Hotelier AUSTRALIAN
AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE
vol. 34 no. 1 - FEBRUARY 2017
THE 2017 ANNUAL INDUSTRY LEADERS FORUM
HOSTED BY
A ONE-DAY CONFERENCE AND MINI-EXPO FOR LEADING PUB OWNER/ OPERATORS AND SENIOR MANAGEMENT
THE PROGRAM
FULL PAGE ADVERT
SILVER SPONSORS
MONDAY 20 MARCH 2017 Venue: Royal Randwick Racecourse, Randwick, Sydney
WHY YOU SHOULD ATTEND “It was simply the best run event I have ever seen, heard or been a part of in this industry.” Andy Mullins, Sand Hill Road
“I definitely left with a new “I enjoyed the seminars and wealth of ideas and inspirational found a good spread of speakers stories to motivate me to reach and topics discussed. It is good new goals at my own venue.” for us to get outside our bubble and meet like-minded people.” Steve McDermott, Statler & Waldorf Grant Clark, Brisbane Brewhouse
Take advantage of the earlybird offer of $249 + GST per ticket (pub operators) and $449 +GST (suppliers), which is available until 20 February 2017. Thereafter tickets are an extra $100 + GST.
REGISTER NOW AT WWW.PUBLEADERS.COM.AU GOLD SPONSORS
PLATINUM SPONSOR
CONTENTS | ED’S NOTE
10 Vanessa Cavasinni
Editor’s Note
H
appy New Year to all readers of Australian Hotelier! We hope you had a break and that your venue/s did a good trade over the holiday period. If 2016 was anything to go by, I’m sure it was booming. We’d like to start off the year by both looking back at some of the big moments in the industry in 2016, which was one of the strongest and most confident years of trade in a decade, and by also looking ahead to what we believe will be the big issues and trends for 2017. To do so, we’ve gathered insight from a variety of hotel operators and suppliers – from multi-venue, metropolitan operators, to single-venue, regional operators. We’ve also got insight from suppliers within spirits, gaming, design, POS and more. Analysts from JLL Hotels & Hospitality, CBRE Hotels and Ray White are predicting another robust 2016 for hotel transactions, and the latest Sensis Business Index has found that capex expectations have increased by 18 points – the only industry to have an increase in capital expenditure. So we’re expecting another year of growth and activity. All the best for 2017! Cheers,
13 17 31
Vanessa Cavasinni, Editor P: 02 8586 6201 | E: vcavasinni@intermedia.com.au
8
14
22 30
13 16
Accommodation • Wine • Gaming
The Intermedia Group Pty Ltd 41 Bridge Road GLEBE NSW Australia 2037 Tel: 02 9660 2113 Fax: 02 9660 4419
Special Features A winning formula: We profile two award-winning pubs and discover what makes them excel. Hot Topic: Gaming: How to make your gaming and wagering area more inviting. Hot Topic: Technology: What technology to invest in. Hot Topic: Staffing: How to instil a group culture.
Operators
NEXT MONTH
PUBLISHED BY:
Contents | February
Colonial Leisure Group Comiskey Group
MANAGING DIRECTOR: Simon Grover PUBLISHER: Paul Wootton EDITOR: Vanessa Cavasinni
GROUP ART DIRECTOR – LIQUOR AND HOSPITALITY:
NATIONAL SALES MANAGER:
HEAD OF CIRCULATION:
Jason Wild Tel: 02 8586 6213 • jwild@intermedia.com.au
Chris Blacklock cblacklock@intermedia.com.au
GENERAL MANAGER SALES – LIQUOR & HOSPITALITY GROUP:
PRODUCTION MANAGER:
vcavasinni@intermedia.com.au
Shane T. Williams
17 31 34 36
Dixon Hospitality Sand Hill Road The Dolphin Hotel/Hotel Harry The Lucky Hotel
Suppliers 12 18 20 21 24 26 28 32 33
Kea Thorburn kthorburn@intermedia.com.au
Jacqui Cooper jacqui@intermedia.com.au
Australasian Gaming Expo ecash H&L Australia Hostplus Intrust Super Jack Daniel’s Paul Kelly Design SG Gaming Tabcorp
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
DISCLAIMER
This publication is published by The Intermedia Group 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 © 2016 - The Intermedia Group Pty Ltd
4 | FEBRUARY 2017 AUSTRALIAN HOTELIER
Average Total Distribution: 5,420 AMAA/CAB Publisher Statement Period ending September 2016.
NEWS
2017 PUB REAL ESTATE FORECAST 2016 was one of the most active and confident years for Australian pub transactions – what do the experts predict for 2017? With over $800 million worth of real estate transacted in 2016, the conditions were indeed right for both buying and selling pubs across the country, particularly on the eastern seaboard. New South Wales dominated sales figures, with more than $500 million worth of assets being sold in the state. So what can we expect in 2017? More of the same, or a slow-down of the market? We asked the experts.
The Bristol Arms Hotel in Sydney was one of the last pubs to be sold in 2016
GREAT CONDITIONS According to John Musca of JLL Hotels & Hospitality, market conditions will continue to align, making at least the short term a great time to buy and sell – both for operators and investors. “Capital continues to find its way to the sector where a 400-500 basis point spread still exists between sustainable earnings and the cost of debt, an attractive proposition for not just experienced operators but increasingly syndicators as well.”
REGIONAL GROWTH Regional centres are expected to provide more opportunities, as analysed by Andrew Jolliffe of Ray White Hotels: “There will still exist a concentration of the lumpier transactions being consummated in gateway cities such as Sydney, Brisbane and Melbourne; however we also anticipate 2017 being a year where the transaction landscape is populated by greater numbers of sub-metro or regional centre sales, as investors look for yield value in both emerging and re-surging markets. “A good example of this type of market
is in Wollongong or Newcastle; and in terms of resurgent markets, many larger regional Queensland towns could enjoy the attention of counter-cyclical investors looking to take a strategic position in the asset class ahead of the next economic upturn.”
NSW STRONG AS EVER The New South Wales market, and in particular Sydney, is expected to continue to prove popular. Daniel Dragicevich of CBRE Hotels expects hotel supply to continue to influence sale prices.
“As we look to 2017, we see no abatement of deal flow as market sentiment remains positive and the weight of capital fixated on the asset class increases. With the legislative and regulatory horizon relatively clear, market appetite for strong performing pub assets will remain constant in the first half of 2017. We see stock levels being a contributing factor to deal volumes and the pricing ultimately achievable for assets ‘in play’.” Results from JLL’s latest global Hotel Investor Sentiment Survey also show confidence in the Sydney market, with investors having the most positive outlook for Sydney within the next six months inside Australia.
YIELD CONTRACTION
The Como Hotel was purchased by Oscars Hotels
6 | FEBRUARY 2017 AUSTRALIAN HOTELIER
One transactional trend expected in 2017, is the continuing compression of yields, as explained by Jolliffe. “The key market indicator we view as continuing is yield contraction for A-grade freehold hotel assets. We participated in numerous transactions during the back half of 2016 at yields averaging 8.5% for hospitality properties of this nature, and subject to the continued availability of well-priced senior debt, we can see an argument for a further 50 or 100 basis point yield contraction for irreplaceable freehold assets.” The general consensus? 2017 is going to be another big year for pub real estate.
NEWS
KEYSTONE DIVESTMENT COMPLETE
L-R: Kent Anderson, Guy Greenstone, David Stingl, Steve Jeffares and Jeremy Shipley at the 2016 Pub Leaders Summit
PUB LEADERS SUMMIT 2017 ON SALE NOW After the sold-out inaugural Pub Leaders Summit was held in March 2016 to much acclaim, Australian Hotelier is proud to announce that the event will return on 20 March 2017. Due to the popularity of the first Pub Leaders Summit, the one-day expo and conference has moved to Royal Randwick Racecourse in Sydney, to allow more hotel operators and managers to attend this one-of-a-kind event for the national pub industry. Australian Hotelier editor and Pub Leaders Summit planner, Vanessa Cavasinni, was thrilled with the success of the first event, and is looking forward to an even better Pub Leaders Summit in 2017. “The team at Australian Hotelier could not have been happier with the first Pub Leaders Summit, and the feedback we received from both operators and suppliers who attended the event was overwhelmingly positive. “Planning for 2017 is well underway, and the program already includes a diverse range of topics that are particularly pertinent for hoteliers at the moment, as well as presentations of innovative ideas being adopted in the industry. The expo will also once again prove useful to attendees, showcasing the best products and services for venues.”
The speaker line-up includes a variety of large group and single-venue operators, who will discuss topics including the regional opportunity for hoteliers, PR and marketing, the premiumisation of food beverage offerings and more. Confirmed speakers include Antony Jones, COO of Merivale; Matthew Nikakis, director of Rosstown Hotel; Grady Patching, national operations manager for Colonial Leisure Group; and Sean O’Hara of the O’Hara Group. The day’s program includes over 20 speakers in a variety of leadership positions in the industry. Tickets are now available at www.publeaders.com.au. Pub operators, managers and staff can take advantage of the earlybird offer of $249 + GST per ticket, which is available until 20 February 2017. Thereafter tickets are $349 + GST. Suppliers to the pub industry can buy early bird tickets for $449 + GST until 20 February 2017. Thereafter, supplier tickets are $559 + GST. Special offer: Buy 10 tickets for the price of 8. Register for 10 tickets and you’ll get two of them free. For more information and ticket purchases, visit www.publeaders.com.au
In what was the biggest story of 2016 for the pub industry, Keystone Group had been placed into receivership, after being unable to service $80 million worth of debt. Receivers Ferrier Hodgson recently announced that the divestment of Keystone Group assets was now finalised. Ferrier Hodgson ran the group’s venues while looking for new ownership for the various assets that ranged from pubs and bars, to steakhouse restaurants and the chain of Jamie’s Italian restaurants. Morgan Kelly, who was in charge of the receivership, stated that sale agreements were in place for 16 of the 17 venues, with all to be sold as going concerns. Chophouse Perth was closed and the venue was returned to the landlord to seek other opportunities for the building. “We are extremely pleased with the final outcome of the receivership divestment program,” stated Kelly. “At all of the venues except one, the receivership succeeded in maintaining the jobs and ensuring the continuity of the venues for customers.” The breakdown of sales is as follows: • Bungalow 8, Cargo Bar, Manly Wine, The Rook, The Winery, Kingsleys Woolloomooloo, Kingsleys Brisbane – sold to Dixon Hospitality Group. • Chophouse Sydney – sold to Solotel. • Jamie’s Italian Sydney, Jamie’s Italian Perth, Jamie’s Italian Canberra, Jamie’s Italian Brisbane, Jamie’s Italian Adelaide, Jamie’s Italian Trattoria – sold to the Jamie Oliver Group. • Gazebo and Sugarmill Hotel – both venues sold via private sales. “The asset sale process was extremely complex given the geographic spread of the venues and the differing types of bar and restaurant offerings,” stated Kelly. “We would like to thank all parties who expressed interest through the sale process and our sale and legal advisers CBRE Hotels and Herbert Smith Freehills.” Handover to new management was completed for all 16 venues by the end of January.
