Australian Hotelier August 2020

AUSTRALIAN

AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE

Vol. 37 No. 6 - August 2020

Resilience in the COVID era Adapting revenue streams for a new way of life

IN THIS ISSUE: MANAGING CASH FLOW | GAMING UPDATES | FUNCTIONS

CONTENTS & ED’S NOTE WE ENCOURAGE RESPONSIBLE DRINKING Get the facts DrinkWise.org.au

PUBLISHED BY: Food and Beverage Media Pty Ltd 41 Bridge Road GLEBE NSW Australia 2037 Tel: 02 9660 2113 Fax: 02 9660 4419 PUBLISHER: Paul Wootton EDITOR: Vanessa Cavasinni vcavasinni@intermedia.com.au

Contents

P22

SPECIAL FEATURES

REGULARS

8 Finance: Morgan Kelly discusses the

4 News: What’s happening in pubs

cash flow implications of COVID-19.

10 Gaming: The latest in gaming

room innovations.

14 Functions: How do function bookings

work with social distancing and an uncertain future?

18 Profile: Jake Smyth is an eternal optimist

across Australia.

22 Ed’s Design & Build: Jessi Singh has no Pick

regrets about opening a new pub during the pandemic.

26 Tales from the Top: How the Australian

Live Music Business Council can help pubs who put on a show.

who opens rooftop bars in winter.

have always been

We look at the latest innovations for

savvy, adaptable

gaming rooms not trading at full capacity

businesspeople, and

from p. 10, and how different venues are

never have these

handling functions bookings in this era of

qualities been tested to

uncertainty from p. 14. Plus, we profile a

their limits more than in the last six months.

couple of optimists in Jake Smyth (p. 18)

Hoteliers have had to respond faster than

and Jessi Singh (p. 22). Enjoy!

ever before to a changing situation, and have had to get really creative when thinking of

Vanessa Cavasinni, Editor

strategies to keep cash flow ticking over.

P: 02 8586 6201 E: vcavasinni@intermedia.com.au

in most parts of the country, now is the time

new era of trade. As always, we’re here to help. Morgan Kelly of KPMG gives advice

2 | Australian Hotelier

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on how to deal with cash flow on p. 8.

various revenue streams will operate in this

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In the

news

WHAT’S HAPPENING IN PUBS ACROSS AUSTRALIA

Hotel Esplanade

Experiencing Victoria’s second lockdown “It’s devastating, there’s no doubt about that.”

This is how it feels to go into another lockdown, according to Andy Mullins, director of Sand Hill Road.

Mullins provided his insights as a Victorian

“You only have one thing on your mind and that’s to get to the other side and whatever it takes to do that.”

Both back then and now, JobKeeper has been

operator on a panel for the recent Road to Recovery

critical for the business, even though not all staff

webinar, co-hosted by Australian Hotelier. He

qualify. Mullins said he sees it as “near impossible”

described the speed of change and almost constant

to trade without that kind of support for the next 12

uncertainty in Melbourne during the second

to 18 months.

lockdown, and his advice and learnings from that.

“The strategy is changing by the minute, because

“It’s going to be a long, long, long road to recovery out of this, and it’s one of those things that

each time we get an update on what we can and

the more support we can get, the better. But I can

can’t do, we’ve got to be flexible and adapt to that,”

tell you it won’t be a short term fix for hospitality in

Mullins said.

this country,” Mullins said.

These strategies are informed by initiative

Although this shutdown is being felt differently

undertaken by Sand Hill Road at the start of the

to the first one, there is a common thread – the

first lockdown - they had all of the management

absolute drive and connectivity of an industry doing

team across the whole group sit down individually

everything they can to survive.

and draw up 50 ideas for getting through the pandemic and improving the business as a whole.

“There are teachings every day, but what it shows is you don’t realise how much you love something

The only thing that matters right now is survival. You only have one thing on your mind and that’s to get to the other side and whatever it takes to do that.

“We came up with about 860 different ideas that

until it’s taken away. We’re just so passionate about

Andy Mullins,

formulated 10 to 12 different strategies, and we’re

this industry, we love it so much… and it’s so sad to

constantly pulling the different levers of different

see us all so broken,” Mullins said.

Sand Hill Road

strategies at different times. The only thing that matters right now is survival,” Mullins explained.

“It’s an extraordinarily resilient industry and I know we’ll get back on our feet.”

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4 | Australian Hotelier

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NEWS

are really struggling, with one industry operator commenting “Merivale can continue to grow and develop without standing on the shoulders of struggling Melbourne businesses to do so.”

In light of the criticism, Merivale announced that it would be ‘pausing’ the The meal pack from Hotel Centennial

expansion into Melbourne, until after the local hospitality scene had reopened and

Merivale in and out of Melbourne

had somewhat recovered.

IN LESS than a week, Merivale both

that we can help with the comfort and joy

comfort and joy of great meals from

announced that it would be launching its

of great meals from our best chefs. Dining

our best chefs at home, but we didn’t

Merivale at Home arm into Melbourne,

is so often at the heart of social connection

anticipate the unintended consequences

and then postponed the interstate push

and community; it has been amazing to

of expanding into Melbourne at this time.

after copping criticism from Victorian

hear so many stories of special moments

It was an oversight on our behalf, and as

hospitality operators.

around the dinner table during this time.”

soon as we heard from some of the local

When first announcing the news, CEO

But immediately after the announcement

“Our vision is simply to provide the

operators, we hit pause and decided

Justin Hemmes said moving into Victoria

was made, many Melbourne venue

to hold off launching Merivale at Home

would help its supplier partners and would

operators began criticising Merivale for

until Melbourne is back on its feet and

bring comfort to the Melbourne community.

trying to move in on a market that has

hospitality venues are open again.

