Australian Hotelier December 2019

Hotelier AUSTRALIAN

AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE

VOL. 36 no. 11 - DECEMBER 2019

From one top performer to another.

You pride yourself on performing at your very best.

And with an impressive long-term investment history, Hostplus knows a thing or two about performance, too.

According to SuperRatings, our default Balanced investment option ranked highest, or second highest over 20, 15, 10, 7, 5 and 3 years to 30 June 2019.* Looking for a super fund that works as hard as you do? Visit hostplus.com.au

Hostplus. We go with you. *Number one Fund over 7 years (11.13% p.a.) (48 funds), 5 years (9.65% p.a.) (48 funds) and 3 years (10.80% p.a.) (48 funds), and number two Fund over 20 years (8.10% p.a.)

(21 funds), 15 years (8.16% p.a.) (29 funds) and 10 years (9.67% p.a.) (45 funds) – SuperRatings Fund Crediting Rate Survey, June 2019. Past performance is not a reliable indicator of future performance. Consider the Host-Plus PDS and your objectives, financial situation and needs, which are not accounted for in this information before making an investment decision. Host-Plus Pty Ltd ABN 79 008 634 704, AFSL 244392, as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890 (the Fund) INH1169 1119

IN THIS ISSUE: CRAFT BEER FOR 2020 I POS EFFICIENCIES I ALIA WINNERS

From one top performer to another.

You pride yourself on performing at your very best.

And with an impressive long-term investment history, Hostplus knows a thing or two about performance, too. According to SuperRatings, our default Balanced investment option ranked highest, or second highest over 20, 15, 10,7, 5 and 3 years to 30 June 2019.* Looking for a super fund that works as hard as you do? Visit hostplus.com.au

Hostplus. We go with you. *Number one Fund over 7 years (11.13% p.a.) (48 funds), 5 years (9.65% p.a.) (48 funds) and 3 years (10.80% p.a.) (48 funds), and number two Fund over 20 years (8.10% p.a.

(21 funds), 15 years (8.16% p.a.) (29 funds) and 10 years (9.67% p.a.) (45 funds) – SuperRatings Fund Crediting Rate Survey, June 2019. Past performance is not a reliable indicator of future performance. Consider the Host-Plus PDS and your objectives, financial situation and needs, which are not accounted for in this information before making an investment decision. Host-Plus Pty Ltd ABN 79 008 634 704, AFSL 244392, as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890 (the Fund) INH1169 1119

CONTENTS | ED’S NOTE

22 Editor’s Note

W

hile the holiday season is in full swing, you are likely taking this time to look back and analyse your business over the last twelve months – where your venue did well and in what areas it can improve. You’ll also be looking ahead to the next twelve months and setting goals for your business, making plans to help it grow.

We have some tidbits that might help you in this issue, mainly in the drinks and POS and operational technology spaces. For some great new products and services that will be an aid to your venue, our Hot to Stock feature (p 16) has you covered. In a category that keeps going from strength to strength, check out the latest trends in craft beer from p 22. The latest efficiencies in ordering technologies are also broken down from p 32, and an industry expert explains why and how you should be securing your data on p 42.

We also celebrate our 2019 ALIA winners from p 18.

On behalf of the team at Australian Hotelier, I wish you, your teams and your families a wonderful holiday period, and a safe and fruitful 2020.

Cheers,

38 18

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

NEXT MONTH

2020 Annual Industry Leaders Forum

Contents | December Special Features 16 Hot to Stock: These products will help cut wastage and grow revenue in 2020.

18 ALIA 2019: Check out the fun, fanfare and winners from this year’s awards.

22 Craft Beer: Keep ahead of the ED’S PICK trends in the category that shows no signs of slowing down.

30 Brand Talks: Fever-Tree’s summer plans will bring your beer garden to life.

32 POS and Op Tech: The latest efficiencies in ordering technology.

PUBLISHER: Paul Wootton EDITOR: Vanessa Cavasinni PUBLISHED BY:

Food and Beverage Media Pty Ltd 41 Bridge Road GLEBE NSW Australia 2037 Tel: 02 9660 2113 Fax: 02 9660 4419

32

vcavasinni@intermedia.com.au

NATIONAL SALES MANAGER:

Jason Wild Tel: 02 8586 6213 • jwild@intermedia.com.au

GENERAL MANAGER SALES – LIQUOR & HOSPITALITY GROUP:

36 Brand Talks: Ezycharge is bringing power to the people – in venue.

Regulars 8 News: The latest happenings around the country.

38 Design and Build: How Redcape made Cabramatta Hotel a social space once more.

42 Tales from the Top: Hospitality’s digital revolution needs to focus on data security.

GROUP ART DIRECTOR – LIQUOR AND HOSPITALITY:

Kea Thorburn kthorburn@intermedia.com.au

PRODUCTION MANAGER:

Jacqui Cooper jacqui@intermedia.com.au

Shane T. Williams

DISCLAIMER

This publication is published by Food and Beverage Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication.

Copyright © 2019 - Food and Beverage Media Pty Ltd

6 | DECEMBER 2019 AUSTRALIAN HOTELIER

WE ENCOURAGE RESPONSIBLE DRINKING Get the facts DrinkWise.org.au

SUBSCRIPTION RATES 1yr (11 issues) for $95.00 (inc GST) 2yrs (22 issues) for $152.00 (inc GST) – Saving 20% 3yrs (33 issues) for $199.00 (inc GST) – Saving 30% To subscribe and to view other overseas rates visit www.intermedia.com.au or Call: 1800 651 422 (Mon – Fri 8:30-5pm AEST) Email: subscriptions@intermedia.com.au

Average Total Distribution: 5,521 AMAA/CAB Yearly Audit Period ending September 2019.

The Beach Hotel in Byron Bay sold for an unprecedented $100m+

NEWS

GAMING BONANZA October and November were a boom period for western Sydney gaming pub sales, with some of the most long-held gaming assets being bought and sold in a flurry.

Merivale kicked off the renewed interest in gaming assets, purchasing the Allawah Hotel from White & Partners for $34 million.

The De Angelis family went on a buying spree of sorts, purchasing both the Raby Tavern and Shopping Centre and the Ingleburn Hotel – for $35m and $29.25m, respectively – within a two week period. The two hotels are a 15-minute drive from one another in the Liverpool/Macarthur region. Raby Tavern is ranked within the Top 250 of gaming hotels in New South Wales, while Ingleburn Tavern is ranked 86.

Iris Capital purchased the Sportsmans Hotel in Blacktown for $23.4 million off the Paul Irvin Hotel Group. It was the second gaming pub buy for the group this year, after purchasing the Cambridge Tavern in Fairfield in June for $56 million – making it the biggest gaming pub sale for 2019.

“At $56 million JLL’s sale of the Cambridge Tavern was the largest gaming-centric asset to sell this year and epitomised the value that astute purchasers attach to a highly protected, rapidly consolidating asset class delivering higher than market income growth and with finite investment opportunities,” stated John Musca, national director of JLL Hotels & Hospitality.

Moelis vehicle Redcape Hotels (ASX: RDC) purchased the St George Hotel in Belmore for a whopping $47.1 million, and was quickly followed by the sale of the nearby Belmore Hotel for roughly $50 million by former Sydney Lord Mayor Nelson Meers AO. The Belmore Hotel holds 30 EGMs and is currently ranked 33 in the NSW gaming rankings.

The hectic pace of these sales – which normally happen rarely – was not lost on HTL Property director Andrew Jolliffe, who handled the offmarket sale of Belmore Hotel with co-director Dan Dragicevich.

“The market place for this hospitality and leisure indexed asset class is, on a national basis, delivering upon any fair measure wholly rewarding results to all stakeholders. The consistency and prosperity enjoyed warrants the focus it now firmly enjoys from alternative asset class investors, who are unapologetically indiscreet regarding their desire to place capital here,” added Jolliffe.

Raby Tavern lasted just two weeks on the market before being sold

FOR MORE INDUSTRY NEWS FOLLOW US ON 8 | DECEMBER 2019 AUSTRALIAN HOTELIER

RECORDS FALL AS PUB SALES SKYROCKET OVER BOOM PERIOD The past two months, and November in particular, have seen pub sale records made, as large-format and gaming assets of the calibre that hardly ever make it to market have been transacting at the rate of almost one a week.

This includes the most expensive sale price a pub has ever transacted for, with the Beach Hotel in Byron Bay being acquired by Moelis Australia for slightly more than $100 million, excluding transaction costs. The deal was brokered by JLL Hotels & Hospitality Group’s John Musca, Tom Gibson and Tom Gleeson.

In a statement about the deal, Moelis Australia Hotel Management CEO Dan Brady said: “The Beach Hotel Byron Bay is an iconic Australian establishment located on irreplaceable real estate.

“The acquisition of both freehold and operating interests will enable the required capital investment to further enhance what has made the hotel iconic – that is, a great community gathering place with a fun, sociable, friendly and safe hospitality offering delivered by an engaged and passionate team of local hospitality professionals.”

The deal includes both the leasehold and freehold for the Beach Hotel, which is the first time since 2007 those two assets have come under common ownership.

The freehold last changed hands in 2017, with funds manager Impact Investment Group (IIG) purchasing the buildings for $70m. The leasehold has been owned and managed by the esteemed van Haandel family since 2007.

Both IIG and the van Haandel family have worked to find the right custodian for the asset, considering both the community-oriented sensitivities and the best commercial outcome.

The pub is on a 4585sq-metre site with more than 100m overlooking the main beach in Byron Bay. As well as the large pub, beer garden, restaurant, bottle shop and function spaces the venue also has 25 luxury hotel rooms and a swimming pool.