AUSTRALIAN HOTELIER FEBRUARY 2017 | 7
HOTEL PROFILE
A winning formula WHERE: WATSONS BAY, SYDNEY OPERATOR: THE SYDNEY COLLECTIVE INTERVIEWEE: FRASER SHORT, OWNER/DIRECTOR
The Beach Club
WATSONS BAY BOUTIQUE HOTEL AND THE SUNKEN MONKEY WERE RECENTLY NAMED HOTELS OF THE YEAR – CITY AND COUNTRY, RESPECTIVELY – AT THE AHA NSW AWARDS. WE TAKE A LOOK AT WHAT MADE THESE TWO PUBS STAND OUT IN 2016.
WHAT DO YOU ATTRIBUTE TO WATSONS BAY BOUTIQUE HOTEL BEING NAMED HOTEL OF THE YEAR – CITY?
ARE THERE ANY PARTICULAR STREAMS OF THE BUSINESS THAT ARE YOUR MAIN FOCUS?
I think the key factors in our success are a combination of continually evolving our offering over the past four years to create a really workable formula for clients - operations and our hard-working and passionate departments working together to provide exceptional service in a number of areas – and our loyal visitors providing feedback that helps us to continually improve.
Yes, events and reservations are a main focus. We are such a large and busy venue with multiple departments and moving parts, so staying on top of customer enquiries is key. We have a dedicated team who strive to answer every phone call, listen to every voicemail, and check every email to ensure we are responding to all enquiries in a timely manner. We have a training program in place to ensure all staff feel supported, and we are constantly on the lookout for new systems and technology to improve our efficiency.
WHAT ADDITIONS WERE MADE TO THE OFFERING IN THE LAST YEAR? We are upgrading and renovating our building to offer customers the best experience, for example earlier in the year we removed the fitted windows in our main wedding and event space – The Sunset Room – and installed retractable bi-fold windows, and now you can enjoy the breeze and alfresco feel from inside. Our 31 boutique hotel rooms have been fitted with new furnishings and lounges, and we’ve introduced our popular Watsons Bay gelato cart in Beach Club – a family favourite with the kids!
8 | FEBRUARY 2017 AUSTRALIAN HOTELIER
WHAT KEEPS PATRONS COMING TO THE HOTEL? We have successfully created an environment where families young and old, adults and curious tourists can gather for a good meal and a great selection of drinks while absorbing the incredible panorama of Sydney Harbour. Chilled tropical music or live performances from an acoustic band paired with a very photogenic beach-chic aesthetic, equal parts stylish and comfortable, make Watsons Bay Boutique
Hotel a perfect beachside experience. In addition, our menus keep it fresh with seasonal options, and we are always hosting innovative community events that you can’t experience anywhere else.
HOW DO YOU FEEL ABOUT THE VENUE BEING NAMED HOTEL OF THE YEAR? It makes me very proud that our team of casual and full-time staff and management have been recognised for the hard work, passion and dedication they have given in reinventing this lady of the sea - Watsons Bay Boutique Hotel. It is also a real honour to be recognised by industry peers that we admire. The trophy has gone ‘straight to the pool room’ for all the team to enjoy.
The beachsdie pub also boasts city views
Seafood features predominantly on the menu
JUDGE’S COMMENT “FROM THE MOMENT YOU WALK INTO THE WATSON’S BAY BOUTIQUE HOTEL IT’S AN ABSOLUTE DELIGHT. THE STAFF ARE SMILING AND FRIENDLY, THE FOOD AND FURNISHINGS WERE GREAT AND THE VIEW STUNNING.”
Judges commended the hotel's staff
The colourful Beach Club bar
Judge’s comment: “This hotel ticks all the boxes – great staff, great food, great bars and outdoor area – it’s easy to see why it has become one of Sydney’s iconic hotels.” AUSTRALIAN HOTELIER FEBRUARY 2017 | 9
HOTEL PROFILE
THE SUNKEN MONKEY WHERE: ERINA, CENTRAL COAST INTERVIEWEE: DAVID ROY, OWNER/DIRECTOR OPERATING: SINCE MID-2015.
The Wine Locker is the pub's premium restaurant
HOW DO YOU FEEL ABOUT THE HOTEL BEING NAMED HOTEL OF THE YEAR 15 MONTHS AFTER TAKING OVER?
Patrons can sit riverside in the courtyard
It’s certainly a great achievement and something we didn’t really expect. Actually it’s something we didn’t even really consider. My partner is into all of those award things, and she’s the one who said we should enter, and then we won, which was good!
WHAT DO YOU ATTRIBUTE TO THE SUNKEN MONKEY BEING NAMED HOTEL OF THE YEAR? I just think that it caters for everyone. Basically we’ve got a specialty restaurant upstairs which is great for special occasions, or people who want to go out for a really good meal in a really nice environment. We’ve got a bistro that’s set on the water’s edge, it’s a got a great outdoor entertaining area. A great nightclub, really great TAB and sport facilities. So I guess it’s just creating a venue where you can come three times a week and do something different. You don’t need to come here and you’re only going to have a meal and leave. So being able to cater for everyone is an ability that we have.
SO WOULD IT BE FAIR TO SAY THAT FOOD IS A FOCUS OF OPERATIONS AT THE SUNKEN MONKEY? I think the business is built up of everything. I think if you go down the line of ‘We’re going to specialise in this and this’, that’s okay, but if you want to be really successful you need to excel in every facet. I think everything we do complements each other. That’s where we stand out.
Judge’s comment “Staff here went to a lot of effort, nothing was too much trouble.” 10 | FEBRUARY 2017 AUSTRALIAN HOTELIER
Proud Mary's nightclub
HOTEL PROFILE SITUATED ON THE WATER’S EDGE, IT’S A GREAT SPOT IN SPRING AND SUMMER – HOW DO YOU KEEP IT AN ATTRACTIVE SPOT IN THE COOLER MONTHS? We’re building a giant glass atrium on the upper deck, and then downstairs there will be glass roller doors, so that will help combat the winter weather. But the winters are pretty mild, and the venue itself inside is very big, it’s over three storeys, so we have plenty of room inside the venue. We’ve got the main bar, and the sports bar is massive – there’s plenty of places for people to get out of the cold.
WHAT HAVE YOU GOT PLANNED FOR THE HOTEL IN 2017? We’ve got two more restaurants that are going to go in. We’ve got a Japanese restaurant and then a really boutique, 4-table restaurant right on the water’s edge in a marquee, which is going to be awesome. They’re going to come later this year, and then we’ve got a function centre/room that will be finished as well.
The gaming room
The Sunken Monkey's new façade
JUDGE’S COMMENT “A CONSISTENTLY GREAT VENUE ACROSS ALL AREAS – FOOD, NIGHTCLUB, SPORTS BAR, SERVICE AND OVERALL LOOK ARE ALL EQUALLY IMPRESSIVE, THE RENOVATIONS WERE WELL THOUGHT OUT AND THIS VENUE CERTAINLY ACTS AS AN ENTERTAINMENT PRECINCT NESTLED WITHIN THE CENTRAL COAST”
One of several bars in the venue
The main bar lounge area
AUSTRALIAN HOTELIER FEBRUARY 2017 | 11
SUPPLIER
SUPPLIER ROSS FERRAR, CEO, GAMING TECHNOLOGIES ASSOCIATION AUSTRALASIAN GAMING EXPO WHAT WERE THE HIGHLIGHTS AND THE CHALLENGES OF AGE 2016?
WHAT CAN WE EXPECT FROM AGE IN 2017?
With 6,813 visitors attending over the three days, AGE 2016 established a new record for attendance. We believe that the success of last year’s show reflects that the hospitality and gaming industry in Australia is a dynamic and vibrant one that continues to grow, and AGE is growing with it.
We’re excited and optimistic about the event’s future at the new ICC Sydney at Darling Harbour. In early November 2016 a group of 120 inquisitive exhibitors visited the ICC for a sneak peek of what to expect. Comprising both large and small exhibitors, with their exhibition contractors and their staff, along with the AGE coordinating team, it was a chance to get a first-hand glimpse of what is truly a world class venue for AGE 2017. The highlight of the visit was Hall 3, and while they saw only half of the massive 19,000 square metres of floor space that AGE will be occupying in 2017, one visitor was still impressed enough to describe the hall as “cavernous”. With 20 per cent more floor space than what we had in 2016, 90 per cent of the floor space has already been taken by 176 exhibitors. With eight months to go until the show’s start date, this sets another milestone for AGE, which is the world’s third largest casino gaming equipment exhibition.
WHAT INNOVATIONS DID AGE INTRODUCE IN 2016? AGE 2016 marked the end of an era as we departed from the temporary venue which housed us for the last three years, while the new International Convention Centre (ICC) venue was being built at Darling Harbour. There were over 50 new exhibitors at AGE 2016 providing everything from gaming equipment to marketing support, amusement machines to point-of-sale systems, uniforms to cruising. The Reserve Bank of Australia turned up with the new $5 bank note and provided advice on how to identify counterfeit currency.
Exhibitors touring the new International Convention Centre
AGE 2016
WHAT ELSE IS NEW AT AGE 2017? Taking advantage of the multi-purpose seminar rooms complete with smart lecterns at the new ICC Sydney, at AGE 2017 we will be running complimentary seminars for registered exhibition visitors. The seminars will include a “Global CEOs Forum”, to be moderated by Michael Pascoe of Fairfax Media, and a “Women in Gaming” event, along with a range of sessions about topical issues.
HOW DOES SOCIAL MEDIA PLAY A ROLE AT AGE? Registration is now a much more simplified process for AGE 2017. For returning visitors, the fields are all pre-populated, requiring just a couple of clicks to complete the registration. Social media has further simplified the registration process with auto-filled fields via the most popular social networks on the planet. Registrants will be able to see who is attending, and identify the most meaningful and relevant gaming expo contacts who they’ll benefit from meeting at the event. And of course by registering now they will save time by avoiding having to line up on the day. Social media registration is available at www.austgamingexpo.com The Australasian Gaming Expo runs from 15-17 August, 2017.
12 | FEBRUARY 2017 AUSTRALIAN HOTELIER
OPERATOR
OPERATOR
GRADY PATCHING AND LAWRENCE DOWD, NATIONAL OPERATIONS MANAGER AND NATIONAL GENERAL MANAGER COLONIAL LEISURE GROUP WHAT IS YOUR ASSESSMENT OF 2016 FOR COLONIAL LEISURE GROUP?
Half Moon’s courtyard
2016 has been an exciting year for CLG, expanding across Sydney and Brisbane with the purchase of the Newtown Hotel and the Fox Hotel. Along with new members to the family, 2016 saw the revamp of the award winning Print Hall dining room in Perth. It has been another year of change for the group, consistently looking for opportunities and new initiatives to keep the group fresh and competitive in the market. We won Best Pub Group operators in Western Australia, and awards like that show the great efforts put in by the entire team.
