When reality fails to live up to the dream

The public loves the idea of the British pub. It is the reality it has a problem with.

Ask people if they like 'traditional pubs' and a large majority will agree ' 65% according to new research to be published later this month. But do they use pubs?

The answer to that is less and less. Despite this latent fondness for what the pub stands for, the public will just as easily live without it, it seems. Half of them say they never or rarely go to their local pub ' or any pub for that matter.

We already know that going out to restaurants is now more popular than going to the pub. In fact, eating out has become the nation's number one out-of-home leisure activity. That gem came out a large-scale survey carried out for Gamestec, the gaming machine business, before Christmas.

It revealed that 57% of adults had been to a restaurant in the previous month, compared to 43% who said they had been to a pub. People also spend more money in restaurants than pubs.

More worrying, perhaps, is that the research also showed that in a typical month about half of the population (52%) will have entertained or been entertained by friends at home.

At the heart of the problem for the pub seems to be what this image of the perfect hostelry that the public still holds dear actually means for people. The clue comes in the reaction to the statement 'I prefer pubs that serve good food and wine to the traditional 'boozer''. More than twice as many adults will agree with that sentiment than disagree, according to those findings coming out this month.

The residual fondness or nostalgia for the pub is not about physical things ' pints of real ale, bare floorboards and darts. The public's view of what makes a good pub has changed, as life has changed and expectations grown. What people remember and want to recreate is the sense of warmth and welcome and well-being that they experienced in the past. It is about laugher, fun, good company and satisfaction ' the things more and more people seem to be finding when they go out to eat or have friends round at home.

The secret of the perfect pub is simple, but also one of the most difficult things to deliver ' it's hospitality. Many pubs do it very well; many others don't. Many have adapted to changing times; many haven't.

It is the beginning of the industry awards season, with the big celebratory bashes on Park Lane. There will be a string of winners trooping on and off the stage to pick up their trophies. Perhaps this year we should all take a little more time to learn why they won, what makes them stand out, why they have customers while others don't?

The stark truth is that the pub sector in general is not doing well, with upwards of 1,000 community pubs closing or changing use every year.

It is fashionable to apportion blame across the board ' the Government, supermarkets, the police, local councils. But perhaps another reason why pubs are shutting is because they are no longer adequately serving their communities?

It is not any easy thing for the sector to admit. The campaigners calling for more support for the pub, and community locals in particular, quite rightly highlight the legislative pressures, rising costs and worsening economy that are all working to squeeze the pub business.

The Association of Licensed Multiple Retailers (ALMR), which represents pub groups across the country, only last month highlighted the fact that while the number of community pubs had fallen 10% since last March, costs had risen to 52% of an average pubs turnover.

There is no doubt these external pressures are taking their toll and amplifying the problems of many pubs, but they should not blind the sector to the reality that the long-standing 'traditional' public house model may be out of time and failing the modern consumer.

It is difficult to rally support for a business model that might be flawed, so it is perhaps forgivable to talk to Government about the 'much-loved' institution and its 'vital role' serving its community and the local economy.

But don't be fooled, many pubs don't serve their communities and are far from being loved. Many pubs are closing because people have voted with their feet. So why should locals be saved and shielded from market forces?

Other business sectors have similar pressures, not least restaurants. So why is it that restaurants are doing better than pubs? It is consumers. They prefer to eat-out than drink-out; they increasingly prefer the offer and the experience.

There has been a cultural shift in this country. Tastes have changed; expectations have changed. That is what the pub sector should be concentrating on.

The best businesses are also in the right places, where there are people. Too many pubs fill the sites they have always inhabited, but which are now irrelevant to where people live and visit. Closing pubs in the wrong place should not be a cause for regret. Location should be as important for the licensed trade as it is for retail.

Many operators, of course, already understand all that. Look at the transformations our two leading managed pub groups, Mitchells & Butlers and Wetherspoon, have gone through in the past five years or so. M&B, for example, sells more food than beer and Wetherspoon has adopted a slick fast-food approach to meals that will see an order delivered to table in a little over 10 minutes.

Those are the models than struggling pubs should be studying and striving to emulate. But great operational role models are not restricted to the big chains. Many of those individuals picking up awards in the next month or two will have an inspirational tale or two to tell, as well.

What the pub sector does have in its favour is this residual, and real, public affection for the idea of the traditional pub, its warmth and welcome and good hospitality. The big challenge is how to leverage that against the realities of modern consumer expectations.

That is surely more vital than worrying about the fate of a few thousand 'community locals' that few will probably ever miss?

First published in M&C Report March, 2008