There are no gaming machines in the venue after IIG removed them last year and the terms of the sale include a long-term moratorium on poker machines at the venue.

JLL National Director John Musca said: “The broad profile of bidders, and robust, committed offers was a real testimony to the extraordinary place Byron Bay and the Beach Hotel holds in the national psyche and hospitality space.

“This was the first time in decades that a buyer had the chance to secure both the hotel business, and this iconic property in a stunning location.”

CHECK OUT THESHOUT.COM.AU

SAVE THE DATE!

SUMMIT 2020

MONDAY 30 MARCH 2020 DOLTONE HOUSE, DARLING ISLAND, PYRMONT, SYDNEY www.publeaders.com.au PLATINUM SPONSOR

GOLD SPONSORS

NEWS

SCOTT LEACH OUTLINES NATIONAL FOCUS After being re-elected unopposed for his fourth term at the helm of the national branch of the Australian Hotels Association, Scott Leach took some time out of the AHA NSW Life Member luncheon and sat down with Australian Hotelier. He spoke about his renewed position as national president of the AHA, and the accountability that bears for the industry across Australia.

“The responsibility is not lost on me, that when your colleagues give you the opportunity to represent the industry, it’s an honour. I’ve been doing it for three years, I’m really proud of what the team’s achieved and I’m really looking forward with a great deal of veracity to what we can do in the next twelve months.

I feel proud, but more importantly I feel proud of the people around me.”

Looking ahead to this next twelve-month term, Leach said he has two main focuses on the national spectrum: labour force reform, and energy usage overhaul.

LABOUR FORCE REFORM Leach sees the most pressing crisis that the industry is facing is the lack of labour in crucial positions throughout pubs. It’s something he’s looking to rectify on the federal stage. With the path to residency removed from most working visas, the hospitality industry has lost access to many chefs abroad that are in high demand. He says that the way the conversation is currently being framed needs some rethinking.

“There’s a debate in this country that we’ve got to upskill, based on the assumption that the workforce exists and it just doesn’t have the skills.

My argument is the workforce isn’t there.”

“Here in Sydney, Crown opens in January 2021 – those 2500 people, where are they going to come from? Major international hotels opening in the city in the next 18 months, where are they [staff] going to come from?

That’s before you look at renovating current stock and the continued emergence of pop-up culture, the rise of foodies, etc.

“So personally it’s about trying to deliver the most persuasive case to Parliament – not just Government, because we’ll need both Government and the Opposition – we really want to penetrate beyond the xenophobic nature of Australian politics when you talk about labour force. We can have people work in this country on a visa system and that’s not taking jobs away from Australian kids.”

Leach is set to mount a significant campaign to reform labour force legislation, as otherwise he expects the lack of appropriate staffing to significantly curtail the offerings of the industry in the future.

“I will deploy the assets of the AHA federally as

10 | DECEMBER 2019 AUSTRALIAN HOTELIER

“There’s a debate in this country that we’ve got to upskill, based on the assumption that the workforce exists and it just doesn’t have the skills. My argument is the workforce isn’t there.” if it was an election campaign. We must convince people, otherwise in another two, three, five years the only thing you’ll get at a function is a frozen meal because you simply won’t have the chefs, trainee managers, supervisors. It’s a huge problem.”

engaged in that process and coming on board.

Part of the national response is around energy – understanding that we need to be at the forefront of reducing the impact on the community through the operation of our businesses and energy consumption,” states Leach.

ENERGY AGREEMENTS

BUSHFIRE SUPPORT

The other main focus for the AHA at a national level is a restructuring of energy usage in venues through a collective power purchasing agreement (PPA). In a world-first, AHA NSW has created an aggregated PPA with 1800 small energy suppliers through ENGIE New South Wales. It has given the members that have got on board the ability to generate up to 60 per cent of their energy through renewable sources such as wind and solar – and has also reduced expenditure on that energy. While the New South Wales agreement is up and running, Queensland and South Australia are currently fielding bids for their own PPAs, with Victoria shortly to follow.

“By the end of the next calendar year the goal is to have a third to half of AHA members

A more immediate task is to support those pubs and communities currently being affected by devastating bushfires across the country, with the issue “absolutely at the forefront of our minds.”

“We’ve had a crisis management plan in position for a long time. In the worst case scenario where a hotel is breached by fire, that involves us putting into place assets on the ground to help with initiatives around insurance and rebuilding,” Leach explained.

“When communities are ravaged, we’ll also fly in food, soft drink, water, beer, and run events to support the firefighters. I would expect over the next couple of weeks you’ll see everything from the worst case scenario to just actually supporting the firefighters on the ground – we’ll deploy a lot of resources.”

Our constant pursuit of better has led us to here.

Contact your Coopers representative for more information.

QLD, NSW, VIC, TAS, WA - 1300 555 166 SA, NT - 08 8440 1800

NEWS

AHA NSW CELEBRATES THE STATE’S BEST HOTELS

BY ANDY YOUNG

MERIVALE TO BREATHE LIFE BACK INTO SYDNEY CBD NIGHTS In an effort to encourage Sydneysiders to once more enjoy the nightlife offered by the city’s CBD after 6pm, Merivale has launched a This Is Summer campaign, where many of its CBD spaces will host a program of different events over the next few months.

“We have a chance to create a vibrant future and rebuild our city to the world class destination we once were, and can be again. This is about creating a safe, fun and diverse culture that sees our CBD streets brimming with light and life at night,” stated Merivale CEO, Justin Hemmes.

“The tide is turning, but we want to ramp it up. ‘This is Sydney’ is fuelled by a desire and passion to make Sydney the best place it can possibly be, with great food, live music, dancing, excitement and surprise every night of the week. Let’s get out, have fun and enjoy our spectacular city.”

A significant component of the summer program is free live music.

Merivale has collaborated with The Music and Booze Co to curate a dynamic list of live music events across its CBD spaces, including sets from The Preatures, Thandi Phoenix, Kira Piru and Brendan Maclean.

Food also will serve as a major component of the program, with Merivale offering 50 per cent off all bar food in its CBD venues between 11pm and 12am, until the end of summer.

There is also a renewed focus on the LGBTIQ community, as the hospitality group has partnered with famed Melbourne LGBTIQ club night, Poof Doof, to bring the event to ivy’s courtyard, terrace and den every Saturday night.

Besides this lively program, Merivale will also be opening new concepts within the CBD over the summer. Bar Totti, a spin off of the successful Totti’s restaurant at the Royal Hotel in Bondi, will soon open in Palings Lane. Next up will be Jimmy’s Falafel on George Street, a casual Lebanese eatery that will comprise a takeaway kiosk at the front, and a bar and diner at the back.

“We want to create a diverse night-time economy that echoes the 24-hour sophistication and fun of the best places around the world”, says Hemmes.

“Warm, inclusive, organic interaction and enjoyment, which is something all world-class cities excel at.”

12 | DECEMBER 2019 AUSTRALIAN HOTELIER

The Fiddler at Rouse Hill was late last month named the best hotel in Sydney at the 2019 AHA NSW Awards for Excellence, with the Hunter’s Bradford Hotel in Rutherford taking out the best regional pub title.

Both venues also claimed other awards on the night, with The Fiddler winning the Best Metropolitan Local award and The Bradford taking out Best Regional Casual Dining (Northern).

Group Hotel Operator of the Year went to the Iris Hotel Group, while Toby Chick of the newly renovated Hotel Rose Bay won Individual Hotel Operator of the Year. It was a big night for Hotel Rose Bay, which also won Best Metropolitan Casual Dining (CBD/East) and Metropolitan Chef of the Year with Ian Royle.

AHA NSW CEO John Whelan said the winners really did set the standard across the hotel industry.

“The bar was set extremely high this year with more than 600 nominations from right across NSW,” Whelan said.

“It is particularly pleasing to see so many regional hotels entering this year when many have been doing it tough in drought-stricken – and now bushfire ravaged – communities. Regional hotels in particular are the hearts of their communities and it is great to see so many of them among the finalists and winners tonight.

“I would like to congratulate all winners – particularly the Rutherford and Fiddler on their great wins.”

Hotel industry icon and philanthropist, Ross Colosimo received a standing ovation as this year’s recipient of the Cyril Maloney medal (AHA NSW Hall of Fame).

The awards also contain a popular, and hotly contested, food section and this year saw winners coming from across the state.

Hotel Jesmond in Newcastle won Best Burger (and Regional Chef of the Year with Paul Thornton), while The Oaks at Neutral Bay took out the Award for Best Steak Sandwich. Best Steak winner was Scone’s Thoroughbred Hotel, while the first winner of the new Best Parmi category was Tydvil Hotel & Bistro in Broken Hill.

Best Restaurant for 2019 went to Priscillas, Imperial Hotel at Erskineville. The Impy also took out the award for Best Unique Bar Experience.

The full list of winners across all 45 categories is available on the AHA NSW Awards website.

The Rutherford Hotel in the Hunter was named Best Regional Hotel

NEWS

LEWIS LAND GROUP MAKES FIRST PUB BUY IN OVER A DECADE Lewis Land Group has added to its hotel portfolio, purchasing the freehold of the Mon Komo Hotel in Queensland’s Moreton Bay region. It’s the first pub acquisition for the group since December 2007, when it bought the Camden Valley Inn on the fringes of Sydney.

Since opening in 2011 on the Redcliffe shoreline, the Mon Komo Hotel has been an institution for locals, daytrippers and tourists alike. The award-winning hotel features numerous bars, dining options, as well as conference, meeting and wedding facilities, and is a 35-minute drive from Brisbane’s CBD. Brad Jenkins, head of leisure at Lewis Land Group, said the purchase of the landmark venue marked a significant milestone for the group.