DO YOU APPROACH THE OPERATION OF PUBS DIFFERENTLY FROM STATE TO STATE? The markets across each state are different, however the operating of a pub remains the same. CLG has a standard that is expected across the board and the tools for each pub to run most effectively are alike. Each state does have different requirements however is it more dependent on the type of pub rather than the state. The fundamentals across procedures and expectations remain the same – usually the only fundamental differences are the consumers' loyalty to beverage brands. The food offering The Botanical
is the most important aspect to a pub from our point of view and we take our beverages very seriously, particularly our award winning wine team at CLG. If we get these elements right then the pubs are in a good position.
IN 2016, YOU MOVED INTO SYDNEY AND BRISBANE WITH THE PURCHASES OF THE NEWTOWN AND FOX HOTELS. WHAT ABOUT THESE PUBS ATTRACTED YOU? When sourcing new venues for the group we focus on the strengths of our own business, understanding the market and characteristics of the venue. We felt that both Newtown Hotel and The Fox Hotel had great potential to offer the area something new, and complemented the current pubs within the group. We work on trying to make the pubs the best pub in their area – any awards or accolades come from that are only a bonus.
ARE THERE ANY SPECIFIC AUSTRALIAN MARKETS THAT YOU WILL FOCUS ON IN 2017? Our main focus for 2017 is to look after and focus on the new venues in the group, to make them the best pubs in their suburb and integrate them into CLG. It is important when
you expand like we have to ensure that you slow down and make sure the management team and venues are coping with the expansion. This is something we are focusing on now as we have added great venues and we now just need to embed them into the family before growing again.
WHAT DO YOU THINK IS THE MOST IMPORTANT ASPECT TO RUNNING A SUCCESSFUL PUB? To work together and have fun along the way. We are hardworking and always looking for efficiencies to improve, but we have fun also. Staff happiness and retention is the key to success. A happy staff makes happy customers, and happy customers makes for an enjoyable workplace and environment.
IS THERE A COMMON ETHOS BEHIND YOUR VENUES? Love your work. We have a video to this effect on our website.
WHAT'S IN STORE FOR COLONIAL LESIURE GROUP IN 2017? 2017 will be another exciting year for the group. The industry is forever changing and so are we.
AUSTRALIAN HOTELIER FEBRUARY 2017 | 13
HOT TOPIC
How can I make my gaming and wagering area more inviting?
The Gregory Hills Hotel gaming room, designed by Paul Kelly Design.
APPEAL TO ALL SENSES
THINK CLEVER
WORK WITH PARTNERS
We have focussed heavily on the gaming market in the past ten years and have a formula that works, and in the last 12 months the introduction of some new technology our rooms has led to some very favourable results. The ultimate gaming experience occurs when the design of the room matches a gaming machine’s graphics and energy. We believe when a customer decides to come to a gaming room they are after an experience that can be heightened with a broader range of physical touch points, apart from just the visual. The soft broadloom carpet underfoot, the all-year-round temperature of the room, and the dappled splashing sound of water features all add to the non-visual experience of the room. Added to this are the warm golden glows of lighting, the vibrant lush of tropical garden plants and bold graphic carpets, which help match the machines to the atmosphere – extending the experience of the player beyond the two-dimensional visual of a screen. Any sort of facilities and service within your gaming area that offers patrons more of a VIP experience than before will help capture the gaming dollar.
When I talk to hoteliers I’m always fascinated by how immersed their lives are in their business. With so much of you invested it is vital you get the best returns out of your gaming room. To achieve that, there is something I like to call the CLEVER checklist to transform a gaming room into a welcoming space. Clean: Is the room clean? Are the machines wiped down regularly? Does the gaming room smell fresh? If the answer is no to any of those questions then that’s a great starting place. Likeable: No one wants to spend time in a room they don’t like. A coat of paint is the cheapest way to transform a room to give it a lift. Ergonomic: It is really annoying sitting on a gaming stool that wobbles. Have your staff regularly check that all the furniture in your gaming area is in good condition. Value: Gaming machines are the most valuable asset in the room. To maintain their value, meet regularly with your gaming sales advisors to get the best information about performance. Enjoyable: How are your players being treated? Are your staff presentable and courteous? Invest in your staff and that will reap its own rewards. Routine: Make sure all your staff know it’s everyone’s job to check that the gaming room is perfect at all times.
Tabcorp works closely with its hotel partners to maximise the experience customers have with Keno, TAB, Trackside, and with whole-of-venue and gaming through Tabcorp Gaming Solutions (TGS). As a hotel prepares for refurbishments there are some simple things to highlight: 1. Always allow customers ease of access to the best products. 2. Utilise technology to help provide the best customer experience possible. 3. It's key to provide customers with access to great vision, not just in specified racing and sports areas, but across the whole venue. 4. Your Tabcorp Business Development Manager can offer a wealth of knowledge to help make your gaming and wagering area customer-centric and inviting. Ask them what other venues might do differently. 5. As Australia’s largest gaming and venue service provider, TGS works with hotels across Victoria and NSW driving whole-of-venue performance. TGS helps create market-leading customer experiences in venues through the supply of gaming product, venue design, marketing, loyalty programs, responsible gambling with years of industry expertise.
Paul Kelly DIRECTOR, Paul Kelly Design
Sandra Renwick MARKETING MANAGER ANZ, SG Gaming
Matt Isaacs GENERAL MANAGER WAGERING AND MEDIA DISTRIBUTION, Tabcorp
14 | FEBRUARY 2017 AUSTRALIAN HOTELIER
NEW TO THE LOCKED & LOADED COLLECTION
Head Office and Showroom 4 Newington Road, Silverwater NSW 2128 Phone: 02 8707 6300 www.scientificgames.com QLD: (07) 3458 9180 VIC: (03) 9863 7690
OPERATOR
ROBERT COMISKEY, DIRECTOR COMISKEY GROUP SANDSTONE POINT HOTEL WAS NAMED REGIONAL HOTEL OF THE YEAR IN 2016. WHAT HAS CONTRIBUTED TO ITS SUCCESS?
Large concerts are held on the grounds of Sandstone Point Hotel
We have always wanted to create a family friendly atmosphere in one of the most idyllic locations in Queensland. From the start, we have had a strong focus on offering a family friendly destination that everyone can enjoy and that people want to drive to for a day trip.
OPERATOR
YOU'VE BROKEN GROUND ON A $45M DEVELOPMENT AT EATONS HILL HOTEL. WHAT WILL THAT ENTAIL? Eatons Hill Village will boast 1200m2 of retail space for up to 15 retail stores, a 3200m2 Woolworths, a restaurant precinct, a gym with a pool and an 88-room, 4.5-star motel complete with function spaces.
WHAT ARE THE ADVANTAGES AND CHALLENGES ASSOCIATED WITH IT? Some of the big advantages for people accessing Eatons Hill Village will be that they can go there and they will be able to do anything. It will have everything they need which will mean a lot of Northsiders will not need to make the big trip into the city to cross everything off their to-do list. Some disadvantages of building and investing in a project like this is that it is such a high-end investment. With a development of this size there are always planning and development issues.
SANDSTONE POINT HOTEL SITS ON WATER FRONTAGE – DOES IT INFLUENCE THE WAY YOU OPERATE? We naturally kept the idyllic water setting in mind when we were designing the hotel, it is such a stunning backdrop and is an unbeatable
“Entertainment has always been a passion and focus for our venues.” 16 | FEBRUARY 2017 AUSTRALIAN HOTELIER
destination for everything from a Sunday session to a breathtaking wedding. From designing the hotel all the way through to its operations, we plan the functionality of day-today life and events around one of our biggest assets, our location. Everything from kids playing on the grass to our large concerts have been taken into consideration to maximise our strengths to make sure people see us as more of a destination, rather than just a hotel.
HOW HAS THE TACKLING ALCOHOLFUELLED VIOLENCE LEGISLATION IMPACTED YOUR HOTEL OPERATIONS? Our venues have always been at the forefront of innovation to promote a safe environment. They have always incorporated ID scanning, cameras and a strict code of conduct. It has always kept our venues in good position. Our venues will incur a 2am close because we aren’t in a Safe Nights Precinct. As our hotels are in the Brisbane suburbs our venues will have less impact but we have assessed
our business model to maximise our revenue streams during our reduced opening hours.
WHAT BENEFITS ARE THERE TO MAKING LIVE ENTERTAINMENT A SIGNIFICANT PART OF YOUR OFFERING? Entertainment has always been a passion and focus for our venues. We enjoy bringing the best acts to Queensland and remain very active in that space. We offer promoters the full package when it comes to booking a concert with us, from our in-house booking team, to the marketing and production support. We offer them this support because we care about the event and its successful execution.
WHAT’S IN STORE FOR COMISKEY GROUP IN 2017? We are looking forward to finishing Eatons Hill Village in mid-2017, and also starting Stage Two at Sandstone Point Hotel, which will see a Big 4 caravan park being built. It will be a major project and asset to the hotel in coming years.
OPERATOR
BRUCE DIXON, CEO DIXON HOSPITALITY
2016 was an exciting and auspicious year for Dixon Hospitality. It was a year of rapid expansion having acquired the Open Door portfolio in late December and then the acquisition of the eclectic Sydney Drink ‘N’ Dine venues shortly after. By mid-year Dixon had acquired the craft beer pub group Beer DeLuxe, and then began operating a selection of venues from Sydney-based Keystone Group’s portfolio in early November. Amid the acquisitions, work also commenced on two greenfield projects in Sydney’s Barangaroo precinct and some major renovations took place at some Melbourne venues. It was a busy but rewarding year and the building blocks were cemented for a dynamic year ahead.
WHAT ARE THE COMMON CRITERIA YOU LOOK FOR IN A PUB ASSET? The location, ambience and offer are the ingredients that combine to create a great venue. Given the size of the team and management expertise we can always adapt and influence the offer and the ambience as trends change and customers’ tastes alter. However, location is critically important and increasingly we have focused on a concentration in specific precincts. For example in Melbourne’s CBD Dixon has a number of pubs in close proximity (Duke, Dutchess, Crafty Squire, Beer DeLuxe, Imperial Hotel), much like the concentration in the Barangaroo/King St Wharf area in Sydney (12-Micron, Untied, Beer DeLuxe, Cargo Bar, Bungalow 8, The Loft), which we see as becoming Sydney’s premier dining and entertaining destination in the next couple of years.
HOW DO YOU SUSTAIN SUCH RAPID GROWTH AND ENSURE THAT EACH VENUE IS PROPERLY ATTENDED TO? Having the right management structure and operating processes is extremely important. This takes care of the procurement and reporting side of things and ensures the back-office is streamlined. However, venue management, menus, front of house service and marketing is
bespoke in each venue and are the areas that the company needs to continually invest in and adapt and change to ensure that each venue remains fresh, interesting and relevant.
