Australian Hotelier May 2018

Hotelier AUSTRALIAN

AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE

vol. 35 no. 4 - MAY 2018

REFRESHING ALE nally, o i t a n e l b a il a v a N ow True story.

IN THIS ISSUE: SECURITY | BAR AND CELLAR | GROWING YOUR GROUP

GET A KICK OUT OF THE

SOCCER WORLD CUP 2018 We’re proud to bring our venue partners the 2018 Soccer World Cup. A bonus extra for Sky Racing subscribers, all 64 matches will be broadcast live on channels 611 and 612.

Starting June 15th at 1:00am AEST with Russia vs. Saudi Arabia, patrons will be able to see every kick, tackle and goal of the world’s biggest sporting event.

Should you have any queries, please contact Sky Racing Sales Support on 1800 251 710.

Gamble Responsibly.

CONTENTS | ED’S NOTE

Vanessa Cavasinni

Editor’s Note

W

hile operators factor in theft and breakage into the cost of doing business, how much employee theft do you have a general idea of? A new study out of Edith Cowan University (ECU) suggests that theft from employees aged between 21 and 30 years old is prevalent in the hospitality industry, due in part to low wages (younger employees are generally working the lower-paying, entry roles) and also just general thrill-seeking.

While managers should have a zero-tolerance policy when it comes to theft, could a slight wage rise minimise levels of theft? It’s something for every manager to consider.

In this issue we look at another security issue, namely ID scanning and how sharing information between venues can counter the negatives of the system on page 16. You’ll also find a guide to internal and external venue heating (p 12), a how-to guide of the logistics of setting up a brewpub (p 20) and the considerations for a group that has multiple venues in one area (p 24). Happy reading!

Cheers,

20

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

NEXT MONTH

POS and Operational Technology • Foodservice • Gaming

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

Contents | May Special Features

Regulars

12 Preparing for Winter: Internal and external heating options.

15 Furphy: No lie, the Victorian beer is now available across Australia.

16 Security: Information is power when letting people into your premises.

20 Bar and Cellar: Wade Curtis ED’S PICK lays out the logistics of setting up a brewpub.

24 Growing Your Group: The considerations of operating multiple venues in one area.

6 News: The latest happenings around the country.

26 Design and Build: Everything is big at new Perth pub, The Camfield.

30 Sports Calendar: We bring you LIVE! sporting highlights for May.

vcavasinni@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

12 26

PUBLISHER: Paul Wootton EDITOR: Vanessa Cavasinni

PUBLISHED BY:

16

SUBSCRIPTION RATES

GROUP ART DIRECTOR – LIQUOR AND HOSPITALITY:

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%

Kea Thorburn kthorburn@intermedia.com.au

HEAD OF CIRCULATION:

Chris Blacklock cblacklock@intermedia.com.au

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

PRODUCTION MANAGER:

Jacqui Cooper jacqui@intermedia.com.au

DISCLAIMER

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

Copyright © 2018 - Food and Beverage Media Pty Ltd

Average Total Distribution: 5,680 AMAA/CAB Yearly Audit Period ending 30 Sept 2017.

AUSTRALIAN HOTELIER MAY 2018 | 3

GET READY TO BE

spooked THIS ALIA!

CO-HOSTED BY

AWARDS SPONSORS BACARDI-MARTINI AUSTRALIA PTY LIMITED

HALLOWEEN CO-HOSTED BY

WEDNESDAY 31 OCTOBER 2018 RANDWICK RACECOURSE PRE-DRINKS FROM: 6.00PM DRESS: Halloween or Cocktail COST: $270 per seat (ex GST) or $2700 per table (ex GST) BOOK ONLINE TODAY: www.liquorawards.com.au or bookings@liquorawards.com.au

NEWS

JD WETHERSPOON CLOSES ALL SOCIAL MEDIA ACCOUNTS UK pub giant, JD Wetherspoon, has made the radical decision to shut down all of its social media accounts, including group and individual venue accounts.

The group, which operates more than 900 pubs across England, Wales, Scotland and Ireland released a statement on Twitter in late April announcing the decision.

“In a world of social media, J D Wetherspoon has decided to close down all Facebook, Twitter, Instagram and other social media accounts for individual pubs and head office.

“Rather than using social media, we will continue to release news stories and information about forthcoming events on our website (jdwetherspoon.com) and in our printed magazine – Wetherspoon News.

“If you’ve been active in contacting us through social media, please continue to feed back at your local pub or via customer services, through our website.”

That official twitter account has now been shut down.

JD Wetherspoon founder and chairman, Tim Martin, has since called social media “a waste of time”, and in his own statement explained his reasoning for “going against conventional wisdom that these platforms are a vital component of a successful business.”

“I don’t believe that closing these accounts will affect our business whatsoever, and this is the overwhelming view of our pub managers.”

In an article for The Drum, UK PR agency founder Rich Leigh argued that Martin had made the right decision, arguing that so many social media accounts gave patrons too many avenues to voice negative opinions of the brand publically, and that it was too hard and ineffective for the pub’s marketing team to combat those opinions.

LOCAL PERSPECTIVE Here in Australia, the reaction to the Wetherspoon decision to eschew social media altogether - and so abruptly - has been met with a mix of opinions.

Mitchell Stapleton-Coory, co-founder of SHOUTback, a video discovery platform and marketplace for the hospitality industry, understands the decision, citing a marked decrease in the reach allowed by social media channels.

"The decision of Wetherspoon to veto social media is not at all surprising. The truth is that

FOR MORE INDUSTRY NEWS FOLLOW US ON 6 | MAY 2018 AUSTRALIAN HOTELIER

these platforms simply do not add the same value to small businesses as they once did.

Everything goes in cycles.

“Facebook had a decade of dominance, and it opened up a lot of possibilities for small business. But the zeitgeist is changing, and people are looking for a more nourishing experience online these days. Unfortunately, this is not something that a goliath like Facebook can offer people anymore. I expect this to be the first landmark example of businesses turning away from large social media platforms in search of a more bespoke and relative digital solution, but I don’t think it will be the last.”

Some industry participants just can’t see such a drastic cut from social media working for hospitality groups in Australia.

“I don’t think there’s going to be a considerable number of venues following JD Wetherspoon’s lead in deleting its social accounts. Like it or not, leaving the conversation does not make the conversation go away. People will still be sharing reviews with family and friends on those platforms regardless,” suggested Catherine Slogrove, director of Papaya PR. “In Australia, the numbers speak for themselves: 15 million on Facebook and 9 million on Instagram with the ability to place up to a 1km radius around the venue. Until the market leaves, it just makes a whole lot of sense to direct marketing efforts to platforms that have the volume and the unique ability to target such granular demographics and geographics.”

As the group marketing director of Solotel, one of Australia’s largest hospitality groups, Dan Lacaze is not as quick to discount the role of social media in communicating with patrons, but does believe current strategy should focus on quality over quantity.

“Social media plays an important part of our communications mix. However the reality for a diversified group like ours, with 31 venues, 40 brands and over 80 social media accounts across Facebook and Instagram, is that the resources to manage these effectively doesn’t always stack up for the return we get.”

He continued: “We are trying to focus on fewer, bigger, better initiatives that entertain our customers in social, not sell to them. Our ultimate goal is to engage with our customers, regardless of the media channel – be it social, traditional or experiential.”

Slogrove suggests that the issue that social media platforms need to address is regulation of the channels.

“I think the real question here is: what is Facebook going to do about regulation?

Almost every venue has been hit by a fake review from a disgruntled former employee or someone who is just plain unreasonable. Until the recent Cambridge Analytica saga, they’ve touted the ‘freedom’ banner. Whether it’s the US government, boycotts or competitors taking market share, something will force them to change and hopefully that will trickle down to community standards for venue pages.”

