On trying to do a look back on the last year, I don’t really know where to start!
“Annus Horribilis”…that’s the only way to describe it
We have been through World War 3, without a truce, and with only a few small cease fires called, but only to gather more ammunition to start the war on the sector all over again.
From a 3 week short sharp shock on the9th October 2020, which will be forever known as “cafegate”, to having the Cinderella Christmas where everyone had to be at home in bed by midnight Christmas night, to where we are today;I think it’s fair to say Hospitality have been used as collateral damage by those who impose the restrictions on us.
The summer seemed to have been a good trading season for many, as the UK braced itself for the staycation holiday makers, and for many it was a lifeline, and gave some hope of things to come
We have had recruitment issues, a pingdemic, curfews, and everything else thrown at us, and unfortunately for some it has been last orders, where doors have closed, never to reopen.
So where are we now? Well, on a positive (if there is one), we see the deposit return scheme postponed until August 2023, but currently we see ourselves back in a Deja vu 3 week short sharp shock, and hoping that it will be simply that, albeit hard to take given that Hogmanay is probably the biggest event in the Scottish calendar. Table service resumed, the rule of 3 households in guidance, the 1m distancing back between groups, and no dancing. For many of our smaller pubs, this is a closure by default, due to the nature of the restriction, and shape or seating of the venue, which ultimately relies on vertical drinking to remain viable.
We would only hope and expect that the extra restrictions placed on our businesses and lives here in Scotland, will lead to a significantly better health outcome, however on the other side of the border in England, we would also hope that the stance the UKG has taken, in not placing any further restrictions before New Year, will bear fruit, and that this variant could be our way out.
On the funding front, we are told that the first lot of funding from the £66m will start to go out at the start of January, and that is being done as before, through the strategic framework payment system. As for the extra £275m which has come from UKT, the Scottish Hospitality Group has made it very clear to both the Scottish Government and all opposition parties, that this funding must only go to those businesses who have been directly affected and not to those who have profited through our restrictions. We are yet to be told what the monetary split will be, however it is safe to say that it must be a sizable amount.
It is now critical that the Cab Sec Kate Forbes also relooks at the rates payable for 2022/23 for hospitality, as it is clear that a 3 month reduction is not going to help in any way after the devastation of the Christmas and New Year trading. The cap must also be lifted, as for some this will equate to only a 4% saving on their annual bill
The UK Government must also turn their attention immediately to the situation facing us in April on the return to 20% VAT. SHG will of course keep up our discussions with MPs in Westminster, to lobby the UKG on this matter, and ask that a permanent VAT rate is set for hospitality.
Training is key for our sector, both for our staff and forthcoming employees. We will look to the Scottish Government on how we can work with them to improve funding available for recruitment and training. SHG are currently working with a college to put together a 12 week training program, and we hope that this will be a pilot for others. Changing the outlook of our sector is a key dynamic in changing the perception of it to others and in aiding our recruitment paths.
So, what’s ahead for the Scottish Hospitality Group?
Well, we have certainly come a long way since we got together, and many people have benefited from the advice we have been able to share, not just within our own group, but to those out with. We have built up fantastic relationships with Ministers and MSPs within Scottish Government, along with MSPs in all opposition parties. We have also gained the respect and relationships with many MPs, through our own meetings and appearances at many Scottish Affairs Committee meetings in Westminster.
As we enter 2022, the Scottish Hospitality Group will continue to be a voice for the trade in Scotland, continue to build our relationships with both Scottish and UK Government, and continue to be there to offer help, advice where we can, and be a friendly voice on the phone to anyone who needs just a chat.
Before I close, I would like to take the time to thank everyone within SHG for your help and support over the past year, you are all just amazing people, Susan Young for everything you do for our group and for the sector, to our suppliers who have supported us, and everyone else who we have had the pleasure of dealing with over 2021.
Lastly to everyone within the hospitality sector, I thank you for your calls, your support, and your friendly chats, and I wish you all, a very Happy, Peaceful, and Safe 2022
After months of judging, interviewing and mystery shopper visits, the Scottish Bar & Pub Awards 2021 finalists have been revealed ahead of the ceremony on the 7th September at The Hilton Hotel, William Street, Glasgow.
The evening kicks off at 6.30 pm, and Bev Lyons is your compere for the evening with entertainment throughout dinner from Roberto Enzo.
There’s also an after party at The Radisson Red Sky Bar with Michael Kilkie and Jon Mancini, plus Guilty Pleasures.