The Winery
2016 SAW THE GROUP BRANCH OUT OF MELBOURNE AND INTO THE SYDNEY MARKET – HOW DO THE TWO MARKETS DIFFER? We have found the way customers dine and entertain is different between the two cities. For example Sydney venues have a constant trade all week yet in Melbourne things certainly peak later in the week and over the weekend. Across both cities there are also a number of similarities, particularly in customers’ expectations of higher quality ‘pub’ food and the ever growing interest in craft beer.
OPERATOR
HOW WOULD YOU ASSESS 2016 FOR DIXON HOSPITALITY?
YOU’RE EXPECTED TO LAUNCH AN IPO IN 2017 – WHAT ARE THE ADVANTAGES OF BEING PUBLICLY LISTED? We have grown rapidly in the past 12 months and believe that growth will continue given the landscape of the hospitality industry in Australia. If we were to proceed with an IPO, the thought behind an IPO has always been that it would enable the company to access capital and continue to take advantage of opportunities to grow and expand along the eastern seaboard. However our focus in the past 12 months has been about building a solid business and ensuring we stay true to our strategy of acquiring well operated venues with a focus on an exceptional gastronomic experience or unique surroundings.
WHAT ELSE IS ON THE CARDS FOR DIXON HOSPITALITY IN 2017? The excitement continues in 2017 with the launch of two new venues in Sydney’s Barangaroo precinct: Untied and 12-Micron. Untied it is not 'just another rooftop'. What is fresh about Untied is its reflection of modern Australia. With a palette of tropical tones, a combination of Australian-inspired dishes and cocktails, we see it as the perfect destination to relish in the Sydney sun and relax over sleek
Australian beats. Untied is set to open in the coming weeks. 12-Micron is a showcase of modern Australia, sourcing the most beautiful produce Australia has to offer and cultivating a modern, yet casual experience. It is the perfect destination for an after-work cocktail, long lunch, exclusive private-dining event or latenight dessert (with the dessert kitchen managed by one of Australia’s most highly acclaimed pastry chefs.) The kitchen is led by two-hat chef Justin Wise (Press Club, The Point, Dutchess) and brings laid back elegance to the Sydney bar and dining scene. 12-Micron is set to open early March. That’s just the first couple of months, but there will be plenty of things happening in 2017 – the company won’t stand still. There’s so much opportunity out there to be involved in great projects with great people and the culture at Dixon is nimble, fast-moving and adventurous so there will be plenty of things happening.
AUSTRALIAN HOTELIER FEBRUARY 2017 | 17
SUPPLIER
SUPPLIER RICHARD SOUSSA, GROUP GENERAL MANAGER ECASH WHAT WERE THE HIGHLIGHTS AND CHALLENGES FOR ECASH IN 2016? Lightning speed is how we would describe 2016 for ecash. Our focus in 2016 was specifically on our customers and their cash management and payment objectives. We channelled much of our energy into innovation and development throughout the year to stay ahead of the technology growth curve and create relevant products and payment applications that our customers can use in any sized venue. Our innovations that have stemmed from our customers’ feedback has translated into amazing highlights throughout 2016 and have included the release of our Premium CRT that has been amazingly successful and very popular with our Australian customers in all venue sizes and demographics including hotels, clubs and casinos. We are delighted to say that we have welcomed several large and successful hotel groups as ecash customers in 2016 in all areas of our technology including ticket-in-ticket-out (TITO) and card-based payment products. We continue to welcome more hotels and clubs as ecash customers. Our main challenges throughout 2016 were maintaining the high level of innovation and application development both within Australia and our growing international opportunities. We are proud to be an Australian technology company that designs and still manufactures in Australia and strongly believes in Australian quality with a commitment to supporting local industry. We are happy to say that now we are interfaced with the majority of system providers in the world and that has strongly supported our growing customer base in Australia in using our products and overseas, where ecash now exports to about 10 countries throughout Europe and to the USA.
WHAT INNOVATIONS DID ECASH INTRODUCE IN 2016? Our innovation has focused on our core strengths of payment technologies including initiatives in both card- and ticket-based technologies and cashiering products that are key to automation, integrity of cash and security. We have also focused on increased payment applications aimed at simplifying
18 | FEBRUARY 2017 AUSTRALIAN HOTELIER
our customers’ payment processes. Our key innovation for 2016 was the Premium Cash Redemption Terminal that has proven to be a very popular and versatile product. As we move forward into 2017 we will be introducing a number of key cashier-assisted innovations that we believe will be essential for our customers.
PubPay
HOW WILL THE NEW $10 BANK NOTE ROLL-OUT AFFECT PUBS? With the release of the second bank note in 2017, it will be important to start planning an implementation strategy for bank note acceptors to ensure that all new notes will be accepted by equipment. This will no doubt have an impact on a venue’s revenue and importantly the venue’s customer satisfaction and a non-interrupted entertainment experience. ecash works very closely with the relevant authorities to make sure our bank note acceptors are ready for all new note releases, this includes of course the applicable firmware but also in some cases hardware changes that may be necessary depending on your equipment. We are starting to see strong interest from our customers with respect to implementation planning and venue audits to assess requirements and we anticipate this to grow stronger throughout 2017. We have a strong and experienced technology team that has been designing and implementing technology for many currencies throughout the world and that allows us to act quickly with respect to market readiness and supply of course.
WHAT IS THE MAIN CASH MANAGEMENT ISSUE THAT ECASH HELPS VENUES WITH? For over 20 years ecash products and technology have played a central role in cash management and payments for our industry in Australia and in fact we were the first to deliver a stylish fully integrated cash redemption terminal for ticket- or cardbased technology for Australian hotels, clubs and casinos. Our payment technology helps venues by reducing the cost of processing payments, improving integrity issues where
required, introducing greater security and through detailed reporting offering a greater suite of business intelligence within a venue. For example, over the years, we have seen a greater concentration of CRTs within venues supported by business intelligence, demonstrating increased efficiencies.
WHAT CAN WE EXPECT FROM ECASH IN 2017? We have learnt and continue to learn and listen to what our industry needs and demands to improve their customers’ entertainment experience and their operations. To that end we will continue to invest in innovation and technology development to make sure our hotel customers have the specific options they need to improve their cash management, reporting and payment processes, be it self-service, cashierassisted or business intelligence. We take great pride in introducing our latest innovations to our industry.
Some follow. We lead. Hostplus is proud to be the 2016 Rainmaker SelectingSuper Investment Leader*. As the industry fund for those that live and love Australian hospitality, tourism, recreation and sport we strive to deliver the best possible retirement outcomes to our members. The Investment Leadership award recognises our consistent historical performance and our dedication to those who trust us with their retirement needs. Think investment leaders, think Hostplus.
hostplus.com.au
*Awards are only one factor to be taken into account when deciding whether to acquire, continue to hold or dispose of a financial product. For more information for the meaning of these awards please refer to (http://www.rainmaker.com.au/, http://moneymag.com.au/) †Past performance is not a reliable indicator of future performance.Issued by Host-Plus Pty. Limited ABN 79 008 634 704, RSEL No. L0000093, AFSL No. 244392 as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890, RSE No. R100054, MySuper No. 68657490198, which includes the Hostplus Pension. This ad does not and is not intended to contain any recommendations, statements of opinion or advice. This information is general in nature and does not consider the appropriateness in regards to your objective, financial situation or needs. Hostplus reserves the right to correct any errors or omissions that may be contained in this ad. Refer to the Hostplus Product Disclosure Statement for details. INH CORP 12/16 HOST9149 AH
SUPPLIER
SUPPLIER BURT ADMIRAAL, CEO H&L AUSTRALIA WHAT HAVE BEEN THE HIGHLIGHTS AND THE CHALLENGES OF 2016? There have been exciting changes in the world of the hospitality IT landscape with the rate and pace of change in this environment faster than it has ever been. This is set to continue into the future with the advent of new technologies, software, systems and integrations. The ‘disruptors’ in this space are driving change in our society and particularly having an impact on customer expectations. Customers now expect that venues will keep pace with technology and deliver new and innovative ways to meet their needs. Society expects mobility, flexibility and immediate responsiveness from hospitality venues. Consumers are dining out more often, spending less on liquor but willing to spend more on a food experience. We need to understand that this experience not only encompasses their time within the venue, but also prior i.e. their ability to research opening hours, menus and seating availability and book immediately online, usually from their mobile phone.
WHAT INNOVATIONS DID H&L AUSTRALIA INTRODUCE FOR PUBS IN 2016? With over 30 years’ experience in hospitality POS, H&L has in the past 18 months focused on developing solutions to assist venues in meeting the growing expectations and demands from consumers. These solutions include: Self-ordering touchscreen terminals where the customer can order and pay for light, quick service meals and then get paged to pick up the meal when ready. This has become a key opportunity for hotels to optimise continuous food service throughout operating hours. Fully integrated POS table sales and booking systems to increase table yield and allow the venue to better manage their table occupancy. As the booking system tracks the table status and releases it for rebooking when the transaction is complete, the venue has the ability to offer live table availability up until the kitchen closes. The next innovation is the integration of the plethora of apps into a management middleware linking directly to the POS. These
20 | FEBRUARY 2017 AUSTRALIAN HOTELIER
types of applications include order ahead, takeaway and loyalty solutions which currently need separate hardware and software to operate, with some venues using a variety of similar apps to optimise the opportunity e.g. order ahead or delivery. The integration of apps with POS will eliminate the need for multiple hardware devices on the service counter.
HOW IMPORTANT ARE PUBS TO H&L AUSTRALIA?
• S ervice mobility - Greater functionality at the POS with mobile tablets able to deliver the entire service requirements at the table i.e. ordering, payment and receipt. •B ookings and table management •M ore management control and business intelligence to assist operators in making informed decisions •B ringing control to the POS keeping management at the front line
H&L have always primarily serviced the ‘drinking hotel’ and H&L has been traditionally respected as the major supplier to the pub industry. This major vertical generates over 40 per cent of our business. The challenge for pubs now is recognising and addressing the changing trends of their customers. Pub patrons are now decreasing their liquor consumption and are dining more frequently. This means pubs need to focus more on providing a better dining and food experience for their customers.
WHAT HAVE YOU IDENTIFIED AS THE MOST IMPORTANT FEATURE IN AN EFFECTIVE POS SYSTEM?
WHAT ARE THE MAIN ISSUES IN POS THAT HOSPITALITY OPERATORS ARE DEALING WITH CURRENTLY?
In 2017, H&L will be instigating more user group forums to understand operators’ needs and more education to assist operators understanding the technologies that are now available. Development of the H&L suite of products is ongoing and we will maintain some components on the ground and some to the cloud.
We believe there are several main issues that hospitality operators want us to investigate, develop and deliver. These are:
Today an effective POS system must have enhanced integration capabilities. To create optimum profit, efficiency, ROI and customer satisfaction, a POS needs to integrate seamlessly with services such as payment solutions, ordering solutions, bookings and table management, labour, stock and cash management.
WHAT CAN WE EXPECT FROM H&L AUSTRALIA IN 2017?