CHECK OUT THESHOUT.COM.AU

NEWS

MANDATORY GAMING CODE CHANGES PUT ADDED PRESSURE ON TASSIE PUBS Stricter amendments from the review of the Responsible Gambling Mandatory Code of Practice of Tasmania came into effect on 1 May, and affected parties are not happy with the changes.

There are two major changes that have hoteliers most concerned, one of which restricts cash withdrawals from ATMs in pubs and clubs to $100 – while the limit for casinos remains at $200.

The Tasmanian Hospitality Association (THA) has criticised the changes calling the code “one of the toughest harm minimisation documents in the country”. The THA participated in the review of the Code, but said that its advice was “listened to in some areas and ignored in others.” In the case of ATM withdrawal restrictions, the association believes it will be particularly detrimental to country pubs and will affect tourism in regional areas.

“To even further minimise EFTPOS withdrawals for patrons in gaming pubs is

tough for patrons and staff and doesn’t allow any flexibility for country and regional pubs where patrons have limited access to cash options and in many circumstances, the local pub is the only option. As well as the fact that patrons not only seek cash for EGM gaming but seek cash for meals, Keno, UBET, drinks and to pay for their accommodation,” stated CEO Steve Old. “These changes will further frustrate tourists who travel to our state and they should have the choice to decide how they access their cash and for what purposes, just like they do in other states.”

ALCOHOL BAN The other major change that has baffled the industry is the total alcohol ban for pubs and clubs while playing, seated or standing at a gaming machine. This restriction has only been imposed between 6pm and close of day within casinos. Old believes this amendment

suggests a lack of trust in operators to comply with RSA laws.

“With RSA such a focus in every venue, it is also frustrating to see further restrictions on the service of alcohol around machines.

Venue operators should be allowed to service their customers as they choose within RSA laws and within gaming laws as they currently do. There is no evidence to suggest that this and many of the other changes will make any difference to problem gambling rates or individuals.”

Old has called on people to read the Code, and acknowledge the tough position it puts on hotel operators in Tasmania.

“One thing that was very clear in the recent Tasmanian state election was the lack of understanding and knowledge of what the gaming laws and restrictions are in Tasmania by those outside of the industry, and I hope that many of those people take the time to understand the new code…But I won’t hold my breath.”

CRAFT BEER MONTH IS COMING! All through June Australian Hotelier will be posting news, information and tips on selling more craft beer in your venue. You can read all the stories online in the Australian Hotelier section of TheShout.

Keen to learn more about craft beer?

Sign up for our free pdf guide to selling craft beer in your venue and we’ll send you the guide along with a round-up of all our craft beer stories in June – so you can be sure you won’t miss a thing.

Just email Australian Hotelier's publisher Paul Wootton at pwootton@intermedia.com.au with BEER YES as the email subject title to get your free guide. We’ll also send you our fortnightly Australian Hotelier e-newsletter (you can unsubscribe at any time).

SUPPLIERS Are you a supplier of craft beer? Want to advertise your brand during Craft Beer Month?

To discuss June’s special promotional opportunities, contact Jason Wild on 02 8586 6213 or email jwild@intermedia.com.au.

June is

CRAFT BEER MONTH

at Australian Hotelier!

AUSTRALIAN HOTELIER MAY 2018 | 7

NEWS

CONTRIBUTOR’S

PANEL IS YOUR VENUE TRULY CUSTOMER CENTRIC? In an increasingly competitive environment and an era where online reviews and social influencers have put the balance of power firmly in the hands of the consumer, the customer experience has never been a more critical element of success in the hospitality sector.

The profile, expectations and tastes of today’s consumer are shifting rapidly.

Staying ahead of the consumer trends impacting the industry means you can better meet and exceed the needs of your customers and, in doing so, create a sustainable competitive advantage.

Here are five trends impacting consumers and how you can respond to create a customer experience that turns one-time patrons into loyal advocates.

1. HOME COMFORTS The research shows consumers are entertaining at home more and more and actively choosing to socialise in the cocoon of a familiar environment – a common reaction to external economic and political uncertainty.

To attract more customers and entice them to spend time in your venue over their home, ensure you’re replicating elements of creature comforts and, where possible, providing different options for seating and environments for your customers to choose from, depending on their mood and socialising occasion.

8 | MAY 2018 AUSTRALIAN HOTELIER

2. A SEAMLESS EXPERIENCE

5. FEMALE PATRONS – THE KEY TO YOUR FAN BASE

In 2018, the smartphone will surpass a wallet as the most important shopping companion.

Seamless digital payment systems such as Apple Pay will become the norm and consumers will reward brands that provide a streamlined, seamless digital experience.

Ensure your payment and processing methods are as frictionless as possible and engineered for customer convenience.

The research shows that not only are women the predominant deciders of a venue for group social occasions, women are 5-10 times more likely to engage in positive, active word of mouth if they have a great customer experience. Making your venue female-friendly and ensuring your marketing programs are appealing to women will show up in your online reviews, customer loyalty and bottom line.

The key to maximising these trends and creating a customer experience that gets people talking about your venue, is to strive beyond customer satisfaction. Satisfied customers don’t become raving fans. Creating customer advocates requires delivering an experience that exceeds expectations in every way. Focus on the little things, engage with your customers and make them feel so special they can’t help themselves but return with their friends and family.

Amanda Stevens is an author, speaker and customer experience consultant. She’s the author of five books on sales and marketing and consults to organisations on building customer experiences that create raving fans and increased profits.

3. THE LITTLE THINGS ARE THE BIG THINGS – ASK THE QUESTIONS The hospitality industry can learn a lot from the convenience sector, where $2 upsells at the point of purchase can add seven figures to the bottom line of an individual petrol station.

Asking, offering, upgrading and upselling — when done right — is not seen as pushy by your customers, it’s perceived to be superior service. So it’s a double win – happier customers and more revenue.

4. THE RISE OF C2B – ENSURE YOUR VENUE IS INSTA-WORTHY Customer advocacy is currently shifting from word-of-mouth to word-of-mouse. Online channels and social influencers are meaning that your digital footprint is becoming an increasingly potent marketing channel. Exactly how potent it is relies on your venue’s ‘Instagramability’.

Amanda Stevens CUSTOMER EXPERIENCE CONSULTANT www.amandastevens.com.au

NEWS

FIVE MINUTES WITH… PETER HURLEY PETER HURLEY IS STEPPING DOWN FROM THE PRESIDENCY OF THE AHA SA AFTER 24 YEARS AT THE HELM.

WHY DID YOU DECIDE NOT TO RUN AGAIN? Well I have been there for 24 years, so there comes a time – and in our case it’s been a very deliberate succession plan discussed. We’ve been fortunate to have the services of an outstanding CEO in Ian Horne. Ian is a few years younger than me and I’ve always held the view that it was important that whoever took over after me had a couple of years of clean air with Ian, and then whenever he retires, the state executive would then appoint a successor for him.

WHAT DO YOU CONSIDER AS YOUR GREATEST ACHIEVEMENTS AS AHASA PRESIDENT WITHIN THOSE 24 YEARS? During the earlier years, Lion Nathan bought the South Australian Brewing Company, which had 104 freehold premises. Lion Nathan had undertaken from day one that they would sell those properties. I was part of a steering committee and ultimately part of a board, known in South Australia as the SA Manco deal. That deal gave 89 families the opportunity to buy the freehold of the properties they had been leasing, in one case for up to 70-odd years. Kerry Packer talked about ‘only one Alan Bond in your life’, well for 89 South Australian families that SA Manco deal became their Alan Bond moment for their businesses.

It turned out to be a wonderful deal. It happened to coincide with introduction of gaming into the state which changed the economics of the industry substantially. It really set up a lot of people.

