropolitan, West Didsbury, and Glen Duckett of the Eagle & Child in Ramsbottom, good luck with your great pubs, which we should all be proud to visit!
Brigid Simmonds | 21 April 2016
I was fortunate enough to be invited to the East Sussex launch of Pub is the Hub who are working with East Sussex County Council and Wealden District Council. As ever it was well organised and fun and a real offer of help for pubs wishing to diversify. Chief Executive, John Longden explained the history of Pub is the Hub – established by the Prince of Wales in 2001 in Yorkshire, then Cumbria, Norfolk, Essex, Cornwall, Devon and in January this year in the Scottish Borders. He talked about pubs closing, but the infrequently mentioned statistics a round pubs opening too. The Community Services Fund can give up to £4,000 per project and they are now working with the Post Office Community Fund which can help pubs set up post offices in pubs more easily too. The vast majority of funding now comes from private investment and if you want to know more visit the Pub is the Hub website - steal as many ideas as you can from the 100 plus case studies – it is all free. As ever there has to be a balance between commercial viability and community benefit, but with over 500 pubs involved, there is clearly a need and success to be had. As ever they need more funding. 27 projects are seeking funding at the moment, so if you have spare cash, they can always use them! Anthony Miller, who is chairman of Pub is the Hub in the South East told us that in East Sussex there are 4 pubs for every other community building. He went on to talk about some of the services offered from a library in Pevensey, to lunch clubs for the elderly (interesting to read in the Times that the number of lonely people is likely to increase to 600,000 within two decades). One of the most innovative partnerships is the ‘Man Shed’ (can be for women too!), but provides a facility for the older generation to build something with their hands – pubs with redundant out-buildings would be ideal and they then have customers on the spot! Barclays explained their ‘digital eagles’ work where 1,200 of their staff offer to help train people to use computers and we heard from the Applause Touring company who can put on plays or storytelling in a pub or pub garden. The Bull’s Head at Boreham Street hosts board games competitions and knitting groups. It even has its own beer brewed by Harveys! They developed 5 acres of ground and opened a camp site which brings more people into the pub. Always have something going on was the advice licensee Michael Cornfield. Interested licensees were there to listen and hopefully go back and think about what other services they can offer. Clearly the District Council wants to keep open the pubs it has. They feel they cannot afford to lose more and so many are at the centre of community life and service. An inspiring and as ever with John Longden a fascinating day. BBPA support Pubs is the Hub – do you?
Philippa Borrowman | 15 March 2016
The Home Office has now named the 33 areas that will be participating in phase two of the Local Alcohol Action Areas (LAAA) initiative. The second phase was announced in 2016 with the introduction of the new Modern Crime Prevention Strategy and builds upon the first LAAA initiative, which saw the BBPA offer its support to the 20 areas involved. The second phase has three core aims related to reducing alcohol-related health harms, diversification of the night-time economy and preventing alcohol-related crime and disorder. Regarding the latter, participating areas will be required to address one or more of a core set of issues including: • How can local areas improve the collection, sharing and use of data between A&E Departments, local authorities and the police? • How can local authorities, the police and businesses ensure the safe movement of people in the night time economy? • How can local areas expand their use of safe spaces? • How can local authorities, the police and business work together to help prevent the sale of alcohol to drunks in both the off- and on-trades? • How can local authorities, the police and business work together to help design out crime? The participating areas will be aided by the Home Office with a support manager and will have access to expertise from elsewhere in central Government. Support will also come from members of the Local Alcohol Partnerships Group, which is facilitated by the Portman Group and in which the BBPA is a participant. Other members include DrinkAware and local partnership initiatives such as National Pubwatch, Best Bar None, Purple Flag, Street Pastors and Community Alcohol Partnerships. The BBPA has long supported such initiatives. The launch of the first phase was broadly welcomed by the trade but some initial uncertainty had developed around the exact role of business throughout the process. This time there is no uncertainty and the launch of the second phase is undoubtedly a testament to the success of phase one, which saw businesses work closely with local authorities and police in order to provide effective local solutions for alcohol-related issues. This kind of close partnership working has been consistently supported by the BBPA and its members. It is encouraging that businesses are increasingly identified as key stakeholders when addressing local alcohol-related issues. The local knowledge that businesses possess, alongside their willingness to create a safe and responsible environment, is vital and they are progressively recognised, not as the cause of the problem, but as the solution. With this in mind, an official BBPA offer of support has now been sent to the participating areas to outline a number of ways in which the Association and its members can help to make a difference at local level with targeted and coordinated solutions. The offer of support includes assistance in utilising the BBPA’s campaign on serving drunks, which was initiated as a commitment to the Home Office and its Modern Crime Prevention Strategy, and is a central focus for many of the participating areas. The offer also highlights the BBPA’s unit awareness campaign and age verification materials, as well as the vast range of up-to-date guidance that the BBPA provides to assist licensees with all aspects of running a pub. Finally, it encourages stakeholders in participating areas to engage with BBPA members at a local level. It is promising that Government now recognises the strength of the local partnership approach in tackling alcohol related issues. The BBPA and its members look forward to working with the participating areas in the near future.