Australian Hotelier July 2022

AUSTRALIAN

AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE

Vol. 39 No. 6 - July 2022

IN THIS ISSUE: AGE PREVIEW | WHITE SPIRITS | MARKETING

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Contents SPECIAL FEATURES

P30 26 Venue Marketing: Three key things to

consider in 2022 when promoting

7 AGE Preview: The Australasian Gaming Ed’s Pick

your venue.

Expo kicks off at Sydney’s ICC next month after a two-year break.

12 Cover Story: A successful campaign to

link Guinness with winter is back for a second year.

14 Venue Profile: Hotel Sorrento is

preparing to scale up with the help

REGULARS 6 News: What’s happening in pubs

across Australia.

30 Design & Build: A tour through an

elaborate new standalone gaming room

of some new software.

18 Regional Stories: A Tamworth publican who

broke new ground celebrates two decades.

at The Entrance Hotel.

34 Tales from the Top: Harvest Hotels’ Chris

Cornforth discusses the group’s third

19 Cocktail Trends: A look at what’s

pub fund in the Adelaide suburbs.

powering the cocktail popularity surge.

22 White Spirits: Distillers from near and far

share some of their top drops.

PUBLISHED BY: Food and Beverage Media Pty Ltd 41 Bridge Road GLEBE NSW Australia 2037 Tel: 02 9660 2113 Fax: 02 9660 4419 PUBLISHER: Paul Wootton EDITOR: Amanda Bryan abryan@intermedia.com.au NATIONAL SALES MANAGER: Jason Wild Tel: 02 8586 6213 jwild@intermedia.com.au GENERAL MANAGER SALES – LIQUOR & HOSPITALITY GROUP: Shane T. Williams GROUP ART DIRECTOR – LIQUOR AND HOSPITALITY: Kea Thorburn kthorburn@intermedia.com.au PRODUCTION MANAGER: Jacqui Cooper jacqui@intermedia.com.au SUBSCRIPTION RATES

Editor’s Note

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As we weather these

we also explore what’s hot in the space in

colder months, I’d like

our trends wrap starting on p19 and share a

to say a big thank you

cool line-up of white spirits and the cocktail

for the warm welcome

creations they’ve inspired.

I’ve received from pub operators and their

Last but certainly not least, on p14 we take you inside a $30m revamp that’s underway at

suppliers over this past year. This is my last

the family-owned Hotel Sorrento in Victoria,

issue as Australian Hotelier’s editor, with

and on p30 we reveal the thinking behind an

Vanessa Cavasinni returning from maternity

elaborate new standalone gaming room built

leave next month.

from scratch at The Entrance Hotel in NSW.

Meanwhile, we’ve got plenty packed into

Cheers,

this issue, including a preview of some of the latest products and technologies that will be

Amanda Bryan, Editor

on show at the Australasian Gaming Expo

E: abryan@intermedia.com.au

which takes place for the first time since 2019 at the ICC Sydney next month. Head to p7 for a sneak peek.

With cocktails continuing to gain ground,

4 | Australian Hotelier

visit www.intermedia.com.au or Call: 1800 651 422 (Mon – Fri 8:30-5pm AEST) Email: subscriptions@intermedia.com.au

‣ Entertainment ‣ Pub Dining ‣ Outdoors

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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.

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In the

news

AVC DOUBLES WA PRESENCE Australian Venue Co. (AVC) has announced deals

WHAT’S HAPPENING IN PUBS ACROSS AUSTRALIA

with two hospitality groups that will see its WA portfolio almost double in size.

AVC will acquire seven venues from Ark Group and a further two venues are being acquired

Pub gigs on the rise

as part of an asset swap with Colonial Leisure

Rise of the Pub Gig – a national tour featuring

Group (CLG).

500 shows at 100 pubs over June and July –

AVC has been operating in WA since 2017

has kicked off with the aim of reinvigorating live

when it acquired Publican Group. These latest

entertainment around the country.

acquisitions will bring AVC’s portfolio in the

Muso, the Australian-developed live

Australian Venue Co CEO Paul Waterson.

state to 19 venues.

entertainment booking and management

Australian Venue Co CEO Paul Waterson said the acquisitions reflect the

platform, recently announced the line-up and

group’s confidence in Western Australia’s hospitality industry.

venues for the highly anticipated Rise of the

“We love operating in WA, it’s a really strong market,” Waterson said. “We

Pub Gig tour.

have a great team on the ground and look forward to growing our team and our

The tour features well-known and emerging local artists at a number of the nation’s

portfolio of venues in the state.

“These pubs have been part of their community for decades, and we’re

favourite pubs and venues including The

excited to be part of the next chapter. We can’t wait to meet the team and the

Chippo Hotel (Sydney), Lazybones Lounge

locals at each of these venues.”

(Sydney), Lucky Coq (Melbourne), Imperial

The Ark Group acquisitions include Perth venues Durty Nelly’s, Market

Hotel (Melbourne), Kings Beach Tavern

Grounds, The Generous Squire and the Bassendean Hotel – which is

(Sunshine Coast), Regatta Hotel (Brisbane),

currently closed for renovations. In Scarborough, the acquisitions include the

Parkside Hotel (Adelaide), The Aviary (Perth)

Scarborough Beach Bar, Galway Hooker and The Peach Pit.

and many more.

An Ark Group spokesperson said, “ARK are proud of what the group has

The tour aims to give venues the kick-start they need to host ongoing live music, in turn increasing income for musicians and offering more gig

dedicated staff and wish AVC all the best in the future.”

AVC’s asset swap with CLG will see it take over The Raffles Hotel and

experiences for punters, according to Muso.

The Royal in Perth, in return for AVC’s Melbourne pubs The Vincent and

Muso co-founder Brandon Crimmins told

O’Connell’s.

Australian Hotelier, “We are overwhelmed with

CLG CEO Tim Fitzgerald said the move was part of the group’s continuing

the interest and enthusiasm of all of the venues

refocus towards its home state of Victoria.

that applied.

“Although CLG was originally born in Western Australia, our home is now

“It’s evident that many venues are keen to

firmly in Melbourne so we want to focus all of our passion and energy on venues

introduce live music back into their spaces

that are in our local communities.”

and provide the best possible experience for

Last month AVC also announced a franchise deal with the multinational craft

their patrons. It’s great to hear that many

brewer to open multiple BrewDog-branded bars across Australia.

participating venues are planning on booking gigs post-campaign too.

The first of these, BrewDog Pentridge, will open this year within the walls of Melbourne’s iconic Pentridge Prison with a

“To play a part in facilitating more live music and possibly creating brand new live music

achieved and would like to especially thank all of our hardworking and

second expected to be announced soon in Sydney.