“We’ve been big admirers of the Hotel for a long time and we’re thrilled to bring it into the portfolio,” said Mr Jenkins.

“It’s a quality venue in all respects and in many ways, it sets the benchmark for hotel service and entertainment excellence.”

The hotel was developed by Kyko Group as part of their multi-awardwinning mixed-use Mon Komo development. Kyko Group director Bill Jenkings said the time was right to sell, as the company is now focusing on its office real estate portfolio.

“It’s been a great journey and we’re really proud that Mon Komo has become one of the iconic Queensland hotels. We really look forward to coming back to relax and enjoy a cold beverage on Mon Komo’s stunning terrace,” stated Jenkings.

The hotel sale was handled by Michael Simpson and Leon Alaban of Savills Australia.

Lewis Land Group CEO, Chris Calvert, said that the Mon Komo purchase was a strategic acquisition to build on the group’s existing presence in the south-east Queensland market.

“Lewis Land Group is committed as a long-term investor in the Moreton Bay region, which offers a perfect location for our outdoor, family focused venues. We are looking forward to strengthening our community involvement across our two venues at Redcliffe and Woody Point.

“We’re delighted to be the new custodians of such an iconic venue. The Hotel aligns perfectly with our core values of embracing the great Australian outdoors through the natural environment.”

The Mon Komo Hotel is located within a ten-minute drive of Lewis Land Group’s flagship Queensland venue, The Belvedere Hotel. Jenkins told Australian Hotelier that it was definitely a strategic purchase, but one that would not limit either venue.

“You get all of those synergies from having the businesses near each other, a few efficiencies that come into play. But we’ll be running them as their own hotels, and they’ll be competing as hard as they can against each other.

Jenkins also confirmed that the group is always on the lookout for other additions to its pub portfolio.

“We see the hotel sector as still being pretty strong and we’ve got our own internal structures at work to add more assets on. So if anything presents itself that looks good that we think we can make work in the food, beverage and gaming space, then we’ll definitely entertain it.”

14 | DECEMBER 2019 AUSTRALIAN HOTELIER

A NEW, MORE SUSTAINABLE LOOK FOR CARLSBERG Carlsberg has introduced a new look in the Australian market and a more sustainable bottle design as part of a global roll-out of packaging innovation that not only improves its footprint, but also ensures a longerlasting and fresher taste.

The 170-year-old brand’s famed Pilsner has remained the same, but the roll-out is aimed at refreshing its look and improving its environmental impact.

As of December, all Carlsberg Pilsner 330ml bottles sold in Australia will feature distinctive new labelling that uses Cradle to Cradle™ certified inks that improve recyclability. Printing inks can have major impacts on the recyclability of packaging because often they are recycled along with paper fibres. Cradle to Cradle Certified™ inks improve the recyclability and are produced using renewable energy.

The bottles will also feature new Zer02 oxygen scavenging bottle caps that remove oxygen from the head space in the bottles, reducing flavour oxidation and thereby resulting in a fresher tasting beer, for longer.

“Carlsberg is working hard to deliver on an ambitious sustainability agenda – offering great beer products while reducing our environmental impact,” said Cam Pearce, Marketing and Innovation Director of Coopers.

“Through our work with EPEA Hamburg and Cradle to Cradle we created a road map for making our packaging better. The new inks are ‘greener’ and help maximise the bottles recyclability.

“The new ZerO2 caps were designed to combat the impact of oxygen on beer, which was one of the key factors affecting shelf life. Zer02 caps perform up to 15 per cent better than standard closures over the full shelf life of a product and this means an even fresher tasting beer,” he continued.

These packaging updates are just the start of a number of world-first upgrades Carlsberg is making to its products that will begin to be rolled out in Australia this month.

On-premise, the Carlsberg team have spent the past six months updating visibility for the trade through products like hero fonts, tap badges, tap handles, bar mats and branded glassware. As part of its upcoming activations, its partnership with Liverpool FC will be a major part of its 2020 strategy – something that any venue where soccer is popular can take advantage of.

The new bottles are expected to be available across Australia both onand off-premise from this month, and will be celebrated with a display incentive that will run from now until February.

Discover the full range of food and beverage products

from Food & Beverage Media.

Hotelier AUSTRALIAN

AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE

NO.759 NOVEMBER/DECEMBER 2019

VOL. 36 no. 10 - NOVEMBER 2019

AUSTRALIA’S LEADING LIQUOR INDUSTRY MAGAZINE

vol. 38 no. 10 - NOVEMBER 2019

Raised with care.

IN THIS ISSUE: PLANT-BASED MENUS | CIDER | WORKING WITH WHOLESALERS FBC Cider Cans Aust Hotelier Cover A4 297x210.indd 1

10/18/2019 4:44:00 PM

AUSTRALIAN HOTELIER

AUSTRALIAN HOTELIER WEBSITE

NATIONAL LIQUOR NEWS

HOSPITALITY MAGAZINE

HOW DOES GYPSY/CONTRACT BREWING WORK? Find out on page 46 INCLUDING

ISSUE 51 SUMMER 2019 PRICE $9.95 (NZ $11.95)

Lagers CRAFT BREWING’S MISUNDERSTOOD MASTERPIECE

SUMMER SUNSHINE: WHY CRAFT BEER LOVERS SHOULD HEAD TO THE SUNSHINE COAST

there’s Where

a Will

VAN DIEMAN BREWING’S WILL TATCHELL SCOOPS OUR BEST BREWER AWARD

BEERS & CIDERS

REVIEWED ISSN 1834-5115

0 4

9

771834 511048

WWW.BEERANDBREWER.COM

PLUS! THE BUSINESS OF BREWING | A PINT WITH… PETE BROWN | MASTERS OF THE BREWNIVERSE

BEER & BREWER

THE SHOUT

PUB LEADERS SUMMIT

AUSTRALIAN LIQUOR INDUSTRY AWARDS

HOSPITALITY LEADERS SUMMIT

Food & Beverage Media is a division of The Intermedia Group.

For the best coverage of the food and drink sectors in Australia, subscribe to our titles at www.intermedia.com.au

PRODUCTS

HOT TO STOCK FOR 2020

HEADING INTO THE NEW YEAR, HERE ARE A FEW PRODUCTS AND SERVICES THAT WILL BENEFIT YOUR BUSINESS.

GOOD THINGS COME IN SMALL PACKAGES Kegstar has released a smaller-format 20L keg that has multiple benefits for venues. Firstly, the 20L keg is a space-saver for smaller venues that don’t have as much cellaring space. Secondly, the smaller keg makes it easier for venues to shift through kegs while the beer is still fresh, allowing patrons to taste the beer at its best quality, and giving the venue the ability to tap into multiple beers from a variety of brewers.

The smaller keg format also means less heavylifting for your staff, and therefore less risk of injury. And as the only supplier of a 20L keg that isn’t made out of plastic, the Kegstar kegs are also more sustainable. It’s an all-round winner of an idea!

CONTACT: Request the new 20L Kegstar kegs from your brewing partners. Otherwise call 1800 KEGSTAR to find out who is using the smaller kegs.

WEBSITE: www.kegstar.com

ALCOHOL-FREE G&T As Australians continue to limit their alcohol intake, the no- or low-alcohol category is being watched more carefully by venue operators who need to offer alternatives to their health-conscious patrons. The Duchess combines this new consumer behaviour with one of the most popular simple serves in pubs, the gin and tonic. Hailing from South Africa, The Duchess Alcohol-Free Gin & Tonic is crafted with aromatic botanical extracts, beautifully packaged and ready to drink. It has the refreshing, unmistakable gin ‘bite’ and it is both low in sugar and calories. Stocking no-alcohol RTDs such as this allows your non-imbibing patrons to still feel welcome, socialise and have something to drink while in your venue.

WEBSITE: To find your local supplier visit www.drinktheduchess.com

16 | DECEMBER 2019 AUSTRALIAN HOTELIER

REVENUE-BOOSTER TEXT4SERVICE is a mobile payment ordering and payment platform for hotels who are looking to boost food and beverage revenue as well as improve the guest experience through to-theseat food delivery programs. The latest product innovation from LRS Australia, TEXT4SERVICE fuels the guest experience while giving operators more insight control and revenue generation. With no app download necessary, the service is easy to implement.

There’s no major hardware requirement or infrastructure that needs to be installed. Guests simply scan a QR code from their phone to start the ordering process. No app download is needed, and they can place their order and pay in seconds. TEXT4SERVICE can be up and running as soon as a menu is created. The low cost of entry ensures that ROI is high and fast.

CONTACT: Anthony Lewy at (02) 9955 5700 or at anthony@lrsaustralia.com.au.

WEBSITE: www.lrspaging.com.au

WINE-SAVER The Coravin Wine Preservation System uses proprietary patented technology to access and pour wine from any bottle without needing to open the bottle. The system uses medical grade needles to extract wine though the bottle’s cork or the Coravin screw cap accessories, while filling the bottle with argon gas to prevent the oxidisation. The system will greatly reduce the amount of wastage from the wines you open behind the bar, and will allow you to stock a greater variety of wines by the glass with the knowledge that you won’t have to pour half the of the contents out. Four Coravin models and all of its accessories are now stocked by Riedel in Australia.

WEBSITE: www.riedel.com

20L k e g s a va ila b le n ow - Fresher taste - Smaller to move - Quicker cooling - Great for mobile bars

Empty Kegs to be collected?