We must also say a huge thank you to our sponsors.
Your 2021 finalists…
Antos Dog Friendly Pub of the Year
The Applebank Inn, Larkhall
The Forth Inn, Aberfoyle
The Inver Inn, Tain
Radisson Red, Glasgow
BII Customer Service Award
Howlin’ Wolf, Glasgow
Platform 1864, Tain
Zinfandel Gastro Bar, Glasgow
Siberi, Aberdeen
Deanston Whisky Guru of the Year
Andy Robertson, Oran Mor
Tom Gibson, The Glasshouse
Derek Mather, Artisan
Euan McMIllan, Ben Nevis
Discarded Spirits Co. Cocktail Bar of the Year
The Gate, Glasgow
Lido, Troon
Radisson Red, Glasgow
Buzzworks & Montpeliers Emerging Entrepreneur of the Year
David Brown, The Palais, Glasgow
Stuart McPhee, Siberia, Aberdeen
Billy Milligan, Finsbay, Milngavie
Adam Newth, The Tayberry, Broughty Ferry
Carling Community Pub of the Year
The Black Bull, Gartmore
Nine Maidens, Dundee
The Palais, Glasgow
Silverwing, Edinburgh
DRAM Independent Pub Group of the Year
Cru Holdings, Aberdeen
Macmerry 300, Dundee
The Winged Ox Ltd, Glasgow
Gordon & MacPhail, Connoisseurs Choice Whisky Bar of the Year
The Abbey, Newington
Artisan, Wishaw
The Malt Room, Inverness
The Pot Still, Glasgow
Hospo Manager of the Year
Tony Craig, Black Ivy, Edinburgh
Scott Henderson, The Record Factory, Glasgow
Katie Moran, Grand Central Champagne Bar, Glasgow
Kopparberg New Bar of the Year
The Bull, Glasgow
Coast, The Gailes, Irvine
Lithgow’s, Greenock
Moskito, Glasgow
Old Tom Gin 1821 Hotel Bar of the Year
Dalmahoy Hotel & Country Club, Kirknewton
Greywalls Hotel, Gullane
Meldrum House Hotel, Oldmeldrum
The Marine Hotel, Troon
Inverarity Morton Restaurant of the Year
The Dapper Mongoose, Glasgow
The Fort & Willow, Ayr
The Inver Inn, Tain
Kinneuchar Inn, Kilconquhar
Molson Coors Evolution Award
The Fort, Broughty Ferry
The Golf Inn, Ladybank
The Locale, Glasgow
Kopparberg Best or Most Improved Outside Area
The Brig & Barrel, Belhaven
The Bus, Prestwick
The Smoking Goat, Ayr
Stolichnaya Award for Sustainability
Derby Lane, Glasgow
Jospeh Pearce, Edinburgh
The Oak Tree Inn, Balmaha
Tiki Bar, Glasgow
DRAM Sales Rep of the Year
Harry Olorunda, Halewood
Matt Lambert, Jägermeister
Marc McParland, Arbikie
Sunday Mail Pub of the Year
The Bellrock, Glasgow
Brig & Barrel, Dunbar
The Kings Arms, Fenwick
The Thornwood, Glasgow
William Grant & Sons Bar Apprentices 2021
Aiden McCurley, Finsbay Flatiron, Glasgow
Chris Peguin, The Spiritualist in Glasgow
Alanna Beattie, The Hillhead Bookclub, Glasgow
Ben Boyd, Vic’s and The Vine in Prestwick
Jacob Channon, Biddy Mulligans, Edinburgh
Cam Christie, Montpeliers of Bruntsfield, Edinburgh
David Kalu, Ryan’s Bar, Edinburgh
Becca Macdonald, Hamilton’s Bar & Kitchen in Stockbridge
Fraser Souness, Tyler’s Bistro, Edinburgh
Euan Thomson, Scotts Restaurant & Bar in South Queensferry
Lifetime Achievement – to be announced on the night
Charity Endeavour of the Year – to be announced on the night
Inspirational Employee of the Year – to be announced on the night
Tickets for this year’s Scottish Bar & Pub Awards on 7th of September at Glasgow’s Cranside Kitchen and Radisson Red are selling like hot cakes but numbers are limited so book today by emailing accounts@mediaworldltd.com.
It’s an inside/outside awards with a festival flavour and you’ll be able to see all the finalists in each category in your August DRAM, out shortly.