“We have always had amazing guests

been decimated in the last four months,

“This is an enormously difficult time for

from Victoria at our venues, so our

and potentially taking up a portion of what

Victoria, and our thoughts and sympathies

expansion into Melbourne was a natural

little revenue is left for local operators.

are with our southern friends; we truly

progression. Our southern friends are

Many labelled the announcement as tone

hope that there is light at the end of the

doing it really tough right now - we hope

deaf at a time when Victorian venues

tunnel very soon.”

Pubs to tap into $1.2bn gift card market A NEW Pub and Bar gift card available in

“We’ve always believed there was a

Woolworths will help Australian venues

good opportunity to create an industry-

tap into a new revenue channel, at a time

style gift card, and when COVID-19 came

when revenue is more crucial than ever.

along, we thought it was good way to show

The Pub & Bar Card has been launched by TCN – The Card Network, in association with the AHA, and Woolworths as a major distribution partner.

Using TCN technology, the gift card can

our support,” stated TCN co-founder Richard Hewitt.

The gift card market via grocery channel is valued at $1.2 billion in Australia.

“We want to make sure that all of the

The entertainment sector (restaurants,

smaller businesses get it – because they

be used exclusively in all pubs and bars

cinemas, etc.), accounts for roughly $80

miss out on these types of promotions so

across Australia. Venues do not have to

million of that – with none of that spend

often. Even if its only one person coming

pay anything or set anything up to be able

targeted at pubs and bars until now.

in and spending $50 – that’s still money

to use the card – it simply works in the

The card will not compete with a pub

that could have been spent literally

same way as an EFTPOS card, or can be

or pub groups’ own gift cards, but will

anywhere else. So we’re able to provide

used via digital wallet for a contactless

rather drive incremental sales via a new

that blanketed coverage to all pubs and

tap-and-go experience.

channel – particularly for smaller venues.

bars in the country.”

While the card has been in the works

Now instead of purchasing a retail gift

The Pub & Bar Card is currently

for some time, COVID-19 provided the

card, the public can choose to gift dollar

available in 1100 Woolworths stores –

impetus to get the card launched to

amounts to the recipient for their local

meaning it is seen by more than 10 million

support the industry as soon as possible.

pub or bar.

people per week.

August 2020 | 5

NEWS

Crossroads Hotel cluster puts NSW on high alert AT THE end of the national shutdown, both federal and

the position to be able to comply with the Department

state governments warned that there would be small

of Health. That’s been our fortunate position, and

outbreaks of COVID-19, as people started to return

they’ve commended us for it,” stated Marlow.

to some normalcy and businesses began to reopen.

After a month of no cases in New South Wales, the first

Fines and restrictions

cluster was identified at Crossroads Hotel in the south-

Since then, the state’s hotels have seen more inspections

west Sydney suburb of Casula, a large-format hotel,

from NSW police to ensure that both venues and patrons

late-trading hotel that sits on the Hume Highway and is

alike are complying with social distancing rules.

a popular rest stop for interstate travelers. Originating

Venues have been hit with $5000 fines after they

with an interstate visitor from Victoria, there are now

have been found to be in contravention of Public Health

57 cases of the coronavirus linked to the Crossroads

Orders, with patrons seated or gathering too closely.

Hotel cluster.

AHA NSW director of liquor and policing, John Green,

The hotel was shutdown immediately after being

has called on venues to ensure they are implementing

notified, to undergo a deep clean, and all staff self-

a COVID Safety Plan, and also called on the public to

isolated for 14 days after one staff member tested

respect and comply with social distancing requirements.

positive for the virus. Jason Marlow, managing director

“It is vital licensed premises not only have a COVID

of the Marlow Hotel Group, said that while the hotel

Safety Plan, but that they also ensure measures are in

is closed and all staff are in isolation, they are pleased

place to ensure that plan is complied with.”

with their compliance and how that has helped NSW

The Berejiklian Government has also brought in

Health in investigating the outbreak. He also suggested

tougher restrictions for hotels once more, with group

that it wouldn’t be the last instance of COVID-19

bookings again capped at 10, and maximum capacity

clusters occurring in pubs. Since then, we have seen

for large format hotels at 300. All venues must now

several smaller pubs across the state close for a few

keep a digital record of patron names and phone

days to undergo a deep clean after a positive case has

numbers that can be submitted to health authorities

been found within their premises.

within 24 hours, and venues must have a designated

“Unfortunately I don’t think it’s going to be the last

‘COVID Safe Hygiene Marshall’, in distinct clothing

time in New South Wales for our industry. I appeal to

keeping ensuring that patrons comply with social

everybody to do the right thing and make sure they’re in

distancing requirements.

Keep up with the latest industry news!

6 | Australian Hotelier

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Crossroads Hotel, Casula

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Monday 23 November Doltone House Darling Island, Pyrmont

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FINANCE

Cash flow

is king Morgan Kelly of KPMG discussed the financial implications of COVID-19 for hospitality operators during the recent Road to Recovery webinar.

MORGAN KELLY, restructuring partner with a

Taking a head-in-thesand approach isn’t going to be helpful to anyone.