- No ‘log in’ required - Scanned kegs collected in 3 -5 days - Need help? Call : 1800 KEGSTAR Download our free ‘Kegstar’App

Scan the empty keg

ALIA 2019

SPONSORED BY BACARDI-MARTINI AUSTRALIA PTY LIMITED

CO-HOSTED BY

THE GROOVIEST PARTY OF THE YEAR! THE 2019 AUSTRALIAN LIQUOR INDUSTRY AWARDS (ALIAS) WERE ANOTHER STAND-OUT EVENT ON THE INDUSTRY’S ANNUAL CALENDAR, AS WE CELEBRATED THE BEST PEOPLE, VENUES AND PRODUCTS THAT THIS BUSINESS HAS TO OFFER.

H

eld at The Star in Sydney, this year’s awards were themed as a 70s disco party, and attendees did not disappoint in getting into the groovy 70s spirit. The awards celebrated both off- and on-premise, with a section of the night’s honours dedicated to pubs and bars.

Australian Hotelier’s publisher and organiser of the ALIAs, Paul Wootton, paid homage to the quality and diversity of Australia’s hotels.

“The finalists and winners of the hotel categories at this year’s ALIAs are representative of a dynamic industry at the top of its game. From entertainment behemoths to cosy locals, Australia’s pubs prove excellence comes in many forms.”

Of the three major awards for pubs, two were nabbed by Melbourne pub players. Sand Hill Road’s Hotel Esplanade took out Hotel of the Year, just over a year after re-opening. The hotel also won Best New Venue. Sand Hill Road director Andy Mullins was ecstatic about the win.

“We were so stoked, humbled and privileged to receive Hotel of The Year at the 2019 ALIAs! On behalf of our whole staff crew and our amazing Espy community, we’d like to say a massive thanks and throw a massive St Kilda hug around the entire national hospitality industry. We are so proud to have Hotel Esplanade’s name up in lights on such an epic stage!”

In the major individual award of the night, Iain Ling of The Lincoln in Carlton was named Publican of the Year. It’s the second major award for the hotel in consecutive years, with The Lincoln named Hotel of the Year at last year’s event.

“Winning came as a bit of a surprise! It has been an awesome journey since getting the keys to the pub over five years ago. We have made a lot of friends along the way, many of whom we now consider family,” Ling told Australian Hotelier.

“After winning Pub of the Year last year, it was great to take a bit of time to reflect and appreciate the hard work of everyone involved. Very rarely are awards won individually and I’d like to thank all our staff past and present, suppliers and of course our guests who make our pub what it is. It wouldn’t have been possible without them.”

The last major pub award of the night, Hotel Group Operator of the Year, was awarded to Solotel. The group’s venues also won Best Sports Venue (The Sheaf) and Best Food Menu (Barangaroo House). Solotel CEO, Justine Baker, put the recognition down to the group’s continual evolution of its offerings.

“I’m delighted with the nominations and awards we received. It’s always humbling to be recognised by our peers, especially as operator of the year.

“We are constantly working to enhance the guest experiences through our food and beverage offering, music programming and sports coverage, so to be acknowledged this way is testament to the hard work and passion of our teams.”

In the other major award of the night, Lion was named On-Premise Supplier of the Year, a title which they last won in 2017.

ALIA 2019

ON-PREMISE WINNERS MAJOR AWARD WINNERS

BEST NEW VENUE OR CONCEPT Winner: Hotel Esplanade, Melbourne Highly Commended: Felons Brewing Co, Brisbane

BEST MUSIC VENUE Winner: Frankies, Sydney Highly commended: The Lansdowne Hotel, Sydney

PUBLICAN OF THE YEAR Winner: Iain Ling, The Lincoln, Melbourne Highly commended: Paddy Walshe, Hunters Hill Hotel, Sydney

BEST SPORTS VENUE Winner: The Sheaf, Sydney Highly commended: The Light Brigade, Sydney

BEST GAMING VENUE Winner: The Tennyson Hotel, Sydney Highly commended: Zagame’s Golden Point Club Hotel, Melbourne

BEST FOOD MENU Winner: Barangaroo House, Sydney Highly commended: The Esplanade Hotel, Melbourne

20 | DECEMBER 2019 AUSTRALIAN HOTELIER

BEST DRAUGHT PRODUCT Winner: Stone and Wood Pacific Ale Highly commended: Balter XPA

BEST ON-PREMISE SPIRIT/LIQUEUR Winner: Four Pillars Rare Dry Gin Highly commended: Archie Rose Signature Gin

BEST MIXER Winner: Fever-Tree Indian Tonic Highly commended: Angostura Bitters; PS Soda

HOTEL OF THE YEAR Winner: Hotel Esplanade, Melbourne Highly commended: Duke of Clarence, Sydney

HOTEL GROUP OPERATOR OF THE YEAR Winner: Solotel Highly commended: Merivale

ON-PREMISE SUPPLIER OF THE YEAR Winner: Lion Highly commended: Vanguard Luxury Brands

2019 WINNER BEST DRAUGHT PRODUCT (3yrs running) 2019 WINNER BEST INDEPENDENT CRAFT BEER Proudly independent and Australian, our brewery is where it is today because of our passionate drinkers and customers – cheers for your support!

CRAFT BEER

Craft beer for 2020

RING IN THE NEW YEAR WITH THESE GREAT ADDITIONS TO YOUR CRAFT BEER OFFERING.

1. O ’BRIEN BELGIAN ALE

2. PANHEAD QUI CHANGE XPA

This Belgian-style beer is brewed especially for beer lovers. The slight sweetness from sorghum and millet malts and Belgian Candi sugar is balanced by subtle spice, earth and fruit characters and a dry finish.

Brewed with locally malted ancient grains, this flavoursome beer is gluten free and the perfect accompaniment to white meat dishes. Ask for it at your local wholesaler.

ABV: 6%

XPA means Extra Pale, a product of Quickchange’s lighter malt base. That delicate colour though is undercut by a glorious hit of alpha oils from Mosaic, Galaxy and Citra hops.

Sometimes you don’t want your mouth flayed raw and your liver worked to a standstill. Sometimes a few luscious notes of mango, guava, lychee and pineapple can be just the thing.

ABV: 4.6% www.panheadcustomales.com.au

www.rebellionbrewing.com.au

3. ENDEAVOUR ROCKSTAR PALE ALE

4. URBAN ALLEY BREWERY URBAN APA

Like everyone’s legendary Rockstar hero, that they’re drawn to when they want to listen to something that always delivers, the Pale Ale is the Rockstar of the Endeavour family and a firm favourite among staff and customers. Mouthwateringly tropical and fruity, with a fresh aroma of passionfruit and grapefruit and an abundance of Galaxy Hops, the ‘Rockstar’ of the Australian hop harvest. A light malt sweetness and the vibrant bitter fruitiness of the hops, blends seamlessly, to provide a thirst quenching and quaffable Australian pale ale.

ABV: 4.5%

Fruity American hops are paired with a neutral ale yeast in this American Pale Ale. It finishes clean and moderately bitter, with an inviting aroma of citrus, mango, passionfruit and pine, supported by a backbone of delicious New Zealand malts. Deep gold in colour.

ABV: 5.5%

www.endeavourbeer.com

22 | DECEMBER 2019 AUSTRALIAN HOTELIER

www.urbanalley.com.au

CRAFT BEER

Shot at

GLEBE HOTEL

5. REVEL BREWING CO IPA One sip of Revel Brewing Co’s goldmedal West-Coast style IPA, and you’ll think you’re drinking a tropical fruit drink with a punch! The simple malt bill takes a backseat to let the hops shine with a super smooth finish, making you want more. A generous helping of Mosaic, Citra and Simcoe combine to provide the big hop flavour punch associated with this style.

ABV: 7.5% www.revelbrewingco.com.au

6. LORD NELSON THREE SHEETS PALE ALE

7. BENTSPOKE BREWING CO. HOW’S IT GOSEN?

One of the original Australian craft pale ales, now in its 35th year gets a bright new look. Three Sheets Pale is the firm house favourite and benchmark brew at the Lord Nelson Brewery Hotel. With hallmark lifted floral and lip-smacking citrus notes before a thirst-quenching malty dry finish, Three Sheets tastes smashing in the can, and it will be hard to stop at one.

ABV: 4.9%

Drifting in for summer is a fruity, salty, sour ale. Refreshing, zingy and full of sunshine. Gose is traditionally brewed with coriander, but in keeping with BentSpoke tradition, brewers and co-owners Tracy Margrain and Richard Watkins have bent the rules of beer by adding fresh mango and passionfruit into the mix.

ABV: 4%

www.lordnelsonbrewery.com

www.bentspokebrewing.com.au

8. O’BRIEN PREMIUM LAGER Crafted from the goodness of ancient grains, millet and sorghum, this award-winning gluten free lager is slow brewed and extra matured.

If you’re serving gluten-free food, O’Brien’s Premium Lager is the perfect accompaniment. With a distinct floral aroma, firm bitterness and a clean, crisp finish, O’Brien Premium Lager goes well with spicy Asian dishes or cool summer salads.

Available from all good wholesalers.

ABV: 4.5% www.rebellionbrewing.com.au

AUSTRALIAN HOTELIER DECEMBER 2019 | 23

CRAFT BEER

Craft beer for 2020 9. ATOMIC BEER PROJECT XPA With fresh upfront hop aromas and zesty summer fruit flavours, the Atomic Beer Project’s XPA is sure to please. Extra pale in appearance, it has light bitterness balanced with subtle malt. Hops used are Azacca, Vic secret and Ekuanot. Brewed for maximum refreshment and drinkability.

ABV: 4.2% www.atomic.beer

10. MONTEITH’S BREWING CO PHOENIX IPA

11. SOUTHERN BAY BREWERY XPA

There’s a new IPA in town! Monteith’s Phoenix IPA is a fresh West Coast take on the classic American Pale Ale. The epic combination of Pacific Jade, U.S. Citra, Mosaic and Galaxy hops gives our Patriot brew a distinct international character. A perfect complement to fresh fish tacos.

