Australian Hotelier November 2017

Hotelier AUSTRALIAN

AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE

vol. 34 no. 10- NOVEMBER 2017

IN THIS ISSUE: THE BRISBANE REPORT | CRAFT CIDER | BAR AND CELLAR

CONTENTS | ED’S NOTE

18

Vanessa Cavasinni and Deb Jackson, National Liquor News.

Editor’s Note

W

hen we talk about pub real estate, the first things we want to know are which venues, who bought them and for how much. But what is becoming increasingly more interesting is where these venues are located. While Sydney still reigns as Australia’s pub capital, there is more and more activity happening in Brisbane, with some big sales figures, new venue constructions and interstate interest in Queensland’s biggest city.

As such, we’ve got a special report on the Brisbane market in this issue, starting on page 18. Not only do we look at real estate, but also how individual business streams are faring in the Queensland capital, how legislation is impacting pub operations, and what the up-and-coming areas are for hospitality.

Other features in this issue include a look towards the movement to craft cider (p 15), a run-down of the hotel winners from this year’s ALIAs (p 10), and a glimpse at bar design across the country on page 22.

There’s plenty to read in this issue, so enjoy!

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

NEXT MONTH

POS and Op Tech • Craft Beer • Hot To Stock for 2018

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

Special Features

Regulars

10 ALIA: Check out all the winners from the 2017 Australian Liquor Industry Awards.

15 Craft Cider: Like craft beer, craft cider is gaining steam.

ED’S 18 The Brisbane Report: Why PICK operators all over Australia are looking at this city right now.

22 Bar, Beer and Cellar: Take a look at bar design around the country.

6 News: The latest happenings around the country.

26 Design and Build: An overhaul of Bidwill Hotel’s gaming area is reaping big rewards.

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

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

10

Contents | November

PUBLISHER: Paul Wootton EDITOR: Vanessa Cavasinni

PUBLISHED BY:

26

GROUP ART DIRECTOR – LIQUOR AND HOSPITALITY:

Kea Thorburn kthorburn@intermedia.com.au

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Jacqui Cooper jacqui@intermedia.com.au

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Average Total Distribution: 5,523 AMAA/CAB Yearly Audit Period ending 31 March 2017.

NEWS

CRICKETERS ARMS BEGINS BRANDED VENUE TAKEOVERS The Melbourne-based craft beer is collaborating with selected venues on the eastern seaboard to create branded spaces within the venues.

Pineapple Hotel in Kangaroo Point, Brisbane, is the first pub that Cricketers Arms has partnered with, renovating and redesigning the Park Bar at the 150-year-old hotel. The first venue to partner with the beer brand was the Backyard Burger Kitchen at the Sydney Cricket Ground.

The renovations were completed recently, and the Cricketers Arms installations have been designed with the hotel’s larger aesthetic in mind, while also showcasing the clean and contemporary stylings of the Cricketers Arms brand.

The fit-out of the Park Bar includes illuminated internal and external signage, branded furniture, umbrellas, planter boxes and customised tap fonts. In addition to the installations, each venue that takes part in the takeovers will stock branded Cricketers Arms glassware, which are a first to market for the brand in Australia. Park Bar at Pineapple Hotel will serve Cricketers Arms Lager, Pale Ale and Summer Ale draught, along with Session Ale cans, which were launched earlier in the year.

With IRI MarketEdge data suggesting that Cricketers Arms is the fifth largest masterbrand in Australian craft beer in terms of off-premise value, the project helps to bring visibility to the brand in the on-premise.

“Cricketers Arms is brewed in Melbourne, but enjoyed by patrons around Australia and abroad. Aiming to build awareness and visibility for the Cricketers Arms brand outside of Victoria, we are recreating the easy going and inclusive essence of the brand through partnership with these new hero venues,” stated Sarah Wilson, brand manager for Cricketers Arms.

“With the first two venues strategically selected in the vicinity of key sporting venues, The Gabba in Brisbane and the SCG in Sydney, the Pineapple Hotel and Backyard Burger Kitchen provide dedicated spaces for consumers to enjoy a session of Cricketers Arms brews with their mates before or after a game, or relax in the venues and catch major sports matches live on screen.”

Craig Singleton, owner of the Pineapple Hotel, says the partnership with Cricketers Arms on the Park Bar is beneficial to both parties.

FOR MORE INDUSTRY NEWS FOLLOW US ON 6 | NOVEMBER 2017 AUSTRALIAN HOTELIER

FAVOURED FEATURES Sarah Wilson, brand manager for Cricketers Arms, explained what made the Pineapple Hotel a perfect fit for the Cricketers Arms takeover.

“When looking for a venue to partner with on this project we wanted somewhere that presented both a good volume opportunity for Cricketers Arms, but also somewhere that was keen to invest in the brand and adapt and innovate during the course of the project.

The Pineapple hotel was the perfect choice given its close proximity to the Gabba, attracting patrons before and after games. It’s an iconic pub, renowned for watching live sporting matches. The owners have been there for 29 years and have a wonderful relationship with their customers, and are a very busy venue as a result.”

“The Cricketers Arms activation fits in well at the Pineapple Hotel, it’s contemporary and stylish. The bar is a perfect place to catch up with friends, drop in for a beer before home games at The Gabba, or enjoy live music. The partnership with Cricketers Arms is a natural fit.”

Cricketers Arms are planning two more on-premise takeovers on the eastern seaboard, outside of Victoria. These installations are scheduled to open in early 2018, with the venues to be announced shortly.

