It’s tough out there, but not all operators are experiencing the same fate in the face of strong sector headwinds. Take JD Wetherspoon, for example, and its results published this week. Wetherspoon is a brand that everyone has an opinion on. Many will think “Wetherspoon – it’s not a brand I care for or for people like me” and might scroll on. Loved by some yet loathed and looked down on by others it’s a brand I have always been impressed by.

 

Our research shows consumers increasingly love it and I believe much can be learned from the principles it uses. Morar HPI’s BrandVue data, for example, reveals more than half of people in the UK have visited one in the past 12 months and while there may be 893 sites across the UK it has an impressive cross social class cross age pull, varying by daypart.

 

On to brand expert and author Byron Sharp. I have for a long time strongly advocated his work around “how brands grow”, which challenges a lot of conventional marketing “truths”, and in my view this is increasingly explaining how the sector performance is “falling out” in 2017 and will continue to. What can other operators learn from Wetherspoon in the context of Byron Sharp? 

 

Ensure the brand is easy to buy: Put simply, be everywhere (Sharp refers to this as “physical” and “mental” availability) to increase the likelihood you’ll be considered in the moment. Ubiquity, while to smaller brands may not seem desirable (“it’s a big brand thing”), is I believe, explaining a lot of the success that the technology giants Amazon, Facebook and Google enjoy. Wherever you are, they are, so you are more likely to use them because they are front of mind.

 

Continuously reach all buyers of the category: Customers’ attention in 2017 is a scare resource, so use it well. Wetherspoon’s communications (A-boards, posters, website) may appear quite simple, but the subtle point/lesson is it is clear to see how it could fit in guests’ lives. I’m focusing more here on the physical locations, which are typically prominent in towns and cities, rather than a killer digital strategy. Be it daypart specials, meal deals or simply new ales on promotion, there is a deliberate emphasis on drawing passers by in throughout the day. This to me is more than simply price – it’s so called “occasion marketing”. We are bombarded with up to 370 advertising messages a day so removing the cognitive load helps drive action. As a slight side note Wetherspoon has interestingly made it clear it will no longer keep a digital customer database, but I think it is a “brand of one” on this one and this isn’t a principle others should adopt!

 

Get noticed: This may seem similar to the first lesson, but Wetherspoon (and Tim) is never afraid to have an opinion or be different. This humanises the brand to a degree and makes it distinctive. It also makes a big deal around how clean its toilets are (which no other brand does)! The lesson here is stand for what you believe in or risk standing for nothing.

 

Imitate and innovate flawlessly: Keep the brand interesting! From the launch of pizza (earlier in November) to the launch of the pay at the table app (that I have used quite a few times and not only has it worked every time, it’s solving a few genuine customer needs and pain points), Wetherspoon does not jump on every so-called trend, rather it selectively updates in ways it can execute flawlessly.

 

Be consistent: Sharp advocates avoiding unnecessary changes to ensure it is clear “what the brand is”. Consistency in dining (true with all consumer markets) builds trust and it explains a lot of Amazon's success. Evolution of a concept is rarely a bad thing, but change the core too much and you risk confusing guests around what they will expect the next time they visit. The consistency of Wetherspoon’s Wi-Fi (it always works!) may seem a small thing, but it builds a simple memory structure/asset in customers’ minds: “If I need a quick 20 minutes of Wi-Fi I will pop into Spoons because it always works.”

 

Sharp’s principles – and Wetherspoon’s – are not for everyone or even every brand; and part of the skill is judging which are most appropriate for your situation (with a little outside guidance) and then having the confidence to apply them in the most impactful way. 

Differentiation seems to be one of the main topics of conversation in the sector at the moment. The theory is the more differentiated a brand, the more customer interest it is likely to attract and the more loyalty it is likely to retain. A brand that has clear blue water between its proposition (and delivery of that proposition) and its competitors, so the argument goes, has a much better chance of emerging unscathed from the rapids of possible recession.

 

Businesses that I hear are doing better at the moment would seem to support this. Flight Club, Bounce and Swingers, for instance, have differentiated their brands by offering experiences, as part of a full evening out, which customers want to talk about and share. In a similar vein, Hollywood Bowl and Tenpin seem to be performing well because they too provide their customers with food and drink – and experiences for the whole family. Center Parcs, I would argue, (and Bluestone in Wales) have done this on a much bigger scale and over a longer time span than many sector brands, but the principles of differentiation, in these instances versus anonymous hotel chains, still apply.