Under the franchise deal, AVC will open BrewDog bars in

experiences around Australia is the ultimate

several cities including Melbourne, Sydney and Brisbane,

goal of the campaign and is a great source of

with the potential for further expansion.

pride for everyone here at Muso.”

Keep up with the latest industry news!

6 | Australian Hotelier

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AGE PREVIEW

It’s show time

AGE 2022 will be heading to Sydney’s ICC next month after a two-year break. We take a look at what to expect from the region’s largest gaming and hospitality tradeshow.

In terms of, exhibitor demand, this has also been strong, he THE 31ST Australasian Gaming Expo (AGE) will kick off at Sydney’s ICC on 9-11 August after being postponed twice due to the Covid pandemic.

After a tough two years for exhibitors and delegates alike, AGE will showcase the latest in gaming, technology and hospitality, and will include networking events and a seminar program.

Sectors represented at the show include security, beverage, food, cash handling, furniture, paging and communications, signage and displays, building services, AV, entertainment, financial services, and of course gaming.

The 30th edition of the expo took place in 2019, and the organiser, Gaming Technologies Association, says that was

says, with over 90 per cent of the floor space booked already.

“What we are seeing with this event, which started back in 1990, is an evolution. It’s no longer just a gaming event, there’s a new range of exhibitors and its becoming a more well-rounded event for the hospitality industry,” Patel says.

“It’s almost a one stop shop if you operate a pub or a club. At AGE you get to see what’s out there in the market, to introduce new ideas and efficiencies into your business.”

A seminar program to be announced soon will focus on the ever-changing regulatory environment, as well as what the future of gaming looks like, and what new technologies are coming to market.

In terms of networking, a highlight will be the Women in

its most successful AGE to date with around 240 exhibitors

Gaming and Hospitality leaders lunch which will take place on

occupying three halls at Sydney’s International Convention

the Wednesday.

Centre, and drew almost 7000 attendees.

Three years on, event organisers say they are hoping that 2022 will be the year that the industry will be able to get together again, with Covid outbreaks a thing of the past.

GTA CEO Jinesh Patel is anticipating a strong attendance this year.

“There’s so much pent-up demand for these kinds of events and exhibitions, as people have been locked away for two years.”

“I think there’s a real confidence in the Australian market in terms of bouncing back, and our exhibitors are very keen to show off their new products,” Patel says.

“I think with venues reopening, some of which have been impacted by natural disasters as well, I think there is growing confidence.”

More than 240 exhibitors are showcasing their innovations at AGE 2022. We take a look at just some of them in the following pages.

July 2022 | 7

AGE PREVIEW

Lighting Up AGE IGT plans to light up this year’s Australasian Gaming Expo with a showcase of the newest games, which introduce new game play styles, raise player entertainment and deliver business growth.

On show will be an assortment of standalone and link games with new variations on Hold ‘n’ Spin, exciting features, a range of volatilities and

Bringing sports bars to life

styles of game play.

BSV supplies its LED screens to over 400 hospitality

Launching at AGE, Light It Up

venues across Australia, and over 1500 across all

combines the player favourite Hold ‘n’

industries, and at AGE 2022, the company will be

Spin mechanic with traditional symbol

showcasing its video wall technology.

reveal and line wins. Teamed with a

The video wall trend is becoming increasingly popular

mix of volatility levels and striking art

with venues and patrons alike, according to BSV, and

themes, this ‘lit’ game series aims to deliver wide player appeal.

this is where the company’s split screen LED technology

Outgrow Link & Loot (SAP) offers re-spin features, a new second

comes in.

chance feature and an exciting growing, locking and sticky Wild

“Split screen technology is the opportunity to

mechanic. Designed to provide players with more value through

entertain multiple demographics all with one screen –

entertainment, it provides venues with added variety across the

each cheering for their favourite sport,” BSV says.

gaming room.

“You can forget having to deliberate over

Shogun Evolution teams IGT classic Shogun Returns with new

entertainment each day, and simultaneously broadcast

derivative Shogun Strike, which offers a choice of volatility during free

televised events with in-house advertisements – creating

games - a 2-games-in-1-cabinet game mix.

even more opportunities for return on investment.”

Zodiac Lion & Zodiac Dragon are new CrystalCurve-I titles that feature quick hitting low level jackpots for added variety and entertainment.

A split screen also allows venues to showcase international sport without compromising on local events,

Also on show will be IGT’s latest systems innovations and five-star

the company says. “Venues with a BSV video wall can

machine servicing, areas of IGT’s ANZ business that seek to help venues

show, for example, main card fights whilst also airing an

be more agile, competitive and adapt to change.

NRL game or continue running daily races.”

“The IGT team is looking forward to welcoming customers to our stand at the first AGE trade show in over two years,” the company says.

To experience the technology firsthand, head to BSV’s stand at AGE 2022, where you can see the latest tech – including its touch pad controller – in action.

Innovation in motion Aristocrat says it will be sharing an exciting portfolio of games, systems and services with its hotel customers at AGE 2022.

“When it comes to games, we’re delivering an exciting line-up of products that work for you and your customers with a mix of proven, performing, Hold n’ Spin mechanics and brands, as well as exploring new gaming trends. There’s a wide range of game play experiences that cater to all player types,” the company says.

and we’ll be showing our new Service tools that make it easier

At the expo, attendees will see its golden train – Cash

for our customers to keep their business running for longer,”

Express Luxury Line – with three classic games brought up to date with a steam powered feature. Also on show will be the

Aristocrat says.

“Excitingly, our Systems solutions – we call them Customer

first Hold & Spin multi-game – Scorchin’ Fortune – with three

Experience Solutions (CXS) – will be demonstrating new features,

different game experiences.

digital wallet technologies and a roadmap that will support your

“Our Services team is the largest specialist team in the country,

8 | Australian Hotelier

business growth.”

GAMING TECHNOLOGY HOSPITALITY The best new and innovative gaming machines, commercial kitchen equipment, point-of-sale systems, paging and communication devices, waste management solutions, venue design and construction providers, furniture and flooring, food and beverage, entertainment, uniforms and more, are found at the Australasian Gaming Expo (AGE).

AGE is the cornerstone of the Australian gaming and hospitality industry. It's where gaming, technology, and hospitality meet.

9-11 AUGUST 2022 ICC SYDNEY

w w.a ww ww . aus u stg t gam a min i nge g exp x po. o .co c om m FREE ENTRY | TRADE ONLY

AGE PREVIEW

The future of gaming UTOPIA Gaming Systems will be showcasing solutions that help venues prepare for a cashless digital future.