Understanding your cash flow dynamics is the key.

disposal of perishable stocks will need to be

Australian Hotelier editor Vanessa Cavasinni about

considered all over again, but this time for some

the financial issues operators are faced with during

operators it will be in the context of having had to

COVID-19. Here are some of the key takeaways

do this once before, so reactivation of strategies like

from that discussion.

home delivery or online ordering might be easier.

Melbourne’s second lockdown

experience delivered to your home had mixed

Melbourne venues that were just starting to re-open

results, and there may have been some lessons

in the toughest trading restrictions in the country are

learned from that.”

now back in lockdown. How do hospitality venues in Melbourne survive a second lockdown?

Kelly says the sad reality is that some businesses in Melbourne just won’t survive the second lockdown, with not enough time for a bounce back

“Some of the attempts to have an in-venue

Kelly says it’s also very important to have proactive discussions with landlords and financiers, keeping them informed of your plans and expectations to prevent any surprises on all sides.

in between the two shutdowns. But for others,

Shoring up cash flow

he hopes the context and experience of the first

With the Federal Government pursuing a

shutdown period will see operators react more

suppression strategy for COVID-19 rather than

quickly this time around.

outright elimination, we can expect surges of

“We are now back to revisiting a sensible six-

hotspots in different areas around the country, and

week care and maintenance plan, and an HR plan

therefore potentially more shutdowns. How can

involving which staff go on JobKeeper, who is

operators prepare for this uncertainty?

required to maintain the venue, and who is in charge of customer and staff engagement,” states Kelly.

“Planning for staff requirements needs to take

“Operators need to have the capability to conduct flexible forecasting and cash flow monitoring.

Operators need to be agile and be able to respond

into account the expected mode of operation

with cost control measures to a change in the

(if any) during shutdown. For example, is there

revenue mix or the external environment. Having a

expected to be any activity at all through home

good relationship with your financiers, key suppliers

delivery? It needs to consider basic maintenance

and landlords is really important in being prepared

and customer communication, but also staff

for responding to these changes,” suggests Kelly.

engagement. You need to have a good strategy

8 | Australian Hotelier

Simple things like using up beer kegs and the

focus on hospitality for KPMG, recently spoke with

“You also have to have an eye on the future.

to maintain a connection with your teams while

During the first lockdown we were urging operators

they are at home so you can preserve your most

to work on their reopening plans, and to prepare

important asset, good people. That might be

for the new reality. At that time, we were saying this

regular calls or online meetings.”

would look like making nervous patrons feel safe,

and overtly or explicitly demonstrating COVID compliance with

If you can’t meet those costs, then what are the options? In

personal distancing screens, relocation of tables, temperature

that instance, Kelly suggests that venue operator may need

scanning equipment and sanitisation procedures. That’s still the

to consider enacting safe harbour provisions or voluntary

case. What if compliance became more stringent – is your venue

administration, but assures operators that this does not

match fit? Are there things you could do or implement to make

necessarily mean it’s the end of your business, but rather

compliance with COVID safe regulations easier?”

protects directors from legal action. These provisions can

So with stymied revenue and so many unknowns in the future, what can operators do now to shore up their cash flow position?

The first thing is to take as much uncertainty out of the equation by finding out exactly what your expenses and revenue mix looks like right now.

Understand what the operating expenses of the business are, and work out which expenses you have some control over and

also help restructure a business to a satisfactory outcome for creditors, and then the company can potentially emerge from the process, fit for the new trading environment.

Whatever strategy you decide to implement, Kelly stresses that it’s important to do something, rather than just waiting for this to be over.

“Taking a head-in-the-sand approach isn’t going to be helpful to

which you don’t. This might include interest and rent, but you have

anyone. Understanding your cash flow dynamics is the key. When

to remember the difference between a cost that is being reduced,

you have a handle on that, and what you can do to control it, you

and a liability that is building up and has to be paid at some stage.

can make decisions on what you are going to do, or need to do.

Then you need to understand the revenue mix you are

“The key to survival is engage now with stakeholders, plan and

reasonably able to achieve with social distancing and your

walk towards the pain. Don’t avoid difficult decisions, and if you

customer pool. What support can your landlord and financier

need to, get advice.”

provide, and what overheads and expenses can you reasonably reduce to match that revenue mix?

“The fundamentals are: what is it going to cost to maintain the business, and then reopen, in a compliant way. This might mean some capital expenditure is required. Then, can these costs can be met and serviced by the achievable revenue mix. You need to have a flexible financial model to work that out.”

To hear more advice from Morgan Kelly on navigating the finances of COVID-19, you can watch his full Q&A, and the rest of the Road to Recovery seminar for free, by registering at kapara.rdbk.com.au/landers/6ca5a6.html

August 2020 | 9

Image by Paul Kelly Design Gaming

GAMING

Gaming in 2020 With AGE 2020 cancelled due to COVID-19, we take a look at the innovations made in gaming, particularly in adaptation to the crisis.

JUST LIKE other facets of pub operations, gaming has been hit

“Hoteliers and club operators are moving current multi-million

hard by the COVID-19 pandemic. One of the most profitable

dollar gaming room fitouts around to achieve the potential next

streams of a pub operation, venues with gaming machines

level of compliance, however the rooms were never originally

have felt the pinch of not being able to activate their gaming

designed for these spacing parameters. The resulting layouts for

rooms. Even with VIP lounges across most of the country now

gaming rooms in the short term are going to lack optimum player

functioning, social distancing requirements mean that they are

circulation, have reduced vibrancy of machine/game clusters,

running at a fraction of what they once were. In Victoria alone,

may separate machine intensity and could jeopardise smoking

new state government data shows that gaming revenue has

compliance,” states Paul Kelly.

taken a big hit, with turnover for the 2019/20 financial year down 26.33 per cent.