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NEWS

VALE VICTOR ZAGAME

JAMES SQUIRE AND MANTLE GROUP TEAM UP ON NEW BREWHOUSE

By Andy Young Lion has announced that it is planning to open a new James Squire Brewhouse, featuring a restaurant, bar and micro-brewery at the Overseas Passenger Terminal in Sydney.

The new venue is being opened in conjunction with the Mantle Group and building has already commenced, with February/March 2018 the targeted opening time.

“This is a stunning, world class site,” said Godfrey Mantle, Chairman of Mantle Group.

“We are delighted to have this opportunity to work with James Squire and our Sydney based architects, Collins & Turner, to deliver an outstanding venue for the people of Sydney and New South Wales. We are looking forward to working with all the stakeholders to revitalise and activate this very special and historic precinct.

“The Overseas Passenger Terminal is an iconic venue located on the edge of Sydney Harbour with panoramic views of the Sydney Harbour Bridge and Sydney Opera House and is arguably the best location to dine in Sydney.

“It is anticipated that the new restaurant and bar will be a popular venue for locals, businesses, families and tourists,” Mantle added.

Marty Ferguson from the Malt Shovel brewery, said the brewer was looking forward to having a venue at the place where James Squire would have first arrived in Australia.

“James Squire was a first fleet convict who later went on to become Australia’s first brewer.

It’s pretty special that we are able to build a brewery in his honour right at the same location where he would have first set foot on Australian soil back in 1788.

“We are also really happy to open another James Squire Brewhouse with our partners the Mantle Group, building on the success of the Charming Squire venue already open in Brisbane.”

Squires Landing will be the seventh James Squire brewhouse in Australia – complementing existing venues in Brisbane, Newcastle, Melbourne, Adelaide and Perth.

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In late October, Victor Zagame Senior, patriarch at the head of the Zagame Corporation, passed away peacefully surrounded by friends and family. He was 77 years of age.

Victor was a bastion of the Victorian hotel and hospitality community, buying his first pub - the Albion Charles Hotel - in 1971. Since then, Victor and his family had grown the Zagame Corporation to include several award-winning hotels that were synonymous with family-friendly nights out and quality dining; and the Grand Hotel and Casino resort in Vanuatu.

Zagame Corporation released the following statement on Victor’s passing: “Victor was a much loved husband, father, grandfather, father-in-law, mentor and friend to many industry professionals and an extremely well respected member of the community. He lived his life with passion, commitment and integrity, and who his contemporaries held in the highest regard.

“Victor was an innovator and leader in the Australian hotel and hospitality industries. What Victor Zagame began over 46 years ago, at The Albion Charles Hotel, became the Zagame Corporation – one of the Australian hotel and service industry’s most respected and well-known businesses.

“Victor’s dream to serve quality food at a good price, in elegant family-friendly surrounds, grew into a fully-fledged family, hospitality dynasty. This was a simple yet innovate idea at the time. It provided families with top quality food and great service in a beautifully designed environment that was otherwise unavailable at the time and an alternative to the dark, dingy corner pubs of Victoria’s suburbs. This soon became the standard that others around the country followed and continue to use today as the benchmark of quality. ” Victor is survived by his wife Toni and his children Marie, Victor Jnr, Nina, Robert Anthony and Dearna.

Australian Hotelier expresses its condolences to Victor’s family, friends and colleagues.

ALL HEROES, NO VILLAINS THE 2017 AUSTRALIAN LIQUOR INDUSTRY AWARDS (ALIA) WERE HELD ON 18 OCTOBER IN SYDNEY, CO-HOSTED BY SIGNATURE DRINKS AND IRI, CELEBRATING ALL FACETS OF THE LIQUOR INDUSTRY.

T

he ALIAs once again celebrated the leading brands, products, venues and personnel within the national liquor industry. Around 600 peers gathered at Royal Randwick Racecourse to celebrate and network, and get into the spirit of this year’s theme – Heroes and Villains. Check out the list of winners of the on-premise awards, along with some shots of what was a fantastic night.

BEST RENOVATION WINNER: The Lansdowne HIGHLY COMMENDED: East Village Sydney

BEST SPORTS VENUE WINNER: The Sheaf HIGHLY COMMENDED: The Caxton HIGHLY COMMENDED: Settler’s Inn

Merivale was named Hotel Operator of the Year

BEST GAMING VENUE WINNER: The Sheaf HIGHLY COMMENDED: El Cortez Hotel HIGHLY COMMENDED: The Eastwood

BEST FOOD MENU WINNER: The Dolphin HIGHLY COMMENDED: Queens Hotel

BEST HOTEL ACCOMMODATION WINNER: Watsons Bay Boutique Hotel HIGHLY COMMENDED: Coppersmith Hotel

BEST DRAUGHT PRODUCT WINNER: Stone & Wood Pacific Ale HIGHLY COMMENDED: Young Henry’s Real Ale

BEST ON-PREMISE SPIRIT/LIQUEUR WINNER: Four Pillars Gin HIGHLY COMMENDED: Aperol

SPONSORED BY

Pre-drinks were enjoyed on the balcony

Jake Smyth and Erin Arthur-Smith

DRINKS

CO-HOSTED BY

BEST MIXER WINNER: Fever-Tree HIGHLY COMMENDED: Capi

BEST BEER LIST WINNER: The Local Taphouse, St Kilda HIGHLY COMMENDED: Royal Albert Hotel

BEST WINE LIST WINNER: Bar Liberty HIGHLY COMMENDED: The Dolphin

MAJOR AWARDS PUBLICAN OF THE YEAR WINNER: Alistair Flower, Settlers Inn WINNER: Alex Farquhar, The Caxton HIGHLY COMMENDED: Kasie Ferguson, Railway Hotel

