Expert advice on running a bar
From design and energy saving through to marketing and customer service, specialists are on hand to offer profit-making advice
It is official: new research shows that bar owners spend a significant amount of their working week dealing with issues that do not improve their bottom line. A study by Red Shift Research for finance group Aviva found that 32 per cent of bar and restaurant owners feel they would be more successful if they had more time to spend on core activities that involve revenue and sales. But when it comes to seeking advice, 83 per cent said they relied on the internet and 26 per cent would rather ask friends and family for advice rather than turn to a specialist.
This can be a particular problem for start-ups, points out Alan Smith, associate at design company BCA London. “Lots of bar projects suffer from not getting the right professional advice at the earliest stages – in fact, at inception, well before most clients would think about engaging a professional,” he explains. “However, getting an experienced design-led architect to first help develop a bar concept and then review it against potential sites can be the difference between a hugely successful bar and one that is lacklustre and even a failure.”
Calling in the experts can highlight problems and areas of risk, he adds. Specialists can advise on whether the concept is right for the location and demographics, warn about technical aspects such as service and power requirements, and point out statutory issues such as planning, building control and licensing. “These are all aspects that are so key to a successful new bar and yet all too often they are overlooked until it is too far down the road. Employing the right advice at inception can avoid so many of the pitfalls and make the difference in time, cost and quality of the finished project.”
One solution is to carry out a marketing and operational “audit”, says Victoria Searl, a freelance operations and marketing consultant for the hospitality industry. “Operators are less inclined to spend money on what they perceive to be less exciting things such as achieving operational efficiency, yet it’s this rather than the actual aesthetics of a bar that helps guarantee success,” she points out. “The sooner an operator takes an objective look at their business, the sooner solutions can be implemented, giving that business a fighting chance.”
A marketing and operational audit objectively highlights the strengths and weaknesses of the business, giving advice on changes needed, Searl explains. “Often an audit finds that operators invest most of their cash in areas that offer little or no return on investment, such as interior or glassware, and spend surprisingly little on areas that are proven to increase sales and profit such as online marketing and training.”
Customer programmes
Keeping customers and increasing their spend is as important as attracting them in the first place, says Leon Sabwa, head of client services for NFS Hospitality’s epos business unit. “Loyalty is an important tool to generate repeat visits as well as achieve customer retention,” he points out. “With so much choice available nowadays, if some kind of reward or incentive is offered, customers will keep returning.”
Sabwa says a loyalty programme using a well-designed, well-planned and well-implemented system, can provide added value and increase revenue by changing the behaviour and buying patterns of customers. Drawing on specialist expertise, the best programmes start with a “loyalty situation analysis” covering operations, revenue growth and communications, followed by gathering data and profiling customers. The objectives for boosting profits need to be identified, such as cross-selling, up-selling or customer retention and acquisition, along with the design of the programme, which could include a loyalty card providing cash rewards.
Bars that have used NFS Hospitality’s integrated loyalty systems, ranging from epos transactions to management of applications online, include the Dover Street restaurant and bar in London’s West End. “The amazing thing is that by using it, we now know which of our customers are good spenders and which keep returning,” says Stuart Graffham, the venue’s food and beverages and IT manager. “It allows us to focus our promotions on key groups of people based on the usage of their rewards card, much like targeted sales.”
Good service is obviously key to retaining customers, but bars and pubs do not score well with the public, according to research by Retail Eyes, which puts together programmes for improving the customer experience, including mystery customer visits. While 52 per cent of people said hotels provided the best service, restaurants were rated top by 23 per cent and bars and pubs by only six per cent. “The most frequently occurring issue always relates to speed and quality of service and check-backs for satisfaction,” says chief executive Tim Ogle. “Little things like not being served in turn at the bar can really irritate customers and can ultimately influence whether they return or spend more money.”
However, Ogle says the hospitality industry is beginning to realise that “hospitality” is key. “There has been a major step-change in the industry over the past two to three years. It used to be just about how well you pulled a pint but now more effort is being put into training the customer-facing teams.” This is changing the way the staff are being recruited, he adds. “You can train someone to pull a pint so operators are focusing harder than ever on recruiting people who are friendly and engaging.”
Audio-visual
When it comes to installing visual equipment, interactivity is now key, according to Neil Dickinson, director of Arcstream AV. “Capturing the attention and imagination of customers and engaging with them will make your bar stand out in their minds, and the more fun you make it, the more likely they are to return. The range of interactive products on offer at the moment is endless, with a few leading bar brands looking to install multi-touch floors and touch-sensitive walls as well as interactive tables and bars.”