We also pushed the envelope at last year’s awards by hosting a virtual hybrid event and we were so glad we did it and visited you all with your awards – as were all of the winners!
Here’s what some of our 2020 winners had to say about the night.
Said winner of DRAM Inspirational Woman of the Year, Signature Pubs’ Louise Maclean, ” I thought the whole event was pretty cutting edge technology-wise and probably the best virtual event I have been to in 2020.”
Marco Sarao owner of The Auldhouse in East Kilbride, winner of BII Customer Service award said, ” I’ve got to take my hat off to Susan – she’s an Iron Lady and this event raised spirits and honoured everybody – even our customers on Facebook were saying it was fantastic. ”
Open Ear Lionheart of the Industry award winner Donald Macleod said, “It was brilliant all things considered during these strange times we’re living in and well done to Susan and the whole DRAM team. It felt good for the trade to be able to get together. I was so pleasantly surprised to get my award in person – it’s not often that my family is able to keep anything from me but they managed it this time.”
Alison Blair owner/director of Buzzworks Holdings – winner of Independent Pub Group said, “Hats off to Susan for doing she did and total respect for doing a virtual ceremony because this is not an easy thing to pull off. I know how much hard work goes into live events..”
It seems only right with everyone having to adapt that we too adapt the awards for this year, to recognise that many people will not feel comfortable in a formal environment.
But that doesn’t mean to say you can’t put your glad rags on, just that it will be accessible to everyone, and many thanks to all our sponsors too of course.
Mitchells & Butlers (M&B), which has an estate of 72 in Scotland, has reported sales of £219m for the 28 weeks ended 28 April 2021, around a fifth of £1.029m of sales in the comparable half year. There was a loss before tax of £200m (Half Year 2020 – loss of £121m). Only 14 weeks of restricted trade were possible in the first half of 2021.
Chief executive Phil Urban (pictured) said, “M&B was a high performing business coming into the pandemic. With the support of our main stakeholders, we are now well placed to emerge in a strong competitive position and look forward to the removal of remaining trading restrictions in June such that the business is able to return again to full and sustainable profitability.
“With our great estate, well diversified portfolio of brands and proven management team, we look forward to welcoming back our guests for great experiences in covid-19 secure environments and focusing the business once again on continually enhancing our customer proposition while driving efficiencies through the Ignite programme.”
He added, “The government’s announcement on 22 February provided a roadmap for the easing of restrictions and we have successfully traded an average of 535 sites from outdoor areas since 12 April. Performance has been varied and heavily influenced by the weather, with outdoor sales in open sites being on average 37% down on full pre covid-19 levels (outdoor and indoor).”
We asked several licensees and operators for their thoughts and business projections for the first quarter of 2021 and here’s what Robert Kyle, owner of Ayrshire-based RAD Hotel Group had to say…
Firstly let me express our gratitude to all the frontline and key workers and acknowledge the seriousness of this situation. From March 2020 we have supported our wedding couples (over 400 across the group) in their decisions to move and postpone their wedding dates, many of whom after having moved their date three or four times are now going ahead with 20 guests. I think they know as we do that next year won’t be back to any kind of normal until after March and even then restrictions will still apply.
For us to open up under the current tier three conditions costs us double than staying closed which is having a huge detrimental affect to hospitality as a whole. Our fixed costs don’t go away, and as much as I appreciate the furlough scheme, this still has costs which we contribute to, so I can understand the sectors struggles
On opening on the 15th July this year we put a lot of investment in to risk assessments, to open safely and do more than required. We feel the hospitality sector on a whole got this right and created a safe environment to go out in, I do not feel that the hospitality sector caused the numbers to go back up.
I do get the decisions the government is making but recently in one day we have had to have three different meetings because the Scottish government guidelines and website were changed as many times. Weddings were reduced to 20 for ceremonies only in tier four with no reception with only a few days notice. In the context of the pandemic this might not seem important but on what should be a happy family time, it can be very distressing.
Funerals are allowed in Tier four for up to 20 guests, this is not financially viable, but as a community service it is important we do them, It’s the right thing to do. We also feel it is the right thing to go ahead with our plans to develop our business as we want to deliver on our promises to our wedding couples and guests. A new function suite and lodges at The Lochside Hotel are on course to be finished by April next year. We want to be ready to bring hospitality back to where it was. We have secured borrowings to achieve this and maintain our team. We don’t know how the economy will be next year but we have to try. Borrowing, however, need to be paid back.