SUPPLIER
SUPPLIER
DAVID ELIA, CEO HOSTPLUS WHAT HAVE BEEN THE HIGHLIGHTS AND CHALLENGES OF 2016 FOR HOSTPLUS? Performance has been a major highlight this year for Hostplus. For the financial year ended 30 June 2016, the Hostplus Balanced MySuper option delivered a 5.0% return to members against an industry median of 2.81% according to the SuperRatings SR50 Balanced Performance survey. This result ranked Hostplus in the top quartile of the best performing super funds in Australia. Performance has continued strongly with Hostplus positioned among the top three funds in Australia over 1, 3, 5 and 7 years for its Balanced option in Selecting Super’s most recent league tables for November 2016. Our 10-year results were also top quartile, ranking us in the top 10 best performing funds over this period. Our quality assessments have also been a highlight, with Hostplus retaining the top level 5-star rating for its suite of products in Heron Partnership’s most recent assessment of the Australian superannuation market. Other ratings agencies rate us strongly as well – five apples from Chant West, triple A rating from Rainmaker and SuperRatings' Platinum rating. These are the highest ratings in their categories from these independent rating firms. We have also recently been acknowledged for our investment leadership by Rainmaker and recently Money magazine awarded Hostplus’ Indexed Balanced option its fifth consecutive award as the lowest-cost balanced super fund in the country. Challenges are mostly on the political front. Because superannuation has become politicised many potentially confusing messages are published in the media every day. So our focus is to reassure members that we will update them when they need to know about changes from Canberra that affect them.
WHAT INNOVATIONS DID HOSTPLUS INTRODUCE IN 2016? Investments are always a focus. This year we enhanced our investment team and were delighted to receive the Selecting Super
Investment Leadership award in recognition of our consistently strong long-term returns and investment innovation. We also have to thank our members for our ability to innovate in investments. Because we have a relatively young membership, we are able to take a long-term view and invest in asset classes such as infrastructure and other unlisted assets such as property, infrastructure and private equity. In turn, these unlisted assets provide the fund with broader investment diversification and the downside protection from the volatile nature of listed markets that accompany increased global uncertainty.
HOW HAVE SUPERANNUATION REGULATIONS AFFECTED HOSTPLUS’ OFFERING IN 2016? The announced Budget measures which have just passed through the Parliament will largely become effective from 1 July 2017 and we are pleased that support for lower salary earners has been protected with a Low Income Superannuation Tax Offset. Australians with an adjusted taxable income up to $37,000 will receive a refund into their superannuation account of the tax paid on their concessional superannuation contributions, up to a cap of $500. This means that most low income earners will pay no tax on their superannuation contributions. Low income earners, who are disproportionately women, will benefit from the Low Income Superannuation Tax Offset and we believe this reform will benefit many of our members.
HOW DO YOU THINK THE NATIONAL HOSPITALITY MARKET IS PLACED FOR 2017? We are confident that hospitality will continue to go from strength to strength. Every day new venues appear that our members are employed in. And to support this growth international arrivals are forecast to increase 6.7% to 8.3 million in 2016-17; domestic tourism is forecast to grow 3.8% to 340 million ‘nights’; and total visitor expenditure is expected to grow 4.9% to $123 billion, according to Tourism Research Australia (Tourism Forecasts 2016 – 14/07/2016).
WHAT DO YOU THINK WILL BE NEW OPPORTUNITIES FOR HOSTPLUS IN THE NEXT TWELVE MONTHS? Continuing to increase our presence in the industries we serve and to continue to develop products that are tailored for our members’ needs.
WHAT CAN WE EXPECT FROM HOSTPLUS IN 2017? Continued focus on providing the market with a strong product offering and digital enhancements to improve how members access and engage with their super details. We have been delighted with the response to our digital member card and on the back of that success will look to provide further enhancements over time. Also we are moving to digital members’ statements in 2017 and have been working to inform members of that exciting – and paper saving – development.
AUSTRALIAN HOTELIER FEBRUARY 2017 | 21
HOT TOPIC
What sort of technology should I invest in over the next twelve months? ENHANCING THE PATRON EXPERIENCE Customers now expect mobility, flexibility and immediate responsiveness as standard practice, both in venues and online. Table Management: Bistro dining is becoming more prevalent, the average beverage bill is in decline, and diners are eating out more often and spending less. Venues must focus on optimising their current allocated space with a higher yield, ensuring that with good table management they are getting the best table turnover. Introducing tablets or mobile POS to improve on floor efficiencies, ordering and payment options can deliver that higher yield with the bonus of delivering an enhanced customer experience. Online Marketing: Ensure your website is mobile-friendly, user-friendly, up to date, accurate, and has booking/ confirmation capabilities. Communicate and build relationships with customers through social media. POS: A POS system with integration capabilities that easily integrates to existing and new apps for delivery, order-ahead and loyalty programs that are entering the hospitality market, giving the venue the choice of which apps to use. This will allow the information to feed straight into the POS and kitchen printing, and eliminate all that extra hardware at the service desk.
Burt Admiraal CEO, H&L Australia
22 | FEBRUARY 2017 AUSTRALIAN HOTELIER
MANAGE AND MONITOR If I can only invest in one piece of technology in 2017, it would be an integrated software package, which has the ability to manage power usage across all plant and equipment in every hotel within our group. A fully automated system could monitor when and at what levels equipment, such as refrigeration and air-conditioning, operate throughout a working day. This would ensure energy isn’t wasted. By analysing each piece of equipment and how it is most efficiently used, we can identify potential wastage areas, and integrate technology, such as timers, to ensure energy is only used when required. A system like this could also identify equipment that is failing and consuming more energy than needed because of its faults. It would be more cost effective to purchase new and more up-to-date equipment, instead of the wastage in use of excess energy to use a broken piece of machinery. South Australia is charged the highest electricity rates in Australia, and with the price of electricity set to soar, we are looking at every way possible to conserve energy for the longevity of our business.
Luke Donaldson OPERATIONS DIRECTOR, RDJones Group
CASH MANAGEMENT HELPERS Cash management, security and integrity is a key conversation piece in most hotels. The outcomes from how this important area is managed can be significant. Apart from cash integrity, decisions in this area can affect staff safety and welfare, insurance, cash-processing costs and business intelligence that assists in understanding return on cash and a number of other important factors. If you are able to invest in important technology this year we would recommend the ecash suite of ‘MiniCashier’ products which are our cashier-assisted suite of products that address a venue’s cash management and reporting. The ecash MiniCashier addresses a venue’s incoming and outgoing cash that ultimately benefits a venue by removing all manual cash handling. Closely related to this are bank note acceptors that handle all incoming cash. With the release of the next bank note in 2017 it will be key to invest in bank note upgrades to ensure that a venue is ready to begin accepting all new bank notes that will be introduced following on from the new $5 note. ecash has been working very closely with the relevant Australian authorities to make sure we are ready to assist all venues throughout Australia with the new technology.
Richard Soussa GROUP GENERAL MANAGER, ecash
The latest in ecash innovation ecash is proudly an Australian company and the industry leader in CRT. The ecash CRT is the most trusted and widely used CRT throughout Australia in Hotels, Clubs and Casino’s.
Pubpay A must for your hotel security
100% owned and operated
1800 132 274
sales@ecash.com.au
www.ecash.com.au
SUPPLIER
SUPPLIER BRENDAN O’FARRELL, CEO INTRUST SUPER WHAT HAVE BEEN THE HIGHLIGHTS AND CHALLENGES OF 2016 FOR INTRUST SUPER?
WHAT INNOVATIONS DID INTRUST SUPER INTRODUCE IN 2016?
Amid a challenging year of geo-political unrest (the change of China’s economy direction, Brexit and of course the well-publicised Trump win), Intrust Super’s Balanced option was able to deliver a 3.45 per cent 2015/16 financial year return to members. The result was well ahead of the 2.81% median return of the top 50 funds in Australia.* The main game in town at the back end of the year was the US Presidential election and how the Trump win has pushed some equity market indexes to all time highs. Superannuation is a long-term investment and markets can be unpredictable, so we always encourage members to focus on longer-term performance. Over 10 years (from 30 June), Intrust Super’s Balanced option has returned an average annual return of 5.68%. In addition to our strong investment performance, Intrust Super ended 2016 on a great note, with a win from Money magazine for the Best Value Insurance in Superannuation. This is the fifth consecutive year we have won this award and demonstrates our commitment to providing our members with excellent insurance options. We were also awarded the Personal Insurance of the Year in the 2016 Rainmaker Selecting Super awards. All MySuper funds legally must provide default levels of insurance. This means most workers pay insurance premiums without opting in. That’s why great value insurance in super is just as critical as investment performance. SuperRatings also rated the Fund Platinum, meaning ‘Best value for money fund’, for the 11th straight year. The research house also short-listed Intrust Super as a MySuper of the year finalist for the second consecutive year. MySuper is of course the product employers must have as their default super for their employees. To be named as one of the very best funds for employers two years in a row is absolutely gratifying. *SuperRatings Fund Crediting Rate Survey July 2016
We have always had a strong focus on innovation and this year was no different. The introduction of the new SuperMatch2 portal, delivered members with an instant view of all their super accounts and enabled them to instantly request consolidation. SuperMatch2 is free for members and delivers real-time customer experience. Members will know where all their super is and not have their total balance eroded away by unnecessary fees. We also introduced an industry first when it came to welcoming our members to the fund. We have done away with the plastic membership cards or even an app or digital card that members need to download. A member’s details are now sent directly to their mobile device’s contacts list. Included is all the legislative required information as well as their very own personal online member portal that we developed a few years ago. This portal allows members to update their details to ensure their super never becomes lost and can consolidate any known super accounts.
24 | FEBRUARY 2017 AUSTRALIAN HOTELIER
HOW HAVE SUPERANNUATION REGULATIONS AFFECTED INTRUST SUPER’S OFFERING? There were many proposed changes put forward in the May Federal Budget which were only passed by Parliament in November. There were several changes, but just to name a few; a $1.6 million super transfer balance cap will be introduced, concessional (before-tax) contributions cap will be lowered to $25,000 per year, and the non-concessional (after-tax) contributions cap will be lowered to $100,000 per year. Although the full impact of these changes has yet to be seen, as a fund we have always been flexible and we take these changes as an opportunity to continually engage with members and ensure they reach their retirement goals.
HOW DO YOU THINK THE NATIONAL HOSPITALITY MARKET IS PLACED FOR 2017? There were some great signs of growth for the
“Superannuation is a long-term investment and markets can be unpredictable, so we always encourage members to focus on longer-term performance. Over 10 years, Intrust Super’s Balanced option has returned an average annual return of 5.68%.” Australian hospitality and tourism industry in 2016 and it should keep rolling this year. With a falling Australian dollar providing an incentive to visit our wonderful country, 2017 should continue to see an influx of inbound tourists. This can only be a positive for all areas of hospitality. Food is becoming such an important part of building the market. Many groups are offering a range of different styles and price points to cater for the varying groups of people wishing to enjoy their hospitality. I suppose this is like any investment strategy. A well-diversified portfolio can protect against certain market shocks and this same philosophy can be applied to hotels, pubs and restaurants. Labour shortage will be the biggest challenge this year. The balance of ensuring the hospitality industry continues to deliver fantastic service while having the ability to have a pipeline of recruits sharing the same values is always going to be a battle.
