Food Profits Formula Day 4

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DAY 4 – FOLLOW UP

An industry experts view on the top 5 things you need to be thinking about, when looking to re-start your food sales in your pub.

You may recall my top 5 recommended actions that you can do now, to ensure you give yourself and your pub the best possible re-start to your pub food business. If not, click here to have a read and refresh your memory.

In yesterday’s blog post, Food Profits Formula Day 3, we covered check point number 3 – Adapt your service practices, to minimise any contamination concerns, and train staff accordingly to ensure you build customer confidence.

As promised, here is the first checklist for point 4

Review and tweak your menu content to avoid wastage if trade is slow at the start and ensure you can cope with demand if you have trade peaks.

  • Start with a reduced menu range: Remove all the lower volume sales items from your menu for an initial period. This could save on potential waste and extra kitchen food production complexity.
  • Promote simple fast cook products: Like pizza, a good base with fresh toppings can be made in under 1 minute and cooked in 4 minutes in a stone baked pizza oven.
  • Frozen vs. fresh: Review all perishable items used and look at what fresh products can be switched to frozen, without incurring quality and cook time issues.
  • Cook outdoors: It is a perfect time of year to do BBQ’s. It will take pressure off the kitchen and reduce logistical operational issues ordering, preparing and serving food.
  • Phone orders: Set up a phone ordering system. You will then know in advance what stock you will need and can prepare accordingly as needed.
  • Limit numbers: Agree what volume of customers you can cope with. Let customers know you are limiting numbers during this initial period. Try and move peak volume requests to quieter opening times.
  • Re-establish contact with key suppliers: Find out if they have any supply issues so you can avoid having menu items unavailable for customers.
  • Brief staff: On new menus and what to promote so they can advise customers accordingly and explain the reasons for the menu change if needed.

As previously mentioned, I would strongly recommend you view the re-start of your food offer as an opportunity to relaunch your food offer to both previous regular customers and potential new customers. We know big brands will have well thought out strategies in place to get customers into their pubs. Make sure you give yourself a fair chance to get your best share of the market! CUSTOMER CONFIDENCE IS CRUCIAL. You have one chance to get this right.

Tony (Pub Food Consultant).

Look out for tomorrow’s blog.

For more on independent help and training from food specialists, click here.

Food Profits Formula Day 3

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DAY 3 – FOLLOW UP

An industry experts view on the top 5 things you need to be thinking about, when looking to re-start your food sales in your pub.

You may recall my top 5 recommended actions that you can do now, to ensure you give yourself and your pub the best possible re-start to your pub food business. If not, click here to have a read and refresh your memory.

In yesterday’s blog post, Food Profits Formula Day 2, we covered check point number 2 – Revise the layout of your pub’s inside and outside space, to ensure social distancing (SD) when customers are allowed back.

As promised, here is the first checklist for point 3.

Adapt your service practices, to minimise any contamination concerns, and train staff accordingly to ensure you build customer confidence.

Consider all the options available to you in your pub, to reduce staff to customer, and customer to customer cross contamination. See below suggested key operational areas to review.

  • Crockery v disposable: Consider using one-use disposable products such as; pizza, burger and fish and chip boxes. Especially if you have been doing a take away service.
  • Clear the tables: Don’t have any crockery, cutlery or condiments pre-laid on tables. Instead, use disposable crockery and condiment sachets etc. where possible.
  • Gloves/Sanitiser/Bins: Set up cleansing stations with all necessary items, hand sanitiser pumps and antibacterial wipes etc, inside and outside your pub.
  • Train staff on new safety processes: Also check that they are following established guidelines.
  • Operate table service: Do not do counter service, so as to prevent close contact at the bar.

 

As previously mentioned, I would strongly recommend you view the re-start of your food offer as an opportunity to relaunch your food offer to both previous regular customers and potential new customers. We know big brands will have well thought out strategies in place to get customers into their pubs. Make sure you give yourself a fair chance to get your best share of the market! CUSTOMER CONFIDENCE IS CRUCIAL. You have one chance to get this right.

Tony (Pub Food Consultant).