 

Bistrot Pierre currently (and Loungers and Loch Fyne when they both started) has used its property strategy to separate itself from its competition. It buys sites in areas where the mainstream brands have yet to venture and has had huge success – that in turn has probably meant lower rent-to-turnover percentages. I also like the property strategy of Burning Night Group and its focus on some unloved towns in the north, including Bingley, my home town.

 

Service is another route for differentiation but this is challenging to do especially when service levels are generally really good nowadays. I don’t know many brands where the quality of their service has really pulled them apart from the pack. I have had really great experiences recently in Leon, Pret, The Lighterman, 45 Jermyn Street, The Ned, Las Iguanas and the Soho Hotel but even so, I don’t think I could genuinely say their service was so exceptional it would be the main reason for me to return. Is there still an opportunity here or is service now as good as it can possibly be and has no scope now to be a real point of differentiation?

 

Single food offer focus has patently helped some brands differentiate until another competitor with the same food focus has come along and stolen their share (eg premium burgers, poké, flat iron steak, salad bars, etc). What is creating a stir is where operators have improved on old, possibly stale, food offers and given them a twist – Chick ‘n’ Sours is brilliant and has created a real niche for the brand with consumers. There must be loads more out there just ripe to be redeveloped for the 21st century and a new generation or two. What food offer is next to be reinvented?

 

Of course, innovation really drives differentiation and there are some fantastic operators out there with brilliant new ideas – Mowgli, Chit Chat Chai, Bababoom, Vagabond, Friends of Ham, Siam Eatery, The Good Egg, Hop, Jack & Alice – who are exciting, challenging and inspiring. Venture capital no longer seems to be only interested in chains of five or more – many are actively looking for a great idea and for it to have worked in as few as two sites. Landlords too are looking for new concepts to plant among more established operators in new (and old) developments.

 

One of the issues the “old guard” brands face is how to keep differentiating and innovating today. It’s a challenge if their concept isn’t new, or experiential, or available in captive audience areas (such as travel hubs) and/or has unbelievable cost-cutting pressures. Adding value (and cost) to differentiate is not a palatable message in many businesses. Some brands though have managed to have longevity and differentiation – perhaps Wagamama could let us into its secret?

 

With Alcohol Awareness Week approaching, we can expect much debate about the UK’s relationship with alcohol. At Drinkaware, this is something we have been seeking to improve for the past decade, since we were formed as an independent alcohol education charity in 2007. It is perhaps timely, therefore, to look at some of the changes we’ve seen over the years:

– Alcohol sales have been in significant decline since their peak in 2008.

– Abstinence from alcohol is increasing in the UK and is now estimated at between 11% and 17% of the adult population.

– Under-age drinking is declining. The number of 11 to 15-year-olds saying they have drunk alcohol in the past week is 8% – a ten-year low.

– Evidence from the Health Survey for England (2016) suggests among people aged 40 to 60, 33% of men and 18% of women are drinking above the low-risk unit guidelines.

A more personal insight into people’s relationship with alcohol came recently from football pundit Chris Kamara, who became a spokesperson for Drinkaware’s “Have A Little Less, Feel A Lot Better” campaign on a number of radio stations. Talking on BBC Radio Humberside about his experience of cutting back on his drinking, he advised listeners: “Just cut back, one or two days a week. Don’t cut out altogether, because I know I couldn’t do that.”

His words resonated with his listeners, and in many ways they sum up Drinkaware’s approach to alcohol – we recognise it is a part of everyday life for millions of people and can be enjoyed in moderation. Our campaigns and projects aim to minimise the harms associated with excessive drinking.

As the festive season approaches, and with it a raised likelihood of alcohol-related harm, now would be a good time for all retailers to review what they are doing to minimise them, which may include using some Drinkaware resources. Despite every effort to help customers drink in moderation, there will still be some who become vulnerable after drinking too much. Helping venues to recognise and deal appropriately with these people was behind the launch of our Drinkaware Crew and Alcohol Vulnerability Awareness e-learning course. Could your venue benefit from one, or both?

Drinkaware Crew are additional members of a venue’s team, specially trained to identify and support vulnerable customers, while also helping to create a positive environment in the venue, to try and reduce the likelihood of harm taking place. Drinkaware Crew teams now operate in 14 cities, in pubs, bars and clubs with a 500-plus capacity.

Operators who have introduced Drinkaware Crew are unfailingly positive about their impact, reporting they are helping to improve the safety and well-being of customers, as well as freeing up time for other staff including security and bar teams to focus on their jobs. We hope to launch them in many more venues.