HOTEL OF THE YEAR WINNER: The Newport HIGHLY COMMENDED: The Henson

Lion celebrating its On-Premise Supplier of the Year win

THANKS TO OUR SPONSORS CO-HOSTS

HOTEL GROUP OPERATOR OF THE YEAR WINNER: Merivale HIGHLY COMMENDED: Solotel

NEW PRODUCT OF THE YEAR WINNER: Bundaberg Lazy Bear HIGHLY COMMENDED: Jacob’s Creek Le Petit Rosé

DRINKS

(l-r): Alex Farquhar, Doug May and Alistair Flower

LIQUOR BRAND OF THE YEAR WINNER: Aperol HIGHLY COMMENDED: Coopers

PRE-DRINKS

2017 BRAND OF THE YEAR SPONSOR

NETWORKING BARS

ON-PREMISE SUPPLIER OF THE YEAR WINNER: Lion HIGHLY COMMENDED: Campari

The Sheaf won Best Sports and Gaming Venue

SPONSORED BY BACARDI-MARTINI AUSTRALIA PTY LIMITED

2017 INTERNATIONAL BEER OF THE YEAR 2016 INTERNATIONAL BEER OF THE YEAR 2015 INTERNATIONAL BEER OF THE YEAR 2014 INTERNATIONAL BEER OF THE YEAR

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CIDER

HOW DO YOU LIKE THEM

APPLES? AS MORE CONSUMERS LEARN ABOUT CRAFT CIDER, WE SPOKE TO NYALL CONDON OF FLYING BRICK CIDER CO, AND SAM REID OF WILLIE SMITH’S, ABOUT THE POSSIBILITIES WITHIN THE CATEGORY.

IN WHAT TIME FRAME DO YOU THINK WE’VE SEEN AUSSIE CIDER DRINKERS GET INTERESTED IN CRAFT CIDER?

HOW IS THE PUBLIC BEING EDUCATED ABOUT CRAFT CIDER, AND THE USE OF SPECIFIC CRAFT APPLES?

SAM: Cider as a category started really growing with the launch of Rekorderlig into the Australian market back in 2007, before that the market was dominated by Strongbow and Mercury accounting for the majority of the market. The introduction of Rekorderlig and its sweeter flavour profile attracted a lot of younger drinkers to the category and was the beginning of the boom in the Australian cider category.

This strong growth has since continued and as with all things drinkers’ palates have evolved as people explore the category further and start looking for more interesting and more mature drinking experiences.

Cider Australia has the stated aim of developing a long-term sustainable category with a focus on high quality, premium products that can be consumed on all occasions, and this is where craft cider comes into play.

Most people entering the category do so through sweeter styles of cider that invariably are manufactured using imported concentrate. By bringing together the many like-minded, smaller producers who focus on this segment of the market we have been able to begin to educate Australian cider drinkers how important it is to understand where the apples from your cider come from.

NYALL: Through industry associations by means of running public festivals and awards, Individual brands spreading the knowledge throughout their own marketing streams, other agriculture/horticultural association collaborations and their importance towards sustainable farming and ‘Aussie Grown’ branding.

DO YOU THINK IT CORRELATES WITH THE CRAFT BEER MOVEMENT? NYALL: Yes, I believe we are riding a slight wave from the craft beer boom that we have seen explode globally, however cider has always been there and has its own following that seems to be ever increasing.

SAM: The growth of craft cider strongly correlates with the craft beer movement, which is driven by the global trend for more flavour and for understanding what makes up the food and drink you consume. I’d say cider is lagging behind craft beer however we are coming off a smaller base without the same level of passionate drinkers (beer nerds) in the category.

Although it’s pleasing to see the number of ‘cider geeks’ growing and becoming a thing!

SAM: At this stage as an industry we are focused on the ‘100% Australian Apples’ message and trying to get that on pack. We are working with Horticulture Innovation Australia (HIA) to license their ‘100% Aussie Apples’ logo so that our producers can utilise that and make it a stronger claim.

ARE YOU WORKING WITH VENUES TO PROMOTE CRAFT CIDER THROUGH ACTIVATIONS/EDUCATION? NYALL: Yes, always. We see this as a very important role for our future and our industry. I am on the Executive committee for Cider Australia and Flying Brick Cider Co is largely involved in coordinating the awards and public forums and tastings. We have a collaborative venture with a local community service non-for-profit organisation where we have planted a cider orchard and are involved in the training with their staff on orchard management. We are always conducting tastings at partnered venues and this includes the odd cider and food matching dinners. We offer a contract cider-making service that enables other growers or venue owners to produce their own product. We play host to the largest World Cider Day festival in Australia each year, and the list goes on.

SAM: We sure are! We’ve recently run a series of cider masterclasses with our key customers up and down the eastern seaboard taking them through our core range and also this season’s new releases. Not only that, we were able to introduce them to our new apple spirits range, Charles Oates Distilling where we are using our cider to make Apple Eau du Vie and Apple Brandy. As part of these sessions we held a number of consumer events where people could have the same experience and these were all really well attended and feedback on the new styles was incredibly positive.

AUSTRALIAN HOTELIER NOVEMBER 2017 | 15

t f a cr WILLIE SMITH’S TRADITIONAL CIDER VINTAGE 2017 WE’RE BETTING THESE CIDERS WILL BE POPULAR AMONG PUB PATRONS THIS SUMMER…

A richly golden coloured un-filtered cider made in the traditional French and English farmhouse style. It is a fullbodied, cloudy cider with a wonderful aroma and enjoyable deep flavours. French and British heirloom cider apples contribute complexity, texture, lifted fresh apple aromas and deep honeyed toffee notes to the cider. Traditional is a cider that can be easily enjoyed by the pint at the bar, or quietly pondered over when matched with good food.