About five years ago, the government in South Australia drafted legislation to introduce wine onto supermarket shelves. It was going to have an extraordinarily detrimental effect on a lot of members, particularly country members. The association fought a very strategic opposition to that and ultimately convinced the majority of members of the Upper House that it was a bad idea and the legislation was defeated.

That was a wonderful victory for the hotel association.

Of course more recently – just in recent months in fact – our industry was under very serious attack of wipe-out, if the Xenophon SABest team had got into a position of influence and been able to halve the number of gaming machines in a matter of years and put us on gaming licences that would have to be renewed every seven years. It would have been an industry wipe-out. Thanks to a fantastic campaign run by Ian Horne, SABest didn’t get one candidate up. That was probably the high point of my entire 24 years in the role of AHASA president.

HOW HAVE YOU SEEN THE INDUSTRY CHANGE IN YOUR TIME AS PRESIDENT? The change has been massive. It’s probably best summarised by the huge shift from the on-premise consumption of alcohol to the off-premise consumption of it. That’s also been accompanied in the last 40 years of the slight decline in per capita consumption of alcohol. But when I bought my first pub in 1975, brewers put 75 per cent beer brewed in Australia into barrels, which was mostly consumed on-premise. The other 25 per cent went into long-neck bottles which was primarily consumed in the home or at parties. Nationally now the figure is much closer to 80/20

10 | MAY 2018 AUSTRALIAN HOTELIER

Peter and Jenny Hurley in the obverse. So that’s been a massive change.

Pubs have had to become much better at serving food. For some of us, our company Hurley Hotel Group in particular, accommodation has become an increasingly important part of the product offer. Pub TABs were a huge change 30 or so years ago and then of course in South Australia we got gaming in 1994. That increase in offer brought a level of viability to a lot of places that gave them the ability to upgrade their premises into a very credible standard.

WHAT DO YOU THINK OF THE STANDARD OF THE SOUTH AUSTRALIAN PUB INDUSTRY TODAY? Life is tough for a lot of smaller country pubs if their town is in a state of population decline. The much stricter policing of drink-driving and the eventual change from .08 to .05 which has been a big driver of the shift from on-premise to off-premise consumption – that’s made life very difficult for a lot of country pubs. But the standard of hotels in South Australia stands proud in any part of the nation. There’s some extremely high quality pubs spread around the regions and around the suburbs, as well as the CBD of Adelaide.

WIL YOU CONTINUE TO RUN HURLEY HOTEL GROUP? Most certainly. In fact I’ll have more time to focus on our business.

We have some fairly substantial capital expenditure campaigns coming up at a couple of our properties. While I’ve loved every minute of my time at the hotels association, I will have more time to focus on our own business.

The ‘R’ word doesn’t have any great appeal to me. I’m extremely fortunate to enjoy good health, so long may that continue.

Australian craft beer fans are fast becoming fans of Coopers Session Ale. Now available in bottles and cans, this refreshing, summer style Ale with distinct tropical fruit aromas can now be enjoyed at home. Get behind it by ranging Coopers Session Ale and give your customers something a bit TROPICALE. Contact your local Coopers Premium Beverages representative.

PREPARING FOR WINTER WHILE MUCH OF THE AUSTRALIAN YEAR IS SPENT TRYING TO KEEP CUSTOMERS COOL, IN THE WINTER MONTHS, IT IS IMPORTANT TO INVEST IN HEATING SYSTEMS THAT ARE EFFICIENT AND EFFECTIVE, SAYS CHARLIE WHITTING.

A warm welcome

E

very Australian pub goer understands the benefits of airconditioning and a cold beer when it comes to combatting the ferocity of the sun. But what of the winter? For Australian pubs, the option of turning up the thermostat and blasting heat from an array of radiators doesn’t generally exist. Instead, operators are relying on a blend of old-fashioned and new-fangled approaches to beat the cold weather and ensure that their venues remain attractive places for people to visit and linger.

“It is extremely important to keep our venue warm in winter,” comments Iain Lang, publican and owner of The Lincoln in Carlton, Victoria.

“A warm and comfortable environment is not only essential for ensuring guests immediately feel welcomed on entering our venue but it also helps to extend the length of their stay with us.”

LIGHT IT UP Many pubs in Australia are blessed to still have working fireplaces in buildings that are often decades if not more than a century old. And there are few people who can resist the lure of a roaring fire. At The Austral in South Australia, the two open fireplaces are the only source of heat inside the pub and they also provide a more welcoming atmosphere, which operators can utilise and expand with carefully considered decorations and drinks.

“The fireplaces give a nice feeling over all,” says manager Caitlin O’Connor. “It’s nice being close to the fire. We get a tonne of wood delivered every week – red oak. The smell of it is just amazing. As soon as you walk into a pub with a fire place, it feels cosy instantly. In the winter we’ve done hot toddies and mulled cider and stuff like that as well.”

Operators with working fireplaces should ensure that they are wellstocked with wood and ready to be lit at a moment’s notice. Advertising their existence externally and on websites and social media will also draw in additional trade from people looking for a warm place to enjoy a drink.

At The Inglewood Inn in the Adelaide Hills, people come specifically so that they can sit by the fire. The restaurant has a fireplace that opens up on two sides, providing more heat, but it is also movable, which means that the pub operators can create more space in the winter by simply removing it entirely.

12 | MAY 2018 AUSTRALIAN HOTELIER

The Lincoln's fireplace

PREPARING FOR WINTER O

U

T

D

O

O

R

H

E

A

T

E

R

S

WHAT WOOD YOU CHOOSE? Wood burning suggestions by state: Western Australia – Jarrah and Wandoo Northern Territory and Queensland – Ironbark and Boxwood New South Wales, Victoria and South Australia – River Red Gum Tasmania – Brown Peppermint wood “We get red oak,” says Caitlin O’Connor, manager of The Austral. “The smell of it is just amazing.

As soon as you walk into a pub with a fireplace it feels cosy instantly.”

The Longley International Hotel in Tasmania is over 150 years old and was built to withstand summer heat and winter chills, with its doublebrick construction. Open fireplaces in most of the rooms also provide needed warmth and attraction. But owner David Brereton also faces the challenge of keeping his customers warm should they want to sit outside. He has eschewed gas heaters in favour of wood burners, similar to but larger than those used on local wooden fishing boats.

“It’s a steel cylinder that warms up,” he explains. “It’s efficient, it keeps the whole body warm, but you have to clean it out once a month.

It’s the simple stuff that works.”

South Australia, however, seems to favour gas heaters outside. In a recent refurbishment at The Inglewood Inn, the Howell family installed an overhead gas heater for outdoor customers, with extremely positive results.

“I haven’t seen one this big before,” Milly Howell explains. “We had to modify the height of the roof to put it in because it has to be a certain height above people because of the heat it produces. It has been 4°C outside and I’ve had to take my coat off. We only turn it on if there are people out there, but it doesn’t take long to heat up. That gas heater has been one of the best investments we’ve ever made.”

Even with this technology, Howell is still looking for more ways to improve her customers’ experience when the weather is cold.

The plan is to put in another fireplace to add to the two open ones currently inside, and also find solutions to other external parts of the venue like the balcony, which has no heating, and the beer deck, which has a wood oven fireplace. These solutions might not involve producing more heat, but instead preventing it from escaping.

“It’s alright with the beer deck because it’s more enclosed,” she explains. “But there’s nothing along the balcony. I’d like to look into a solution – maybe putting blinds up so the heat isn’t escaping.

But then it gets to whether you’re willing to sacrifice the view to keep people warm. Perspex would get so dirty – how would you clean that on a three-storey building?”

At The Austral, gas heaters have also been installed for the benefit of customers who prefer the outdoors. But rather than heating from above, O’Connor has opted for a different approach.

“Gas heaters are very popular in Adelaide,” she states. “Not the tall mushrooms, but the small body height ones. A lot of venues are using blankets which I think is super cute and really cosy.”