WHAT CAN WE EXPECT FROM INTRUST SUPER IN 2017? Strong investment returns and the best value insurance options. Couple this with more innovation, and exceptional customer service to help our employer clients fulfil their super obligations and help our members reach their retirement goals.
SUPPLIER
SUPPLIER GRANT SHEARON, NATIONAL ADVOCACY AND DEVELOPMENT MANAGER (JACK DANIEL’S), BROWN-FORMAN AUSTRALIA WHY IS THE “JACK & COKE” AN ESSENTIAL SERVE FOR 2017? Besides being a great tasting drink, the ‘Jack & Coke’ is still one of the world’s most iconic bar calls and the global thirst for the world’s favourite whiskey doesn’t look like slowing any time soon. From an operator’s perspective, the brand has enormous pulling power with consumers. Not only is Jack Daniel’s Old No.7 the number one selling whiskey in the world (IWSR 2017) it recently became Australia’s most valuable spirit trademark (Aztec Dec 2016). Not bad for a whiskey that still makes every drop to a 150-year-old recipe in a ‘dry’ town of just over 500 people. Australians love Jack Daniel’s. So much so that we actually consume almost twice as much per capita than our American cousins, and in WA consumption per capita is almost four times, so outside of Lynchburg, Tennessee you could say that WA is the “Jackiest” place on Earth.
WHO DOES THE PROGRESSION OF THE RANGE CATER FOR? We refer to our portfolio as a 'family' rather than a 'range'. And just like all families they have their differences. Old No.7 will always be the beating heart of the brand but over time we have introduced expressions to cater for those at varying stages of their whiskey journey. Our Tennessee Fire and Tennessee Honey are popular with younger consumers who love the Jack brand but have yet to develop a palate for bold tasting whiskey. Gentleman Jack (the smoother side of Jack) is great for an occasion when something a little more special is called for. Our Single Barrel Select is our purest expression of Jack Daniel’s. It’s complex and robust flavour makes it the ultimate Tennessee sipping-whiskey. That being said, if you prefer to take your whiskey with a splash of mixer, well that’s fine by us. We always say the best way to enjoy our whiskey is your favourite way. Responsibly of course.
HOW DOES JACK’S DANIEL’S STRATEGY INCORPORATE THE TREND OF PATRONS DRINKING LESS BUT DRINKING BETTER? Our ‘family of brands’ does just that. When
26 | FEBRUARY 2017 AUSTRALIAN HOTELIER
promoted effectively they’re a powerful tool that enables venues to capitalise on this trend by allowing patrons to reward themselves by exploring new expressions yet still be drinking a brand that they trust and respect. We are seeing continued polarisation within the category with the value end being maintained, premium in growth and a squeezing of everything in the ‘middle’. More than ever, now is the time for venues to be introducing patrons into more premium and margin-accretive offerings. Jack Daniel’s Old No.7 is already a trade-up from mainstream whiskey brands and typically puts more dollars in the register with every drink. With this in mind, don’t just have it sitting in your speed rail and ensure that a bottle is also placed in prime position on your backbar. In addition to this, Gentleman Jack is now the world’s best-selling super-premium whiskey and 2017 will see Australia’s largest ever investment on the brand. The “Smoother Side of Jack” will be a complete through-theline campaign which will be haloed by its very first out-of-home presence.
DO YOU HAVE ANY TIPS ON HOW TO UPSELL TO PATRONS? Keep it simple. When it comes to staff and patron education we really do believe the most effective solution is the simplest one. One-liners can be an easy way for staff to communicate premium and less-known expressions to patrons, i.e. Ask a Jack drinker “Have you tried Gentleman Jack? It’s the 'smoother side of Jack'." Secondly, remove the fear. The backbar can be quite overwhelming. The average consumer has a consideration set of 3-4 core brands that they’re familiar with but they may sit among 150 other bottles on your backbar. Many patrons will order their go-to drink out of fear of the unknown. What if I don’t like the taste, what if it’s too expensive? These are common questions that are regularly asked but rarely voiced. It’s easy to counter this via traditional POS or through verbal communication. There’s generally only $1 or $2 difference between an entry-level pouring whisk(e)y and something premium from the backbar, so if a patron orders a Bourbon and Coke, a simple “Have
you ever tried a Gentleman Jack and Coke? It’s a smoother and more premium Jack Daniel’s”, is an easy and highly effective way of trading-up patrons. Don’t underestimate the power of interaction between bartender and patron. People love to be engaged at the bar, and we all love to be upsold. Why? Because we feel valued as a customer and that we’ve received value for money. Most people still don’t know what they’re going to order as they approach the bar and bartenders play a critical role in the decision-making. Not only is trading-up profitable for the venue but satisfying customers ensures that they reorder, recommend and return to the venue. The points of purchase (walk-up bars or table service) are where the conversion occurs. If your venue prefers physical POS, this is where it works hardest. In Jack’s case, simply featuring Old No. 7, Gentleman Jack and Single Barrel together with ascending price points allows patrons to trade themselves up without even having to speak to the bar staff. Just be sure to clearly communicate that they are trading up within the Jack Daniel’s family as this is where they’re most comfortable. For venues that prefer not to display print POS, we have seen great (trade-up) success from the backbar just by applying neck tags on each bottle of our expressions so that the price point can be clearly seen while standing at the bar. Again, the beauty is in the simplicity of removing the fear of ordering something without knowing the price.
WHAT CAN WE EXPECT FROM JACK DANIEL’S IN 2017? We genuinely value our account partners in the on-premise channel right across Australia. We will continue to extend our support via tools and programming, assisting in offering enhanced consumer experiences. We’re aware that venues across the channel have varying needs; therefore we will be more targeted and flexible with our programming. To reaffirm our passion and dedication to the channel, BrownForman Australia has optimised our rout-tomarket strategy to be heavily up-weighted in the on-premise. We look forward to making even more friends of Jack throughout 2017.
ESSENTIAL SERVE BROUGHT TO YOU BY JACK DANIEL’S
The iconic “Jack and Coke” Add 30ml of Jack Daniel’s Old No.7 to a classic rocks glass. Completely fill with ice and add just a splash of Coke.
*Trade your patrons up to the ‘smoother side of Jack’ with Jack Daniel’s Gentleman Jack. “If we had to choose one word to describe why this Tennessee icon works so well, it would be balance. Old No. 7 contains rich flavours of vanilla, oak and spice, all of which work beautifully with the cola itself. Although Jack was known for his whiskey and not his cola, we’re pretty sure he’d enjoy of few of these from time to time.”
Shot at The Clock Hotel
AUSTRALIAN HOTELIER FEBRUARY 2017 | 27
SUPPLIER
SUPPLIER PAUL KELLY, DIRECTOR PAUL KELLY DESIGN WHAT WERE SOME OF THE MAJOR PROJECTS THAT PAUL KELLY DESIGN WORKED ON IN 2016? The Gregory Hills Hotel gained a fair bit of attention and is trading exceptionally well after opening in the middle of the year, and winning best gaming room in New South Wales. We also completed the Punchbowl Hotel, which has created a new gaming style offer with a great TAB and an internal sports lounge in the gaming room. A great allrounder is the Seabreeze Hotel in Nelson Bay which is trading incredibly, and we recently finished the ground floor of the Burwood Hotel Eating House, which was the last stage in the completion of the whole venue. We completed three new gaming offers for Iris Capital, with the Empire, Hunters Hill and Riverwood hotels, and construction has just started on the Wentworth Hotel in Flemington, seeing another great year for the Iris Capital/Paul Kelly Design team. We were developing the Tennyson Hotel for JDA Hotels, which sold to Justin Hemmes. That was rather exciting as it scored a huge sale price. The Gregory Hills Hotel gaming room
HOW WOULD YOU ASSESS THE PUB INDUSTRY IN 2016? It was a very strong year for hotels, especially in regard to gaming. The hotels that we have developed are all performing very well; most are up 20-30 per cent in trade post fit-out.
WHAT IS THE MAIN REVENUE STREAM YOU’VE HELPED OVERHAUL AND WHY HAS IT BEEN SUCH A BIG FOCUS IN THE LAST YEAR? We have completed close to 60 smoking gaming rooms, and the results from our rooms are very positive from customers, but also mainly from operators. We have focussed heavily on the gaming market in the past 10 years and have a formula that works; in the last 12 months due to the introduction of some new technology our rooms are recording leading results.
HOW HAS HOTEL DESIGN EVOLVED IN THE LAST TWELVE MONTHS? The hotels that we work on are split now between gaming and non-gaming areas, as we are trying to attract different patrons to
“The hotels that we have developed are all performing very well; most are up 20-30 per cent in trade post-fitout.” the alternate areas of the hotel. We assess the demographic of the hotels we develop and match a particular style and design guideline that we believe suits the market, so each project we do is different.
WHAT DO YOU THINK WILL BE THE BIG DESIGN TRENDS FOR PUBS IN 2017? The large scale ‘superpubs’ are coming, as the Gregory Hills Hotel has given people the confidence to back their food and beverage offers. Gaming has become such a key part of hotels and the customers in the non-gaming markets are happy to co-exist with gaming in close proximity. The Grounds-style multiple food outlets are still around and still have good traction, as do craft beer markets and big open kitchens serving great gastropub fare. Gaming will be just as strong this year with facilities offering patrons more of a VIP experience than before to try and capture the gaming dollar.
WHAT CAN WE EXPECT FROM PAUL KELLY DESIGN IN 2017? We are working on three large-scale pub venues at the moment, with the Wentworth Hotel, Flemington in construction, and we are designing two 3000m2 venues in Sydney’s west for two other operators. The CBD is going to receive three new hotel concepts centred around LA-based food concepts with some chefs out of Melbourne. We are also developing four new gaming concepts for the west, with a new TAB/Gaming/VIP experience coming.
28 | FEBRUARY 2017 AUSTRALIAN HOTELIER
diverse scalable
Call Us 1800 778 340 www.hlaustralia.com.au
Australia – making all things POS, possible!
HOT TOPIC
TAG
How can I instil a group culture among staff? INVEST, LISTEN AND ACKNOWLEDGE A group culture comes about by a combination of many things. First and foremost though, is investing in your people. A strong culture comes about by providing staff with a clear and concise vision. Then making sure each individual knows what their role is in achieving that vision, and ensuring they receive everything they need to complete their role. Secondly, a business can learn a lot by listening to their employees by providing a channel for employee feedback. When employee feedback to the organisation’s leadership team is heard, acknowledged, and responded to, it will create that sought-after group culture. Lastly, I want to say that staff need to know their leaders care, appreciate their hard work and have a sense of humour. I really believe that positive staff are productive staff. They will produce quality work in the fraction of the time. Relationships are built, knowledge sharing occurs, we see informal training and empathy in times of need. This is what group cultures are built upon.