FOG CITY CLOUDY CIDER

FLYING BRICK CIDER CO. DRAUGHT CIDER

A bitter-sweet premium cider, Fog City is naturally engineered from a blend of apples and pears. Its distinct cloudiness creates the unmatched body and fullness of flavour that earned it its name. At 6.0% ABV, you’ll notice Fog City’s interesting mouthfeel, and the wellbalanced fruit flavours. A fresh cider that cuts through the summer dry. To be shared, on ice, with friends.

Rich, big and generous with a warm honey/toasty display.

This daring cider sees big, bold red apple varieties leaping out of the glass. A perfect balance of fruit, acid, tannins and alcohol ensures this cider pours with a perfect ‘moosey’ head every time with great mouth feel and finish.

www.flyingbrickciderco.com.au Food match: Soft cheese plate. http://e9thbrewing.com/fog-city

Food match: Chargrilled pork. www.williesmiths.com.au

16 | NOVEMBER 2017 AUSTRALIAN HOTELIER

Food match: Duck empanadas or pulled pork sliders.

CRAFT CIDER PROMOTION Shot at The Toxteth

SIDEWOOD BASKET PRESSED PEAR CIDER

FRANK’S RASPBERRY AND PEAR CIDER

Sidewood Basket Pressed Pear Cider is bright, delicious and refreshing with a divine balance of ripe pear sweetness and crisp acidity. A premium natural cider. The natural spicy pear favour comes through on the nose. It displays subtle spice on the palate and classic pear flavours with a hint of lovely cleansing acid and sweetness without overpowering the palate.

Frank’s Raspberry and Pear cider is pure fruit from start to finish. Heritage pears and luscious ripe raspberries create a great Tasmanian combination. Enjoy this medium sweet sensation that is sparkling with cool climate flavour. Crisp, fresh and complex with a hint of pear and a burst of raspberry!

Food match: Chocolate mousse and berries.

Food match: Seared scallops www.frankscider.com.au

KAIJU! GOLDEN AXE CIDER

FLYING BRICK CIDER CO. PEAR CIDER

Golden Axe Cider is handcrafted using only freshly-crushed Victorian apples, with no added sugar or concentrate. The result is a crisp, thirst-quenching style with plenty of fresh apple flavours, hints of cut straw and tree blossoms. A veganfriendly, gluten-free cider with just enough sweetness to carry the flavour, leaving you wanting more. Soon to be released in cans.

Uncomplicated and pure, Flying Brick Cider Co’s Pear Cider is an enjoyable drink for any occasion, anytime.

A delicate, pale straw appearance. Subtle, succulent pear notes across both nose and palate unashamedly denote this cider’s origins.

A lively, dryer cider style showing vibrant, natural acidity alongside luxurious fruit on the palate. Cleaning up beautifully on the finish leaves you wanting more.

Food match: Barbecued meat and salad.

www.sidewood.com.au

Food match: Seafood linguine.

www.kaijubeer.com.au www.flyingbrickciderco.com.au

AUSTRALIAN HOTELIER NOVEMBER 2017 | 17

The Belvedere

BRISBANE

THE BRISBANE REPORT AS NEWS OF PUB ACTIVITY IN BRISBANE HAS INCREASED SIGNIFICANTLY RECENTLY, WE SPOKE TO LOCAL OPERATORS TO GAUGE THE PITFALLS AND OPPORTUNITIES IN THE QUEENSLAND CAPITAL. REPORT IN PARTNERSHIP WITH

W

ith increased residential development, the winning campaign for the 2018 Commonwealth Games, and the construction of a significant new dining precinct within the CBD, there are plenty of positive factors for a surge in appetite for pubs within Brisbane. The market is reflecting this, with some big transactions happening on either side of the river, a couple of greenfields venues and some major redevelopments of established hotels.

Interstate operators are taking a keen interest in the city as well, with Pelathon purchasing and renovating the Grand Central Hotel in the CBD, and Open Arms Hospitality and Solotel both in the midst of constructing new venues in the South Bank precinct.

While for the most part it looks like Brisbane is an attractive market for expansive operators and investors, the one drawback remains compliance legislation, in particular the new mandatory ID scanning in certain precincts within the city which has been heavily critiqued by hoteliers.

With so many pros and one big con to contend with, Australian Hotelier spoke to several established Brisbane publicans to get a better picture of the pub market in the city.

F&B As with other metro areas in Australia, operators are using a re-modelling of their food offering as a driver to increase patronage. Food is now viewed by many operators as the first thing to get people in the door, who can then spend money on other streams, as explained by Brian Fitzgibbons,

director of the revamped Osbourne Hotel in Fortitude Valley (formerly Fringe Bar).

“It’s all about F&B. With a big emphasis on beverages, but you’ve got to have great food to get the people in. But the beverage is where we can do much better volume, of course.”

For a lot of operators, this means having a more casual offering at budget-friendly prices to increase visitor frequency. At The Belvedere at Woody Point, Drinx Group changed their menu when they renovated the hotel just under a year ago to increase patron frequency. Not only was a more casual offering emphasised in the menu – burgers, salads, pub classics – but the prices were lowered to mainly sit in the $16-25 range to entice visitors to come to the pub more often.

At Fox Hotel, Colonial Leisure Group’s first foray into the Brisbane pub scene, a similar philosophy has been undertaken, with $4 pizzas and $5 burgers during happy hour.

General manager Scott Campbell said the activation has been a big success for the hotel, with very little marketing needed.