Autumn is already in full swing and before long, the winter chills will be upon us, so it is worth thinking about your heating now. Insulation is another avenue to explore, but when it comes to the inside of a pub, a roaring fire appears to be a match winner, while externally, there are myriad options for operators to get behind in order to keep customers warm and happy.

Inglewood Inn

RRP

EXTERNAL HEATING

799

$

OUTDOOR H E AT I N G N E VER LOOK ED SO GOOD HEATSTRIP ® available in electric and gas models, DIY, portable or mains connected. To find out more please call (03) 9562 3455.

heatstrip.com.au TFA 0107 Aust. Hot LPG Commercial_57x270mm.indd 116/3/17 4:14 pm

AUSTRALIAN HOTELIER MAY 2018 | 13

BEER

NO LIE, FURPHY IS HERE FURPHY REFRESHING ALE, WHICH HAS ONLY BEEN AVAILABLE IN VICTORIA, IS NOW BEING ROLLED OUT NATIONALLY BY LION.

L

aunched in July 2014 in Geelong, and made from 100 percent Victorian hops and malt, Furphy Refreshing Ale has been available only in Victoria for the past four years. But with unprecedented demand in Victoria, and calls for the beer to be made available in other states, the Furphy family and Lion have decided to take the plunge and roll-out the beer nationally.

“We’re excited about sharing a great beer that’s been brewed in Victoria and making it available to others around the country. The Furphy family and the Lion team are really excited and looking forward to making that happen,” says Gordon Treanor, general manager of craft for Lion.

While Furphy has been a staunchly Victorian brand up to this point, Treanor thinks that the beer’s refreshing quality will see it perform well in other states. And with the word ‘furphy’ being an Australian colloquialism, Treanor is already seeing the brand resonate elsewhere.

“I was in a pub recently in northern New South Wales and Furphy was on tap, but when I asked for it they had sold out. There were a couple of the guys next to me at the bar and they said ‘Don’t believe that, it’s a just a furphy!’ I thought that was interesting, that in northern New South Wales the beer is selling out on tap and they’re cracking that joke. It’s a positive sign.”

With a national roll-out comes a higher investment in production of the beer. Roughly a year ago, $20 million was spent in doubling the capacity of the brewery in Geelong – just to

14 | MAY 2018 AUSTRALIAN HOTELIER

keep up with Victorian demand. Now, Furphy Refreshing Ale is also being brewed in the Sydney suburb of Lidcombe to meet national requirements. Head brewer Warren Pawsey is overseeing the operation in Lidcombe to ensure that the beer is consistent with those brewed in Geelong. A panel blind taste-matches the beers every fortnight. New deals have been formed with Victorian farmers as well to ensure that the hops and malt of the beer remain 100 per cent Victorian.

“We have a plan that stretches forward for many years to ensure that we’ve got consistency of supply,” states Treanor.

Lion is currently focusing on the on-premise to spread the word about Furphy around the country, with the expectation that the eastern seaboard – and New South Wales in particular – will see the fastest adoption of the beer.

There has also been plenty of demand for the beer in South Australia.

“We’re seeing a lot of interest, and good sales numbers through the taps where Furphy has gone out.”

Furphy Refreshing Ale is available to the on-premise in draught, bottles and cans, but draught is proving most popular. The secret to its success, Treanor believes, is that it is in the unique position of attracting all kinds of beer lovers.

“Drinkers are stepping up into Furphy when they want a refreshing, easy drinking ale but with a little bit more flavour. But we’ve also seen a lot of craft drinkers and younger drinkers that

“Where we’ve seen it go onto the tap bank it’s selling incredibly fast and it’s selling better than many of the beers that it’s sitting alongside.” have been very excited about Furphy.

“It’s relevant to a whole range of outlets, but certainly the larger on-premise venues around Australia will see Furphy on the tap banks and a lot of classic drinkers experimenting with Furphy for the first time.”

While it is early days for the roll-out, patron response to Furphy has already been very good.

“Where we’ve seen it go onto the tap bank it’s selling incredibly fast and it’s selling better than many of the beers that it’s sitting alongside. We’ve had lots of anecdotes come back from our sales team about Furphy really surprising our customers with its strong rate of sale. It’s been very successful to date.”

Lion and Furphy will be supporting their on-premise partners with a range of assets including glassware and point of sale, plus they will also be rolling out tastings and bar shouts in selected venues.

Guinness IS SEEN BY MANY DRINKERS AS THE perfect beer for winter.

SECURITY

INFO NETWORK NEW REGULATIONS, TECHNOLOGY AND ACCORD INITIATIVES ARE ALLOWING OPERATORS TO SHARE INFORMATION ABOUT TROUBLE-MAKERS BEFORE THEY STEP FOOT IN YOUR PREMISES.

L

ike it or not, mandatory ID scanning is a given in certain areas of the country. The two main areas at the moment are the Brisbane CBD (for those venues who choose to trade after midnight) and the Kings Cross precinct in Sydney.

In the case of the latter, the New South Wales Government has announced that they have made improvements to the ID scanner system to give pubs and bars the ability to share information on troublemakers who have been banned from their venues – effectively ensuring that a rowdy patron kicked out of one venue doesn’t simply move on to the next.

The system is also being reconfigured to alert venues about people that have formal bans initiated by either the police or Liquor & Gaming NSW (L&GNSW) inspectors.

“The Banned Patrons List will be securely shared across the network so if a patron is ejected from another venue in the area and banned, notification will be sent on screen if that person tries to enter another venue in the system,” explained an L&GNSW spokesperson.

“The change is in response to industry feedback. In 2016, Liquor & Gaming NSW conducted a review of Kings Cross ID scanners. Liquor industry bodies and licensed venues were supportive of the upgrade.”

There has been plenty of criticism in Kings Cross about

16 | MAY 2018 AUSTRALIAN HOTELIER

“IN THE PAST SIX MONTHS OF POLICE REPORTS, WE HAVE SEEN A DRAMATIC DECREASE IN ON-PREMISE ALCOHOL- RELATED VIOLENCE,” MARTIN SINCLAIR, CAMDEN LIQUOR ACCORD PRESIDENT.

mandatory ID scanning. Operators have remarked on the longer outdoor queues the ID scanning causes, which both creates more tension on the street and reduces the time that patrons are spending within the venues. The implementation of the policy at 9pm has also left many operators scratching their heads, as on the weekends it means the vast majority of patrons have to have their IDs scanned. Tourists and older patrons who are not accustomed to having to show their ID are also being turned away, as they generally do not bring a form of identification with them.

This policy, combined with lockout legislation has left many operators in the area unhappy, but it is hoped that this latest update to the ID scanning system – where information about troublemakers will be shared between all venues – is one positive aspect to come out of the system.

Currently there is a total of 169 people subject to long-term banning orders in the Kings Cross precinct.

According to L&G NSW, scanners have prevented banned persons from entering venues in the Kings Cross area on more than 170 occasions since the scanners were introduced, and it is hoped that this latest update will make keeping banned patrons out of venues even simpler.

Prosegur: Your Choice in Cash Management To get your first Cash-in-Transit service free* reference this ad and contact us now at: www.prosegur.com.au/aus/contact-us (02) 8026 1809 Your one-stop shop for end-to-end cash management, including: Cash-in Transit, Australia-wide Cash automation ATM supply & maintenance Gaming clearance & cash forecasting Whether it’s for one service or the complete cash management solution, Prosegur has a range of customer testimonials

conditions apply

*

Security you can trust

AUSTRALIAN HOTELIER MAY 2018 | 17

SECURITY

FACIAL RECOGNITION ID scanning is not the only way that businesses are identifying potential trouble-making patrons. In fact many venues are leaning towards facial recognition as a quicker and more subtle way of identifying those people. QikID, an Australian company, was incorporated in 2011 after experience in the hospitality industry led to the creation of QikPASS, a patron ID scanning and management system.