It is another revenue stream in which operators are having to

When the government-mandated social distancing is lifted and the downward turnover of gaming machines starts affecting venue turnover, gaming rooms are going to be re-organised back

show their ingenuity and adaptation, in order to maximise revenue

into their original configuration in an attempt to optimise the

under the current circumstances. While hoteliers would normally

profitability of the rooms once more. However this time, patrons

turn to expos like AGE for the latest innovations, maximum event

will not want to sit directly next to others, with the worry of

capacities mean the show – which would have been held this

community transmission in such close proximity still in play.

month – has not been able to proceed this year. With that in mind,

Gaming Guard provides that physical separation between

Australian Hotelier has highlighted some of the new products and

players, while maintaining that gaming room feel. The gaming

services within gaming.

industry needs the turnover and activity to return as soon as

A social distancing long-term solution

possible, to ensure the industry can at least maintain its financial position. Gaming Guard shows patrons that you understand their

Paul Kelly Design Gaming has formulated a protective screen,

safety concerns and want them to be as comfortable as possible

Gaming Guard™ to assist in both the medium- and long-

so they can resume their activities without having to take their

term distancing strategies for gaming patrons in regard to the

mind off the game.

COVID-19 social scenario. The acrylic screens divide patrons, sitting in between existing gaming machine bases and machines,

All Aboard

achieving a physical safety barrier between players, allowing

Operating your venue under COVID-19 restrictions can be a

gaming room layouts to remain as they are.

challenge and Konami understands the market requirements on the

The social distancing strategy of 1.5m between patrons is the current scenario to achieve a safe level of human interaction,

road to recovery and has re-aligned their product roadmap to suit.

Almost two years ago the All Aboard series was launched into

however the inability of a variety of hospitality ventures to achieve

clubs and hotels across Australia and New Zealand, and Konami

this will have a significant economic downgrade on the majority of

has now released their first All Aboard multi-game – All Aboard

hotels, clubs and restaurants.

Express – in response to market changes during COVID-19.

10 | Australian Hotelier

NOW AVAILABLE WITH AN ARRAY OF NEW INNOVATIVE GAMES Premium Virtual Button Deck Programmable Edge Lighting Modular Design 4K Screens Gen 9 Electronics Streamlined design Industry-leading content

GAMING

A multi-denomination with three of the most

The MarsX cabinet has been crafted with

The shutdown’s impact

popular All Aboard titles – Dynamite Dollars,

the latest technology featuring new Gen 9

Piggy Pays, and Go West – it was released in the

electronics bringing hardware in-line with 64-bit

In Victoria alone,

same week as the latest standalone All Aboard

capability allowing for greater performance than

gaming turnover

game (Prosperous Panda) and they have been

ever before. The premium virtual button deck

was down 26.33 per

showing great performance in the first month.

serves as a canvas for game-driven graphics.

cent, year on year for FY19/20.

“All Aboard has continued to be a success

The MarsX cabinet is a true standout on any

in hotels and with a large range of games to

floor with its streamlined design, improving lines

support this series, there are many options

of sight across a floor.

for the hotel market. Further to this, we have

Experience Aristocrat’s newest addition to its

reviewed our games portfolio to drive further

standalone progressive portfolio, Big Sky, which

successful games in 2020 and with All Aboard

is the first to combine ‘choose your free games’

Express (Multi-Game) performing and the Bull

and ‘repeat win’ features. Big Sky includes

Rush series of games coming soon, we look

popular game mechanics, nostalgic themes and

forward to continued growth in hotels,” said

the new ‘collect & spin’ feature.

David Punter, Konami’s national sales manager.

Expanding on the popular All Aboard concept,

The next evolution of the legendary 5 Dragon’s brand is here, with 5 Dragons Reign.

Konami has now developed Bull Rush, an

It offers double the fun with a two-game

improved game series starting with three titles

multigame option. It has a new integrated

– Golden Empress, Roses & Riches, and Toucan

jackpot trigger, the familiar ‘choose your

Twist – and they are confident that players will

volatility’ free games feature and an innovative

enjoy these games too.

‘wild respin’ feature.

Bull Rush will satisfy both players and

Alternatively, if your venue enjoys the

operators alike with the enhanced popular

variety and flexibility that the Player’s Choice

Repeat Win, two-level progressive jackpots,

brand offers then the new Player’s Choice

dynamic bonuses, multi-denomination

Royale is for you. Players will be spoilt for

including $1, player configurable lines and the

choice with an array of games to choose from

introduction of the “X-TRA HIT” concept.

including three traditional spinning reel games

To find out more on what Konami has on offer, arrange a visit to its showroom.

Out of this world Our industry is continuously evolving with

and three non-spinning reel games. This pack is a dedicated high denomination product and perfectly suited to high-denomination areas in your venue.

As pioneers of ‘hold & spin’, Choy’s Kingdom

rapid technological advancement and player

brings innovation to this market segment. It is

expectations; relying on thought-leaders to

showcasing four new creative game titles that’ll

drive innovation and industry sustainability.

entertain low, mid and high denomination players.

Aristocrat’s latest hardware advancement,

Aristocrat is committed more than ever to

MarsX, is a testament to the collective

continuously evolving our hardware and platform

brilliance amongst the talented individuals in its

solutions which is evident in the MarsX cabinet.

organisation. This highly anticipated hardware

To find out more on the new MarsX cabinet and

release recently launched in NSW with a bang

its extensive range of exciting games, please

and will be launching soon across other markets.

reach out to your Aristocrat sales representative.

