VENUE STRATEGY: FOR TRAVELLERS AND LOCALS

For travellers and locals

Operating pubs in a tourism hotspot like the Southern Highlands or the South Coast brings undeniable opportunity, but consistent year-round trade relies on diverse revenue streams and local loyalty, writes Molly Nicholas.

THE SOUTHERN Highlands of New South Wales has long been a tourism hotspot, renowned for its cool-climate wines, scenic landscapes and influx of weekenders from Sydney. The tourist-driven region offers plenty of promise – and at the helm of three pubs in the region, Steven Savic has built a local portfolio that thrives off the area’s appeal.

In 2018, Public House Collective – led by Savic and Stan Crinis – purchased the Robertson Public House & Kitchen, the first pub in the portfolio of a Wollongong-Kiama consortium.

“It’s nearly seven years since we purchased the Robbo, and for us, it was about buying a pub that offered authentic country hospitality. We were never interested in large CBD hotels, and we’re definitely not interested in gaming hotels. What we really wanted was a hotel that could offer an experience to customers through the warmth of country hospitality,” Savic told Australian Hotelier

Later, in 2022, Savic purchased his second Southern Highlands pub, the Mittagong Hotel, with a Canberra-based consortium, and just last year, Public House Collective expanded its portfolio with the acquisition of the Grand Hotel in Kiama on the South Coast. Brought to market for the first time in more than 20 years, the pub has undergone a refurbishment that taps into the rhythm of the region.

Building a destination pub

For Savic, building a business model that doesn’t rely on gaming revenue has been a deliberate and strategic move – and one that’s especially important in a region where pub visits are typically experience-led.

Instead, the focus has been on hospitality-driven income, and elevated food and beverage is one example.

“Good quality food and beverage is the way that we build our brands. We source local where we can – when you see the baker walk across the street in the morning to deliver fresh piping hot bread, that tells a story in itself,” he stated.

One of the more distinctive ways Savic has added depth to his pubs’ offerings is with the launch of Falls Distilling and Brewing Company, a distinguished tourism product created in conjunction with Mill Sheds Distillery.

“Over at Mittagong we delivered a brand called Falls Distilling and Brewing Company. Our first products were 40 Foot Gin and 60 Foot Vodka, both named after waterfalls on Mount Alexandra directly behind us,” Savic explains.

While the products are already available in the three venues, a development application has been lodged to bring production in-house to a distillery at the Mittagong Hotel.

“What differentiates me from the venue down the road if we’re all doing good food and good service? The logic behind the distillery is that people may stop by to see it, and subsequently they end up having a great pub meal. The development of that tourist product is critical to being a differentiator and it adds to the tourist marketing story.

“It’s not about becoming a big-time distiller, it’s about giving people a reason to stop, and that has got to be more than just a really good chicken parmy,” Savic continued.

By providing places for guests to stay, Savic sees accommodation as a further opportunity to extend the customer experience and open up another valuable revenue stream.

“For me, rooms are the new poker machines. There’s got to be a plan B to the gaming stuff. It may not come today, it may not come tomorrow, but reforms are always there, so there needs to be a plan B to protect your revenue stream. Accommodation is critical,” Savic told Australian Hotelier

“When you have tourists staying in your hotel, even if they’re there for an event, the chances are they’ll eat in the pub and have a drink in the pub, and that drives repeat custom. Alternatively, when you’re quiet, you get a worker who stays in your pub and eats and drinks – if they have a good experience, they’ll often come back with their family.”

Local loyalty

Tourism brings undeniable opportunity to the pub landscape, but it’s not without its fair share of challenges. Staffing can create a major hurdle in regional areas, where local talent pools are limited and retaining skilled workers is tough.

Savic believes the best way to address such problems is to invest in training, development and opportunities for young people.

We source local where we can – when you see the baker walk across the street in the morning to deliver fresh piping hot bread, that tells a story in itself.

-Steve Savic, Public House Collective

“I like to use the word over promotion, because I think it buys loyalty, by investing in training and development. Our manager at the Robertson is a prime example of that. When we bought the hotel, Lewis was fresh out of school and working in the pub, but he had this natural ability, and subsequently, seven years later, he’s undergone a traineeship, completed a diploma and gone from a causal food and beverage attendant to licensee of the hotel.”

The cyclical and seasonal nature of tourism also adds a layer of complexity to operations, with trade fluctuating significantly between peak periods.

“If you look at Kiama, that swells to two or three times its population over the summer months, and then people go to ground over the colder months. Really, then, the strategy becomes giving people a reason to go out. You’ve got to develop a product that drives that visitation,” says Savic.

Adding value to the community

Although winter in the Southern Highlands brings a noticeable dip in tourism, it’s an opportunity to focus on community and reposition the traditional offer.

At the Robertson Hotel & Kitchen, ticketed events feature the likes of country star Travis Collins, while pig racing honours the anniversary of the film Babe, which was filmed in the regional town. Alongside the monthly Ciro’s Pizza takeover, the Grand Hotel’s food menu will also be given a seasonal makeover.

“We’ve designed a menu that’s going to be really winter-focused – things like a really nice clam chowder, beautiful pies and soups,” Savic explained.

For me, rooms are the new poker machines. There’s got to be a plan B to the gaming stuff… Accommodation is critical.

While seasonal menus and events create a compelling reason for locals to keep pubs going as tourism crowds thin out, building local loyalty means more than just offering good food and drinks, it’s about having a consistent presence in the local community.

“When we went about developing the Robbo, a big part of the strategy was community engagement. People often talk about being part of a community, but what does it look like for a venue to truly be part of the community? It’s through employment, it’s through support, it’s through sponsorship, procurement, and adding value to that town.

“Again, at Mittagong, it was about local procurement and sponsorship of local grassroots sports. It’s not necessarily about top-tier teams, but getting involved in junior sports. It’s about family, connectivity, local recruitment, and giving kids an opportunity.”

When Public House Collective took on the Grand Hotel in Kiama, Savic says one thing was loud and clear – the local affinity with the pub.

“Everybody had a connection to the Grand, and a story

about what it used to be – a great country pub, warm and friendly, and a real part of the community. We saw an opportunity to re-establish that.

“In the eight months since owning the Grand, that local reconnect is where a lot of our growth has come from. We’ve gone back into sponsorship of local teams, and the vast majority of our staff are young locals. It’s a beautiful pub that’s responded really well to a bit of love.”

Getting the message right

Some might see the need to cater to two distinct audiences as a challenge, but Savic himself is both a South Coast local and well versed in tourism, being the general manager of Accor Asia Pacific for almost 25 years before he became a publican. He emphasises the importance of smart, targeted marketing to convey the right message to the right people.

“One of my business partners, Stan Crinis, has been in the industry for a long time with his own venues, but he’s a really accomplished marketer, and his pursuit for quality is really important.

“We try to balance our tourism and local focus in marketing. For locals, it’s on-the-ground stuff and links to community. We don’t use discounting in our pubs because as an industry I think we’re too quick to devalue what we do, but we try to create bespoke offerings that give our locals a reason to come out.

“Targeting our tourists has to be through really good quality social media – a lot of our social media is focused on the outside market, driving into Sydney or certain demographics.”

It seems that the key to long-term success in a tourism hotspot lies in striking the right balance when satisfying locals and visitors. For Savic, that means creating venues that feel essential to the community while also creating a proposition that is attractive to out-of-towners, ensuring steady trade year-round.

We try to balance our tourism and local focus in marketing. For locals, it’s on-theground stuff and links to community…

Targeting our tourists has to be through really good quality social media.