However, with feedback from key stakeholders it soon became apparent that a less invasive solution which could quickly and clearly identify ‘persons of interest’ would provide a significant benefit to venue operators.

In 2014, QikID commenced development of a fully autonomous facial recognition solution: QikDETEKT. The system is designed to identify known persons of interest at a point of entry and provide automated alerts to designated personnel, by text or email, within seconds.

Deb Corcoran, General Manager of QikID advised QikDETEKT has successfully undertaken user acceptance trials in a number of hospitality, late night and retail environments. Several of these trials were conducted in conjunction with the Executive Committee of the Kings Cross Licensing Accord.

“The Kings Cross Precinct is subject to legislated mandatory conditions of entry for high risk venues after 9pm, including the use of ID scanners. This has been a challenge for operators as without acceptable forms of identification, patrons simply cannot gain entry and visitor numbers have declined markedly,” stated Doug Grand, CEO of Kings Cross Licensing Accord.

“The Accord considered the less invasive facial recognition technology could provide an opportunity to maintain the current levels of patron and venue safety without jeopardising the continuation of the current policy objectives for Kings Cross or alienating patrons.”

A trial was undertaken in conjunction with QikID which demonstrated the ease with which sharing of Section 77 venue bans and other bans (e.g. long and short-term police bans) between linked venues, could be achieved.

“Importantly going forward the Accord believes the technology

18 | MAY 2018 AUSTRALIAN HOTELIER

provides the option for a natural progression from ID scanning to a more modern and discrete solution for identity management, as well as providing a seamless progression towards recognising and linking to digital ID technology,” concluded Grand.

SUBURBAN SOLUTION In the south-western Sydney suburb of Camden and its surrounding area, pub, bar and restaurant operators within the Camden Liquor Accord have come together to initiate a ‘banned from one, banned from all’ policy for violent offenders.

Martin Sinclair, president of the accord and operator of the Royal Hotel Camden, said that the decision to institute such a policy was based off a “proactive approach” following the success of the same kind of policy within the Wagga Liquor Accord, and to coincide with an alcohol awareness schools program the accord currently provides.

The policy has been trialled in the area for the last 12 months, but is going through a more formal launch now. Forty-five financial members of the accord share information on banned patrons and the ban lengths are set on an individual basis by the venue in which the incident occurred. The bans can last anywhere from six months to three years. Local police are also very supportive of the Accord’s policy, and are assisting in proactively enforcing it.

Sinclair says the policy has helped many operators in managing and reducing the number of violent incidences in their venues. “[It] offers tools for managers to better manage their venues and assists in ensuring safer, more enjoyable environments throughout venues within the area. It sends a clear message that bad behaviour won’t be tolerated within the Camden area among licensed venues.”

The policy also extends to bottle shops within the Accord, and has already shown significant results in the trial phase.

“In the past six months of police reports, we have seen a dramatic decrease in on-premise alcohol-related violence,” stated Sinclair.

There are many ways of sharing knowledge between venues, but however it is done, it is clear that information is power.

WANT YOUR PRODUCTS IN THOUSANDS OF PUBS AND BARS? Book a slot in Bar Box today!

2017 SUMMER

Bookings for the second Bar Box are open now. Space is limited so get in quick!

Your booking includes • Delivery of your product to over 4,000 key pubs and bars across Australia • DPS ad in the Bar Box magazine, delivered with Bar Box

R 2017 SUMME WIN! COULD & YOU m.au/survey RVEY eb arbox.co R BOX SU BA http://th E to ad TH ETE and he COMPL ide for details

PAGE 1

• Your deal on the Bar Box Deal Sheet to encourage sales

See ins

Watch the Bar Box video at www.thebarbox.com.au to see how it works.

Bar Box is a sales-driving and sampling system, targeting over 4,000 key pubs and bars across Australia.

You can include full size bottles of wine, spirits, beer or non-alcoholic beverages.

OR We can help you rebottle your liquid into smaller, sample-sized packs.

Turn your products into samples.

Turn your samples into sales.

Contact Greg Walsom for more information Telephone 0408 110 863 Email gwalsom@intermedia.com.au

BEER, BAR AND CELLAR

BREWPUB ECONOMICS

WADE CURTIS OPENED 4 HEARTS BREWING AND PUMPYARD BAR AND BREWERY IN IPSWICH, QUEENSLAND, A FEW YEARS AGO. HE TALKS US THROUGH HIS EXPERIENCE AND THE LOGISTICS OF SETTING UP A BREWPUB.

20 | MAY 2018 AUSTRALIAN HOTELIER

BEER, BAR AND CELLAR

I

n 2001 I travelled around the world and tried a whole heap of different beers, following my passion. About ten years later I finally launched my ideal concept of a commercial venue, 4 Hearts Brewing/Pumpyard Bar & Brewey in Ipswich, Queensland. The whole process took about 18 months.

A bit of a caveat, I’m not a long-term publican – I ran our venue for about three years. It’s a small venue, a 1200 L brewery with a 200 seat capacity. This is basically our experience, but I’ll give you a bit of an overview of setting up a brewpub.

WHY A BREWPUB? Craft beer has been growing for a number of years now, especially in Australia. The experience in the US and the UK is that there are a lot of craft brewpub chains. Some operators in the states have 50 brewpubs and they’ve got an individual brewery in each pub. It’s a huge market over there, and one that hasn’t really taken off too much in Australia – yet.

One of the big reasons that a lot of people initially look at it – and there’s a massive amount of caveats around this – but it is cheaper to produce your own beer in the grand scheme of things. I think the biggest thing that really works for the market, and for us, is creating a unique experience. We are in the CBD of Ipswich, where there was no other development going on at the time, and not a lot of entertainment options. We knew based on population statistics that that would appeal to the market. There was a lot of escaped expenditure that we could tap into. People want to engage with local products, they want to go somewhere where the guy that brewed the beer might pour them the beer, or they know that the people there are invested in it.

We also knew that as a brewpub we could create additional revenue. We wholesale our beer to some venues in Brisbane. We also do tours, events, and sell merchandise like hats and t-shirts. It’s as much about the experience and differentiation, as it is about the beer and its process.

PLANNING The concept is the exciting, fun part. The planning part is where things go pear-shaped pretty quickly.

When you do it in a licensed premise, there are basically three levels of government to contend with.

You have to deal with the ATO, your state liquor licensing and also local government planning. There’s a lot of work – some breweries spend two years in planning. If you do research up front though, that can be sped up to about 6-12 months. That is probably the biggest thing where a lot people get caught out.

If you don’t understand the brewing process you won’t understand the impacts it’s going to have on grease traps and waste, utilities, gas, electricity etc.

They all need to be factored in. Also depending on where you are, brewing triggers Acts around industrial usage. So most town planners don’t understand what a 1200L brewery looks like, and will make you jump through nearly the same amount of hoops as what XXXX probably had to do to build their facilities in Milton, for example.

DESIGN Design is another thing that is important to consider.

A brewery can have so many different system set-ups.

You can get tanks that stack on top of each other, so you can fit the brewing set up in around about 100 sqm, but you need a lot of room for hoses and other equipment. What we’ve done in Ipswich is we have the tanks around the outside of the bar. But we close on a Monday and Tuesday for a clean – that works for us but for other venues may not. You could have a section closed for a day, as another workaround.

But making the brewery a centrepiece of a brewpub is really important. You don’t want to tell people you make beer if they can’t see it. We’ve got great big shiny stainless steel tanks around the brewery and people love it, and we do serve from the tanks as well.

One, it saves space, and two, it just adds a little bit of authenticity. It’s made here, transferred into a tank, goes about 10m and then comes out of the tap. People really respond to that local, fresh kind of beer.