Dickinson says that interactive technology, such as the touch-sensitive Your Surface products, can also be used to provide content paid for by other brands, presenting an extra revenue stream for a bar. “Just as easily you can use it for gaming or to allow guests to order from their booth via an interactive touch table.”
Before buying a projector for your bar, take into account the “lamp life”, which is the number of hours a lamp will run before needing a replacement, advises Mark Dunnett of PVS Solutions, which specialises in AV installation and hire for bars and clubs. “Many modern projectors have lamps that will last up to 5,000 hours but some are as low as 1,500.” As these can be expensive - £250 to £350 – hiring equipment may be a better option. Dunnett also suggests using a digital signage solution rather than just TV screens for showing sport or music videos because they can also be used for advertising or promoting events.
Rather than just ordering product from suppliers, professional sound companies can carry out a survey and advice on the best system as well as on sound level legislation, points out Clive Kinton, director of OHM which designs and manufactures sound systems for bars and clubs. “When choosing a sound system. consideration has to be given to the sound distribution, ideally that everyone in the bar should be hearing the sound at the appropriate level,” he points out. “This can be achieved quite easily by zoning and having the volume level for each zone controlled from behind the bar or manager’s office. For example if you have a bar area, restaurant and dance floor, you need three zones each with its own amplifiers and speakers so that each zone can be run at its required sound level.”
He points out that loudspeakers must be able to provide good sound at both low and high volumes. “More small speakers are better than a lesser number of large ones especially if the bar has alcoves and odd shaped rooms,” he recommends. “Sub-bass speakers can be built into alcoves and banquettes. The system should be run in mono mode so that everyone gets the full sound no matter which speaker they are nearest to.”
360-degree advice
If a bar owner is devising or revising the drinks offering, a number of consultancies have grown up over the past 10 years to offer guidance on drinks, especially cocktails, such as IPBartenders, LA Bartenders, Soul Shakers and Cheeky Tiki. However, many have developed their services beyond just drinks lists to look at the broader business picture. Gorgeous Group was founded as a food and beverage consultancy but now offers broader services such as concept creation, design and training plus links into partners providing other expertise such as PR and marketing. “We look at projects 360 degrees,” says managing director Robbie Bargh. “Bars all need to tell a great story but you have to give the staff the right tools to tell that story.” He recommends it is always best to call in the experts at an early stage when planning a new bar. “The concept should come first and the design afterward but 90 per cent of the time that doesn’t happen.”
The Venue
The need for specialist advice under one roof has been met by a new exhibition centre for the hospitality industry, featuring pods fitted out as “live working” bars to showcase more than 20 leading names. The Venue, just off the M60 in Oldham, is the brainchild of Neil Guest, director of contractor and designer Dawnvale, and features its own in-house guild of designers and architects as well as a free bar design service and a range of consultants offering specialist advice from marketing collateral to training and recruitment. “In essence, bar operators can select from a menu of products and services that embraces everything from the initial concept and design right through to the opening and on-going sales and marketing,” Guest says. “It’s revolutionary and a holistic approach that will appeal to the experienced and ‘new to the market’ bar operator and will ultimately save them time and money.”
Other companies involved include Villeroy & Boch, GlassTech, Mirmac, Graham & Brown, Contract Tile Solutions, Scenesetters, GBM, Surface 2 Surface, Safeguard, DBE, Century Carpets, Mirmac, Vinfinity, Gerrard Seel, Sound Ceilings and Bang & Olufsen.
Saving energy
The hospitality industry is responsible for over 3.5million tons of carbon emissions per year but, according to technology specialist EMU Systems, it is estimated that energy savings of up to 20 per cent – equivalent to more than £200million – are possible across the sector. “Energy costs have always been a significant overhead in the catering and hospitality industry – air conditioning, refrigeration and lighting all require significant electricity,” says EMU Systems commercial director Charlie Wainwright. “On top of this is the issue of climate change which is a particularly hot topic at the moment.”
EMU Systems’ newest product is called edd:e which measures where, when and how electricity is consumed in commercial properties. Working with EMU Systems’ specialists, bars can use this information to identify energy-saving measures.
The Geo Bar heat recovery system has been launched by system designer Paul Menzies and ex-Scottish & Newcastle directors Christie Slater and Rob Woodcock (pictured). It uses the excess heat from bars’ chilling equipment – which is normally lost outside the building – to heat water for direct use or in the heating system. Since January this year, Geo Bar has installed systems for groups such as Punch Taverns, Thwaites, Charles Wells and Caledonian Heritable. “Customers are saving an average of £5,200 a year on their energy bills as well as seeing a substantial reduction in carbon emissions,” Slater says.
December 2009
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