“Since UTOPIA Gaming Systems arrived on the scene in 2014, it has been busy rolling out the latest in gaming systems innovation in the Global CCU6, and has established itself as a leader in the market,” the company says.

Now installed in over 1,000 venues across Australia, UTOPIA’s team of developers has been upgrading and adding to the Global Gaming System to deliver a technologically smart platform, designed with the future of gaming in mind.

“UTOPIA’s suite of products and services range from licensed monitoring services, gaming floor analysis and reporting, BI tools, loyalty, cashless solutions and more,” the company says.

The app-based UTOPIA loyalty system offers direct engagement with patrons by sending promotions and offers direct to their mobile phone.

It integrates seamlessly with all POS systems for a whole of venue loyalty solution.

The UTOPIA monitoring and gaming system was launched in QLD in 2021 offering venues a modern alternative for their gaming floors.

Global Eye is the reporting and BI capabilities of the Global system across all markets. Providing real-time data, this powerful analysis tool helps gaming managers better manage their gaming floor and make well-

Bridging the gap

informed decisions.

Independent ATM deployer Banktech has been

To find our more, visit UTOPIA at Stand 310 at AGE 2022.

building a bridge from cash to digital payments by re-imagining the role of the ATM with the new upgraded ATM Plus.

Banktech is currently upgrading its 2,500 CashConnect ATMs with world-first technology to deliver a wide range of digital services never before available on an ATM. “This technology has been proudly developed by Banktech’s Sydney-based team to deliver a solution for people who still want to use cash and operate in the digital world,” the company says.

The first service ATM Plus offered nearly three years ago was topping up a Ladbrokes account.

Since then, additional functionality has been added including making donations to a number of charities.

Banktech says it is working with other digital wallet partners to broaden the services available at ATM Plus to attract patrons to venues.

“ATM Plus allows customers to move easily between cash and digital payments,” says Henry Kiwarkis, Banktech’s General Manager, Sales.

“ATM Plus now provides the means for cash and digital payments to co-exist.”

For more information visit Banktech at stand 310 at AGE 2022.

10 | Australian Hotelier

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The look and feel of the games and their individual components and displays are trade dress of Scientific Games Corp dba Light & Wonder and its Subsidiaries. All © notices signify marks registered in the United States. ™ and © 2022 Scientific Games Corp dba Light & Wonder and its Subsidiaries. All rights reserved. Light & Wonder is committed to responsible gambling.

Responsible gambling features are proactively developed to ensure the safety and security of players while using Light & Wonder products.

COVER STORY

A winter warmer Following strong success last year, a campaign to link the iconic beer brand Guinness with the Australian winter is back.

AT THIS time of year, on-premise beer

This was no doubt been helped along

as a microsite of content, rewards and

consumption tends to slow, placing the

by the quality of the locally brewed dark

experiences, all redeemable through

onus on the dark beer category to help

beer, according to Eadie. “The Guinness

promotions throughout winter.

pubs boost sales.

we’re brewing in Australia is of the highest

With this in mind, ‘It’s Guinness Season’ – a campaign by Guinness and Lion, is

quality it has ever been,” he says.

The campaign will also embrace some new elements this year, according to Eadie,

This year, the campaign has signed

including temperature-triggered out-of-

rolling out for a second time after its

on some new partners including digital

home advertising to build on the intrinsic

successful launch last year.

publisher LADBible, KIIS FM Drive

link between Guinness and cooler weather.

The campaign aims to make the

comedic duo Will and Woody, and men’s

Starting in July, when the temperature

beer and winter synonymous by again

lifestyle site, Man of Many, with each

drops, consumers will have the

reinforcing the message that Guinness is

bringing their own unique view on the

opportunity to score a free pint via

the perfect brew to choose when you’re

perfect occasions to drink Guinness

Guinness-season.com.

looking for something to savour during the

during Winter.

cooler months.

According to Malcom Eadie, brand

According to the brand, the perfect

“This campaign is about reminding drinkers that Guinness is the perfect

time to reach for a Guinness is when the

choice in winter when you’re looking for

director at Lion, the campaign proved

temperature drops, and the ideal place

a drink to savour while connecting with

highly successful last year and drove

to drink it is relaxing in a winter lodge.

friends,” Eadie says.

above-trend growth across all-channels,

For this year’s campaign, Guinness will

despite the disruption caused by the

bring ‘The Lodge’ to life as a physical

of anticipation they have when a pint is

Covid pandemic.

destination to win a getaway, as well

settling on the bar at their favourite local.”

12 | Australian Hotelier

“Guinness drinkers know the surge

VENUE PROFILE

HOTEL SORRENTO, a family-owned pub with bay views on Victoria’s Mornington Peninsula, is embarking on a $30 million expansion that will double its footprint.

Currently, the pub has five bars, a restaurant and 37 accommodation rooms. Now under construction are 58 accommodation suites, a pool and pool-side bar, a new

Expanding horizons for Hotel Sorrento With a major expansion well underway, expert help in the kitchen, and some Australian-made software is helping the venue as it scales up.

14 | Australian Hotelier

signature restaurant, conference facilities, a wellness centre, and a 360-degree rooftop sundeck, all of which are expected to be completed by December 2023.

According to Hotel Sorrento’s partnerships and marketing director Myles Pitt, whose family has owned the pub for the last 41 years, four levels of the pub are heritage listed, and the new works, which are one third of the way through, aim to blend the old with the new.

A new Cantonese restaurant is being built in the old ballroom of the hotel, for instance, harking back to when the family took over at the pub when the cuisine being served was Chinese.

“We’re going back in time and making it a Cantonese restaurant, think 1960s Hong Kong. You’ll get all the dishes you remember as a kid, just done our way with Hotel Sorrento flair,” Pitt says.

“We not doing high-end dining as that’s not in our wheelhouse.

We’re all about the vibe, culture and warmth. We want to see ourselves as extension of people’s living rooms, where they can come in for a beautiful meal with that warm pub feel.”

A second new kitchen focusing on the wellness niche will have a totally different feel and will use produce from the local area, with a focus on organic.

Pitt, who’s been working full time at the hotel for the past seven

VENUE PROFILE

A fresh approach Operandio is a Melbourne-based technology company supporting hospitality and retail-based businesses to digitise business processes, and support their teams to access training and communications.

Operandio recently went on the hunt for a high-profile marquee pub client that would provide a solid workout of if software, and to this end approached Hotel Sorrento. A key requirement was active product feedback and the willingness to move everything paperbased in the business into a unified digital source of truth.

“Following a quick demo with the Hotel Sorrento team, it was pretty evident that Operandio was going to solve some key operational growing pains,” Operandio co-founder Daniel Scoble says.