Look out for tomorrow’s blog.

For more on independent help and training from food specialists, click here.

Food Profits Formula Day 2

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DAY 2 – FOLLOW UP

An industry experts view on the top 5 things you need to be thinking about, when looking to re-start your food sales in your pub.

You may recall my top 5 recommended actions that you can do now to ensure you give yourself and your pub the best possible re-start to your pub food business. If not, click here to have a read and refresh your memory.

In yesterday’s blog post, Food Profits Formula Day 1, we covered check point number 1 – Review and tweak your kitchen and stores set up whilst closed (or just doing take away) ready for re-opening.

As promised, here is the second checklist for point 2.

Revise the layout of your pub’s inside and outside space, to ensure social distancing (SD) when customers are allowed back.

Note: this is subject to change as and when Government finally establish the SD. Therefore, use this as a general guide to refer back to once the amount of SD is confirmed.

  • Queues: Set up a system for managing queues. Use 2m spacing outside and inside. Also remember to do the same for when queuing for the toilets, just like the supermarkets have done.
  • In and out doors: If your layout allows, set up in and out only external doors.
  • Signage: Let people know exactly how to move around in your pub to ensure they know how to order food and drinks.
  • One way systems: Set up one way systems to prevent customer paths crossing. Consider, if you are a busy pub, maybe setting up like a McDonalds drive through. Have order, payment and collection points.
  • Maximise the use of outdoor space: Make the area more attractive to customers. Generally speaking, customers will feel safer outside than inside.
  • If ordering food from the bar: Consider putting up perspex screens.
  • Table layout: Re-plan and re-layout tables and chairs indoors and outdoors to give minimum 2m spacing for customers when seated.

As previously mentioned, I would strongly recommend you view the re-start of your food offer as an opportunity to relaunch your food offer to both previous regular customers and potential new customers. We know big brands will have well thought out strategies in place to get customers into their pubs. Make sure you give yourself a fair chance to get your best share of the market! CUSTOMER CONFIDENCE IS CRUCIAL. You have one chance to get this right.

Tony (Pub Food Consultant).

Look out for tomorrow’s blog.

For more on independent help and training from food specialists, click here.

PCA Communication Survey Results

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PCA Communication Survey Results

The PCA communication survey was swiftly completed by 170 people at low cost providing a representative sample of tied tenants.

Tenants made key points in their comments and showed where the PCA is going badly wrong, we urge the minister to take heed of this report which shows the PCA is not working as intended 4 years on. The minister needs to remove the blocks to progress, apologise to tenants who have lost their rights and act decisively to restore the reform agenda and principles for #ukpubs which is not being delivered by the agency they oversee.

61% find official PCA publications confusing and unhelpful

PCA scored incredibly low on upholding the code principles just 2.7 / 10

PCA current communication efforts were rated just 2.37 / 10

When asked, the methods of communication ranked by preference and effectiveness via: 1. Email 2. Actual Third Party Tenant Representatives 3.Social media

 

The full response data is available on PDF here PCA_Data_All_200617

The damming comments from over 50 tenants can be seen on a slide show HERE and a sample of them is printed below:

 

  • Please, do your job and put an end to the tied scam for good. You have the power – use it!
  • It’s too late for me but write direct to pubs and get a decent data base so we know you are there. I did not find out until recently and needed support 2 years ago.
  • The PCA needs to prove that they fully understand the business strategies of each of the POBs. This then needs a constant review with each POB. Until then everything is just a reaction which the POB manoeuvres around. They cannot control or regulate what they clearly do not understand. This will accelerate as tenancies are converted to managed operations…….I’m not sure that the traditional pub tenancy will exist in 5-10 years
  • A independent review of pubcos is urgently required We are being hung out to dry
  • Stop being so patronising. Listen properly and do not ignore what you’ve been told by tenants and most of all don’t tell CCO’s what to do and walk away as if they will/have complied
  • For tenants representatives to have equal position and regular meetings with the PCA on an equal footing to the POB’s Compliance Officer

Food Profits Formula Day 1

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Food Profits Formula Day 1

An industry experts view on the top 5 things you need to be thinking about, when looking to re-start your food sales in your pub.