At the Port Office Hotel in the CBD, owner and operator Nick Gregorksi cites a good food offering having a knock-on effect into other business drivers.

“We’ve always been food-focused. We think if you get your offering right, food being number one and beverage being close behind, we believe that then the rest will follow, functions will follow.”

LEGISLATION Twelve months ago, the big point of conversation for many Brisbane operators was

18 | NOVEMBER 2017 AUSTRALIAN HOTELIER

the lockouts introduced by the Queensland government. But since July, there’s only been one point of legislation that publicans have been talking about – mandatory ID scanning – and none of the chatter has been positive.

Mandatory ID scanning, using one of two scanning machines sanctioned by OGLR, has been made mandatory for operators within Safe Night Precincts (SNPs) from 10pm, for venues that trade until midnight or later. The legislation has been labelled as a haphazard, knee-jerk reaction from the State Government, without taking into account feedback from venues.

None of the operators Australian Hotelier spoke to had anything positive to say about the ID scanning, relaying the harm the policy has done to their venues.

Arj Rupesinghe, CEO of Mantle Group that operates the popular Pig 'N' Whistle pubs throughout the CBD was blunt in his assessment of the ID scanning.

“They have had significant impacts at Jimmy’s on the Mall. We have had to reduce our licenced hours to avoid having to needlessly scan from 10pm. We have also incurred significant added costs in implementing and operating the scanners at out Eagle St and Brunswick St venues. We have seen no benefits from having them.”

Gregorski, who had to deny his elderly mother entry into his hotel after 10pm, said that the scanners themselves will cost him $50,000 a year, and with losses in trade is estimating that the policy will cost his business up to $250,000 in the year.

The scanning itself also takes time, increasing

BRISBANE

The newly renovated Osbourne Hotel in Fortitude Valley wait times outside of venues after 10pm, leaving patrons frustrated. To make the situation worse, not all venues are in the same boat, with the ID scanning not applying to pubs outside of the SNPs, or who do not trade past midnight. It also does not apply to venues with a small bar license. Fitzgibbons expects these venues to become more popular late-night options, and to even use the advantage as a marketing ploy.

“Next thing we’ll see venues, with big banners out front with ‘No scanning here’, like a marketing advantage."

All of the operators Australian Hotelier spoke to stated they would be happy with a compromise of starting ID scanning at midnight, with the current 10pm start seeming arbitrary.

“I think a midnight scanning start would be so in line with every other piece of legislation, and would make sense,” states Alex Farquhar, director of The Caxton.

GAMING With ID scanning restricting trade, operators are having to re-evaluate their business models.

One driver that has been gaining more attention is gaming. Once dominated by Treasury Casino, ALH Group and Spirit Hotels, more operators are now viewing gaming as a way to supplement other revenue streams.

The most recent Pig ‘N’ Whistle at Redbank Plains, is the first to include gaming in its offering.

“It’s going really well. It’s our first foray into gaming for the group. So that’s been an interesting little learning curve for the company, and the first foray outside of the CBD, so that’s had its own challenges, but at the same time its own opportunities,” explains Angela Cervetto, marketing manager for Mantle Group.

Brad Jenkins, group general manager for Drinx Group, says he has implemented the strategy of one third gaming, one third food and one third beverage at The Belvedere Hotel. While the F&B offering has had a significant upgrade in the last year, Jenkins

Beverages are a significant business driver at The Belvedere

Lower food price points are having great success at Fox Hotel

Food is the main focus at Port Office Hotel

“IT COULD BE ARGUED THAT THE BRISBANE MARKET IS THE SECOND MOST SOUGHT CAPITAL CITY AT THE CURRENT TIME FOR HOTEL OPERATORS BEHIND SYDNEY.” GLENN PRICE, RAY WHITE HOTELS Osbourne Hotel in Fortitude Valley

says the gaming room of the venue is slated to have an upgrade next.

According to Glenn Price, director of investment sales – hotels and accommodation, Queensland at Ray White Hotels, gaming continues to be a prosperous area of investment for hoteliers. Despite having the highest tax rates in the country, Queensland gaming legislation is viewed as the most stable, and Price says knowledgeable operators are seeing a return on investment.

“Total state gaming revenue for September 2017 has increased 2.82 per cent on September the previous year. September is the fifth month in a row in which the state’s hotels and clubs gaming machines have recorded positive increases.”

TOURISM Tourism is a big part of Queensland’s economy, and Brisbane is becoming a more significant part of that equation. According to Tourism and Events Queensland (TEQ), both domestic and international visitation to the city increased in the year ending March 2017, up by 9.3 per cent and 4.9 per cent respectively. Expenditure for both types of tourism are also up in the city.

For pubs in the CBD and other precincts, catching the tourist dollar can be a big part of their business model – as is the case for all six of the Pig N Whistle venues in the CBD, particularly when large sporting events are on.

“We’ve got a really close relationship with TEQ and Brisbane Marketing because we’ve got so many venues in the CBD,” explains Cervetto.

“We’re also convention members, so that if there’s something big coming to town, they think of us. We’re good for expats, so when there’s Ashes touring, we’ve got a really close relationship with the Barmy Army as well. That’s something that’s been developed over the years.

We also do activations around the Bledisloe Cup, the Rugby League World Cup etc.”