“The timing was really perfect for both businesses given Operandio’s aggressive development roadmap and the significant investment from Hotel Sorrento not only in new bricks and mortar but commitment to get behind a new system to streamline their operations across the board.”

Classic challenges for single or multi-site businesses with large frontline workforces often stem from the use of static, paper-based checklists and spreadsheets to manage day to day operations

years, says it’s an exciting time for the venue as it reaches its 150th year.

“It’s an extremely exciting time. The whole family is involved in the business, and we absolutely love it. It’s been a long journey for our parents but now we are doubling our footprint and undertaking the biggest expansion yet.”

A helping hand Hotel Sorrento is just a stone’s throw from the new Continental Hotel where publican Craig Shearer and restaurateur Scott Pickett have collaborated on a number of food and beverage spaces, and where luxury hotel rooms under the Intercontinental banner are coming online in stages as part of the venue’s redevelopment.

“They’ve done a sensational job there, and it’s great for the area,” Pitt says. “The more pubs and hospitality in the area, the better for everyone and the more the area will boom. We absolutely love what they’re doing and it complements us both.”

Similarly, the Pitt family have also teamed up with a high-profile chef – George Calombaris – who has spent eight months onsite revamping the food spaces, designing menus, and collaborating with local suppliers.

“It’s a new era, and to have George’s expertise and level of drive and access to the people he knows in the industry is helping to open

and compliance.

“This can be seen in longer than usual staff onboarding and familiarisation, difficulty standardising process, unreliable ways of accessing key business knowledge and excessive pressure placed on management,” Scoble says.

According to Scoble, Operandio’s sensor technology can also helps small and medium sized businesses reduce food waste and more efficiently use existing inventory.

“Rounding out our current offering has been the implementation and integration of a range of Australian made, HACCP Certified, 4G capable temperature monitoring and logging sensors and food safety probes.

“These units are placed in every fridge and not only ensure the business stays compliant but also drastically reduce stock loss, food wastage and cost in the event of a fridge or freezer failure.

“We heard feedback from our customers that they need a more sophisticated way to monitor the temperature of their stock - but said a barrier was the cost to update their current fridges and equipment,” Scoble said.

“Our sensors mean no matter what time of day, or wherever you are, hospitality managers can closely keep an eye on their supplies and respond immediately if there are any issues.”

The new automated temperature sensors retail for around $150

doors,” Pitt says. “It’s extremely encouraging having him on the

and monitor equipment 24/7 with SMS alerts sent in case of any

team to help drive the product we want to achieve in the end.”

faults or issues with the equipment.

“All these features mean that we have been able to deliver

A new approach

Hotel Sorrento and the wider industry a holistic platform on a

Another source of help in the pub’s mission to scale up is an

single dashboard that manages everything from the day-to-day

Australian developed software system called Operandio. Hotel

standard operating procedure to compliance, onboarding and

Sorrento is using the software to standardise operations in its bars,

training,” Scoble says.

July 2022 | 15

VENUE PROFILE

restaurants, kitchens, accommodation, day spa, and wellness facilities. It does this through the use of digital checklists that prompt and instruct staff.

Accessible via section-based iPads within the venue, staff login via their own profile and a 4-digit pin to see all relevant checklists, tasks and standard operating procedures specific to them and the location they are working at that time.

Built into the system is also a dedicated knowledge base which is embedded into the checklists as a quick reference for staff. Photos can be used to show that cannot be described in text form. There is also a communications hub that allows staff to escalate and highlight items to be actioned.

Given the growing number of staff joining such a large and busy venue, many of whom are inexperienced, this is a really important element to its success, Pitt says.

“It’s a guideline as well as a checklist executed to the level we determine.”

A second application is also changing the game in the kitchen, Pitt says, and will become increasingly important as the new kitchens come online. Typically, hospitality businesses use manual temperature logs, requiring staff to regularly interrupt their day, and this has been the case at Hotel Sorrento.

The new system, also from Operandio, sees the installation of temperature sensors into appliances such as fridges and freezers to monitor these 24/7 with SMS alerts sent in case of any faults or issues with the equipment.

“We’ve been very vigilant checking and logging temperatures at the end of every service, but that is obsolete now with the new software freeing up teams to focus on prep and menu development,” Pitt says.

16 | Australian Hotelier

Smart Smart digital digital operations operations platform platform With Operandio you can achieve With Operandio you can achieve frontline task accountability, frontline task accountability, compliance and consistent business compliance and consistent business processes across all your locations. processes across all your locations.

Tasking, Recurring Checklists Tasking, Recurring Checklists & Inspections & Inspections Employee Onboarding Employee & Training Onboarding & Training

Internal Staff Communications Internal Staff Communications Hub Hub

Employee Accreditation Employee Accreditation & Certification Tracking & Certification Tracking

Knowledge Base Knowledge & OperatingBase Procedures & Operating Procedures

Remote Temperature Monitoring Monitoring Remote Temperature via HACCP Certified Sensors via HACCP Certified Sensors

Detailed Location & Detailed Location & Employee Reporting Employee Reporting

Raise the standard of Raise the standard of your operations and your operations and frontline workforce frontline workforce

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REGIONAL STORIES

A local hub

A Tamworth publican celebrates 20 years in business after breaking new ground in regional NSW. TWENTY YEARS ago, publican Daniel Camilleri broke ground on a greenfield venue in the suburb of Calala in the regional city of Tamworth in the north-west of NSW. These days the Calala Inn is a booming business and community hub.

The pub has been raising money for the Westpac rescue helicopter for 16 years, hosts a strong fishing club that so far has donated over $62,000 to charity, and supports drought and mice-plague stricken farmers.

Two decades ago, however, Camilleri, faced strong opposition from some of the locals. Those who opposed his plans for the venue feared noise and disruption would accompany the large-footprint development.

Having operated two pubs as a licensee in nearby Attunga and Manilla, Camilleri was eager to build a family-friendly pub of his own.

Despite the opposition, he pressed on and his plans were approved, and sure enough, the pub has remained squarely focused on local residents seeking a social drink, a bistro-style meal, and a childfriendly atmosphere.

“It was about taking the business to the community. We could see there was a need for somewhere to go after people knocked off work and went home, and we are walking distance,” Camilleri says.

Back then, the population of Calala was around 2000 – only half of its

Calala publican Daniel Camilleri.

current size – with no supermarkets in the vicinity at that time.

Two decades on, family-friendly dining remains a major focus of the pub, with a 25-strong menu of classics.

Even the bones of the pub are family-centric, with Calala Inn designed like a large home.