With a lot of breweries that I’ve seen that have been retro-fitted into a space, the architect or designer has done it, and then the brewer comes in and thinks ‘Well this means we can’t do a whole bunch of stuff’.

So if you are thinking about creating a brewpub, as well as talking to designers and architects you also need to think about the functionality of it, which is really important.

EQUIPMENT You’re going to have to squeeze a lot of things into your space, so you really need to think about how you’re going to lay it all out. Here’s what you need to consider: • Milling: you’ve usually got to do that in a separate room because you’ve got a lot of dust and things flying around.

• The brewhouse: you’ve got boiling hot liquids moving around. It is an industrial process and there are a lot of Workplace Health and Safety (WHS) issues that you need to manage.

• Fermenters: These have to be hooked up to glycol and CO2, and you have to have flexible piping between everything as well.

• Grain storage: Generally you’ve got to store a tonne of grain at any one time. Some breweries have that off-site, especially if you have a really small space, but it’s ideal to have that on-site.

• Keg storage: If you’re not storing it in bright tanks, you need to store it in bigger cool rooms as well.

• Other equipment: Keg washers and hoses. Lab equipment, especially if you’re going to package your beer.

The equipment side of things is quite complicated and there’s a whole different range of ways you can source that. We bought all of our gear direct from China and we spent a lot of time researching it.

“MAKING THE BREWERY A CENTREPIECE OF A BREWPUB IS REALLY IMPORTANT. YOU DON’T WANT TO TELL PEOPLE YOU MAKE BEER IF THEY CAN’T SEE IT.”

OPERATIONS You’ve got to decide whether you can brew when the pub is open – it depends on your set-up. Cleaning equipment is hot, it’s acidic and caustic. You’ll see in a lot of brewpub designs that a piece of glass separates the brewhouse and the bar. We didn’t do

AUSTRALIAN HOTELIER MAY 2018 | 21

BEER, BAR AND CELLAR

that – that’s why we have to actually close and not allow patrons into the bar for cleaning. But we think the visual makes up for that. In the market we’re in, Mondays and Tuesdays are not that busy anyway, so we’re probably saving ourselves money by not having staff in on those days except for the brewers.

For a brew day, you have to factor in that that’s going to be between 6-10 hours depending on what you’re doing. A double batch would probably take a good 10-12 hours by the time you clean up. Pretty much every time you put something into a tank, you will have had to have cleaned three tanks to get it into that tank, so cleaning is a huge part of the process. You’ve got to take something out of a tank, clean it, clean the vessel it’s going into and clean kegs as well.

You’re looking at the equivalent of one and a half full time employees to run a brewery. You need a head brewer and you need an assistant. If you package you need more people, but if you’re purely a 1200L brewery that’s selling your beer primarily on site and brewing two days a week, those two positions are enough as it’s not overly labourintensive. What’s interesting thing is that it takes the same amount of FTE to brew 100L, 1200L or 2400L, so it’s a really scalable production. We brew 10,000L per month from those two people.

COMPLIANCE Compliance is a big issue that everyone forgets about when considering a brewpub operation. You can’t sell beer commercially without paying money to the Australian Taxation Office (ATO) for excise. About half the cost of the beer is ATO excise and it’s a huge amount of work – you have to report monthly. You can get a rebate of up to $30,000 under the small brewer’s relief scheme. You can get audited so you need to make sure that everything is in good working order and that your calibrations are all up to date. Everything has to be recorded – how much grain you use, how much beer you produce, how much you waste, how much you sell. That all needs to be put in a spreadsheet and sent through, and you need to keep that for seven years, just like any other tax records.

A lot of places just absorb that added cost into their

22 | MAY 2018 AUSTRALIAN HOTELIER

admin costs, or the brewer maintains those records. If it’s not the brewer, then you need to make sure that whoever is in charge of that is doing it properly, as otherwise there will be significant issues with the ATO.

THE NUMBERS

“IT TAKES THE SAME AMOUNT OF FTE TO BREW 100L, 1200L OR 2400L, SO IT’S A REALLY SCALABLE PRODUCTION.”

The first caveat is that there is a massive range in these sorts of numbers or output and revenue. It depends on what the property, plumbing and utilities are like. But you can’t get out of a brewery build for under $500,000 for a 1000L brewery. There are other options of going smaller, with 300L or 500L systems but I wouldn’t recommend it. If you make good beer in a busy venue, you’ll outgrow those systems in 6-12 months. Aim to get a system you can grow into because they are very hard to remove and refit later on.

In terms of staff costs, a brewer will cost you about $60,000 a year, and an assistant depending on their skills and how many hours they work will cost around $30,000 a year at base rate. When you get a good brewer, you’ll pay more than that as they are basically responsible for the end product. They can do a lot of damage to your business if they are not doing their job properly.

My numbers for beer costs factor in rent, labour, ingredients etc. So it costs around $3-4 per litre depending on the type of the beer that you’re making. The higher the alcohol content the higher the excise. An average keg of craft pale ale is probably selling for around $280 ex GST, so depending on your overheads and set-up, you can create it at a cost of $200. So the best thing about a brewpub is the margins you’re making on selling your own beer, as opposed to paying more for an external keg of beer. Talking roughly about the size of brewery I’ve described, you can produce anywhere between 50,000-150,000L of beer per year.

Lastly, rent is a huge part of your equation. If you’ve got 100 sqm cordoned off for your brewery then you have to do the numbers to understand whether that would be better off in your business to be tables where you can serve more customers, or do you try to create a point of difference/business driver with a brewery?

And don’t forget, you have to be passionate about craft beer to pull this off, otherwise it won’t be worth the effort.

COMING TO MELBOURNE! RESTAURANT

LEADERS SUMMIT 2018

MONDAY 30 JULY 2018 PARK HYATT HOTEL, MELBOURNE Tickets are available from May at

www.restaurantleaders.com.au The Restaurant Leaders Summit is the hospitality sector’s premier conference for restaurateurs, chefs, café owners and licensees.

“A fabulous forum for people in the industry” – Trudi Yip, Numeric Eight HOSTED BY

INTERESTED IN SPONSORING THE SUMMIT? Contact Dan Shipley: 02 8586 6163 E: dshipley@intermedia.com.au

BUSINESS DEVELOPMENT

IN YOUR OWN BACKYARD

AT THE PUB LEADERS SUMMIT, FOUR SAVVY OPERATORS WITH MULTIPLE PUBS IN CERTAIN GEOGRAPHIC AREAS SPOKE ABOUT THE CONSIDERATIONS OF RUNNING HOTELS NEAR ONE ANOTHER.

A

t the 2018 Pub Leaders Summit held in March, four operators of hotel groups of varying size and location, spoke about operating pubs that were relatively near each other.

Justine Baker, CEO of Solotel, runs three pubs in the inner Sydney suburb of Newtown – Courthouse Hotel, The Bank Hotel and Marlborough Hotel – all within about a kilometre of each other.

Stephen Hunt is the managing director of Hunt Hospitality, which operates four pubs within the Newcastle/Hunter region of New South Wales; and Craig Power is a director of The Pub Group which operates four hotels within the city of Tamworth. Marcello Colosimo is the CEO of Momento Hospitality, a pub group which focuses on the northeastern suburbs of Sydney.

The four answered questions on how they make these venues distinct from one another, share resources and get involved in the local community. Here is some of what was discussed within the panel.

HOW DO YOU ENSURE THAT YOUR VENUES DON’T CANNIBALISE EACH OTHER’S PATRONAGE? Justine: We put in a lot of effort to make sure the venues have very distinct personalities to target different demographics. So The Courty, you wouldn’t even know is part of the group, and that’s part of the narrative we’ve created for the venue. So very different personalities is key, which is a lot of hard work. So if we have a live act playing at The Bank, then that same band won’t play at The Marly.