ABV: 5%

The gentler cousin of an IPA, the Southern Bay Brewery XPA is in line with the times. Fruity and slightly floral notes complement the clean malt character that forms a toasty biscuit base of a refreshing and hoppy banger. Uses a combination of Dr Rudi, Cascade, Amarillo, Simcoe and Centennial hops.

ABV: 5.3%

www.monteiths.co.nz

www.southernbay.com.au

12. TWØBAYS BREWING CO PALE ALE Ranked Australia’s number one gluten free beer in late 2019, TWØBAYS Pale Ale is an easy-drinking American hopped beer with subtle citrus aromas. With more people avoiding gluten, most restaurants now offer a gluten-free menu and now it’s time to add a safe and tasty gluten-free beer.

TWØBAYS refreshing Pale Ale goes beautifully with Mexican tacos (gluten free or not)!

ABV: 4.5% www.twobays.beer

24 | DECEMBER 2019 AUSTRALIAN HOTELIER

CRAFT BEER

Getting ahead of the trends WITH THE CRAFT BEER INDUSTRY CONTINUING TO BOOM AND EXPAND, BRYDIE ALLEN TAKES A LOOK AT HOW TO BEST NAVIGATE THE MARKET THIS SUMMER.

S

ummer is the social season. The sun is out, the year is wrapping up and public holidays abound – it’s the perfect time to get to the pub for a beer. Considering craft beer’s enduring popularity in Australia, which continues to rise despite flattening growth in the overall beer category, when customers come in for a beer, they will likely be looking for craft.

According to Beer Cartel’s 2019 Craft Beer Survey, a majority of craft beer drinkers love following the latest trends from local and independent breweries. With such a large proportion looking for what brews are in the news, keeping up with what consumers want is key.

That’s no easy feat, with the amount of new releases, seasonal brews and changing tastes and rituals among consumers. Two years ago the hottest season was all about the IPA, last year, it was a sessionable summer. This year could be another story again.

PREDICTIONS A lot of murmuring has been coming about lager being the hit beer for summer. It’s something we’ve been hearing from publicans and brewers alike, which is why we’re leaning the most towards the category to be a hit for this year’s busiest period.

John O’Brien, founder of the O’Brien beer range, is one predictor of this trend. He said:

26 | DECEMBER 2019 AUSTRALIAN HOTELIER

“We’ve seen a trend towards pale ales of varying styles, but I think with a hot summer predicted we will see beer drinkers appreciating the unmatched thirst-quenching properties of a classic lager.”

While at the recent Drinks Innovation Summit, O’Brien noted that: “Some of the panellists were questioning when lager would start to feature more prominently in the craft beer space. We think the time is now!”

Not everyone is sold on the summer of lager though, with other contenders being fresh summer ales. Helsby’s Ale House, in Kangaroo Point, Queensland, said despite some seasonal change, their sales data predicts the usual big sellers maintaining their popularity throughout the hot months.

“We are already seeing an upswing in more sessional beers, with easy drinking, refreshing flavours like cucumber and seasonal fruits,” said Renee Gregory from Helsby’s Ale House.

“Although our strongest sellers year round are still our lines of pale ales and IPAs.” Sydney’s Lord Nelson Hotel, which is also an ale brewer under the Lord Nelson brand, agrees that the refreshing and easy drinking summer flavours will be big again this year.

Blair Hayden, Lord Nelson’s managing director, said: “Three Sheets is always our most popular ale as it is herbaceous and refreshing with serious drinkability. If you don’t feel like more than one, you are not drinking our beer.”

The Taphouse in Sydney say they foresee summer along the lines of what they usually serve, due to their distinctive and regularly altered tap set-up. James Thorpe, group general manager and director for Thorpe Hospitality who operate The Taphouse, said: “Almost all the beers that we tap are seasonal or limited.”

“That doesn’t mean that everything on tap is weird and wacky; we always have approachable beers for all tastes. We even cater for the odd VB drinker. At the end of the day though, people do come to a venue like the Taphouse to try something new and different,” Thorpe said.

“We are already seeing an upswing in more sessional beers, with easy drinking, refreshing flavours like cucumber and seasonal fruits,” - Renee Gregory, Helsby’s Ale House.

CRAFT BEER

TOP OPTIONS

LEADER OF THE FREE WORLD

If you’re looking to explore craft a little more, why not start with this year’s ALIA nominated picks?

MAINSTREAM CRAFT

INDEPENDENT CRAFT

Winner: 4Pines Pale Ale Highly commended: James Squire 150 Lashes Other finalists: - Cricketers Arms Spearhead Pale Ale - Fat Yak Pale Ale - James Squire Chancer Golden Ale - James Squire Hop Thief - Little Creatures Pale Ale - Mountain Goat Steam Ale - Pirate Life Mosaic IPA - Wild Yak Pacific Ale

Winner: Stone & Wood Pacific Ale Highly commended: - Bentspoke Crankshaft - Young Henry’s Newtowner Other finalists: - Balter XPA - Batch Pash The Magic Dragon - Colonial Pale Ale - Gage Roads Single Fin Summer Ale - Gage Roads Little Dove - Matso’s Ginger Beer - Balter IPA

Brewed with the goodness of ancient grains to deliver uncompromising taste, O’Brien is Australia’s most awarded gluten free beer.

The Lord Nelson Brewery Hotel.

Photographer: Amanda Mclauchlan. Stylist: Aimee Jones

rebellionbrewing.com.au

CRAFT BEER

The Taphouse

SUPPLY AND DEMAND How you choose which craft beers to stock over summer will depend on your venue, including its size, location, philosophy and clientele. So while there is not a one-size-fits-all approach, what’s important is to be revisiting and re-evaluating your offering regularly, to keep customers engaged and to fully capitalise on the busiest trading period.

At Helsby’s Ale House, the focus is on regularly altering taps with independent Australian brews, to give customers a chance to explore the craft world. As Gregory said, they keep this in mind when choosing what craft to stock at any one time.

“We try to have at least 50 per cent representation on our taps of Queensland brewers and try to support our local breweries as much as we can,” she said.

Choosing local independently brewed products is also important for the team at The Taphouse. Thorpe said: “The quality of the product and the relationship with the brewery team are very important to us. In 2018, we bought from 197 different breweries, mostly local, all independent.”

Another area to consider is stocking products that are unusual, or with easily recognisable points of difference. One example of this is with O’Brien’s Gluten Free Beer, which O’Brien said is perfect for venues looking to bring in a wider target market.

“With increasing consumer interest in all things gluten free, and a general trend within alcohol towards products that are perceived as “better for you”, I’d recommend that outlets ensure they are featuring gluten free craft beers at the bar and on their menus,” said O’Brien.

“Most venues serve gluten free food options on their menu, but how many list a gluten-free beer to go along with these?”

Seasonal flavours or variations are also a point of difference, with the ability to cause hype depending on the exclusivity of the release.

Hayden alluded to something like this, telling Australian Hotelier about a bit of secret Christmas offering from The Lord Nelson. He said that: “This Aussie native has hints of strawberry and we are brewing this

28 | DECEMBER 2019 AUSTRALIAN HOTELIER

A pumpkin spice beer slushie at the Haunted Taphouse event.

SLUSHIE BEER? In the Rooftop Garden of Sydney’s The Taphouse, you’ll find a quintessential summer beverage with a craft beer twist – the slushie beer. Pioneered from Sweden, The Taphouse offered a pumpkin spice version of the creation at their Haunted Taphouse event in October.

“My hot pick for summer is the slushie beer,” said Thorpe.

“We’ve worked with the brewers at Nomad Brewing Co. on a slushie version of their “Freshie” salt and pepper gose spiked with fresh fruit juice. A perfect balance of the tartness that we all know and love from drinking sour beer, and the sweetness of the fruit and some added sugar to help the beer cut through in frozen form.”

CRAFT BEER with an exotic Saison Yeast. Stand by!”

Having something a little bit different is driven at The Taphouse by times of year and events. As Thorpe said: “Our tap list is very carefully and purposefully curated, which makes ordering a daunting task to be sure.”

“Beer knowledge and being clued in to industry trends is paramount. With that said, we order new beers in for many reasons.

Sometimes it’s because a brewery has just dropped a banging new beer. Sometimes it is to fill a style gap on our list. Sometimes it is for an event, like a 20-tap brewery showcase or a themed event like our recent Haunted Taphouse event which featured 10 beers based on Halloween candy.”

HELLO, I’M NEW HERE While regularly changing up the taps can help you keep on track with the trends, it can also cause a poor reaction from customers if it’s not done right. Regulars wouldn’t be happy to come in and find their favourite gone!

Even though Helsby’s Ale House regularly change their 16 tap offering, they keep some semblance of a norm so customers have enough familiarity alongside the ability to branch out and try something new.

“On our taps you will always find at least one pale ale, one IPA, a cider, a ginger beer,

something a bit darker and a few seasonals to keep it interesting,” said Gregory. “We find that people are usually keen to try something a little different but for us it’s important to not overwhelm them at the same time. It’s all in the conversation.”

At The Taphouse, however, they change their taps every day, something that works for them as it forms the basis of the venue’s appeal. As Thorpe said: “Our list changes every day. In 2018 we rotated through over 500 different tap beers and 2019 is shaping up to be even bigger.

We will usually only buy one or two kegs of each product and once the keg is done we clean the line and put a new beer on.”

If you’re introducing something a little stranger than usual to your offering, O’Brien said the best way to get people interested is simple.