MarsX is launching with five new titles

12 | Australian Hotelier

NE W

Konami Australia 28 Lord Street Botany NSW NSW www.konamigaming.com Konami AustraliaPty PtyLtd. Ltd. 28 Lord Street Botany Michael Martin (QLD Sales Manager) T: 0419962353 martin1107@konamigaming.com Contact your Konami Sales Executive or call 02 9666E:3111

FUNCTIONS

Events back on the menu

Functions are one of the last things to return to pub offerings after reopening, but are already having a great impact on business. Written by Brydie Allen.

AT THE height of Australia’s initial

giving operators the chance to bring back

Doing things differently

COVID-19 peak, one of the biggest

the things their spaces were known for,

The Windsor Hotel decided to start offering

casualties in the on-premise offering was

and help people celebrate again.

functions again when the WA Government

events. Before restrictions even began,

Of course, in some states, functions are

announced Phase Three of the reopening

cancellations were widespread and then

not really an option right now. However,

plan. Alicia Weber, functions coordinator,

when the industry shut down, functions

for pubs in the more reopened locations,

said the staggered approach they adopted

became the furthest thing from most

like The Windsor Hotel in South Perth

in line with the restrictions easing helped

publicans’ minds.

and the Astor Hotel in Adelaide, bookings

them transition their events capability.

But now that venues are beginning to

are rolling in and events are back on the

“At the beginning, we were cautious

reopen where and how they are allowed,

menu. Hearing the insights from these

with numbers of each event and spreading

functions have again come bubbling

two cities which are reopening at different

out the functions across the week, so we

back to the surface. And while things are

paces, shows that functions can be part of

were sure we met the restrictions of that

certainly not back to normal, functions are

a safe reopening strategy.

time,” Weber said.

14 | Australian Hotelier

FUNCTIONS

“As restrictions eased further,

consuming and it’s staff consuming,

the WA Government continued to

but we’re prepared to do that to get

communicate updates and changes

our customers back in the door,”

to regulations, which allowed us to

Turner explained.

plan functions of bigger size for future dates. The lifting of restrictions was

at The Windsor Hotel, they are now

welcomed by us!”

being more flexible with their booking

In South Australia, home of the Astor

All the functions we lost

worked incredibly well so far in getting

stage as WA. When Australian Hotelier

more people in, and would be employed

spoke to owner Kym Turner, they had

again should there be a second wave of

just started to offer functions again,

the pandemic in the state.

during COVID-19 were immediately contacted

“We were just trying to get back to

70 per cent of them booked again.

Alicia Weber, The Windsor Hotel

policies. Weber said this strategy has

Hotel, restrictions aren’t at the same

although quite different to what people

when we reopened and

After a staggered return to functions

may have been used to.

“All the functions we lost during COVID-19 were immediately contacted when we reopened and 70 per cent of

normal as quickly as possible while

them booked again. When COVID hit

still meeting restrictions. It’s very hard

we decided to immediately refund all

for functions, because they’re grouped

booked prepaid functions without any

in the same category by police as

hesitation to ensure we were fair and

nightclubs… it’s very hard educating

flexible,” Weber said.

people that they can’t dance and the

“Flexibility is important for

music is going to be low, when they

everyone in such unstable times and if

want to celebrate,” Turner said.

COVID-19 strikes round two in WA, we

The first post-lockdown function at The Astor Hotel was also different in

will carry out the same refund policy.”

terms of a business perspective, as

Adaptability

what they could offer and how they

For any change to be successful, it has

would operate was changed.

to be embraced from both a business

“We weren’t allowed to do cocktail food, so we did ‘stand up a la carte’

perspective and the patrons themselves.

Turner said this is happening at The

as we call it, which is individual little

Astor Hotel, by trying not to change

food platters for each person. It’s time

too much about the venue other than what absolutely had to. The guests so far have done well with this approach.

“Staff costs [in relation to functions] have gone up, but in our business we’re not prepared to raise prices because it’s not the people’s fault, and it’s not our fault either, but hopefully everyone will do the right thing and everyone can get back to business sooner,” Turner said.

“The [guests] are all behaving themselves and all understanding. I think the education getting out from the government has been good for that.”

Weber also said that the local patrons have been incredibly supporting and adapting to the current requirements for going out.

August 2020 | 15

FUNCTIONS

The Windsor Hotel, South Perth

benefit our guests. All we can do during these times is adapt as efficiently and as quickly as possible,” Weber said.

At the Astor Hotel, they are also doing refundable deposits, should COVID-19 impact a function booking. However, Turner said that there is more that the Government could be doing to avoid the potential of this, and the likely knock on effects from second waves.

“I think that the COVID app is a fantastic idea and the Government should really be pushing it for people going into licensed venues, including restaurants and cafes,” Turner said.

Despite the rest of the year being incredibly unpredictable right now, there is hope for a positive and function-filled future. Bookings and events are a huge

Finding reasons to party Both Weber and Turner have said guests are often rebooking functions for later dates and finding new reasons to celebrate. At the Windsor Hotel, a baby shower became a “The local support has been fantastic from all our guests and we couldn’t be more grateful. It has been relieving for all our guests, locals and regulars to be able to come to The Windsor and know they’ll have a good time,” Weber said.

The Windsor Hotel focused on

christening party, while at the Astor, a big 21st birthday was replaced by a big 22nd, booked for next year.