HOW DO YOU CREATE THOSE DISTINCT OFFERINGS AND ATTRACT DIFFERENT DEMOGRAPHICS? Marcello: When building these hotels, we always think, what does the community want? So for example with Bella Vista Hotel we’re in the middle of a business park, and we wanted to build that and offer a service that people didn’t need to go in the city for. For the Australian Brewery Hotel, that’s a very family-orientated venue. So the idea is we look at the customer range and say how do we cater for that whole range and which pub is best suited for it?

Naturally the pubs want to compete against each other, so a lot of the things I do are to try to maintain the focus on the target market of that particular hotel. Otherwise each pub would just try to do the best it can, and not for the betterment of the whole group.

24 | MAY 2018 AUSTRALIAN HOTELIER

DOES HAVING MULTIPLE VENUES IN ONE AREA CREATE ECONOMIES OF SCALE? Stephen: Yes, especially in terms of HR, and shuffling staff around from different venues. I think that gives them good opportunities to, for example, learn about working in a late-trading environment or a food operation.

It also strengthens your buying power – you’re in a better buying position with your suppliers.

Justine: You’ve also got a better and stronger say with local community organisations or police, rather than being a sole-venue operator.

HOW DO YOU STRIKE A BALANCE BETWEEN STANDARDISATION BETWEEN THE GROUP AND INDIVIDUALITY OF VENUES? Justine: I think it’s an ongoing conversation. For us, it’s quite venue specific. Some pubs are really wholly owned by the GMs and we allow that GM absolute veto rights because they are closest to our customers.

We know that head office doesn’t know as much about the customers as the people on the ground. It also depends on the strength of the licensee: whether they are new and need mentoring or if they’re just running with it. But we really feel that we’d rather give them the yes rather than the no, and then work it out when we make a mistake.

Craig: It’s strong business procedures too that allow you to do that. So when you’re employing a licensee, they have a very good understanding of how you want it done. So we have an executive chef that does a lot of buying for the venues rather than the head chef at each venue, so the licensee doesn’t have a lot of say in that. And they need to understand that this is the best thing for the group and not for the hotel.

WHAT DOES A GOOD SUCCESSION PLAN LOOK LIKE FOR FAMILY OPERATORS? Craig: We’ve definitely got some goals, we work pretty solidly on it week in and week out. We’ve got a pretty strict business set-up so we have a board meeting every Monday morning with our family and share those goals. Then we share them with our managers and supervisors to make sure that they know where we’re going. We’ve got a pretty solid plan over the next 12 months, plus we’ve got a 3-5 year plan. We’d like to group our business, and to do so I think we need to go outside of Tamworth so we have had a look at assets outside of Tamworth in

BUSINESS DEVELOPMENT the last couple of years. The market has been pretty hot of late, and it’s good to see that regional areas are starting to get recognised, because there’s still plenty of opportunity.

Marcello: The biggest thing we’ve learnt is that we try to get some outside help in. So professional people to work with the family businesses on a more structured way to do business. It’s probably moving from a family business to a family-owned business. So now we’ve got a board with external people on the board, and there’s a lot of accountability.

When you have so many people involved, to have that concept of people saying ‘It’s in my best interest to allow the people running the business to run it because they have to act in a professional manner’, is something that we’ve learnt works pretty well.

WOULD YOU RECOMMEND BEING INVOLVED IN LOCAL COMMUNITY ORGANISATIONS?

Solotel's Marlborough Hotel

Justine: Absolutely. We do, especially in Newtown. We support grassroots organisations and over the top of that we have support at group level of certain organisations – but we rely on the venues to pick that up.

They sit on the Newton Neighbourhood Community Centre board and support everything from the mobile laundry guy, to the woman who gives sanitary products to homeless women, to RSPCA fundraisers. That’s part of the expectation of whoever is running that venue. The Courty is more grassroots, whereas The Marly and The Bank tend to be more high level where we go up to Mardi Gras festival level.

Marcello: I think it’s absolutely essential to be a part of it. I think everyone realises that for hotels to succeed going forward we need to form ourselves as the centrepiece of the community, and to do that we need to be part of that community. It’s easy to do so as a group in one location because you have those economies of scale, not just with social influence or strategic partners, but also with data. It also helps your brand equity. People feel that you are part of the community.

Craig: Being born and bred in a country town you grow up playing sport and being a part of the community. So when you own a business of size, there’s an expectation that you are going to support that community.

We have the country music festival, and we’re really involved in it. We’re on all of the committees – you have to be part of that.

Momento Hospitality's Bella Vista Hotel

AUSTRALIAN HOTELIER MAY 2018 | 25

DESIGN & BUILD TAG

One of six bars at The Camfield

SIZE AND SCALE IS THE CAMFIELD IN PERTH AUSTRALIA’S BIGGEST PUB? EVERY NUMBER ATTACHED TO THIS BEAST OF A VENUE SUGGESTS IT IS…

T

he new Burswood Precinct, including the brand new Optus Stadium, officially opened at the beginning of the year. The only external F&B offering of the area is new mega-pub, The Camfield. Operated by Three Pound Group – owners of successful Perth venues The Stables, The Revely and The Globe – The Camfield is the product of four years of planning.

The opportunity to build the new precinct’s only F&B venue was attached as part of the build of the new stadium. When Multiplex won the tender to build the new stadium, the hospitality operator they had lined up for the project pulled out, opening up the opportunity for Three Pound Group to create something on a grand scale.

General manager Tim McLernon jumped at the

26 | MAY 2018 AUSTRALIAN HOTELIER

chance to take on the project – an opportunity he knew most operators would never even be able to fathom. Especially at its projected size. “[I was] excited and extremely nervous, to be honest! It was a very daunting thing to take on – a 9000 sqm site, the knowledge that you’re the only hospitality site right next to the stadium. If you’re going to be in bars, this kind of opportunity comes up maybe once in a lifetime: to open a 3000-person bar right next to a $1.5 billion stadium, two kilometres from the CBD.” The new Optus Stadium and surrounding precinct was built on a former golf course, with the land owned by VenuesWest, the sporting venues vehicle for the State Government. The Camfield site was located where the old clubhouse and three other buildings

DESIGN & BUILD for the golf course were situated. The clubhouse was knocked down to make way for The Camfield, while the other three buildings were gutted and repurposed to serve as a function centre and storerooms for the pub.

The microbrewery and courtyard

EVENT/NON-EVENT DAYS With 46 major events – mainly sporting matches and concerts – taking place at Optus Stadium per calendar year, trade at maximum capacity is all but guaranteed for The Camfield on those days. Three Pound Group has focused on ensuring that the pub’s offering makes it a viable hospitality destination on days where nothing is on at the stadium. McLernon has drawn on his experience with other venues to create a mega-pub that attracts every kind of demographic – from families, 18-25 year olds, craft beer lovers and everything in between.

“We already own bars around the city so I guess we know the market pretty well. Certainly in Perth large venues with large outdoor areas right on the water tend to do pretty well, you’ve just got to make sure you have a really good food and drink offering and that you get all the basics right.”

The major components of The Camfield include six bars, a massive courtyard area which includes a container bar, big screen and terraces, a microbrewery and a separate function centre.

But with so much space to play with, Three Pound Group were able to include everything on its hospitality wish list in the bar.

“Because it’s such a big site, we really got to put into it all of the things you want to put into a bar but maybe don’t have enough room for. So we’ve got pizza ovens, a kids’ play area, a massive standalone function centre. We’ve got our own microbrewery and we’ve got a huge screen in the outdoor area,” states McLernon.

A significant part of the pub’s offering is the microbrewery, created in partnership with Lion Nathan.