“We wanted to create a point of difference and a destination point and it’s working very well,” Camilleri says.

“We’re more or less classified as a restaurant with a bar. We have got gaming and Keno, but the way I look at it, if you haven’t got good food, you can’t trade.”

During three months of Covid lockdown, the pub took the opportunity to expand its outdoor area to create a large grassed area with picnic tables and fairy lights.

“It was one of those situations where we had the time, and we needed the extra dining space, so when the government started encouraging outdoor seating, it was the perfect opportunity,” Camilleri says.

The family repaved, bought new furniture, and created a new play area for kids, and by doing so, doubled the space and also increased revenues.

Camilleri’s original vision was to build a venue that was inviting for local families, and now Calala Inn is a seven-day a week booming business that gives back to the local community.

18 | Australian Hotelier

Calala Inn offers seasonal specials such as Stout Pie.

ON TREND

Mixing it up With demand for cocktails on the rise, we pinpoint some of the consumer preferences that are powering the market.

THE COCKTAIL category continues to

these serves, with the Pina Colada (22 per

rise in sales of its cocktail-making kits and

gain significant traction in venues, and

cent) and the Espresso Martini (21 per

pre-batched tipples.

has even been named as one of the

cent) next in popularity.

categories most likely to be enjoyed more

“There is no doubt that well-conceived

“Whilst lockdowns have ended for now, we continue to see steady interest

than last year by Australian consumers,

and executed cocktails can elevate the

as consumers look to educate and upskill

according to research from CGA.

standard spirits serve, allowing consumers

their cocktail games,” she says.

More than a quarter of those surveyed

to enjoy more memorable experiences

Leigh says classics and spritzes are all the

by the researcher (28 per cent) say they

and for operators to increase visit spend,”

rage, revitalised for a new era of informed

are drinking more cocktails in bars and

CGA says.

drinkers. “Global classics from the 20s and

restaurants than last year, and almost 60

“For any premium category, the path to

30s continue to come back. Now is a time

per cent of bartenders believe that cocktails

purchase is key. Cocktail consumers enter

for extravagance, to go out and indulge

will continue to thrive throughout 2022.

the category in many ways, with the top two

oneself, much like in the roaring 1920s.

The most common reason for choosing

decision points being influenced through

“In our venue, we have noticed our

cocktails, say 45 per cent of consumers,

detailed menu descriptions (25 per cent) and

consumers are willing to spend more on

is for a treat, which aligns with the

bartender recommendations (24 per cent).”

premium cocktails that feature high-end

premiumisation trend being seen in the

spirits as they feel financially well-off after

On Premise channel around the world,

Back to the 20s

CGA says.

During the many lockdowns of the past

years of being confined to their homes.”

Stirred-down classics such as the martini

The findings were drawn from CGA’s

two years, consumers sought to recreate

and negroni are also finding favour, she

OPUS, a large-scale consumer study used

the bar experience from the comforts of

says, with the martini especially growing in

around the world by the leading beverage

their own homes. As a result, consumer

popularity with a younger demographic.

suppliers to the On Premise channel.

awareness of cocktails and top quality

In terms of popularity, Mojitos and

“Cocktails are also leaning toward

spirits spiked, according to Archie Rose

a cleaner style, sharp lines, minimal

Margaritas lead the way with 24 per cent

Distilling’s head of hospitality, Harriet

garnishes and twists on classics that are

of Australian cocktail drinkers enjoying

Leigh, with the distiller seeing substantial

unrepeated in a standard pub venue.”

July 2022 | 19

ON TREND

Experimentation

“Meeting the demands for both

In terms of innovation, pre-batched or

experimentation and familiarity can be

draft cocktails are ramping up in Australia

achieved by providing flavour twists on

– and according to CGA, two-thirds of

classic cocktails,” CGA says.

consumers say they are willing to try them

Hayley Dixon, spirits specialist at

extra flavour and depth using Kraken Black Spiced Rum.” Another ongoing trend, according to Dixon, is simplification. “Gone are the days over complicated ingredients thrown

with speed of purchase being a main

Proximo Spirits, agrees that the innovation

into drinks just so they sound a little

driver of choice.

and premiumisation trends are driving the

fancier on the menu.

However, most drinkers (70 per cent) expect pre-batched cocktails to attract a

ongoing cocktail surge.

“As consumers begin to explore new

“Consumers want to understand what they are drinking and be able to taste the

lower price point than regular cocktails –

and exciting drink offerings, and the

flavours that are listed. If you’re in the

an important consideration for suppliers

willingness to drink less, but drink better

process of writing a menu, my key piece

when it comes to positioning their offering.

continues, cocktail popularity will see

of advice would be if an ingredient doesn’t

ongoing growth.

deliver value to the drink, drop it, and

Other consumer preferences, according to the researcher,

“I think it is safe to say Covid has

include experimentation, with consumers

provided us with a new normal, and that in

keen to try new and distinctive drinks.

combination with the premiumisation trend

Around a third (35 per cent) of cocktail

will ensure we keep moving in this direction.”

drinkers surveyed late last year said

if you feel it is missing something, it is probably Angostura Bitters.”

Dixon says she’s also seeing increased use of agave spirits on cocktail menus around the country.

they try new spirit brands when drinking

Flavour faves

cocktails, and nearly as many (32 per

Strawberry tops the list of preferred

ago mezcal was hard to come by and

cent) try new spirit types.

cocktail flavours, according to CGA (26

agave spirits in general were listed few

per cent) just ahead of pineapple, passion

and far between.

They are also much more likely

“It is crazy to think just a few years

than the average consumer to say that

fruit and mango (24 per cent). Also in the

‘interesting’, ‘unique’ and ‘high quality’

flavour top ten are sharper fruits like lime

Sustainability

attributes have become more important

(22 per cent), apple (20 per cent) and

When it comes to consumer cocktail

to them since the start of the pandemic,

lemon (19 per cent).

preferences, sustainability is another key

according to CGA. Conversely, consumers still have a strong

According to Dixon, refreshing serves will continue to see great growth

driver, according to Archie Rose’s Leigh.

“Consumers care now more than ever

appetite for familiar spirit brands. Nearly

throughout 2022. “If I were looking to

about sustainability and zero waste,

two thirds (63 per cent) of On Premise

create a menu for a pub my focus would

which is being reflected in venues across

drinkers agreed they would be more likely

be on simple classic cocktails that play in

the country.

to try a cocktail if they had heard of the

this space, with a personalised twist.

brands that go into it, highlighting the need

“In 2022, we are seeing a distinct shift

“Think cocktails such as the Tommys

to championing more local spirits, and

for venues to strike the right balance of

Margarita, but made using Maestro Dobel

greater support for regional distilleries

new and established brands in their range.