“Visibility, because if a customer doesn’t know a beer is on offer, they’re unlikely to order it,” he said. “The most effective way to increase trial of any new product is to have waiters or bar staff recommend it.”

Regardless of your venue, summer’s busy trading season offers some of the best chances to capitalise on craft beer. Tuning into the latest trends helps you know what local and holidaying customers will be looking for, keeping you ahead of the game and making your venue the ultimate summer beer spot.

FREE AT LAST

It took John O’Brien many years, but at last he crafted an awardwinning gluten free beer with uncompromising taste.

Hallelujah!

Helsby's Ale House

rebellionbrewing.com.au

BRAND TALKS

FEVER-TREE’S SUMMER GARDEN SIPPERS FEVER-TREE IS SET TO MAKE A BIG SPLASH ACROSS AUSTRALIA THIS SUMMER, WITH TWO NEW SEASONAL TONICS AND A GIN AND TONIC GARDEN ACTIVATION FOR PUBS ACROSS THE COUNTRY.

F

ever-Tree has released two limitededition tonics for the festive season: Refreshingly Light Cucumber Tonic and Refreshingly Light Clementine Tonic with Cinnamon, both available in 500ml bottles.

Refreshingly Light Clementine Tonic, bursting with sweet clementine flavours and balanced with the spicy undertones of cinnamon is the taste of the Christmas season.

Fever-Tree’s Refreshingly Light Cucumber Tonic has light, crisp notes of cucumber essence balanced with the brand’s signature quinine.

“We all know Australia’s current love affair with gin and tonic and at Fever-Tree we are always about discovering new flavours. This summer it’s all about adding spicy notes or deliciously fresh cucumber tonic to your gin and we all are going to have a lot of fun mixing some great drinks this season,” said Fever-Tree brand ambassador, Trish Brew.

“As consumers become more curious in exploring different flavour profiles and with a growing desire for healthier choices, we are introducing two tonics that speak to current drinking trends and flavour preferences.”

While the two limited-edition tonics allow venues to offer their guests a premium mixer for their tonic, it is especially advantageous for venues that do not offer cocktails. These mixers, paired with a premium gin and a nice garnish, allow you to offer your customers a sophisticated drink, without the lengthy preparation.

TIME FOR A GARDEN PARTY This summer, Fever-Tree will also be partnering with venues across the country to create

30 | DECEMBER 2019 AUSTRALIAN HOTELIER

RECOMMENDED SERVES While there are countless ways you can mix certain gins with Fever-Tree tonics, Fever-Tree ambassador Trish Brew recommends two particular serves for the two new limited-edition tonics.

“My go-to drinks will be Adelaide Hills Distillery Desert Strength Gin paired with Fever-Tree Refreshingly Light Clementine Tonic garnished with blood orange and fresh ginger; and The Botanist Gin with Fever-Tree Refreshingly Light Cucumber Tonic garnished with fresh pineapple, lime and a sprig of mint.”

the quintessential British garden pub feel in Aussie beer gardens. The Gin & Tonic Garden activation was launched by Fever-Tree last summer, but this time around it will be bigger than ever, with venues having access to high value Fever-Tree point-of-sale items, custom menu designs and pairing guides.

“Fever-Tree will be providing custom items for the activation including custom deck chairs and parasols, fresh herb pots and garden-themed bar tools as well as endless tips and tricks to make your garden pub shine,” explained Nikki Dave, Fever-Tree Brand Manager at SouthTrade International.

“Participating venues will also have the opportunity to explore the world of premium mixers with custom Fever-Tree Gin and Tonic menus and Fever-Tree training sessions for all staff with Fever-Tree Brand Ambassador, Trish Brew.”

Footfall will be driven to all Fever-Tree Garden venues with an interactive map on their website, a platform where G&T lovers can find their closest G&T garden. The site will also include overviews of each garden, providing addresses, information and images of each space. A full digital campaign

will further be running through Facebook and Instagram to maximise awareness and encourage consumer engagement.

As gin continues to be one of the fastest growing categories in Australia, currently outstripping dark rum, this Fever-Tree activation will allow venues to make the most of the appetite for gin and tonic.

In further support of its venue partners, Fever-Tree is also running a competition where participating venues can upload images of their G&T garden to be in the running to win a significant prize. The winning venue will receive two return airfares to London, accommodation for five nights and a double pass to major tennis event, the Fever-Tree Championships, in June 2020.

“With gin and tonic as one of the nation’s favourite drinks, and our Australian love for outdoor socialising, we are excited to see some creativity and help updo some great outdoor spaces into beautiful gin and tonic gardens for the summer months,” said Brew.

Venues interested in taking part in the activation should speak to their SouthTrade International sales representative.

A FRESH CUCUMBER TWIST ON YOUR G&T

POS AND OP TECH

EFFORTLESS ORDERING AUSTRALIANS ARE SOME OF THE HIGHEST ADOPTERS OF CONTACTLESS PAYMENT TECHNOLOGY, SO IT BENEFITS VENUES TO MAKE THEIR TRANSACTIONS AS EFFORTLESS AS POSSIBLE. CAT WOODS REPORTS.

C

ontactless payment technology includes contactless debit and credit cards, mobile wallets and wearables that enable users to interact with contactless readers. According to Ravi Sharma, senior payments analyst at GlobalData, this is driven by government policies that promote electronic payments, improved payment infrastructure and a greater number of merchants adopting contactless technology.

In 2019, the number of contactless card payments grew to 10.5 billion from 6.6 billion in 2015. This is predicted to reach 14.9 billion in 2023 according to GlobalData’s 2019 Banking and Payments Survey. The number of public services offering contactless payments has bolstered consumer confidence in the technology, making it inevitable that the key service sectors in Australia will be expected to provide enhanced technology to keep up with consumer demand for efficient, dependable and simple-to-use methods when it comes to ordering, paying and reviewing.

“Australian merchants and financial institutions alike have embraced the technology, with the extensive acceptance infrastructure in the country a major reason why the cards are so popular,” says Sharma.

“Contactless cards, mobile wallet solutions with NFC technology such as Apple Pay, Google

32 | DECEMBER 2019 AUSTRALIAN HOTELIER

Pay, and Samsung Pay are also available in the market. Furthermore, wearables with contactless payment features such as Garmin Pay and Fitbit Pay can also be used at merchant locations.

Considering all these factors, investment in contactless will be a winning bet for merchants.”

CURRENT INEFFICIENCIES Firstly, in a highly competitive industry, if consumers expect that they can simply tap their phone or scan a code to order food and drinks at one pub, but not at the pub three doors’ down, they’re likely to vote for the one where they don’t have to queue and desperately try to catch the bartender’s eye for service, search their pockets for cash and cards, nor wait for change and a receipt.

Additionally, contactless ordering and payment technology provides an ideal platform to offer loyalty programs, thus encouraging customers to visit more often, spend more, and spread the word via digital and real life positive reviews.

Contactless payments are PCI compliant, meaning that they meet the universal security standard for how organisations collect, store, process and transmit cardholder data securely, thus preventing fraud.

NEW POS TECH The managing director of LRS, which has just

released the product TEXT4SERVICE to the Australian market, has worked as a chef and a barman. His team come from marketing, development and logistics industries — all of which focus on streamlining, communication and efficient business.

“The main benefit of TEXT4SERVICE lies in its ability to be used by anyone with a modern mobile phone, these devices have inbuilt QR scanners in the camera application,” says Hasitha Jayanandana, technical support engineer at LRS. This means users don’t need to download apps or use third party applications to scan menus or provide access to their personal data. Users can both order and pay simply by scanning a QR code that has been printed on a menu, coasters or engraved into the table. QR codes can also be displayed on websites. Once a customer has ordered, their selection displays on an iPad-based application that is located at the counter, pass or kitchen. A mobile application, much like a paging system, alerts staff members on the floor which orders to attend to.

“The ability to upsell is definitely built into the system,” says Jayanandana. “Adding bundles and meal deals is also possible, just like online shopping platforms allow you to add additional products.”

OrderUp! is used by clubs, bistros, hotels,

LRSAUSTR ALIA.COM.AU +61 2 9 955 5700

PAG I N G & C O M M U N I C AT I O N S O L U T I O N S

MANAGE WAITLISTS

A complete waitlist management solution Elevate the guest experience with that offers the flexibility customers want the durable, sleek and reliable LRS Pager. It is the only all-in-one pager with notification choices via Guest Pager or Text to Mobile. or mobile phone notification system.

TEXT4SERVICE uses an innovative technology, giving guests the power to request food and drinks, contact their server and even pay right from their phone.

LRS Gaming Pagers help increase revenue and efficiency by allowing staff members to respond quicker and escalating unanswered calls to upper management.

A table location system that identifies where guests are sitting so you can deliver food faster.

Push-button notification systems allow customers to alert staff and request immediate service.

LRS Pagers keep your staff aware and connected with each other and guests, ensuring better all-round service.

Portable and wireless Radio Kits help staff members to communicate directly on-site. Bluetooth accessories are also available.

View all paging and communication options at LRSAUSTRALIA.COM.AU

POS AND OP TECH

CONTACTLESS CARDS SET TO SOAR According to Global Data, the number of contactless cards in Australia are set to increase from 59.6 million in 2019 to 68.9 million in 2023.

Payments using contactless cards have also increased, and are projected to continue to do so, as seen in the chart below.

The Bella Vista Hotel

motels, food courts, grocers, providores and sporting venues. Customers browse an online menu either on desktop or mobile device, then select their purchases. They choose a payment method, including PayPal, credit card or pay on delivery then transfer payment via an online merchant account so that funds are transferred immediately. OrderUp! enables hotels and bars to maintain a customer database, interactive menus and reports of usage to provide thorough guides to what is selling, when and to who.