A functional future With the current uncertainty brought on by COVID-19 – especially seeing

increasing communication with guests,

the second lockdown in Victoria and

and doing a push on marketing to help get

spikes in New South Wales – some hold

the word out that functions were back on

concerns that planning too far ahead for

the menu.

the future isn’t viable, due to the risk of

“Once we were given the OK by the Government to allow functions, we immediately contacted all functions we

second waves and increased restrictions impacting those plans.

Both Weber and Turner said the hotels

lost, as well as guests who hosted events

had this in mind, but needed to take the

with us last year. We communicated via

opportunities as they came and react

newsletters, physical mail outs, in-house

accordingly. Again, the ability to adapt

advertising, digital advertising, social

quickly is invaluable at this time.

communication and in-house produced

“Of course there is concern that if a

catalogues for our bottleshop, Windsor

second-wave hits WA, venues will have

Cellars, which communicated functions.

to re-impose further restrictions which

“We are trying to drive more marketing

will alter booking numbers and spend.

output because we believe that it’s going

If it were to hit again, we’d maintain the

to be a very competitive year.”

cancellation/rescheduling flexibility to

16 | Australian Hotelier

part of pub offerings, and even though they’ve been gone for a while, their return at The Windsor Hotel and Astor Hotel means promising things for the industry as a whole.

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PROFILE Mary’s Underground

An eternal optimist

Jake Smyth and Mary’s Group may have closed one venue during the pandemic, but that hasn’t stopped them from opening a rooftop bar in the middle of winter. By Andy Young.

WHEN JAKE Smyth started working in

out there currently that are feeling the pain

fight is important, Smyth adds, “There is a

McDonald’s at 14 years old it was the

of COVID in a way that if life had been a

true joy to what we are doing”.

start of a journey through the hospitality

little harder over the last 15-20 years in

industry that now sees him driving a

Australia they wouldn’t be feeling it.”

hospitality venue group into a new era as a result of the COVID-19 pandemic.

Smyth’s drive and desire for change is

Smyth said it was something they realised in Mary’s Group very early on.

“It’s one thing to open a successful

He also said while there are moments of joy and exhilaration about being where the group is in Sydney’s CBD and surrounds, there is also the brutal reality that the group has had to close one venue already

about much more than simply creating

hospitality company in the most explosive,

(Mary’s Pitt Street) and are in negotiations

COVID-safe venues – although that is what

dynamic and growth-led times in our game,

regarding Mary’s Underground, with

the group is doing – it’s about creating

ever. It’s another thing entirely to run a

significant challenges facing the group

true joy in the industry and changing the

successful business through this period.

over the future of that venue.

future, and making the most of the crazy

“We are committed to it, for reasons

times that we have all experienced so far

that go far beyond financial stewardship.

from opening a rooftop bar at the top of

in 2020.

This is my life. This is my life’s work.

Lansdowne Hotel.

“Australia is extremely lucky, but that

But that hasn’t stopped the group

This is everything I believe in. This is

“We’re balancing everything and being

luck has a tendency to create a sense of

literally my morals and my ethics writ

cautiously optimistic, but then at the same

complacency. I think you see that in our

large. That’s not going to be something

time we are opening fucking rooftops in

Government’s preparedness for this, for

I let go of easily. It’s not going to be

the middle of winter and in the middle of a

the world’s preparedness for this. There

something where I go ‘oh financial

pandemic, in classic Mary’s style.

are a lot of industries that have really

pressures’ – this is bringing out the dog

become bloated and ours is one of them,”

in me and in the company.”

suggests Smyth.

“When you really stop and think about

CAUTIOUSLY OPTIMISTIC

“This is what we’ve always done well.

We’ve kept the cerebral along with the light-hearted. The serious matters of the heart and the world, we have always

the role and goal of hospitality, I think there

That’s the kind of passion the industry

been attentive to but there is a real deep

are a lot of businesses and business models

needs in these times and as much as this

element of ‘Oh fuck it, let’s just do it’ too.”

18 | Australian Hotelier

PROFILE

After researching the details of Sydney’s winter weather, Smyth realised that with average temperatures not dropping below 17 degrees and just 17 days of rain, now was the perfect time to open a rooftop bar and give people some sunshine and good burgers.

“The reality is, it’s 19 degrees today, and 19 degrees on that rooftop is fucking glorious. It’s a real success already, we’re busy, we’re full every day and turning tables.”

Smyth says the immediate success of the bar is down to two things: “One is Sydney loves a rooftop because we don’t have any, and second people want to have a feel-good story and they see this and say ‘Good on ‘em, let’s go’”.

Mary’s Group founders Jake Smyth (left) and Kenny Graham

Looking to the future and the post-pandemic industry, Smyth says that while people will be looking for more risk-takers, no-one yet knows how much the world has changed.

“The world is upside down and spinning in reverse.

I heard someone say that events like this cram 10 or 20 years of ideas on things that were going to progressively evolve in the future, into the now. It forces people to wrestle with the concepts now.

“I really, honestly feel that is absolutely happening. You can see it across so many aspects of society.

“Our corner of the world is small, but it is reflective of an attitude that is really pervasive in people right now, which is that they don’t want to go back to normal, they do want to try new things, they want it simpler, they want something honest and they want something that speaks to them and their community. And Mary’s has always been about its community.”

This is another area where Smyth’s passion rises to the fore.

“We’ve created these little communities, in little pockets of our wider industry based on ethical and moral standpoints that we really believe in. But we set it to the backdrop of cool music and fucking burgers. No pretension. But it is a moral and ethical standpoint that we make and I think if you don’t have this as the fucking core of your business in hospitality going forward, you are going to struggle.”