Humito Smoked Tequila, or a Mojito, given

within state boundaries.”

20 | Australian Hotelier

www.archiero

se.com.au

WHITE SPIRITS PROMOTION

g n i s i a R our spirits

ing of the boom n o ti a r b le In ce rs ent, distille m g e s s it ir p white s some orld share w e th d n u from aro drops. of their top

Archie Rose Bone Dry Gin

400 Coñejos Joven

Archie Rose Bone Dry Gin

Mexico’s highest selling Mezcal,

rigorously balances a huge

400 Coñejos is the perfect

amount of juniper’s raw

introduction into the world of

power with nuance, poise, and

mezcal for customers, and an

complexity that salutes every

ideal pouring Mezcal for venues.

great gin moment. Joined by

A well-balanced flavour profile

a supporting cast of single

delivers notes of bright tropical

estate Australian coriander

fruit, toasted wood, green herbs

seed, Tahitian lime, and lemon

and a subtle smoke finish.

scented gum, Bone Dry Gin places swathes of citrus, pine, and mint across the palate with intensity and expressivity.

Cocktail suggestion: Bone Dry Martini ABV: 44% www.archierose.com.au/journal/

Gin Sour 1. Add 60ml Archie Rose Bone Dry Gin, 30ml lemon juice, 15ml simple syrup and 15ml egg white into a shaker and vigorously dry shake (without ice).

2. Add ice and shake again until well-chilled.

3. Strain into a coupe glass.

4. Garnish with a lemon twist, or if using egg white or aquafaba, decorate the frothy top with 3 to 5 drops of Angostura bitters.

22 | Australian Hotelier

classic-dry-martini

Cocktail suggestion: Smoky Paloma ABV: 38% www.400conejos.com

WHITE SPIRITS PROMOTION

Grainshaker Australian Corn Vodka

wildbrumby Classic Gin

Archie Rose Native Botanical Vodka

Our country is full of character

Distilled in traditional ‘London’

Infused with native lemon-

and so are our grains. Local

style, wildbrumby gin has a fresh

scented gum and sunrise lime

corn is slow distilled through

and contemporary aromatic

along with Australian peach,

copper pot still to create a

profile. Gentle notes of Mountain

Archie Rose Native Botanical

vodka more than the some of

Pepper Berry and aromatic

Vodka celebrates raw Australian

its parts. A versatile, gloriously

juniper notes combine with a trio

ingredients and flavour. The

textural spirit with a warming

of citrus and a finely balanced

flavour profile highlights buoyant

embrace of creamy vanilla and

blend of other botanicals. The

notes of candied lime peel,

caramel notes.

result is a complex, multilayered

peach iced tea, elderflower, pink

and delicious finish that never

marshmallow, cut grass, native

overpowers the palate, and can

river mind and jasmine greeting

be enjoyed neat or paired with

you on the nose.

Cocktail suggestion: Grainshaker Espresso Martini ABV: 40% www.grainshaker.com.au

mixers of choice.

Cocktail suggestion: Vodka Palmer

Cocktail suggestion: Alpine

ABV: 40%

Vesper (martini)

www.archierose.com.au/journal/

ABV: 40%

vodka-palmer

www.wildbrumby.com

Shot at ARCHIE ROSE DISTILLING CO

July 2022 | 23

WHITE SPIRITS PROMOTION

Archie Rose Signature Dry Gin

1800 Tequila Silver

Young Henrys Noble Cut New World Australian Gin

Archie Rose Signature Dry Gin is a

1800 Tequila is the world’s most awarded

We like to think of Young Henrys Noble Cut

contemporary Australian take on a classic

tequila range, making it a great premium

as a brewer’s gin, blending techniques and

dry gin, with a unique Archie Rose touch.

tequila upgrade for venues. 1800 Silver is

flavours from both brewing and distillation.

Re-imagined six years after its launch,

bright, floral, and reminiscent of a well-

We use neutral grain spirit to showcase

this spirit delivers more complexity and

made highland tequila. It carries notes of

juniper, Australian botanicals such as

character, and has been awarded World’s

chamomile, sweet roasted pepper and

lemon myrtle and pepperberry and just like

Best Gin and twice Australia’s Best Gin.

citrus with a light aroma of peach.

our beer we incorporate Tasmanian grown

This quintessentially Australian dry gin features a complex array of flavours moving from stone fruit to citrus with fresh garden herbs, pine, and very subtle eucalyptus.

Cocktail suggestion: 20th Century

Cocktail suggestion: TnT – tequila and tonic, garnished with a pink grapefruit wedge ABV: 38% www.1800tequila.com

enigma hops to give a mineral complexity you’d expect to find in a fine white wine. All of that leads to a highly aromatic, highly complex and altogether unique take on the London Dry style of gin.

ABV: 42%

Cocktail suggestion: Newtown Negroni

www.archierose.com.au/journal/20th-

ABV: 40%

century

www.younghenrys.com

SHOT BY ONEILL PHOTOGRAPHICS

24 | Australian Hotelier

ENJOY RESPONSIBLY

VENUE MARKETING

Building a connection Pub marketing specialist Melissa McGroder outlines the three key things to consider in 2022 when it comes to promoting your venue.

NOTHING STANDS still in the world of marketing – and in recent months there have been some interesting twists to keep pub marketers on their toes, according to Melissa McGroder, CEO and founder of hospitality marketing specialist My Marketing Department (MMD).

The changing nature of social media algorithms is one of them, she says, with Instagram now rewarding content such as reels and videos, which left a big dent in engagement on that channel.

Meanwhile, the skills shortages that have crippled front and back of house

A social boost Bookings and table management system ResDiary has launched a free social media guide to help the hospitality sector.

The ResDiary Social Media Guide for Hospo was written by hospitality people for hospitality people, according to ResDiary, and covers topics including identifying the right social media platform and how to get more customers posting about your venue.

According to ResDiary APAC head of brand and growth, Rebecca Zeitunian, just as Covid disruption begins to settle down, the hospitality sector’s operating environment is heating back up as household discretionary budgets shrink.

“At our core, we’re a bunch of hospitality people passionate about helping the industry succeed so we’re launching a series of free resources designed to help restaurants promote themselves, get more bookings and run more efficiently.”

Research commissioned by ResDiary earlier this year showed that 43 per cent of venues are still using pen and paper bookings systems, and according to Zeitunian, these venues are missing out on the opportunity to take bookings 24/7 from multiple

operations are now also being felt in the hospitality marketing sector with job

channels including their own website, Google,

candidates in short supply.