2020 was going to be our best year because we had invested and finished two major refurbishments at Hetland Hall Hotel in Dumfriesshire and Dalmeney Park Hotel in Renfrewshire, this will not now be the case but looking forward with hope that 2021 will come good.
We asked several licensees and operators for their thoughts and business projections for the first quarter of 2021 and here’s what David Wither, Chairman of Edinburgh’s Montpeliers group…
We are in a poor situation in Edinburgh by being in tier three and we took the decision a few weeks ago to close all our venues apart from Montpeliers of Bruntsfield – it’s simply not viable closing at 6 pm and not serving alcohol. To be honest, in the last couple of days I’ve become quite pessimistic because I felt that we would be moving into level two this week and that is not going to happen. I can see the restrictions being in place until next spring. Level two could probably get close to breaking even but at Level three we are losing £30 000 a week – that’s rent, supporting the team, pension top-ups, national insurance top-ups, holidays accrued, etc. To be honest, as a business we came from very strong foundations and we will be able to navigate our way through this despite going from healthy cash flows to loans.
It will take a good two years to get back to pre-Covid levels and to increase cash flows and wipe our deferred costs and for these reasons, I can’t see all operators being able to continue.
There are some massive deferred costs to address in the future like VAT, landlords, and unpaid costs that are so sizeable for so many businesses. This is going to be catastrophic – as will mental health which is a major risk going forward and I am not convinced that the Scottish government has found a balance between mental health and economy. The majority of people spent 15 to 20 years working very hard to build up these businesses only to lose them in a few months.
It’s incredibly frustrating that the government is not listening to us – it’s so unjust. As part of the Scottish Hospitality Group, we have suggested that minor adjustments like serving alcohol until 8 at night would allow our businesses to be viable. If only they would listen and strike a more reasonable balance between health and economy.
We asked several licensees and operators for their thoughts and business projections for the first quarter of 2021 and here’s what Les Ross, licensee at The Douglas Arms in Dumfries had to say…
We’re able to reopen on Friday 11th December but the Big Burns Supper Festival won’t be going ahead this year (11 days at end of January/beginning of February) so we’ll miss our biggest two trading weekends anyway – the two weekends of BBS are our most profitable of the whole year – even better than Christmas or Easter Bank Holiday Weekend, etc., so it’s a real blow to the business to lose these.
The Big Burns Supper is only one of several Burns Night celebrations which take place in Dumfries every year (the town makes the most of the Rabbie Burns connection) so a whole lot of businesses in the hospitality and tourism sector will be affected by the cancellation of dinners etc. this year.
February, post-BBS, is probably the quietest month of the year – though thankfully short – but it’s hard to predict customer behaviour in the ‘new normal’. We’ve noticed a significant amount of people have adapted to the restrictions e.g. we expected to see a dip in sales when the 10 pm curfew was introduced, but people started to come out earlier and stay with us for most of the evening, so we’ve been doing OK. Maybe folk will buck the usual trend and come out in February 2021 if we’re open, perhaps in an effort to make up for the time they’ve been unable to socialise during lockdowns. I’m pretty optimistic.
Molson Coors Beverage Company will rebrand Coors Light to Coors from March 2021 as part of a multimillion-pound investment in the UK to drive ongoing growth in the premium 4% beer category. It will be supported by new packaging and point-of-sale material for licensees, along with new glassware and dispense assets introduced into every outlet by the end of 2021.
The move will also provide a platform to expand the Coors family in the UK, with the launch of new products including Coors Original next year.
The multimillion-pound investment will build on the success of the “Keep it Fresh” campaign, which celebrates the brand’s Rocky Mountain heritage.
Sophie Jamieson, Marketing Controller for the Coors Family of Brands at Molson Coors said, “Having reflected on the unique strengths of the brand, we saw an opportunity to maximise its potential. Our testing has shown that consumers love the new branding, finding it more distinctive and appealing, and by changing to simply ‘Coors’ we can build further momentum in the premium 4% beer category, while continuing to champion our refreshing great taste which is a clear point of difference for consumers.
“It also gives us the opportunity to introduce some incredibly exciting new products from the Coors family, starting with Coors Original later in the year. Our ambition is not only to propel Coors into the UK’s Top 5 beers, which is why we’ve put significant spend behind the brand, but also to continue to scale our presence and expand our portfolio throughout what looks to be a very exciting year in 2021.”
