Local talent

15 October 2004
Local talent

The pub industry has taken a bit of a battering this year, with the Government laying the blame for after-hours antisocial behaviour firmly at its door and threatening to ban two-for-one deals and other special promotions that may be seen to promote binge-drinking. The industry is also facing an imminent ban on smoking in pubs and bars but, despite all, it does appear to be improving.

It was a tough year for pubs with outside space expecting the sunny summer of last year, but those operators who embraced the two biggest sporting events of the year, Euro2004 and, more recently, the Olympics, have thrived.

Bad publicity from binge-drinking in town centres - Croydon, Surrey, often featured in the headlines - hit a market that was already suffering from saturation. According to market analyst Mintel, growth in the pub and bar industry peaked in 2001, with the number of venues peaking in 2002 and the value of spending stagnating at £2.7b this year.

Apart from the natural peaking and stagnation, the market has also suffered a loss of interest in the branding that characterised 1990s development in the high street. For a time, branding in pubs and bars ran parallel to that of fast-food operators and retailers, but both demand and supply now favour a more individual approach to the naming and operating of pubs.

Branding lost its appeal because of the withdrawal from brewing and/or pub management by the big brewing-based leisure groups that used to dominate the high street. Their exits have produced a much more fluid ownership structure.

Trends are now focused on food and style operations. Pubs cannot run on regulars alone and need to differentiate themselves from the competition. The market has had to adapt to recruitment needs, and operators are now much more open to transferable skills and have recognised what restaurant operators can bring in terms of service and attention to detail.

London is home to about 9% of the nation's pubs, with more than 3,800 drinking establishments, so finding a job in one shouldn't be too difficult. Working behind the bar isn't fantastically well paid, though, so don't expect to get much more than the minimum wage if you are just going to be tending the bar. For more senior roles the money does get a little better.

According to recruitment consultant Berkeley Scott, a unit manager for a national pub company turning over less than £500,000 can earn between £20,000 and £27,000 a year. If that turnover rises to more than £1m, salaries rise to between £30,000 and £50,000. General managers can earn any thing from £40,000 to £90,000 a year.

Ingrid Berwick, account director at recruitment consultant Chess Partnership, says the recruitment market has been a lot more buoyant recently, with a focus from companies on getting the right people in place before Christmas.

"With mergers within the bigger operators, for example within Spirit and Greene King, there are always going to be opportunities," says Berwick. "The opportunities for strong managers are definitely there; it is just about focusing your search in the right direction."

But being a pub manager isn't the only opportunity in London. Berwick says the variety of roles within the sector is what makes the licensed trade so exciting. "There are so many diverse businesses and roles within London. For someone entering the market for the first time the scope is vast - from traditional community-based pubs to high street branded bars to gastropubs through to emerging style bar concepts."

And as the high street is so competitive, the need for proactive managers who can drive a business forward is key to the success of a site. Understanding market conditions and keeping ahead of the competition is where businesses will win.

Main players

Barracuda Group
www.barracudagroup.co.uk

Fuller, Smith and Turner
www.fullers.com

Greene King
www.greeneking.co.uk

Laurel Pub Company
www.laurelpubco.com

Mitchells & Butlers
www.mbplc.com

Punch Taverns
www.punchpubs.co.uk

SFI Group
www.sfigroup.co.uk

Shepherd Neame
www.shepherd-neame.co.uk

Spirit Group
www.thespiritgroup.com

JD Wetherspoon
www.jdwetherspoon.co.uk

Yates Group
www.yatesonthe.net

Young & Co
www.youngs.co.uk

Peter Myers
Job: operations director, DevCo
Salary range: £50,000 to £70,000-plus

Tell me a little bit about DevCo. DevCo operates 61 sites for Spirit Group, including gastropubs, bar-pizzerias and the branded chain, Bar Room Bar. We are also the research and development arm of Spirit Group, so I am always looking at new concepts.

What are your key responsibilities? I'm responsible for the profit and loss accounts and the development of our 61 sites. Our goal is to add another 10 during 2004-05, so I am looking at how to achieve that and what is needed for each of the new operations. Each new site is created on a bespoke basis, and I'm the one who will decide what each should look and feel like. Then I've got a great team who implement the "vision".

My role is both operational and design-focused. If we need a new concept for a site or an existing concept needs evolving, I'll work alongside our designers to implement that. I'm an operator by trade, but I do have a design leaning and a fantastic team to work with.

How do you manage the two roles? I tend to split my time in favour of the operations side but, in general, I've just learnt to manage my time appropriately.

What did you do before joining DevCo? I was operations director at Caf‚ Rouge when it was owned by the Pelican Group. Before that I worked for Sony Records, where I matched up artists who didn't write their own songs with songwriters. I left because I was crap at it, and became a trainee manager at Caf‚ Rouge and worked my way up over about six or seven years.

That's an odd career change. When I left university, music and food were my two passions. I fell into music, and when it didn't work out it made sense to pursue my other dream.

What attracted you to DevCo in particular? DevCo's chief executive officer, Karen Jones, and investment director, Jo Cumming, were both formerly at Pelican Group. When they left, I followed.

Why do you like working for DevCo? It's entrepreneurial and ever-changing. Spirit Group is very large but it has retained a small-company approach.

What's the best thing about your job? The team is what really makes this job. I enjoy working with them - that's what makes going to work every day great.

What's the worst thing? Occasionally working for a big business can be restrictive, because things have to be done a certain way. If you are running your own company, business tends to be more flexible.

What's your chief career ambition? I don't particularly have one at the moment. I don't contemplate career progression in terms of wanting to be on the board or anything like that. My future is mainly focused on making sure the business is working the way it should be. I'm not sure beyond that.

Why do you like working in London? London is a great cultural melting pot, and I'd recommend it to anyone who likes a busy and ever-changing lifestyle.

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