Much soul-searching by publicans as they ponder the future
Queen Elizabeth wasn't exaggerating when she said at the end of 1992 that that year had been an "annus horribilis" (after the conflagration at her pad Windsor Castle) - and the publicans of Meath and Louth can say the same about 2009. It was made clear when over 100 of them came together in Duleek on Monday for a forum on 'How Irish pubs will survive and thrive in 2010 and beyond', that they were glad to see the back of it. The aptly-named Ciaran Budds, national sales manager of Diageo Ireland, said: "None of you want to relive 2009. It was a very challenging year for the trade in Ireland. In fact, it really has been a horrible year." And then the good news: "The good news is that if you made it through 2009, then that is as bad as it's going to get. We see an upward trend from here," he said. 2010 might be a year of uncertainty but it would certainly be better than the previous year. Sharon Keogan, who organised the forum with Seamus O'Neill of O'Neill's Pub in Duleek, said "our industry is under attack but we are not going to stand idly by. Survival is just not enough. It's tough out there but we can come through it if we are innovative and united". The forum heard how consumer confidence was beginning to return. After the boom of the Celtic Tiger years, people were starting to understand how to cope. The man from Guinness was convinced that the drinks trade would have to fight that much harder in order to get at people's "disposable income". At one stage, pubs could boast of a seven-day trade. Now it was the case that "you have a syndrome, like in the Westerns, where the tumbleweed is blowing down the pub floor," Mr Budds said. But they faced an uphill task in persuading people to get off their comfortable sofas and 46" surround sound plasma screen TVs at home into their local pub. People were now looking for a reason to go out. They wanted an occasion. According to Mr Budds, people were saying "I don't want to talk about the recession. I want a bit of fun, I want to enjoy myself. Why should I go to the pub? They're saying to the publican 'show me that you care'." Training of staff and pub furnishings were useful tools in attracting people in. There was a general perception that the level of service in Irish pubs had dropped during the Tiger years. "I went to a pub in south Dublin with my wife the other night. It was €4.50 for my pint and €7.20 for her short and mixer. And I had to stand around waiting for it. The person behind the bar has five minutes to make an impression on a customer. Pubs are places that became known for atmosphere and craic and that's what we have to work on," he added. The customer these days also wanted quality drinks (to match the prices they're paying for them). And people wanted an "occasion", something to leave their comfortable homes for. His advice to publicans was that there was no rocket science in making success, there was no silver bullet to solve the problems in the pub trade. What was needed was publicans being able to stand back from their businesses and assess their strengths and weaknesses. Budds delivered a poke in the ribs to those customers who had stood back from their businesses in the past few years - they had to realise that "it's my business, it's my pension, I'll have to work at it. People want to see the publican back behind the bar". That theme was taken up by Padraig Cribben, chief executive of the Vintners' Federation of Ireland who said that some publicans were more interested in their property portfolios and their seven irons than participation in day-to-day pub work. There is no denying the statistics of recent decline in the drinks trade - overall drinks sales down by 8.9 per cent in 2009; pub trade down 12 per cent in 2009 (cider - 5.9 per cent, beer - 6.5 per cent, wine - 6.9 per cent, spirits -18.5 per cent, soft drinks -7.1 per cent, water -19.5 per cent). In fact, trade in the pubs peaked in 2001 and there has been a decline since then. They were likely to fall by a further seven per cent this year. "You couldn't take €3 billion out of the economy at the end of last year, with a further €3 billion to December of this year and not have an effect on the amount of money in people's pockets," Mr Cribben said. He didn't agree with Ciaran Budds' optimistic view of 2010. "We have to shape up to the fact that we are probably another 18 months from where we are at at the moment." A myriad of factors were affecting different trades, not just pubs. But in many cases, "the opposition" (ie, good quality cinemas, greyhound tracks, gyms) had performed better in serving the consumer than the local pub. Focus on the customer had waned. There was now a sharp need for more focus on the customer, on marketing and on efficiency - "hello and goodbye would be nice for a start". The VFI man added: "There has to be a new emphasis on facilities, cleanliness, staff training, value for money - and I don't mean cheap drink - occasions which give people a reason for coming out for a night."