Facebook and Instagram.

One thing that hasn’t changed, however, is the power of the email database in

“At a time when every booking will count, there’s

bringing customers back to venues. With these three issues in mind, McGroder

never been a better time to trial digital bookings,”

shares the following tips.

she says. “The next few months will be critical for the sector and ResDiary is looking forward to launching

Instagram’s new algorithm Ever since Instagram changed its algorithm in May, engagement metrics like reach and follows has plunged across the board, according to McGroder.

That’s because the platform is now favouring reels and video content over photos, more in the style of TikTok.

26 | Australian Hotelier

more free resources to help the sector to not only survive, but thrive.”

The ResDiary Social Media Guide for Hospo is available online at https://sales.resdiary.com/socialmedia-guide-for-hospitality-e-book

Unlock your potential with a forward-thinking

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Accept commission-free reservations from all online channels

Customisable diary set up to work the way you need it to

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Build your database of customers and reward diner loyalty

Easily integrates with POS and other systems

Book a personalised demo

resdiary.com sales@resdiary.com.au

We’d absolutely recommend ResDiary to others. We can clearly see what’s going on in the restaurant.

- Triado family, Tinto

VENUE MARKETING

“Marketing managers throughout the world are freaking out as they now have to create reels and mini-videos,” McGroder says.

The reason is that these are a lot more time consuming to create than photos and require different tools and skills. To post something daily therefore becomes much more of a challenge.

“My message to pub owners is that the marketing manager needs time, as good social media takes ages, and they need the right tools, and those cost money.”

Another challenge in the pursuit of video is the fact that most of the action occurs after the marketing people go home.

For this reason, McGroder suggests a “send us your pics and videos” poster in the staff room with a QR code that they can scan to send them to the marketing drop box. `

.

“That’s an easy mechanism to gather content such as photos and videos from teams,” she says.

“Venue operations teams can load all of the content in the folder and marketing can work on it at the other end, making it operationally easy.”

Data is still king Email – it’s not new, but it’s still a really important part of the marketing mix and a potentially massive missed opportunity for venues, according to McGroder.

A lot of venues, however, still aren’t using databases, she says, but savvy pubs should be monitoring and growing them and integrating them with the POS system.

“Power still remains in emails and especially good quality emails going out to a segmented audience,” she says.

Good segmentation ensures you don’t send UFC promos out to regular bistro goers, and once you know who’s visiting your sports bar, you know who to target on a rainy day with a free beer offer.

“Unlike Instagram, which can change its algorithm overnight, email is very consistent and it’s very personalised,” McGroder says.

A smart approach A well-designed uniform can set venues apart in a competitive landscape by providing a visual edge, according to Felicity Rodgers, founder and creative director of hospitality uniform specialist Cargo Crew.

“For venues wanting to make a memorable statement, uniforms are a key way to achieve this,” she says.

These benefits are backed by research, with a uniform study

by YouGov Galaxy Australia finding that 94 per cent of consumers prefer staff in uniforms as it makes them easily recognisable.

The researchers also found that 93 per cent of respondents believed it reflects well on a company if the staff wear smart uniforms.

“Uniforms are a tangible tool to enhance experience, whilst giving confidence to the customer that a staff member has been entrusted to deliver service and knowledge on behalf of the venue,” Rodgers says.

The value of a modern uniform, however, goes beyond a business’s image, according to Rodgers – it can also boost staff engagement, which is important in a skills crisis.

“At Cargo Crew, we believe people should feel great in uniform. We have built our uniform range around a passion for both design and genuine quality, and we focus on creating uniforms that people want to wear.”

Cargo Crew’s customers include teams from the café around the corner, to hotels, restaurants, and chefs in the best restaurants.

“Cargo Crew love working with venues and businesses who understand the value a modern uniform can bring to support their businesses visual language and their staff engagement,” Rodgers says.

“A Cargo Crew uniform is so much more than a garment, it’s where function, inclusiveness, respect, quality and comfort meet.

A uniform heightens the team bond and customer experience, where the magic truly happens.”

Marketing skills crunch Just as with other types of hospitality jobs, marketing specialists are currently hard to find, due to the current skills shortages, according to McGroder.

“People are working hard to recruit marketing people, and they are also at greater risk of losing them as they are being poached.”

To tackle the issue, some venues are employing marketers from other sectors – but McGroder stresses not to throw these new staff members in deep end.

“They need to know about State of Origin, for instance, as pub promotions are very event focused and the calendar never stops. You need to give them the tools and time to learn.

“Spend time with them, get them to do their RSA, and put them in the bar for couple of days so they get to know the business.”

Finally, McGroder suggests venues take steps to hang on to the marketing team they’ve got. “Give pay rises if you can. Whoever you’ve got, look after them, and understand that it’s a time-consuming job.”

28 | Australian Hotelier

Is your crew dressed by the best?

DESIGN & BUILD

A grand entrance 30 | Australian Hotelier

Central Coast venue The Entrance Hotel has built an elaborate, technologically advanced $3m standalone gaming room as part of a broader venue renovation.

Custom-designed carpets were inspired by the Gold Coast.

The gaming room has its own bar.

DESIGN & BUILD

Big arches and soft tones help to create the look of a coastal pavilion.

THE ENTRANCE Hotel, a 1940s heritage

that even a revamped gaming room could

pub on the NSW Central Coast, has

offer no good smoking solution.

just thrown open its doors to locals and tourists alike following a major makeover

have a detached gaming room to help

by its owner, third generation publican

maximise the potential of the pub,”

Andrew Thomas.

Thomas says. Another advantage of this

Andrew is the son of longstanding publican David ‘Taffy’ Thomas, who, with the support of his mother Alala Thomas

was that the new gaming room could have different trading hours.

With that in mind, around half of the

bought the iconic Oaks Hotel in Sydney’s

$6m upgrade was allocated to building the

Neutral Bay in 1975, a venue that has also

new 30-machine room.

recently received a major renovation.

The $6 million renovation of the

The old standalone drive-up bottle shop was demolished and some car parking

Entrance Hotel has taken place in stages,

space repurposed to carve out space for

starting with a new standalone gaming

the new building.

room that was completed late last year.

The garden areas provide natural ventilation.

“Instead we came up with solution to

“We felt this was the best use of land

Like the Oaks, the venue also now features

as we have a massive block there, and

Taffy’s sports bar, which was designed to

we wanted it to be bright, beachy and

appeal to a younger male market.

vibrant,” Thomas says.