You may recall my top 5 recommended actions from my previous blog post, Food Profits Formula. If not, click on the link to have a read and refresh. These are actions you can take now, to ensure you give yourself and your pub the best possible re-start to your pub food business.

As promised, here is the first checklist for point 1 below.

1 – Review and tweak your kitchen and stores set up whilst closed (or just doing take away) ready for re-opening.

  • Reduce walking: Re-arrange storage and equipment to minimise walking time to pick up products This will increase speed of service and reduces unproductive chef/cook time.
  • Maximise use of space: Put shelves up. Increase worktop/plating up space. Get rid of redundant equipment if it is taking up valuable space. If you have the space, create work stations with all products and service tableware within that work station area. This will save staff crossing over each other at service time.
  • Product storage: Establish bulk and service storage for all products. Ensure high volume lines are closest to the cook line (service storage). Get rid of old products you know you’ll never use! Get rid of old redundant fridges and freezers. Invest in low cost and stackable storage boxes to allow better storage of loose items.
  • The kitchen is for producing food: Clear out all the junk that clutters up the kitchen that has crept in over the years.
  • Is your kit working efficiently? Get kit serviced or repaired if needed. Take boxes and such off the top of fridges and freezers. This allows the air to get around the mechanics and improves efficiency and life time. Is all your kit safe and PAT tested?
  • Extension leads: Get rid of those long unsafe extension leads and get sockets fitted properly. Put in new power sockets to allow yourself to maximise space more efficiently by placing microwaves and such on shelves.
  • Deep clean: Take the opportunity to move equipment out and deep clean that area. Clean out freezers and get rid of that built-up of frost that stops freezers working properly.
  • Menu change? If you are tweaking your menu, then you need to think about the impact on the kitchen, work through the detailed production of each dish and ensure the kitchen is set up appropriately….and don’t forget to consider the potential service pinch points on specific equipment at peak trading times!

As previously mentioned, I would strongly recommend you view the re-start of your food offer as an opportunity to relaunch your food offer to both previous regular customers and potential new customers. We know big brands will have well thought out strategies in place to get customers into their pubs. Make sure you give yourself a fair chance to get your best share of the market! CUSTOMER CONFIDENCE IS CRUCIAL. You have one chance to get this right.

Tony (Pub Food Consultant).

Look out for tomorrow’s blog with more.

For more on independent help and training from food specialists, click here.

Food Profits Formula

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An industry experts view on the top 5 things you need to be thinking about when looking to re-start your food sales in your pub.

So what is it that you can do now, to ensure you give your pub and yourself the best possible re-start to your pub food business?

I would strongly recommend you view the re-start of your food offer, as an opportunity to relaunch your food offer, to both previous regular customers and potential new customers. We know the big brands will have put well thought out strategies in place to get customers into their pubs. Make sure you give yourself a fair chance to get your best share of the market!

CUSTOMER CONFIDENCE IS CRUCIAL – you have one chance to get this right.

Have a look below at my top 5 recommended actions.

Over the coming days we will give you a short checklist for each of the 5 actions below. Check if you can put a tick by each one.

  1. Review and tweak your kitchen and stores set up whilst closed (or just doing take away) ready for re-opening.
  2. Revise the layout of your pubs’ inside and outside space, to ensure social distancing when customers are allowed back.
  3. Adapt your service practices to minimise any contamination concerns. And train staff accordingly to ensure you build customer confidence.
  4. Review and adapt your menu content to; avoid wastage if trade is slow at the start and to ensure you can cope with demand if you have trade peaks.
  5. Get all your customer communications published and printed, so customers are 100% clear about your plans and tactics to serve great food in a safe way.

Start making a list now of all the things that come into your head. As so not to lose any great ideas!

Look out for tomorrow’s blog with a short checklist on action point 1.

For more on independent help and training from food specialists, click here.

Changes to Rent

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PAS in the News

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Pub Licensing

Rents won’t just fall, they will plummet.