One major new development in Brisbane is the construction of the $3 billion Queen’s Wharf casino, a cause of some concern for

AUSTRALIAN HOTELIER NOVEMBER 2017 | 19

BRISBANE

There are seven Pig 'N' Whistle venues in Brisbane

“IT’S ALL ABOUT F&B. WITH A BIG EMPHASIS ON BEVERAGES, BUT YOU’VE GOT TO HAVE GREAT FOOD TO GET THE PEOPLE IN.” BRIAN FITZGIBBONS

The Caxtin is a favourite for sports fans due to its vicinty to Suncorp Stadium

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many hotel operators in the vicinity. Not only will it have a large gaming offering, but the casino precinct is also slated to house around 50 bars and restaurants – in direct competition with pubs around the city.

While the new casino is a cause for concern for a lot of hoteliers in the vicinity, Fitzgibbon suggests that with the new precinct will come even more visitors to the city that venues can capitalise on.

“Let’s hope that it keeps growing down here because Brisbane with its new proposed casino – the figures they’re talking on the number of people that will be coming to the city is huge. And you know if we can pick up the overflow from that, we’d probably be very happy down here [in Fortitude Valley].”

REAL ESTATE According to Price at Ray White Hotels, Brisbane is one of the most indemand pub markets in the country right now.

“It could be argued that the Brisbane market is the second most sought capital city at the current time for hotel operators behind Sydney.

“Cap rates for going concern hotels are generally between 9.5-11.5 per cent depending upon what and where the asset is and what sort of capex is required of the asset. This puts the market about 100-200 basis points behind Sydney as a generalisation. Some of the better opportunities are achieving single digit yields.”

The up-and-coming areas seem to be areas that have the right mix of continued development, and less regulation.

“Capital investment by State Government and the private sector, and re-gentrification of areas such as Fortitude Valley and South Bank are uncovering opportunities for hotel operators.”

Many hoteliers agree, suggesting that the two areas with the most opportunity at the moment are South Bank and West End. “I think with all this development that’s going on, we’re going to have a huge influx of residents in this area. There’s investment going into Fish Lane, that’s a really cool dining and retail precinct. You’ve got all of this area being developed as more people-friendly with rail transport etc. and we’re going to be just a stone’s throw from the new casino precinct. I think this is the corner of Brisbane that I’d want to be in.,” says Campbell.

Farquhar also mentions the vibrant hospitality scene of West End, and makes one more point as to why it’s a great new area for operators: “There’s no ID scanning south of Brisbane River at all.”

Brisbane as a whole is attracting more and more interstate investment, showing that it is overall an attractive pub market in Australia. This has in some instances driven sale prices up, but as Farquhar notes a savvy operator can still get a good deal in the Queensland capital.

“There’s still some really reasonable deals to be had out there. And I guess there’s some really smart operators who are very good at flipping or turning around underperforming hotels worth millions.”

Local Knowledge.

International Reach.

Exceptional Outcomes.

“Queensland is a critical component of the past and future success of Ray White and upon this basis it is imperative we ensure our valued client base enjoys representation by the industry’s best.”

Glenn Price has recently joined the Ray White Hotels Australia team to bring a new and exciting strategic direction to Queensland’s Hotel and Accommodation Investment Sector. Glenn’s in-depth understanding of hotels and the institutional investment process has led to his specialisation in negotiating flagship sales both to, and on behalf of, listed hotel funds, private equity firms and independent publicans.

At Australasia’s biggest real estate group, a company with 114 years of rich history and with $45 billion of annual turnover across 1000 international offices; Glenn Price is the Ray White Group’s local Queensland expert offering superior service and delivering exceptional outcomes.

Ray White Hotels Australia

Glenn Price Director - Hotel Investment Sales QLD Phone: 0402 623 298 Email: g.price@raywhite.com.au raywhitehotels.com.au

BAR, BEER AND CELLAR

Passing

THE BAR

GOOD BAR DESIGN IS A BALANCE BETWEEN OPTIMAL FUNCTIONALITY AND EYE-CATCHING AESTHETIC. CHECK OUT SOME EXCELLENT PUBLIC BAR SPACES FROM ACROSS THE COUNTRY.

SALISBURY HOTEL, NSW FEATURES: • Recycled timber, cobblestones, and corrugated iron feature in the beer garden bar • 1926 Denis truck sits as feature in the beer garden, with patrons able to sit around its tray “The materials used are key components of our new back bar.

We respect the fact that the building is over 100 years old and we wanted to ensure the newly introduced elements tied in with the history of the venue. The new back bar wraps around the front of our new kitchen so it brings our food and drink offering together. We weren’t going for striking and modern, rather something that looks timeless. The bar space itself is relaxed and inviting with plenty of seating options around the truck.” Trish Larkin, publican

FORESTER’S PUB & DINING, VICTORIA

FEATURES: • 32 taps (four banks of eight). Two large ice wells with speed rails, and underbench glass fridges running about two thirds of the length of the bar • Back bar features dark timber shelves side lit with LEDs and backed by mirrors.

• Hardwood bar top with small stainless drip trays running the entire length “The best thing about the design of Foresters’ bar is the amount of space we have to work with. Lots of shelves for display, racks for glasses, bench space, fridge space and space to move behind the bar. Not to mention deep ice wells and close access to the ice machine. It allows for everything to be accessed easily at peak service. Nothing is worse than running to a basement cool room or storeroom when the place is pumping to fetch stock or glassware.”