Taffy’s features quirky, retro décor and

“We decided to throw everything we

pop culture, lounges, mega screens and

could at this gaming room to get the

booths with personal TV screens and

design and feel right and have a red hot go

table service.

at increasing turnover and giving patrons

The new bistro and bar called Mrs May was designed by Pony Design Co with

what they want.”

Paul Kelly Design (PKD) was tasked

softer, more feminine tones, curves and

with the design of the new gaming room.

textures and it flows into a revamped dog-

As a classic 1940s pub, the main building

friendly beer garden and deck.

doesn’t give much indication of being

According to Thomas, prior to the

coastal, PKD director Paul Kelly says.

renovation, The Entrance Hotel had just

“We wanted to create something that

been ticking along, servicing the locals,

looked like a coastal pavilion, something

day trippers and holiday makers.

that was a little more iconic with big

In 2019, plans were put in place for a major renovation, but these were disrupted when the Covid pandemic closed the pub.

arches and soft tones, and something that separated itself from the main business.

“It’s a casino-style room, so it had to

The second wave again halted work when

really stand out to those walking past

labour became hard to source.

so they couldn’t help but want to go in,”

STANDALONE SOLUTION When building recommenced in early

Kelly says. “There’s a little bit of Miami Vice in there.”

Inspiration for the design concept was

2021, the new standalone gaming room

drawn from coastal architecture and

and adjoining bottle shop were first in line.

holiday destinations up and down the

At the time, Thomas says, the main

NSW and Queensland coast, plus a few

pub housed a 26-machine gaming room,

touches to tie it into the 1940s building

but the heritage elements of the building

standing next to it.

presented an obstacle when it came to the

On the outside of the room, a bit of

design tweaks needed to improve this side

render effect was added in a modern

of the business.

interpretation of the main pub building.

“The Entrance Hotel is a heritage pub and it’s narrow,” Thomas says. This meant

“The exterior blends into the hotel and stands out as well,” Kelly says.

July 2022 | 31

The room also features custom ceiling lighting with intelligent fittings that flash and pulse.

DESIGN & BUILD

The new design has increased the ceiling height.

Also, decorative geometric brick pattens in unique angles provide texture, while arches provide a nod to the beachside pavilion.

“With its mottled white textured render, and the outdoor lighting, at night the whole building just looks spectacular,” Kelly says.

A TASTE OF VEGAS Inside, the gaming room is just as impressive, boasting the latest technology and design.

According to Kelly, it was actually

custom-made Australian hardwood table,

fittings that flash and pulse as the night

cheaper to build standalone than to

and custom-designed carpets inspired by

goes on. “It really is one of the most highly

attempt to design smoking solutions into

the Gold Coast with ostentatious bright

designed gaming rooms we’ve ever done,”

the heritage building.

colours and sandy and white tones.

Kelly says.

The garden areas of the gaming room

“It was pulled from a lot of different

“There’s a bit of Vegas with the mirrored

provide natural ventilation in the room and

inspiration points from holiday

bulbs in the ceiling – and a touch of Miami

is fully therefore naturally ventilated for

memories,” Kelly says. “The whole carpet

Vice, Palm Springs, and the Gold Coast.”

smoking. “It’s been designed so you can

is one rug joined together so there’s no

smoke in the whole room,” Kelly says.

pattern repeat.”

Having a standalone room also allows its

And where the old gaming room was

The new room was designed to offer its owner the very best chance for maximum returns achievable in that

owner to focus on the gaming market very

dark and had limited ceiling height room,

location, according to Kelly, and

independently. “It’s a standalone gaming

the new design has opened up the ceiling

Andrew Thomas agrees.

room for serious punters,” Kelly says.

height to enable the addition of links and

The gaming room has its own bar and sports lounge, a snack bar and two entrance points. Other touches include a

32 | Australian Hotelier

machine toppers.

The room also features custom ceiling lighting concepts with intelligent light

“I do love the gaming room. Paul’s done an amazing job. It was done tastefully – it’s not in your face – and it’s giving us a bit more income to help the pub along.”

www.paulkellydesign.com

.au

TALES FROM THE TOP

A southerly change Harvest Hotels director and co-founder Chris Cornforth discusses the launch of the NSW group’s third pub fund and the decision to head interstate into the Adelaide suburbs.

Harvest Hotels founders Fraser Haughton and Chris Cornforth.

HARVEST HOTELS, founded by

Harvest Hotels began due diligence on

support from existing investors – and

publicans Chris Cornforth and Fraser

the South Australian market more than a

some new ones – for Pub Fund 3. “We are

Haughton, is focused on acquiring

year ago, according to Cornforth, and had

comfortable that we will cover the amount

underdeveloped, large format pubs in

originally looked to regional areas in line

we are looking for.”

high growth centres.

with its strategy in NSW.

Until now, that acquisition strategy has

Instead, the group found a better

The equity raised will go towards Adelaide pub acquisitions and some of the

centred on the regional NSW centres of

business case in the suburbs, he says. “We

Tamworth, Dubbo, Wagga Wagga, Albury

found the population size and growth in

and The Central Coast. In these locations,

regional areas didn’t offer enough tail wind,

visiting prospective acquisitions in recent

Harvest Hotels currently operates $182

so we had a look at suburban Adelaide and

weeks, according to Cornforth. “We’ve

million of regional pub assets in NSW via

found similar metrics to regional NSW in

spent more time getting our heads around

its Harvest Pub Funds 1 and 2.

terms of growth and population.

these than we would in regional NSW.”

In May, however the company

“We started focusing on the outer

venue renovation works.

The founders, meanwhile, have been

Harvest Hotels plans to grow Fund 3’s

announced plans to expand beyond its

suburbs and uncovered a few things – we

assets under management to $250 million

regional NSW focus with the launch of a

found that the population was growing and

over its 3 to 5-year life, he says, and the

third pub fund. Harvest Pub Fund 3 aims

as was infrastructure spend and property

Fund is targeting a cash yield of 8 per cent

to raise $50 million in equity to fund the

developments and we decided to focus on

per annum paid quarterly to its investors

acquisitions of large format pubs in the

these areas.

and is forecasting a 17 per cent equity IRR

outer Adelaide suburbs.

Harvest Hotels is not the only operator

“In NSW, we have a minimum population size of 25,000. In Adelaide,

post fees.

Corforth says that while Adelaide is the

drawn to the South Australian pub market,

some of the LGAs have double and triple

focus for now, he doesn’t discount new

thanks to lower prices and gaming

that number, which for us means more

horizons in the future. “We will always keep

legislative changes, along with a stable, less

people per pub.”

an eye on different areas to see if these

Covid-interrupted trading environment.

34 | Australian Hotelier

Cornforth says he expects to see good

regions show similar metrics and tail winds.”