LIVE MUSIC IS BACK The Lansdowne Hotel held its first live show since shutdown in mid-June, with Caitlin Harnett selling out two live shows of 50 people seated.

August 2020 | 19

PROFILE

“It was a very different experience to The Lansdowne having 300 sweaty kids spilling beer over themselves, but it was a lovely moment.

“But the arts are in trouble as they always are in Australia. Right now I feel optimistic, because I feel that right now people are hungry for art. It’s not until you miss it, it’s not until it’s gone and you realise the depth to which you take it

Our corner of the world is small, but it is reflective

for granted,” states Smyth.

“People are fucking sick of sitting at home watching television. So people are now saying I choose to come and see live music, and it’s beautiful.

With the last few months to reflect on what’s been happening, Smyth thinks

of an attitude that is really

that the crisis has made a lot of people reflect on the status quo, and hopes

pervasive in people… they

level of potential – both in and outside of the industry.

don’t want to go back to normal, they do want to try new things, they want it simpler, they want something honest and they want something that speaks to them and their community.

that it will make more people stop going through the motions and reach a higher “I am an eternal optimist and I believe we are and we can create a different world. There is an element where a lot of us, including governments, had a sense over the last 20 years that we were just floating into a future that was not being written by us.

“I feel there is now a sense of empowerment where ‘I can do what? I can change what? I can be how? I can re-imagine?’ and I really, truly believe that we can write our own future and we don’t just have to take what is given to us and we deserve more than what is just given to us.

“I want a part of me fed and my kids fed that is deeper and wider than simply money and power, and I think that this is a widely-held feeling that has been brought into the here and now and is within people’s grasp.”

That’s the kind of belief and passion that gives you confidence that this industry will bounce back from COVID, and from lockdown, not just stronger, but different, better and with a drive and belief that will become the new normal and we will all be enriched rather than beaten by the pandemic.

This article was first published by our sister publication barsclubs.com.au, and has been edited for space. Head to the Bars and Clubs website for more small bar news.

20 | Australian Hotelier

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TAG DESIGN & BUILD

The Australian dream Restaurateur Jessi Singh has always wanted to open a pub in Australia – and what better time than during a pandemic?

ABOVE: Mr Brownie runs across four levels, including a basement cocktail bar RIGHT PAGE, TOP TO BOTTOM: The Boom Boom Room cocktail bar The bottle shop carries 500+ beer SKUs The view from the rooftop bar The rooftop was at max capacity for the five days it was open

IT HAS always been Jessi Singh’s dream to open a

projects, and Singh found the area appealing,

pub. Born in India, he and his family immigrated to

and a great challenge.

regional Victoria where he first got a taste of what the local pub meant to the community.

“The pub is a place of community check-in,

Melbourne, because it’s a bit lost in translation when it comes to hospitality. You’ve got Port

especially in rural areas. I experienced that, and I

Melbourne, South Bank, Albert Park – they’ve all

always wanted to be a part of that. That’s one of

got their little nooks, so not many people would go

my best memories of the Australian countryside,”

to South Melbourne as a hospitality hub.

reminisces Singh.

Even now, living in metropolitan Melbourne,

“In the second week of March I counted 49 hospitality businesses up for lease in that street.

the ‘local’ is just that – a place where the local

I thought it would be a great challenge to open

community can catch-up at any time. So for him,

a business in the area — I could have massive

the decision to open a pub was more a personal

support from locals, because they were looking

one, rather than a business decision.

for a new venue.”

Operating several restaurants in Victoria, one in

22 | Australian Hotelier

“Beforehand I wouldn’t have considered South

Sydney and two in the United States, Singh turned

An opening of pandemic proportions

his attention to his pub aspirations about a year or

Of course, the timing meant that Singh took over

two ago. With pub real estate in high demand, it

the hotel in the midst of the COVID-19 pandemic.

has been a long time on the hunt for a space, but he

With a transformation of the venue and the transfer

found the perfect South Melbourne spot early this

of a liquor license delayed, the hotel opened for

year. The hotel had been owned and operated by a

just five days, before on-premise trading was

developer who wanted to turn his attention to other

shutdown again.

DESIGN & BUILD

“Everybody was telling me it was a stupid idea to open a new business right now, but the landlord was very supportive.

So I took the risk to open a business when everyone else was closing down.”

As devastating as the coronavirus has been – Singh personally knows people here and in the US who have suffered with it – he has a different perspective on the societal and business aspects of the shutdown.

“I’ve seen many, many tragedies in my life, coronavirus is another one. Australians don’t really know what curfew or lockdown is. My childhood was spent in India; I grew up in the middle of a civil war. So lockdown was everyday and it would last months – you wouldn’t have the freedom to go shopping or exercise. It was a total lockdown. You’d get shot if you left your house.”

With that in mind, the hospitality impresario was not overly fazed by the prospect of opening up under these circumstances, and will not let the long-term uncertainty surrounding COVID-19 cripple his ambitions.

“The thing with the coronavirus is that it’s not going to go away. It’s another thing we need to learn how to live with.

I’ve always known that, so I thought I’m going to go ahead with opening. I was aware that the pub would get shut down again. There might never be a vaccine, so we have to learn to live with it.”

Singh also just wanted to bring something good and fun into the world at a time when people, particularly in Melbourne, were overcome with bad news. And while the opening was incredibly short, it was very gratifying, with the venue fully booked out (in accordance with social distancing requirements) the entire time. As such, Singh counts it as one of the biggest openings he’s ever experienced in Australia.