Brendan O’Farrell CEO, Intrust Super
30 | FEBRUARY 2017 AUSTRALIAN HOTELIER
MATESHIP, ASPIRATION, COMMUNITY AND INNOVATION Public House Management Group is an award-winning business where we promote an inclusive culture of growth and diversity. Our staff’s opinions are valued and form a significant part of our forward planning. an ambassador of our brands and as such, our introduction to the company for all staff focuses on our winning formula of “mateship, aspiration, community and innovation”. As we continue down our path of growth, we recognise that investment in our people is critical. Our objective is to build and sustain a culture that is fun and engaging while developing our people to be the future leaders of our business. Additionally, recognition programs acknowledge our staff achievements and provide an outcome of increased motivation and loyalty. At Public House Management Group, we place trust in our teams and individuals to deliver on objectives and support them with coaching and mentoring to give them the best chance of success. Most importantly we promote regular communication that ensures our teams are kept informed and know our company’s goals and objectives so that they can contribute and be an integral part of our ongoing success.
Mitchell Waugh MANAGING DIRECTOR, Public House Management Group
INDUSTRY INCLUSIVITY When I think about Hostplus and how to instil a group culture I encourage staff to think beyond the group culture of Hostplus but rather think of the group as the vibrant and exciting ecosystem that is hospitality, tourism, recreation and sport. This is appropriate because we were created by the men and women who make up the industry. All of us at Hostplus are therefore also part of the industry; we live it every day and, like our members, we love it. It’s why we perform better. When you live and love something you do it well…and we’ve got a proven track record of that. We invest billions in building infrastructure – the roads and airports, the venues that are so important to our industry and the people who work in it. Hostplus supports the industry’s people through events, scholarships and awards and, most importantly, providing them with a dignified retirement outcome. So by looking at the group as the broader community we serve, we’d like to think that we too are part of the element that binds the rich tapestry that is hospitality, tourism, recreation and sport in this country.
David Elia CEO, Hostplus
OPERATOR
ANDY MULLINS, DIRECTOR SAND HILL ROAD
The process for us on Garden State was dichotomic. On one hand we finally found a CBD site to realise a vision we’d been conceiving for many years; a large format venue along the lines of something you’d find in Sydney or Brisbane, but that’d also capture all the authenticity and humility of a Melbourne-type offering. On the other hand, we had to move quickly. We met the Zagame family, our landlords, on a Tuesday. We met our financier that afternoon and spent several hours planning our funding strategy with him. And by Wednesday morning we’d committed to the Garden State venture and laid down our money. It was certainly intense. But our speed of execution has always been the key to our growth. We drilled down deep into our key success factors in terms of deals we’ve won and lost over the years. The lesson we learned is simple: the more you sweat in peace, the less you bleed in war.
HOW HAS GARDEN STATE HOTEL FARED SINCE OPENING? It’s been a fantastic opening, but having said that, it’s just an opening. We have really exciting plans for the venue and really exciting plans for the role Garden State can play in our city. We are passionate Melbourne boys. This city has been such an amazing place for us to grow up, cut our teeth as businessmen, and ultimately now contribute to creating experiences for locals or travellers in the city.
YOU DRAW A LOT OF INSPIRATION FROM DIFFERENT HOSPITALITY OFFERINGS GLOBALLY. WHICH AUSTRALIAN OPERATORS DO YOU ADMIRE, AND WHY? In terms of other operators, there’s only one group that’s truly inspired us from where we were back in 1999 to where are today. They’re two brothers from Melbourne who created such icons as Stokehouse and Prince of Wales Hotel. John and Frank Van Haandel. Two guys
with an epic vision for outstanding hospitality. They’re absolutely our industry heroes. But more than any other group, it’s all the industry operators out there who’ve thrown everything they have into the dream of owning a pub that truly inspires us. Always has, always will.
YOUR ETHOS IS THAT PUBS SHOULD CATER TO EVERYONE. HOW DO YOU ACHIEVE THIS IN EACH OF YOUR VENUES, WHILE STILL HAVING DISTINCT IDENTITIES FOR EACH? We’ve always maintained a very humble idea of what a pub is. To us, very simply, it all starts with a public bar, a bistro and a beer garden. And if you’ve been to Garden State Hotel, that’s exactly what you get. The rest is fun and engaging and totally inspiring. But it’s a pub first, no question. And each of our other sites is too. A pub should be a place of diversity, in all of its forms: economic, gender, race, class, sexual orientation and religious freedom. And man oh man, have I seen some bloody great arguments in our public bars over the years between gay priests and atheists!
SAND HILL ROAD DONATES OVER $100,000 EACH YEAR TO COMMUNITY INITIATIVES THROUGH YOUR CHARITY. WHY IS THIS IMPORTANT TO THE GROUP? Karma Kegs is our expression of building better communities. In particular we are personally devoted to providing a private commercial solution to how poorly our First Nations people have been treated historically. Our pubs have built a BMX track in a remote Aboriginal community in Port Augusta. And the kids there loved it. We’ve made a short film that won one of the world’s biggest festival prizes, at Berlin International Film Festival, with these very same kids. We’ve got an amazing example of one little fella we met in Port Augusta some 14 years ago who went on to become school captain at one of Adelaide’s most prestigious private schools. Every May we bring 15 kids from this community to Melbourne for Michael Long’s “Long Walk” and the AFL’s “Dreamtime at the G”. We know our place
OPERATOR
IN 2016 YOU LAUNCHED THE GARDEN STATE HOTEL, ONE OF THE LARGEST PUBS IN MELBOURNE. WHAT WAS THAT PROCESS LIKE?
Garden State Hotel in the world as a community funder is small, so we avoid large projects. We need to help families and projects that simply wouldn’t exist without our funding. We’d love to take Karma Kegs nationally, and we are all ears to those who’d like to help us get it done!
WHAT IS DISTINCT ABOUT THE MELBOURNE PUB SCENE? ARE THERE ANY CHALLENGES ASSOCIATED WITH IT? We wouldn’t necessarily distinguish between Melbourne pubs and Australian pubs. Just last week I was having a beer in the Tiwi Islands pub of Bathurst Island. Same as in Richmond: friends, locals, traders, families all mingling in a space that serves to promote community. In terms of challenges, or threats, I sincerely appreciate the position of cross-party support in ensuring Melbourne remains a 24/7 city. Rather than punish all operators for the crimes, or lack of due diligence of only a few, let’s strengthen the industry by promoting and rewarding those who go above and beyond their legal call of duty, and above and beyond those who are choosing to ignore the statutes and protocols of running safe venues.
AUSTRALIAN HOTELIER FEBRUARY 2017 | 31
SUPPLIER
SUPPLIER ADRIAN HALPENNY, SENIOR VICE PRESIDENT, AUSTRALIA AND ASIA SG GAMING
E
ach year at the end of December I start to reflect on how the year unfolded and what the key themes for our team were. 2016 will certainly go down as another remarkable year for us with a relocation to new premises, rebranding to SG Gaming and refocusing our hotel game portfolio. After 30 years at Milperra it was time to bring our organisation together in new premises at Silverwater. The company had outgrown its first home where it all began as Vidco in 1986. As we grew and changed to Stargames then Shufflemaster, Bally and then finally Scientific Games, we had been bursting at the seams in four buildings for some time. 2016 was the right time to consolidate into a facility that would lay a solid foundation for the future. By March we had identified a property at 4 Newington Road, Silverwater, and by the third week of July we had completely refurbished the building into our new head office and moved our Gaming and Lottery divisions into a new home. The new premises have given us the ability to bring everyone together under one roof and made way for collaborative workspaces that achieve a new level of efficiency for us. A few weeks ago we completed the final stage of our consolidation by moving the operations functions to Silverwater, so 2017 is already shaping up to be another exciting year. Game wise, in February 2016 our Lock It Link ™ product made a stunning debut in Queensland. Throughout the year Lock It Link continued to increase its footprint across Australia and New Zealand with players delighting in the highly entertaining features. With eight titles now available, this Australian-designed game concept is already taking on the world and has been successfully introduced into some international locations. Without a doubt, Lock It Link became our breakthrough game for the Dualos cabinet. Recognising that a link format does not necessarily suit all hotel markets, we also released
the standalone version Locked & Loaded™ in August, which offers the same engaging game play as Lock It Link in a standalone format. Another category that we focused on in 2016 was expanding the multidenomination multi-game product base. We expect to see further growth in 2017 with players continuing to enjoy the flexibility to choose the denomination that suits them, from a range of available games. It is innovation that drives our business, and being able to deliver new game concepts is part of what keeps players entertained. On the systems side of our business we now have connectivity to well over 15,000 machines across Australia and New Zealand. We are very proud that our systems serve the unique needs of customers across multiple jurisdictions. In terms of the trends for hotels, we see the top operators being proactive in rolling out programs for harm minimisation. At the recent National Association for Gambling Studies (NAGS) annual conference in Cairns, Christchurch Casino presented their case study on the use of our Servizio product that allows an operator to be alerted to real-time live machine events via pre-set parameters on hand-held devices. It is the use of this type of technology by top hotels that is leading the way in gaming operations. Finally, when you surround yourself with the best people, the impossible suddenly becomes a daily occurrence and I consider that we are extremely fortunate to have a talented group of dedicated professionals who are consistently looking for ways to add value to our customers’ businesses. I think it’s fair to say hoteliers will see us at our best in 2017.
32 | FEBRUARY 2017 AUSTRALIAN HOTELIER
“When you surround yourself with the best people, the impossible suddenly becomes a daily occurrence.”
SUPPLIER
SUPPLIER
MATT ISAACS, GENERAL MANAGER WAGERING AND MEDIA DISTRIBUTION TABCORP WHAT HAVE BEEN THE HIGHLIGHTS AND CHALLENGES OF 2016 FOR TABCORP? The biggest highlight of 2016 was the roll out of digital commissions across all our TAB jurisdictions (Victoria, NSW and ACT). Our greatest challenge is continuing to respond to the ever increasing customer expectation as the market evolves. There’s a battle for the entertainment dollar so we need to ensure we are offering customer-centric products.
WHAT INNOVATIONS DID TABCORP INTRODUCE IN 2016? Digital Commission was certainly a welcomed innovation this last year. It provides two additional revenue streams for hotels – in-venue and out-of-venue commissions. In addition, the digital TAB Form now provides a dynamic,
data-rich tool for customers that transcends the online experience of tab.com.au into retail while providing ‘cost-out’ for hoteliers.
HOW IMPORTANT ARE PUBS TO TABCORP’S STRATEGY? The hotel channel is a key pillar of TAB’s retail strategy. In recent years the turnover within the hotel channel has increased to a point where at the end of December 2016 it accounted for 49 per cent of total turnover in New South Wales, Australian Capital Territory and Victoria.