“I guess it forms part of the non-event day attraction. We felt that that was an interesting addition to any venue. Lion Nathan, who are our major partners, are running that for us. They’ve come up with their own new brand, Bevy Brewing.

They’re producing a First Lager (amber lager) and a Prize Ale (pale ale) at the moment. It’s front and centre in our venue, it spikes interest. Brewing our own beer on site and having it on tap, was part of that push to make sure that the other 323 non-event days are viable.”

The two beers are so popular that they are the top-selling beers at the venue, among more than 170 other taps on site. Bevy’s head brewer, Andrew Scade, has spent the last 15 years at Little Creatures, and besides the amber lager and pale ale, will create seasonal beers for The Camfield throughout the year.

The Bevy Brewing First Lager

The dining area

The Camfield is 100m from Optus Stadium

INCOMING AND OUTGOING The look of The Camfield has been driven by two things: the existing buildings that were retained, and the microbrewery. The other buildings’

AUSTRALIAN HOTELIER MAY 2018 | 27

DESIGN & BUILD TAG

DIGGING DEEP While The Camfield’s business is now absolutely pumping and likely to grow

(the venue has a 4000 pax capacity, but is currently operating at a 2500 pax capacity to ensure that everything runs smoothly), it was a slow process to get the project started.

With the State Government involved, McLernon knew that the planning stages of the build would proceed very slowly. Each change to a document would take six to eight weeks to approve. The whole planning process took three and a half years, while in comparison the build itself took 44 weeks – a dream run for a venue so big.

Construction of the main building itself went smoothly, but before the structure could be erected, the foundations had to be shored up to make sure the building would not sink into the soil, as Frank Iemma of Oldfield Knott Architects, explains.

“The whole peninsula area there used to be an old tip, and so all the ground conditions weren’t too favourable. So environmentally we had issues to deal with, in order to try to get bearing capacity for the new structures. And also having to deal with the ground gas, which is generated by the decomposition of all the refuse underground. So it wasn’t going to be a cheap exercise initially anyway.

“The whole new build portion of it is all a piled structure, as is the existing buildings that we kept. And we’re talking piles that were in excess of 30m deep. There’s a number of those, so there was a lot of money spent on what you don’t see.”

The other main issue with the construction of the build was access.

The Camfield was being built at the same time as the stadium and the rest of the precinct so it was quite difficult for the builders and other trades to get access to the pub site at the same time as other projects were being built. McLernon said that in perspective, builders of the billiondollar stadium had scant concern for the “little pimple” that was The Camfield. He can now say that those set-backs were well worth it.

“We’ve been subject to things like fairly stringent access and building requirements, but you get past those and it all goes away on a Saturday afternoon when you have 2500 people enjoying themselves.”

28 | MAY 2018 AUSTRALIAN HOTELIER

The standalone function centre

THE CAMFIELD BY NUMBERS

190

9000

employees

beer taps

70-year-old limestone facades were retained, so it was important that The Camfield’s main building was not an overly modern structure that did not meld well with the other buildings. And with the addition of the microbrewery, these two components lended themselves well to an industrial/warehousestyle aesthetic.

Upboarded cladding was used on the façade of the main building, along with lots of limestone, structural steel and honed concrete floors. Services are exposed on the high ceilings in the main lounge and dining areas.

Lighting was also critical in making sure that such a large venue didn’t seem vast and empty.

Design and the venue offering were not the only major considerations for the venue, with logistics being a much more critical factor than it would be an ordinary pub. The stock building – rather than room – is run by an experienced logistics manager and his team of three, who ensure that stock levels are correct, so as to avoid some major expenses.

“Everything is just bigger. The stock room we have is almost 1000 sqm, so everything gets delivered in pallets. Everything gets pallet-jacked directly into the cool room. Instead of one ice machine that most bars have, we have eight,” lists McLernon.

“At the end of the day, it’s not that much different, it’s just ordering 20 pallets of beer instead of one every week. But obviously back-of-house organisation is key.

You’ve got to have complete control of everything coming in and going out, because little discrepancies can mean a $20,000 difference to your bottom line.”

The correlating numbers at the venue are huge, with an average of 2000 meals being served per day at the venue. Within the first month of operations, in excess of 65,000 litres of beer had been poured through its taps. The pub employs a total of 190 staff, plus a few more casuals specifically for event days, when there are at least 100 staff in the venue.

4 pizzas

sqm footprint

175

Six bars

The size of the pub lends itself to an industrial aesthetic

sold per minute

65,000L of beer sold per month

YOU ARE INVITED NETWORKING DRINKS

UNDISCOVERED BRANDS

LIVE TASTE TESTING

FOOD PAIRING STATIONS

WORKSHOPS

JOIN US FOR A 2 DAY POP-UP LIQUOR CITY EXPERIENCE AT DOCKSIDE, DARLING HARBOUR We would like to invite you to The Drinks Industry Show, where you can sample a range of exciting products to enhance and update your hotel’s beverage menu. As well as gather invaluable market insight from industry leading speakers.

US Distilled Spirits Council, the national trade association representing leading producers and marketers of distilled spirits in the United States has joined The Drinks Industry Show. The Distilled Spirits Council will showcase recognised brands already active in Australia – including Jack Daniels, Wild Turkey and Jim Beam. As well as brand new product that you can only taste at the show!

NEW PRODUCTS FROM:

Corsair Artisan Distillery – Gin, Red Absinthe, Whiskey, Spiced Rum & Vodka

s i n o i t a r t s i Reg

!

E E R F

EXCLUSIVE TASTE OF AMERICA

House Spirits Distillery – Taste their Single Malt Whiskey, White Rum, Vodka & Aquavit Red Eye Louie’s Vodquila – Vodka & Tequila combined

GO INTO THE DRAW TO WIN A YEAR SUPPLY OF RED WINE UP TO THE VALUE OF $500!

SIMPLY ENTER THE CODE

WINWINE WHEN REGISTERING*

W W W. D R I N KSI ND UST RYS HOW.COM. AU/A HA *Terms and Conditions apply, see website for details

CALENDAR

SPORTS FIXTURES CHECK OUT THESE HIGHLIGHTS FOR THE MONTH OF MAY – THEY’RE SURE TO BRING IN A CROWD TO YOUR VENUE!

UFC

BASKETBALL

UFC 224 heads to Rio de Janeiro this month, and women’s bantamweight champion Amanda Nunes will defend her title against Raquel Pennington in the headline fight. A huge line-up of Brazilians will also be on the drawcard, so expect a lot of jujitsu moves.

When: Sunday 13 May, 12pm.

Channel: Main Event.

NBA action heats up in May, with the Conference Finals taking place mid-month. Who will come out on top of the eastern and western conferences to secure their places in the NBA Finals series? Will the Warriors pull off back-to-back championships?

When: Starts Tuesday 15 May, 11am.

Channel: ESPN.

RUGBY LEAGUE

TENNIS

The second Grand Final rematch will be played this season, with last year’s NRL winners Melbourne Storm hitting the road to take on the North Queensland Cowboys. Neither team is doing too well this season, so a win is crucial.

When: Friday 25 May, 8pm.

Channel: Fox League.

Get ready to see some dirt-covered outfits as the second Grand Slam of the year hits the clay courts of Roland Garros. The men’s number one, Rafael Nadal loves the French Open so it will be his to lose this year.

When: From Monday 28 May, 7pm.

Channel: Fox Sports 6 and SBS.

NEXT MONTH

In the June break from Super Rugby, the Wallabies will host the first ever three-Test tour against Ireland (the two nations have only ever played two-Test tours against each other). Ireland won the last encounter between the two teams in Dublin last year, so the Wallabies will be looking for revenge on home soil.

When: June 9, 16 and 23; 8pm.

Channel: Fox Sports 1 and SBS. *All times are AEST

30 | MAY 2018 AUSTRALIAN HOTELIER