Dave Langlands, general manager

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BAR, BEER AND CELLAR

SUBIACO HOTEL, WA

FEATURES: • Traditional aesthetic, keeping in touch with ‘pub culture’ sports bar • Strong organic materials and colours with edgy graphics and ‘art wall’ behind the bar • Ergonomic for fast service. Multiple tap locations “The Subiaco Hotel is an iconic pub on the corner of Hay St and Rokeby Rd in the cosmopolitan suburb of Subiaco. Recently renovated, this heritage hotel has a strong emphasis on design and contemporary finishes. The spaces are welcoming with comfortable furniture and keep in touch with the ‘corner pub’ ethos. Bar design was thoughtful to enable efficiency and effortless flows.” Judy Monaghan, director

TAP’D AT PRINCE ALFRED HOTEL, QUEENSLAND FEATURES: • Seventy-two taps on crafted brick and timber bar • Barrel-themed booths, lighting out of kegs, beer mug chandeliers • Adjustable elements allowing it to be closed off to the rest of the hotel for functions

“With 72 beers on tap, Tap’d has the largest number of taps in any bar in the southern hemisphere. We passionately support independent and local craft brewers. We believe it is our ability to be adaptable to change and remain fiercely independent that allows us to showcase a range of suppliers and beers – that is a major point of difference to many bars.” Clive Johnson, owner

WATERSIDE HOTEL, VICTORIA FEATURES: • 20 taps featuring 10 beers. Large island bar with accessibility from all sides • Carlton Draught unpasteurised brew tank is a main feature of space • Old school retro glass chiller in bar top – sunken in bar top

“The heart and soul of every good pub is its public bar – it needs to be welcoming and approachable to everyone that walks in the door. The big open bar gives the staff plenty of space to move behind the bar with generous fridge space so we can stock a large range of beverages,” Kevin Peters, bar manager

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Signage by Fremont Design

DESIGN & BUILD

Game, set, match BIDWILL HOTEL IN SYDNEY’S WEST HAS HAD A COMPLETE REWORKING OF THE GAMING, SPORTS AND WAGERING AREA OF THE VENUE, LEADING TO A SIGNIFICANT INCREASE IN TURNOVER AND CUSTOMER SATISFACTION FOR THE VENUE.

T

he story of the Bidwill Hotel since Marty and Fiona Secheny took over operations, is one of constant growth and development. The husband and wife team took on a 55-year lease of the hotel in 2006, when the ING Real Estate Entertainment fund purchased the freehold.

In 2010, the couple were in a good enough position to make ING an offer on the freehold, which the fund accepted.

In 2015 Marty Secheny applied for seven additional EGM entitlements to take the venue’s total to 30 gaming machines, and received approval last year. The introduction of the extra machines made Secheny reassess the efficiency of the gaming room.

“With the introduction of seven entitlements in 2016, I initially dropped our floor average and I knew that I needed more than just fresh paint and new carpet in order to maximise the investment in the additional entitlements.”

Secheny called in Paul Kelly of Paul Kelly Design, who questioned the underuse of the spare space around the gaming room.

“We discussed the success of a few of his recent gaming room renovations and started to talk about how the business here might go operating under a different style of revenue

model. In the end we sat down over many a meeting with Paul and his design team and together we drafted an entirely new business model, floor plan and interior design concept for the hotel,” explains Secheny.

SPACIOUS SPACES The main aim with the development was to increase patron loyalty and to capture a new clientele that were interested in gaming, wagering and sports.

“We know that many of our customers move about between the various pubs and clubs in our area. This renovation was about giving customers more reason to spend time at Bidwill Hotel over that of other venues, attracting new customers that might not have visited us previously and about making our mark as a premium destination choice in our area,” says Secheny.

The first step in achieving those aims, was creating an almost disparate section of the venue for gaming, wagering and sports viewing, where patrons could enter through the hotel, or via its own separate entrance in the car park.

A spacious outdoor gaming room with its own bar and sports lounge area within was created, along with its own restroom facilities.

The build features a new lobby area providing

access directly to and from the car park area into the new facilities. A new TAB area within the gaming room was constructed, facing the main bar area adjacent to the existing lounge and bistro areas. The bottle shop was also relocated and utilised some of the space that was previously a drive through area.

New signage was installed courtesy of Fremont Design, to better promote the new facilities, including tower signage over the main road providing branding and direction towards more signage within the car park. Both these external signs marry into the new lobby entrance signage, then into signage within the new lobby itself.

With the relocation of the bottleshop, Paul Kelly Design was able to expand the new gaming and wagering area by more than 50 square meters, to create the expansive feel comparative to a casino.

“The proportions of that room are absolutely perfect. All the spacings are exactly on the positions they should be. When you go through the space it has a real casino feel to it as opposed to a dark gaming room,” opines Kelly.

Before the renovation, there was less than 2.5 sqm per machine – that has been pushed up to a generous 3.5 sqm per EGM. In

AUSTRALIAN HOTELIER NOVEMBER 2017 | 25

DESIGN & BUILD

At 3.5 sqm per EGM, the new gaming room is very spacious

“THE ROOM IS CUSTOM DESIGNED FOR THE COMFORT OF THE PLAYER. MAXIMUM AIR FLOW, AND A LOT OF FLEXIBILITY FOR THE CUSTOMER TO UNDERTAKE GAMING OR NON-GAMING OPTIONS WITHIN THE GAMING ZONE.” PAUL KELLY, PAUL KELLY DESIGN

comparison, casinos generally aim for 2.9 sqm per machine.

Kelly says the extra space creates a more pleasant environment for patrons, who are generally curious to see what their fellow punters are up to.

“The energy sort of runs around the room, and you can walk around there and glance across at who is playing what and with what frequency they were playing – which is very important to a lot of customers.”

Adding to the casino feel is the furnishings, with a large gold and mirror ceiling feature in the centre of the gaming space. The soft lighting and plantings also add to the resort feel, as Kelly attests.

“The overall style is a classic room with some accents verging on a resort/casino look. The room is custom designed for the comfort of the player.