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Yes, we really do think that will be the case. Honest non-landlord client-led rent review advice is as rare as hen’s teeth at the moment. The continuing pandemic, lockdowns, social distancing will all have a dramatic downwards pressure on future rent levels. That is a certainty. Much as the Pub Cos and major Brewers would like to hide from that inevitability, reality must be faced sooner rather than later.

First, the boring technical bits to put matters in perspective.

All Rent Assessment Proposals (RAP)  MUST be signed off by a Chartered Surveyor and prepared in accordance with RICS guidance notes [Pub Code regulation 20 (3)]. So lets look at what the regulation requires of the person signing off the RAP. The relevant guidance is found in The RICS Valuation-Global Standards 2017 and subsection VPGA 4. Under the heading ‘Fair Maintainable Operating Profit’ (FMOP) which is paragraph 2.4 on page 103, it states….

”This is the level ,of profit, stated prior to depreciation and finance costs relating to the asset itself (and rent if leasehold) that the reasonably efficient operator (REO) would expect to derive from Fair maintainable Turnover based on the market’s perception of the potential earnings of the property. It should reflect all costs and outgoings of the REO as well as an appropriate allowance for periodic expenditure, such as decoration, refurbishment and renewal of the trade inventory”.

No good looking backward at pre Virus trade, the valuer, in accordance with the mandatory RICS guidance must look forward and predict the market . As an aside, one of our Directors David Morgan was emailed last week by a Licensed Trade valuer from a certain regulated pub company concerning an ongoing case and to quote…

”As I am sure you are aware we received an Independent Assessor Determination which appeared to prematurely ‘set the market’. We have appealed this determination to the PCA”. 

Erm, an interesting take on the Independent Assessor (whoever he was) following the same RICS guidance as above. Chances of success? You form your own view on that one! But it will further delay the pub concerned going free of tie.

If your rent review was at a date before say 15th March 2020 when the lockdowns began you cannot use the Virus Reality (VR) in your rent calculations. Evidence post rent review date is legally not allowed to affect the mindset of the willing tenant, more of that later. Harsh as it may seem but as your rent review may not yet be settled, the law is very specific on this point. However, our friends at the Pubs Advisory Service launched a service earlier this week for tenants and lessees of the regulated Pub Cos.

There is a good chance, any tenant or lessee who has received a Rent Assessment Proposal (RAP), deemed non-compliant, could re-trigger their rent review. This would then allow the Virus Reality to be factored into the valuation and subsequent rent review discussions. Other rent reviews that are set to fall AFTER March 15th 2020 can use VR. After 30th June, or whenever the Pubs Code Adjudicator (PCA) office releases the moratorium on ‘no rent negotiations’ the then RAPs must look forwards and of necessity, predict the market. The Pub Cos and major Breweries are dreading a solid dose of rent reality which in our opinion could see rent levels plummet from pre virus levels. Why?

A recent YouGov piece of research echoed our views that people will just not feel comfortable returning to Pubs and Bars. YouGov found at 63%.. They also found that 57% of restaurant customers are uncertain about dining out again. Add to that the almost inevitable requirement for social distancing. The heady days of a crowded pub full of ‘vertical drinkers’ or a restaurant of closely packed full tables are well and truly gone for the foreseeable future. Even beer gardens will look strange if social distancing is strictly observed. Future trade levels will fall dramatically. The question is how much ?

The assumption for rent review is that of a willing landlord and a willing tenant. Not necessarily the captive tenant in occupation. That willing tenant would be very cautious indeed about even creating any bottom line profit with all of the constraints and social fears that will then be rife. To tempt that willing tenant, one of the inevitable fixed costs will have to be very tempting and the only fixed cast that is capable of variation is rent.

We estimate that in the first year post VR trading operations would struggle to make any profit. Second year, if you are lucky, a return to say 30% of pre VR profit. Then in years 3-5 normal profits. Best guess is that the initial rent level could be 30%-40% lower than compared to pre VR levels. OK so we are speculating, but off a very solid and practical base linked with the Virus Reality which will if anything get worse before it gets better.

Guest Blog – Morgan and Clarke Surveyors

If you are a publican who is concerned about rent and wants to adjust it, then please see here