WHAT CAN WE EXPECT FROM TABCORP IN 2017? TAB will continue to work closely with industry peak bodies including AHA NSW, AHA VIC and AHA ACT as we continue to
rollout our strategic initiatives across 2017, which include: • Digital Commissions • TAB Form • Continued investment •M ore flexible and simplified wagering standards that are tailored to hoteliers’ needs • A digitised in-venue experience • Local area marketing with impact • An updated MyTab (online portal)
HOW WILL THE TAB APP AFFECT HOTEL PARTNERS? We have continued to develop in-house technology that converges digital and retail and delivers benefits to our hotel partners. This allows customers to ‘play their way’ and provides hoteliers with digital commissions. The new technology means if a customer places a bet in a hotel via the TAB App, the hotelier receives commission just as they would if the bet was placed via a betting terminal or over the counter. This provides an incentive for our hotel partners to ‘put on the party’. Additionally, if a hotelier signs up a customer to an account in-venue and that customer bets with the TAB app outside of the TAB network, the hotel will receive the commission on those bets (i.e. if an acquired customer is on the golf course and places a bet via the TAB App, commission will be paid to the hotel at the same rate as cash).
HOW DOES TABCORP INTEND TO ENGAGE WITH ITS HOTEL PARTNERS IN 2017?
The TAB facilities at Zagame’s Berwick
We have recently commenced recruitment for more business development managers out on the road. A by-product of this will be that each BDM will have fewer venues and as such will be able to spend more time in-venue working with hoteliers to build total venue performance. Additionally we will soon be rolling out a new version of our online asset MyTab – MyTab 2.0. This has been created via the Salesforce Communities platform and will provide a collaborative tool that will allow hoteliers and TAB to work closer together to drive business.
AUSTRALIAN HOTELIER FEBRUARY 2017 | 33
OPERATOR
CHRISTIAN DENNY, LICENSEE THE DOLPHIN HOTEL AND HOTEL HARRY HOW WOULD YOU ASSESS 2016 FOR HOTEL HARRY AND THE DOLPHIN HOTEL?
OPERATOR
2016 was a great year for us across the two venues, all procured through perseverance and hard work. The commitment of our venue teams and their dedication has been incredibly humbling to experience. For The Dolphin, it was our launch year, so the seven months since re-opening in June have been extremely hectic. It has been an incredibly rewarding project for us, despite all the yelling and screaming. We brought together a very skilled and experienced industry team to specifically execute this project, and ultimately we feel that we have reached or exceeded expectations. For Harry’s, 2016 was more a year of stabilisation. We focused on growing all revenue streams (F&B, gaming and accommodation) to a sustainable long-term level, and chasing another round of work and cost efficiencies. We also kept focused on providing new elements to our product offer, further engaging a widening customer base.
YOU BROUGHT ON NOTED CHEF MORGAN MCGLONE AS FOOD CURATOR OF HOTEL HARRY. WHAT DID THAT DO FOR THE VENUE? Hotel Harry is located in an exciting little precinct, which continues to gain more prominence every week. Morgan’s engagement was a residency at Harrys for 2016, where we gave him executive license in developing a new food brief for the hotel, encompassing his amazing scope of skill and international experience. This enabled us to stay dynamic and reach into market segments which would not necessarily be aware of our location at the bottom of Surry Hills.
WHAT IS PLANNED FOR THE PUB'S FOOD OFFERING THIS YEAR? Morgan’s residency was only for 2016, and his other burgeoning business pursuits meant that we couldn’t extend into the New Year. In keeping with our Friends of Harrys programme, we are about to announce the new direction and residency for 2017! The year just
34 | FEBRUARY 2017 AUSTRALIAN HOTELIER
The Dolphin Hotel
gone has given us more insight into how the true rhythm of Harrys will settle ongoing.
composed, stay nimble on your feet, listen to your staff and patrons.
THE DOLPHIN HOTEL HAS FOCUSED ON WINE AS ITS MAJOR BEVERAGE OFFERING. WHY?
WHAT ARE YOUR THOUGHTS ON THE CURRENT STATE OF THE SYDNEY PUB LANDSCAPE?
From the beginning, our aim was to redefine what is possible in a modern hotel, and to embrace the changing drinking habits of the modern patron. With Maurice Terzini and James Hird’s vision, the element of wine was interwoven very intentionally through all aspects of the hotel. Sitting atop this vision, we unveiled the Wine Room, which can cater to the most discerning wine lover’s interests, where we bring together a bespoke experience involving both food and wine. James has crafted a list which focuses on all aspects of wine from traditional producers, to organic and natural wine segments.
Sydney hotels are definitely the best they have ever been. The quality and skill of the operators, the sense of change sweeping through the definition of a ‘traditional pub’ and the range of choice available to all patrons is wonderfully encouraging to witness. It is an exciting time to be involved in the industry.
YOU WERE HIGHLY COMMENDED AS PUBLICAN OF THE YEAR AT ALIA 2016; WHAT ARE THE ATTRIBUTES ANY GOOD PUBLICAN SHOULD POSSESS? I don’t think there is a definitive list applicable to being successful in this role; it is probably more a case of being able to handle anything and everything. This industry definitely throws a whole smorgasbord of challenges at you, usually all at once. And being able to cope and react positively is probably my best advice. Be
WHAT DO YOU THINK WILL BE THE CHALLENGES AND OPPORTUNITIES FACED BY OPERATORS IN 2017? The ever-increasing skill of Sydney hoteliers means that all of us are driven even harder to establish successful venues. Meeting the savvy needs of the modern patron is key in this scenario. Being dynamic and adapting to changing needs is essential, but more than anything, always stay true to the basics of hospitality – a warm smile, welcoming service, comfortable environment and value for money. The other challenge facing hoteliers is the ever-increasing wall of legislation applicable to licensed venues. The level of scrutiny now endured by all licensees in a less consultative environment poses serious threats to both the underlying value and viability of many properties.
TWO ADDITIONAL REVENUE STREAMS FOR HOTELS IN VENUE DIGITAL COMMISSIONS Bets placed on the TAB app whilst in your hotel*
OUT OF VENUE DIGITAL COMMISSIONS Bets placed outside a venue by TAB customers you acquire in your hotel*
To maximise this opportunity and keep up to date with all things TAB, contact your BDM
*Only valid on successfully ID Verified TAB Accounts. Out of Venue Commissions applies to local residents within your state and excludes bets placed in any other TAB venue. Think! About your choices. Call Gambler’s or Gambling Help services 1800 858 858 www.gamblinghelp.nsw.gov. au. You know the score. Stay in control. Gamble responsibly.
OPERATOR
HAYLEY AND BLAKE MCCLOY, CO-DIRECTORS THE LUCKY HOTEL THE LUCKY HOTEL HAS WON SEVERAL AWARDS IN THE LAST YEAR – WHAT DO YOU ATTRIBUTE TO THE HOTEL’S SUCCESS?
OPERATOR
We strive to always stay true to our brand yet aren’t afraid to evolve the business in line with our consumers’ needs and feedback. If we don’t grow the business with the growing market, patrons will quickly lose interest and we will quickly fall behind our competitors. We do our best to research and predict what is around the corner in order to remain innovative and to keep one step ahead. We also ensure that we only employ staff members that share our vision for the hotel. We are strong believers that skills can be taught, but attitude is forever. Therefore, we invest a lot of time in finding the right people for the job and maintaining a positive work culture, which has an enormous impact on the way the business is run, and as a result, how our customers are treated.
WHAT ARE THE PROS AND CONS OF RUNNING A HOTEL WITH FAMILY MEMBERS? The biggest advantage is having each other to rely on and peace of mind knowing we have 100 per cent trust in each other when the other is absent. A disadvantage is trying to not both be absent at the same time for very long, which can be difficult when trying to coordinate family holidays!
ARE THERE ANY PARTICULAR REVENUE STREAMS THAT YOU FOCUSED ON IN 2016? We have needed to focus on our gaming revenue as a result of changes made to the poker machine room. Recently, we have spent a considerable amount of time researching and creating different concepts to completely change the room layout and positioning in order to offer our punters optimum comfort, while complying with a long list of smoking and gambling regulations. With renovations expected to commence early next year, we hope to soon open up the façade of the hotel on Hunter Street while gaining an additional outdoor alfresco area.
36 | FEBRUARY 2017 AUSTRALIAN HOTELIER
The Lucky Hotel, Newcastle
WHAT DO YOU THINK ARE THE BENEFITS OF OPERATING A REGIONAL HOTEL? We believe the greatest benefit is the strong sense of community that just isn’t as tight knit in metropolitan areas. Recently, a friend of ours was in a tragic motorbike accident in Bali – causing her horrific facial injuries. We decided to throw a fundraising cocktail event at the hotel with one week’s notice to assist with her growing medical expenses. Not only did we sell out in advance, we managed to raise about $25,000. It’s very reassuring to operate among a community that gives back and is only too willing to jump in and help out when someone is in need.
HOW DO YOU MAKE YOUR ROOMS STAND OUT AGAINST TRADITIONAL ACCOMMODATION HOTELS? We have a strong focus on brand awareness and we strive to deliver only the best in order to increase customer loyalty and trust. Once we have a guest stay with us for the first time, we ensure that we do everything in our power to make a lasting impression in order to turn that first-time guest into a regular staying guest. If they are only passing by Newcastle as a one-off, our goal is to provide them with the type of experience to speak highly of us or recommend us to a friend. We ensure that a high level of cleanliness and attention to detail is maintained through regular daily room checks and reports. Whether it is something as simple as a mark on the
wall or a squeaky tap handle – everything is reported and recorded daily to ensure nothing is overlooked and that we don’t lose track of our attention to detail. The rooms are decorated in a minimal yet trendy style, where we also offer 5-star luxury bedding and linen plus L’Occitane amenities, and each room boasts an en suite. We believe in a little bit of luxury at an affordable price point.
WHAT KEEPS PEOPLE COMING BACK TO DINE AT YOUR PUB? Our uniqueness. Our smoker is one of only three Australia-wide and our chefs are highly trained to deliver genuine Southern American barbecue (think smoked brisket, pulled pork and beef short ribs smoked low and slow for up to 14 hours). This machine is the real deal and it’s hard to replicate these traditional dishes without the correct machinery and training. We are constantly being inspired by new flavours and dishes and we love to share these inspirations with our customers. We are also big on consistency. We are very conscious of what goes into our dishes. That’s why we source from local suppliers to ensure the freshest ingredients are being utilised. Not only do we purchase free range and organic wherever we can, we also avoid preservatives – even making all of our rubs, marinades and sauces in-house. With a new menu every three months we ensure seasonal ingredients are being utilised while keeping interest levels high so customers are always keen on returning to taste our new creations.
The Gregory Hills Hotel. Paul Kelly Design has created another first with the Gregory Hills Hotel. This is more than a destination — get ready for an experience.
Sign up at For the latest pub news, subscribe to the Australian Hotelier e-newsletter at:
www.theshout.com.au
PUB SALES • F&B • APPOINTMENTS • REVAMPS • LEGISLATION