For smaller venues, we have launched an Alcohol Vulnerability Awareness e-learning course to give customer-facing staff the skills and knowledge that were used to create the Drinkaware Crew training. It helps staff to understand what vulnerability means, how to spot customers who are vulnerable to harm after drinking, and gives practical advice on how to support them.

Drinkaware’s work is broad and reaches a wide range of audiences from consumers, health professionals, government and employers to drinks producers and distributors and retailers in the on and off-trade. Last year, more than nine million people visited the Drinkaware website for information and advice on alcohol and related issues and our Drinkaware app has had more than 380,000 downloads from people wanting to track their alcohol consumption.

The vast majority of pub, bar and club operators share our aim of minimising alcohol-related harm and many are among our 100-plus funders. The best operators are constantly looking for ways to make their venue a place where customers find it easy to moderate their drinking and that supports those customers who may become vulnerable after drinking to excess. The continued support of responsible operators will be vital in helping us all to keep changing the UK’s drinking culture for the better.

 

I love the Association of Licensed Multiple Retailers Operations Managers Awards. It’s a massive buzz. This year was no exception. It was brilliant to see Adam Sykes, Emma Deabill and Yvonne Fraser win their awards. Around them stood so many other “winners” – the finalists who came to this year’s masterclass at Hothorpe Hall in late October, and all the previous winners and participants. This is such a powerful community.

 

The masterclass is always a blast. It’s three days of experience, industry inspiration and provocation. It gives people the space and challenge for a fresh look at themselves. There’s always great feedback. This year, one participant wrote: “After the masterclass I cancelled my meetings, stayed at home and switched off my phone. I rewrote the plan for my region in a different way. I began to accept who I am a little more and have confidence in how I do things. I presented my plan to my manager and the team. It was well received – with lots of questions – and was completely different to how I have presented and thought previously.”

 

This participant isn’t alone. Everyone digs in deep. Participants encounter new ways of thinking and you can see the light bulbs going on in the room. If I had a magic wand, that’s exactly the impact I’d like to have on the whole sector. This is a sector facing some difficulty. You only have to read Kate Nicholls’ almost daily pieces to see the scale of the pressures. At the awards evening Robin Rowland from YO! Sushi spoke about the pressures on business.

 

The pub trade, in particular, is a classic example of a mature, consolidating market. It’s awash with underperforming assets, backed by companies that are invested in keeping things as they are. It’s hard for anyone to carve out a market leading position because almost no one is willing to change the rules of engagement. Where is the Amazon of this business going to come from? It was a question I heard many of our participants raise in the masterclass – how can we get more really entrepreneurial operators into our pubs? I’d ask the same question about the boardrooms. Can you honestly tell the difference between the experience delivered by different pub groups? Real difference is rare.

 

That brings me to the real challenge. Is this a sector that can imagine real change? We all know the Encyclopedia Britannica story. No one in top management could see the power of the CD-ROM – famously sticking to their belief that “we’re in the book business”. I wonder, what is this industry’s equivalent of Encarta? There’s a bus hurtling towards you with your name all over it. Are you looking?

 

What might a real game changer look like for this sector? The player from hell? Maybe it’s a sovereign wealth fund backing a really different proposition – maybe a technology-led play based on artificial intelligence – a “pub” that doesn’t even look like a pub? Maybe it offers something that sucks away the loyalty and spend of tomorrow’s customers? Maybe it’s not that. Maybe it’s some breakaway strategy that changes the game totally in a way we can’t see right now.

 

My money is not on that game changer coming from anywhere within the industry. Why not? First, because you as an industry don’t quite believe in its people. You’ll spend a million on a power points from McKinsey and not have the confidence to develop your in-house capability to exercise the imagination for yourselves. You don’t really trust people. Maybe the industry partially believes the press it gets – can’t pass the “mum test” as Kate Nicholls puts it. Is this an industry you want your kids to work in? The industry doesn’t quite believe itself it has the people to reinvent the business.

 

Let me tell you a story about one chief executive. I was telling him how we work with FTSE leaders to engage their teams in inventing the future. “Why would you want to do that?” he said. “I have the ideas and I tell them what to do.” He’s not alone. There’s a lot of top-down management ethos. It’s not fit for purpose in a shifting world. If you don’t change this attitude you will be creamed by someone who does.

 

Some of the best people in your business are running your regions. The work they do in the masterclass is exactly the work your wider teams need do too – and they always tell me so. They’re frustrated their senior management doesn’t seem to get this. It’s time to embrace their skills. If not, the best of them will set up the black swan businesses that swallow you. Bottom line – change or die. It’s up to you.