Hey You is an app that links to a user’s credit card, enabling them to seek out drinks and food, order and have it delivered. Co-founders Rebekah Campbell and Adam Theobold created the app after merging previous online shopping and loyalty businesses then receiving Silicon Valley investment. Since then, the app has partnered with the Australian Open to enable attendees to order food and drinks without leaving their seats. They’ve also partnered with Uber so that users can order an Uber via the Hey You app. Introducing the app to the pub industry is relatively new, with the first trial being The Exchange in Balmain, Sydney.

Square for Restaurants enables payments, invoices and ordering.

A business sets up menus and adds items, builds a floor plan, adds employees and enables discounts, menus by time of day, order entry and tracking and real-time sales reports. Rather than ongoing contracts, Square is free for the first 30 days then costs $129 per month, per location. Without the advanced restaurant features, including the floor plan, there’s a free point of sale option. Additionally, it has 24/7 support (essential especially for hotels, bars and clubs operating all night).

CASE STUDIES Leon Colosimo, director of Momento Hospitality, says Bella Vista Hotel chose to use OrderUp! based on their impressive sales pitch and because they’d had experience using the app for pre-ordering via their food truck business.

“Now our patrons do not have to line up for 30 minutes to order during peak periods. They can share this time at their tables with their guests instead of queuing or waiting.”

The Barooga Hotel in the Riverina region of New South Wales, underwent significant upgrades after Kath and Glenn Gardiner bought the venue in 2015. The venue has an outdoor bar, main bar and gaming room.

34 | DECEMBER 2019 AUSTRALIAN HOTELIER

They presently only use OrderUp! for deliveries from a separate kitchen located in the next town, which enables people to order from the Barooga Hotel menu. Glenn Gardiner is in the process of considering whether he will extend OrderUp! into the hotel itself so that customers can order via app from their table.

“We do contactless payment only in the actual pub,” says Gardiner.

“That’s through the Commonwealth Bank Australia app. We’re a large tourist area, so from November to the finish of Easter we’re enormously busy. I don’t want to introduce order-at-table via app until after the busiest season. I’ll be doing so after Easter in 2020.”

Gardiner introduced the software 16 months ago after extensive research into all the delivery options, since OrderUp had a lower percentage of takings. “For example, Menulog is around 14 percent but OrderUp is 4 percent,” says Glenn Gardiner.

“We took an existing chef and two kitchenhands and we run the same menu from a ‘dark kitchen’ blocks away so that we can produce the level of food required to service the pub orders. Someone orders online, it prints into the kitchen over there and it is logged on the app so that we can see what we’ve done for the night. It was such a simple process, we didn’t have to do a lot of training for the staff.”

Playing into their decision over when and how to introduce contactless ordering is the variation in price points between their in-hotel menu and their delivery-only kitchen.

POS AND OP TECH

COST-BENEFIT ANALYSIS Sydney has provided contactless payments for public transport, including ferry, train and light rail, since 2018. In August last year, Australia Post introduced smart POS terminals, enabling customers to pay using wearables and their mobile devices. Internationally, according to the Reserve Bank of Australia, governments have encouraged less reliance on cash transactions to improve the efficiency of financial infrastructure, promoting real-time payments and information to best indicate the health of the economy. In China, mobile payment apps like AliPay and WeChat Pay have grown exponentially in popularity. Both systems rely on QR (Quick Response) codes to enable transactions between user accounts.

In developing countries, such as Thailand and Kenya (which uses the M-Pesa system of payments via text messages), mobile payment has facilitated financial inclusion for users who were previously unable to access card terminals to enable payment.

The steps to introducing contactless

ordering and POS systems are straightforward, with the most elementary first step being one of the most important.

Review your current sales versus your outgoing costs on transactions, staff numbers during peak hours, separate loyalty schemes and banking costs. This is a good baseline for measuring the gradual or immediate benefits of introducing new technology.

Assess what technology is available and how it would work for your particular business.

Choose wisely rather than making an impulsive or ill-informed decision.

Educate employees on why you’re introducing the technology and how they can best use it and share it with customers.

Considering that Australians have so enthusiastically taken up contactless payment technology and it has streamlined services from banking to transport, deliveries to retail, it is imperative that hoteliers are staying abreast of the technology available to improve their customer service experience and the efficiency of their business operations overall.

The TEXT4SERVICE software

“The ability to upsell is definitely built into the system. Adding bundles and meal deals is also possible, just like online shopping platforms allow you to add additional products.”

Hasitha Jayanandana, LRS

BRAND TALKS

POWER TO THE PEOPLE

EZYCHARGE IS AUSTRALIA’S LARGEST PHONE CHARGING SUPPLIER TO PUBS, CLUBS, EVENTS, CONFERENCES, MUSIC FESTIVALS, SPORTS STADIUMS, AND MORE. BUT IT’S THE COMPANY’S LATEST CONCEPT THAT REALLY HAS VENUES, AHEM, CHARGING UP.

A

cross the world we have car sharing, bike sharing and the like, and now we have mobile phone powerbank sharing. It’s a simple concept where people now don’t need to worry about carrying a cable every time they go out, they simply rent an Ezycharge one in your venue.

Using the Ezycharge app, customers simply scan the QR code on any of the units, which in turn releases a powerbank. That powerbank is always fully charged and comes with three in-built cables, meaning any phone, anywhere, can be charged. In fact you can charge three phones at once!

The cost is $3 per hour, which is capped at $7 per day. The Ezycharge app even sends you a timer warning when your hour is nearly up, and shows you the closest location to return your powerbank. If a patron decides to keep the powerbank, they will be charged for seven-days usage and then own that charger, which can be recharged using any standard micro USB cable. Ezycharge will also give customers who choose this option a free swap-n-recharge for three months, anywhere the powerbanks are located.

“It’s perfect from a customer point of view. Their phone is with them all the time. They don’t need to lock it away. Bar staff aren’t having to charge phones and potentially give the wrong phone to the wrong person,” explains Russell Barwick, founder and director of Ezycharge.

“As we also move towards a cashless payment society, charging your mobile phone will be a high priority for venue owners and managers, as much as it will be for customers… This is the best solution for everyone. Keeping customers in the venue and their phones charging alongside them.”

36 | DECEMBER 2019 AUSTRALIAN HOTELIER

The Ezycharge Grab N Go charger allows patrons to enjoy your venue without having to worry about their phone battery.

VENUE BENEFITS The Ezycharge powerbanks are also a boon for venues, who have to expend less time and energy helping patrons charge their phones.

“From the venue’s perspective, this is the best. It has no staff input. No charging behind the bar. The Ezycharge app allows customer to follow the prompts in simple steps,” states Barwick. “We know better than anyone, people don’t want to be without their phones, not even for five minutes.”

In an unobtrusive 25 square centimetre box that holds eight chargers and simply needs to be plugged into a power outlet, the Ezycharge Grab N Go will take up little space within a venue, but will provide a lot of convenience for your customers who need their phones at all times – which is just about all of us.

The powerbanks also work off a shared revenue model, so the venue will earn money as more patrons use the chargers. In an additional bonus, some of that revenue can be used for venue-specific specials which pop-up on the Ezycharge app when patrons enter your business – anything from 2-for-1 meal deals to discounted drinks – within regulatory practice, of course.

In an effort to increase user engagement with this new product, Ezycharge is also offering free charging to all first time users who download the app.

“Given the amount of time we all spend on our phones, this idea is a godsend to most of us. Venues that offer free wi-fi and even mobile ordering, can now have these units in stadia, with patrons able to go back to their seat and watch, rather than miss any of the action while their phone is charging,” says Barwick.

“As we also move towards a cashless payment society, charging your mobile phone will be a high priority for venue owners and managers as much as it will be for customers. We use our phones for the obvious, but also for payment, social media, organising transport, staying in contact with friends etc. So if a venue doesn’t have charging options, then people will simply leave and go somewhere which has.”

Melbourne Olympic Park Trust have already committed to the units along with the MCG, with expectations that plenty of pubs, bars and clubs over the next few months will also be installing the Grab N Go powerbanks.

“Commercially, there are endless possibilities with companies keen to ‘takeover’ the app and offer customer-based offers or perks. Longterm we hope to engage with loyalty programs to use points to pay for charging.”

Welcome to the world of shared powerbanks. Ezycharge Grab ‘n Go is a self serve powerbank rental service, that allows customers to grab a powerbank and charge their phone while it’s in their hand!

DESIGN & BUILD

Updating the facade was a vital part of the hotel's transformation

Large gathering spaces were a key part of the brief A feng shui expert was consulted on the flow of the design

38 | DECEMBER 2019 AUSTRALIAN HOTELIER

The aesthetic is 'modern opulence' A new meeting place for the local community

DESIGN & BUILD

Social in style REDCAPE HOTELS GROUP HAS TRANSFORMED CABRAMATTA HOTEL FROM AN AGED AND ISOLATED CORNER PUB INTO A MODERN AND INVITING SOCIAL HUB FOR THE LOCAL COMMUNITY.

W

hile Redcape Hotel Group has owned the leasehold to the Cabramatta Hotel in Sydney’s south-west for quite some time, it did not acquire the freehold of the venue until late 2017. With that sense of permanency established and the ability to deliver the return hurdles the group look for in their refurbishment program, the group set about delivering a comprehensive refurbishment to the overlooked pub.

“With a five year pipeline of refurbishment opportunities across the portfolio, we try to increase the capability in all our asset refurbishments and we think we have achieved this again at Cabramatta. We refurbish hotels to be commensurate with the local communities needs and preferences; we really take the time to understand what the community values and what it will respond to,” explains Redcape CEO Dan Brady.