Maximum air flow, and a lot of flexibility for the customer to undertake gaming or non-gaming options within the gaming zone.”

NEW BUSINESS MODEL As part of the overall disparate space, distinct areas have been created to cater for patrons who prefer different experiences. Not only are traditional gaming punters catered to within the luxurious new room, but a new breed of patrons have been identified and have had breakout spaces designed with them in mind.

“I’ve worked on a lot of hotels and I’ve picked up very quickly that the TAB and the beverage market is dominating the clientele in the gaming room.

And that particular market, they’re not big punters, they’re more interested in drinking more alcohol and spending the whole day there,” explains Kelly.

“I also realised that the sports-betting facility was

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[originally] within the TAB, so we broke that off and gave the sports-watching customers the space that was close to the gaming room, and didn’t have anything to do with the TAB.” By creating these different spaces, the Bidwill Hotel has seen an increase in spend and duration of stay of non-gaming patrons.

“We had a fairly good knowledge of the sort of customers who have been coming to the hotel currently, and where [Marty] wanted to be. We needed to provide some options that he didn’t have previously.

So a lot of thought goes into these renovations.”

The ease and security of both back-of-house and front-of-house operations were also large considerations within the design. A butler’s pantry was created behind the new bar to provide gaming hosts with everything necessary to ensure a high level of service and attentiveness. The corridor leading to the back office was made intentionally difficult to access to discourage petty theft.

“We really concentrated on the safety of the office and creating almost a labyrinth so that customers could not access the office in any format, and thus it’s very difficult for people to steal from the venue,” states Kelly.

Not only was the design to Secheny’s liking, but the construction of the space was all smooth sailing, thanks to The Chillie Group.

“The build process was exceptional,” exclaims Secheny.

“Paul and Graeham from The Chillie Group knocked the whole job over within twelve weeks and came in well under budget. There were no unexpected cost blowouts along the way, and

“The build process was exceptional - Paul and Graeham from The Chillie Group knocked the whole job over within twelve weeks and came in well under budget. There were no unexpected cost blowouts along the way, and everything was done professionally with a premium finish throughout – I can’t thank those guys enough!”

Marty Secheny, Director – Licensee, Bidwill Investments Pty Ltd

HOSTPITALITY INDUSTRY SPECIALISTS HOTELS – PUBS – CLUBS – GAMING – BARS – RESTAURANTS – DESIGN – CONSTRUCTION

02 8097 2400 – info@thechilliegroup.com.au

www.thechilliegroup.com.au

DESIGN & BUILD The gaming area's bar and sports viewing section

The new TAB area

everything was done professionally with a premium finish throughout – I can’t thank those guys enough!”

The only hiccup – as always seems to be the case with old hotels – was the discovery of undocumented structural beams in the middle of the proposed ceiling feature, but the design and construction teams were able to swiftly come up with a solution.

“Between Paul Kelly’s team and the Chillie boys, they came up with the necessary solutions to make sure that we could still run with the same sized feature and without any hold up to the schedule.”

The new gaming and wagering space opened up in early July, and the early results have been phenomenal.

“We are experiencing increased gaming turnover circa 38 per cent. After the introduction of the additional bar, food and beverage has increased with very similar results and our new TAB area is on the up and up,” states Secheny.

With great results so far, Secheny acknowledges that the work continues to maintain those kinds of figures.

“The job for our team now is to keep working hard to ensure that our investment and efforts continue to serve the calibre of the new room well beyond that of the honeymoon period and protect the revenue growth achieved by the renovations.”

SINCE THE RENOVATION, GAMING TURNOVER HAS INCREASED BY

38% AT BIDWILL HOTEL

The sports viewing section is slighlty separate from the rest of the gaming area

The Bidwill Hotel.

Paul Kelly Design is proud to present a new premium entertainment venue in Greater Western Sydney.

Let the games begin.

CALENDAR

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

NBA

A-LEAGUE

There is plenty of NBA action this month, and with seven Aussies in the comp, there are numerous homegrown heroes to get behind. Australian talent will be on full display when Matthew Dellavedova and Thon Maker of the Milwaukee Bucks, take on compatriot Pattie Mills and his San Antonio Spurs.

When: Saturday 11 October, 1pm.

Channel: ESPN

A-League action starts early in the week twice this month, with the introduction of the Thursday night fixture. It will only feature a handful of times this season, but it gives venues another week night to entice football fans in for a visit.

When: Central Coast v Adelaide: Thursday 16 November, 8pm.

Newcastle v Victory: Thursday 23 November, 8pm.

Channel: Fox Sports 1

UFC

FOOTBALL

Who doesn’t love some free UFC action? Show UFC Sydney live at no extra charge as part of your Foxtel subscription.The drawcard will see heavyweight Mark Hunt take on Poland’s Marcin Tybura in the main event, with Aussies Bec Rawlings, Dan Kelly and Alexander Volkanovski also on the bill.

When: Sunday 19 November, 11am.

Channel: Fox Sports 506

Arguably Australia’s best national sports team right now, the Matildas will face China in two international friendlies in November. With seven wins this year, including three over Brazil and one against USA, if you’re not showing Matildas games yet, you should be.

When: Game 1: Wednesday 22 November, 7:30pm.

Game 2: Sunday November 26, 4:30pm.

Channel: Fox Sports 1

NEXT MONTH

Kick off December with UFC 218, when Max Holloway will defend his featherweight title for the first time against former lightweight champ Frankie Edgar. Holloway comes into the fight on a 11-bout winning streak, while Edgar has won seven of his last eight.

When: Sunday 3 December, 1pm.

Channel: Main Event *All times are AEST

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