Concept and colour Mr Brownie comprises a ground-floor Punjabi-style deli, a 70-pax footpath beer garden, bistro dining room, rooftop terrace with city views, and the Boom Boom Room — a basement cocktail and dancing lounge that will be opened until late into the night.

The ground-floor deli sell’s Singh’s “unauthentic IndianBritish pub food”, available to eat in or takeaway. It will also have a 500-strong beer list, complemented by a curated selection of international and Australian wines.

In the first- floor main pub area, guests can expect IndianBritish pub fare, though everything available at the ground-floor bodega can be purchased and consumed on any of the levels.

The rooftop terrace has city skyline views and will support everything from brunch to dance parties in the early hours of the morning.

August 2020 | 23

DESIGN & BUILD

The Boom Boom Room, a speakeasy-style basement cocktail and dancing lounge is only accessible via a concealed wall of beer cans, which opens down to an underground space offering bespoke cocktails and 16 tap beers.

The concept of a curry pub was something that Singh felt was lacking in the Australian pub scene, which otherwise caters to various different cuisines and cultures.

“It’s very big thing in the UK, where you’ll find numerous curry house pubs everywhere.

So why not try to open that in Melbourne?

“Australians are well-travelled — most young Australians have lived in the UK at some stage.

So they have experienced that British pub culture. Australian pub culture is derived from UK pub culture, so I thought it’s something we’re missing. Especially for a worldly city like Melbourne where we have every sort of cuisine or concept.”

Also missing in Australian pubs, according to

Singh wanted Mr Brownie to be very bright and colourful

Singh? Colour. Mr Brownie is an explosion of reds, yellows, greens and blues, a far cry from the traditional neutral palettes seen in most pubs. The idea is that Mr Brownie is a fun party space – and in particular it’s a place of cheer in the middle of the pandemic.

Resilience and hard work Opening a new hotel in June under the current restrictions, would make even a seasoned pub operator want to tear their hair out. But Singh is not only positive about what he’s doing with the venue, he’s also ensuring that he is taking care

What’s in a name?

The names of all of Jessi Singh’s venues have some meaning or dedication to members of his family. Babu Ji – both in St Kilda and NYC – means grandfather; Bibi Ji means grandmother. Don’t Tell Aunty in Sydney is dedicated to his auntie, while Mrs Singh is named after his wife. Mr Brownie, the latest in the long line of dedications, is an affectionate ode to his father.

“It’s a celebration of my family. They left their home, left their comfort zones, spoke very little English, came here and built a life for themselves and their family, and future generations. So I’m dedicating all of this to my family. It’s a dedication to that immigrant family legacy. I’m proud of where I am today, and it all happened because of them.”

of workers who are not eligible for JobKeeper.

Singh has hired 13 staff, and most of that number are workers here on a visa who can’t return home, but have no safety net. So instead, the venue has been operating the ground-floor takeaway deli as a not-for-profit, with Singh helping the workers cook in the morning. The workers then take home the entire proceeds of the day to keep themselves afloat.

“I’ve opened this business and spent money in the middle of the pandemic when hospitality businesses are shattered. This pub has created direct and indirect 30 jobs.

People should see from Mr Brownie that we are hard-working people. This is such a big positive for our community.”

24 | Australian Hotelier

The first-floor public bar area

61 2 9660 8299 paulkellydesign.com.au

Longueville Hotel

TALES FROM THE TOP

Music to our ears Get to know the newly formed Australian Live Music Business Council and why you should get involved.

THE LIVE music industry is one that is often

backbone of live music in Australia,” it’s a

intrinsically linked with hospitality, and one

council that publicans should take note of.

that has been hit exceptionally hard by the COVID-19 pandemic.

Sharlene Harris, ALH Group national

make these shows happen, as they look to

lockdown was wide reaching, from venues, to

other industries to find a way to make a living,”

acts, to behind the scenes workers that make

Harris said.

Harris along with a wide realm of music

ABOVE: Sharlene Harris, ALH Group National Entertainment Manager

26 | Australian Hotelier

of losing hundreds of experienced people that

entertainment manager, said the impact of

the industry possible.

TOP: The McClymonts at The Village Green Hotel

“It’s been said a lot of times, but we truly do need to be in this together. We are in danger

“For a lot of Aussie pubs, entertainment is part of their offering, and at the moment this

industry members, realised the situation was

looks like the very last piece of the jigsaw to be

incredibly dire, with multiple people falling

put back into place. We need to work closely

through the cracks during lockdown, and no

with Government to be able to bring it back

united voice representing the businesses that

into the mix across the board in a step by step,

support the Australian music scene, like pubs.

COVID safe manner.”

“A few of us realised… that we needed to

With the support-local trend experiencing

represent the micro end of the music business

a marked increase in popularity, getting local

with one overarching body,” Harris said.

musicians back into gigs has the potential to

“It’s particularly important right now

breathe some much needed life back into not

because there are venues around the country

only the music industry, but also live music

that are totally geared to a live performance

venues. Harris said the ALMBC hopes to bring

model and their very existence post pandemic

the buzz back into communities and pubs

is under threat.”

across Australia, while supporting the live

And so the Australian Live Music Business Council (ALMBC) was formed, designed to

music sector’s workforce of 65,000 people.

You can join the ALMBC for free until

advocate for the industry in these uncertain

January 2021, or find more information, by

times. With Harris describing pubs as “the

heading to almbc.org.au

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