Over recent years, many traditional pubs have faded away. The food and drink industry is still booming, but it’s changing. In every industry, businesses that don’t adapt will simply be left behind. It’s no different in the hospitality marketplace. If anything, the demands are even greater for businesses in this industry because there’s so much competition. Pubs, bars, and restaurants overlap to the extent that the line has become a little blurred. It’s hard to distinguish between these types of establishments anymore. But that doesn’t have to be a bad thing. It just means that you have to be flexible if you want to succeed in this industry. Let’s talk about what it takes to run a profitable pub in 2019.
Knowledge of the marketplace
If you want to run a profitable pub in 2019, then you need knowledge of the marketplace. Remember that the industry continuously changes. You might have 10 or 20 years of experience, but that doesn’t mean you know more about the modern hospitality sector than people with only 1 or 2 years of experience. If you want to stay ahead of the competition, then you need to keep researching the industry. Pay attention to your rivals, and pay attention to consumers. Aim to fill gaps in the market by solving problems facing your current or potential customers. You might even want to read this pub news magazine. That would give you modern information to help you keep on top of developments in your particular industry.
A food menu
As mentioned in the previous point, this industry is always changing. Many traditional pubs have started to realise this. That’s why so many of them have started to adapt by offering a food menu as well as a drinks menu. In a sense, you have to run a restaurant as well as a pub if you want your business to be profitable in 2019. That’s how you’ll compete with other establishments which offer both services. Why would somebody have a beverage at your pub when they could have a beverage with the additional option of snacks or a full-blown meal at another establishment? Just make sure that you get the necessary licenses and permits if you start selling food on your property. Hiring the right staff will be crucial to the success of your business’ restaurant side too.
Many pubs and restaurants fail quickly because they manage money ineffectively. Filling up seats with customers is great, but does that mean a pub is successful? No. Turning a profit is only the first step. You have to use that money wisely if you want to run a profitable pub in the long-term. Your income should be greater than your outgoings. That sounds obvious, but so many businesses in the hospitality sector don’t seem to recognise or appreciate this. Fiscal responsibility is the most essential ingredient for a successful pub business.
Focus on maintaining your cash flow. If that means you need to keep your business small (e.g. 1 chef and a small menu, as suggested in the previous point), then keep your business small. Be disciplined. You want your pub to gradually grow and become more successful, but you shouldn’t run before you can walk. Focus on the profits you’re pulling in before you make an investment. Obviously, spending money on any business is always a risk, but it should be a calculated risk.