Cabramatta Hotel sits on a corner block adjacent to a busy train station, so taking advantage of that transit nature of the immediate vicinity was a big part of the brief for the renovation.

“Like a number of pubs in our portfolio, Cabramatta Hotel sits opposite the railway station, right in the centre of Cabramatta. So the ability for it to become a social hub, a place where people can meet friends, use facilities like ATMs, bathrooms, grab some food and a quick drink, that was important,” states Brady.

“It’s a really key part of the design. We opened it right up with the windows and doorways leading you from the train station, right through the pub to the centre mall area. Creating an open, inviting feel that would see it become a central social hub for the community was a key part of the brief.”

The other major consideration of the design was the area’s key demographic. According to the 2016 Census published by Australian Bureau of Statistics, 57.5 per cent of local residents are of Vietnamese or Chinese background. More than half of local residents were born overseas, with the majority born in Vietnam.

Ensuring that the hotel appealed to the Vietnamese and Chinese demographics was of vital importance.

“One of the features that we believed certainly of the Vietnamese culture is that they are very social.

So open spaces, utilities and areas where people can congregate [was important]. Vietnamese and Chinese cuisine also forms the basis of the menu. There are a lot of communal tables and open areas, high

ceilings, friendly spaces, and a social gaming floor layout – we’ve included that level of sociability right throughout the hotel,” says Brady.

MODERN OPULENCE The renovation of the hotel began in September 2018, and was completed in May this year. The hotel remained operational throughout to minimise the impact on patrons, with the work done in stages. The renovations cost $7 million in total.

Brady says that in the appeal to the local demographic, and to ensure the life-of-capital is in the range of five to seven years, the hotel underwent a complete market repositioning with an opulent aesthetic in mind leading the transformation. This fact was echoed by Redcape COO Chris Unger.

“The opulent décor was largely inspired by the cultural melting pot of the local community, with many design elements influenced by Chinese and Vietnamese culture.”

The new public bar features rich woods, metal mesh wall panelling, and brass lighting features coupled with antiqued mirrors to provide depth and a sense of age. The dining room carries a similar thematic and features large round dining tables complete with marble lazy Susans.

The beer garden is a little sanctuary in the heart of the hotel and features warm timber panelling, lush gardens and warm sunlight. The VIP Lounge takes opulence to the next level, with rich dark marble walls, complemented with metallic gold wall finishes and ambient lighting throughout. Feng Shui principles were also taken into consideration throughout the venue, influencing flows, orientation, finishes and decorative elements.

Cabramatta Hotel is ranked 28 in New South Wales’ gaming rankings, and is in the fourth-most profitable LGA in the state for gaming, so it was important that the VIP Lounge was also transformed into a modern offering of the highest standard.

“We set out to deliver a new level of gaming entertainment experience for our customers. Key features include an impressive spacious footprint, high ceilings, premium toilet facilities, adjacent private dining rooms, contemporary gaming product, and digital signage showcasing branded and ambient content. We have also taken care to consider the desired customer experience in that

CULTURAL SENSITIVITY When tailoring an offering to a certain cultural group, it’s important to ensure that certain sensitivities are taken into account, and that the offering is well-researched, so as to be authentic, rather than stereotypical. COO Chris Unger explains Redcape’s process.

“We take great care in delivering experiences that are aligned to the cultural preferences, behaviours and sensitivities of our customers.

From the early planning stages of development, we ensure a high level of focus on this area. Our research includes our own customers’ insights, observational research and the engagement of consultants in various areas that provide the necessary cultural expertise and insight.”

AUSTRALIAN HOTELIER DECEMBER 2019 | 39

DESIGN & BUILD particular market and designed our floor layout and service model accordingly,” explains Unger.

The façade of the hotel was also given a major overhaul. The original red brick of the first level was painted a neutral grey and the green tiled roof was updated to a subtle charcoal tone. The old patterned wall tiles were replaced with a contemporary black subway tile. Vibrant new signage and architectural lighting complete the contemporary look to reactivate that area of Cabramatta opposite the train station.

The renovation of the hotel also included some re-jigging of the floor plan, to ensure a practical layout for the operations of the venue, as Unger describes.

“The renovation included the relocation of the hotel’s bars, kitchen and office, which gave us the opportunity to purpose build each to maximise operational efficiencies and improve our staff’s day-to-day experiences. The relocation of the gaming bar and management office allowed for better access to front-of-house areas, whilst the kitchen’s fitout was specifically designed to equip the kitchen team to deliver exception Asian cuisine.”

COMMUNITY RESPONSE Cabramatta Hotel officially relaunched in July this year, and has set the new standard of renovation at Redcape.

“The project marks a new level of refurbishment capability within Redcape, delivering a complete market repositioning of the hotel. Since launching in July, we have received an overwhelmingly positive response from our customers, the wider Cabramatta community and our industry peers. It has been a truly humbling experience," said Brady.

The refurbishment has also achieved its aim, with many new faces now frequenting the hotel and the venue being used for a variety of experiences, from quick drop-in to a longer, more leisurely visit.

“It is definitely reclaiming its longstanding position as a central social hub of the Cabramatta community!”

The old facade

JUDGING A PUB BY ITS COVER Unger says upgrading a tired façade is “vital” when taking on a comprehensive renovation of a hotel.

“A new venue exterior should be representative of the transformation of the hotel inside, and the new experience customers can expect.

At Cabramatta, the previous exterior was representative of the hotel in the era it was built; the new exterior has been appropriately modernised. Hotel exteriors are particularly important in locations such as Cabramatta where the hotel is a central hub for commuters and the local business district.”

One of the hotel's private dining spaces

The new facade

40 | DECEMBER 2019 AUSTRALIAN HOTELIER

61 2 9660 8299 paulkellydesign.com

Union Place Hotel

TALES FROM THE TOP

HOSPITALITY’S DIGITAL REVOLUTION NEEDS TO FOCUS ON DATA SECURITY

BY BRYAN SARTIN, EXECUTIVE DIRECTOR OF GLOBAL SECURITY SERVICES, VERIZON

E

merging technologies such as chatbots, virtual assistants and augmented reality are transforming the hospitality sector more Bryan Sartin rapidly than previously thought possible. Expectations from patrons who are exposed to the way technology is shaping the customer experience is driving the way companies operate. This unprecedented change is sweeping through hotels, casinos, restaurants and other hospitality organisations which are now providing interactive guest facilities for improved customer service.

One of the top 5 technology trends for hospitality in 2020 is technology integration. For example, 5G offers massive advancements in network capacity, opening up new and efficient ways to store company and customer data. While more sophisticated technologies make life easier for staff (and customers), the reality is that with every advancement comes new challenges, particularly in the area of cybersecurity, where hackers are taking advantage of companies undergoing digital transformation during this pivotal period of change.

According to Verizon’s annual Data Breach Investigations Report (DBIR), the hospitality industry has been far too hospitable to cyber criminals of late. Across multiple industries, financially motivated actors are targeting POS environments, allowing them to collect customers’ payment card data.

In hospitality, 95 per cent of all cybersecurity incidents were caused by external actors.

While the report found that the number of POS intrusions in the hospitality industry has

42 | DECEMBER 2019 AUSTRALIAN HOTELIER

decreased since 2017, there is no indication that the decrease is part of a larger, optimistic trend.

TOP 4 STEPS TO MINIMISE CYBER ATTACK RISK So, how can hospitality organisations help combat increasingly complex cyberattacks, especially when many companies are shifting their focus toward adapting new technologies to keep up with the expectations of their consumers?

There are a few steps companies can take: • Identify your business threats: Whether leveraging default credentials or stolen credentials, organised criminal groups often target the smaller businesses within the hospitality industry. With more than 75 per cent of the accommodation and food services industries in Australia made up of SMEs, this sector is more at risk of being targeted by cybercriminals. Considering how attackers perceive your company is an important first step toward combatting them.

• Protect your assets: The most recent data shows that year-over-year, there is a malware problem affecting POS controllers and terminals. To combat this trend, implement anti-malware defences across these environments and validate the breadth of implementation of controls. Focusing on detective controls is just as important. There should be additional means of detection other than the external correlation of fraudulent usage of payment cards. Restrict remote access to POS servers and balance the business needs of interconnectivity between POS systems to defend against the potential spread of malware from the initial location of compromise.

• Develop a security operations team: As hard as one might try, it’s impossible to build a perfectly secure security system. A security operations team can help monitor for

threats and fill in the gaps where the security system might falter. If your company’s budget allows, a security operations team can be an invaluable asset. If developing an in-house team isn’t feasible, consider contracting security operations as a service.

• Upgrade POS terminals: When a chipenabled card is inserted into a properly configured EMV-enabled POS terminal, the reusable magnetic strip information is not exposed or stored. Along with contactless payment methods, this can disrupt how attackers would attempt to steal sensitive information. Like the hospitality industry, cybercriminals are adapting. Continuing to embrace and implement new technologies raises the bar and helps protect against payment card fraud.

Data from the DBIR suggests that while there is work to be done on preventative controls around POS compromise, there is equal room for improvement in detecting compromise.

Realistically, it is important to understand that many of these victims are “mum and dad” operations, and that asking for sophisticated file integrity software is not a feasible plan of action.

However, working with POS vendors to ensure that someone knows how to detect a threat is a simple but valuable start.

Despite the diversity of organisations within the hospitality sector, the industry is undergoing significant change across the board. Companies should learn from industry data, and perhaps most importantly, disseminate knowledge to their employees and franchises, if applicable.

While technology is vastly improving hospitality, cyber attackers are developing more complex means of intrusion to keep up. While implementing security protocols may seem inconvenient, small steps can go a long way in keeping your company’s data, as well as that of its customers, safe.