“Price is what you pay, value is what you get.” What an insightful comment! No doubt the fact that it comes from the world’s most renowned investor, Warren Buffet, adds to the credibility of the statement. I’ve personally noticed that there is a tendency for businesses to focus too much on the price of a product or service rather than adequately assessing the value. It is crucially important for venue managers, in fact everyone in hospitality, to understand value. If promotions and events (as well as all products and services you pay for) are seen purely in terms of cost then the potential for increased patronage and spend is minimised. I’ll use an example of a venue we have dealt with on and off for the past fifteen years or so. The manager of this venue sees promotion purely as a cost, rather than an investment. The whole thing, in his eyes, begins and ends with the invoice we provide him for our weekly trivia event. Eighteen months ago, after hosting our trivia event at his venue for a number of years, this particular venue manager decided he wanted out. He looked at his budget and was convinced he couldn’t justify the weekly cost of the event. Fair enough, these things happen. We shook hands and went our separate ways. The loyal trivia players were disappointed with this venues decision. The weekly event had become their regular night out with friends where they could get together for a meal and a few drinks to enjoy the quiz and a few laughs. We ended up teaming with another venue nearby and a few of the players were happy to make this their new local. Fast forward a few months and the original venue manager called us. There was a big bar and bistro deficit showing up for his Wednesday night trading, the same night he had been hosting trivia. Plus, he had noticed what had been a lively, atmosphere filled night was now a dull affair without the vitality and excitement that his forty regular trivia players had added to the venue each week. I’m not trying to boast. This could have been any type of promotional event, delivered by any provider. The point is this guy saw only the cost and not the value that his weekly event provided in bar and bistro sales and boosted atmosphere. Understanding the value of promotions and your other investments in products and services is crucial in running a successful venue.

I’ve been thinking about feedback a lot lately. It’s one of the most valuable ways to get a better understanding of the strengths and weaknesses of your business, your staff and your leadership. Giving and receiving honest feedback is crucial. But it’s also very challenging. Managing a hospitality venue you have a responsibility to a number of different stake holders. Feedback is the best way to understand how you can best deliver on that responsibility. THE BEST PROMOTERS YOU HAVE The main thing is to understand just how valuable feedback is and have the guts to deliver it and receive it, especially from your staff and customers. I’ll use an example from my days of playing and coaching footy. Receiving honest feedback means your players or coach see potential, places you can improve and an opportunity for the team to develop. Don’t worry about what is said, however honest it may be. A lot can be learned from this type of honest feedback. The second step to good feedback is the message itself. It needs to be clear and considered. If you’re offering it to your staff take your time to think about delivering some constructive criticism which your staff member will feel encouraged by. If you’re asking for feedback give your customers or staff time to think and offer something of value. CAPITALISING ON YOUR ENTERTAINMENT SPEND Finally consider the “feedback loop.” It’s one thing to have the commitment to offer and receive honest feedback but another thing altogether to put that feedback into practise and grow from it. A great starting point in closing the feedback loop is the STOP, START, KEEP process. It’s great because it’s so easy. Consider what you need to stop doing, start doing and keep doing. If you continue to seek and offer honest feedback and work individually and as a team in closing the feedback loop you will begin to see some great results in continuing to move your venue forward. Good luck.

Last week I was out doing the rounds, visiting my venue partners to catch up on the successes and challenges they face in driving visitation and spend at their venue. During one meeting I received an interesting insight from one venue manager. Discussing a competitor just down the road from his venue he said, “their meals are fantastic; we’ve got work to do to get to that level.” I was struck by his positive attitude when dealing with a difficult reality. Quite simply his competitor was besting his venue. But he saw it an opportunity to improve. When was the last time you walked into a competitor’s venue?  THE X FACTOR OF HIGH PERFORMANCE If you’re taking your role seriously and always willing to improve, no doubt it was recently. The hospitality industry is enormously and increasingly competitive. Most pubs and clubs are generally surrounded by a multitude of other businesses targeting a similar customer base. In many cases venues are competing with bars, restaurants and even local cafes. I’ve even heard some managers talking about the effect of Materchef and other cooking shows have had on patron’s expectations of dining offerings. Competition is fierce but the best venues are seeing it as an opportunity rather than a threat. Knowing what the competition is providing allows you to ensure your offer is better or different in some way. It also allows you to keep up to date with industry trends and other venue offerings. You may find it worthwhile to create a written competitive assessment on your local venues. Put some time into analysing: Food and beverage offering Target customers Entertainment and promotional offerings Membership program Marketing strategies Strengths and weaknesses THE VALUE OF A LIVELY VENUE Analyse the above indicators at your own venue then compare them to those at your competitors to see where there may be gaps at your pub or club. As always, it’s important not to lose sight of your own business and the goals you are trying to achieve by constantly being reactive to competitors. However, keeping an eye on what their strengths and weaknesses are and conducting an assessment every now and then is a great habit to get into. Just remember, it’s worth keeping a positive spin on whatever tactics your competitors are taking. Like the successful venue manager I visited last week, it’s always advisable to the competitive nature of the Australian hospitality industry as an opportunity rather than a threat.

Things have been crazy here at Full House Group over the last few weeks. A whole bunch of opportunities that the team have been working on are coming to fruition and it’s all hands on deck. It’s one of those things. You work and hope and keep pushing and then, as they say, “when it rains, it pours.” Now we’re walking the tightrope, deciding who does what over the coming weeks and months. We’re creating roles on the fly and team members are suddenly performing a whole range of different tasks. In fact, a few days ago these tasks didn’t even exist. And here’s the thing, everyone is thriving. GETTING MORE FROM YOUR ENTERTAINMENT SPEND The team is engaged and excited. They are working together like never before and rising to the challenge. The experiences we have had over the last couple of weeks have been a real eye opener and what I have learned can be translated perfectly into hospitality businesses like your own. While the business professors would refer to it as “delegation” I think a better way to describe it is “staff ownership.” Giving your staff ownership of a task or project means two things: Firstly, it frees up your time to get stuck into the thousands of other small and major tasks required for running your business. Second, and most importantly, it does wonders for your staff members motivation, confidence and engagement. By giving ownership to your staff you are essentially saying, “I believe in you.” You are giving them the opportunity to take on the task, to think outside the square and to add their own bit of personality to the role. THE BEST PROMOTERS YOU HAVE A few things you could consider letting your staff members take ownership of include: Events Get a staff member to manage and run one of your upcoming events, for example a tribute show. Encourage the staff member to select the band and organise marketing and ticketing. Watch as the staff member beams with pride when the event goes off without a hitch. Marketing Engage a staff member or even a group of your staff to organise a marketing promotion. Give them a budget if required and they’ll no doubt produce a dynamic marketing campaign that may open up your venue to a whole range of potential patrons. Clubs So often venues have a fantastic opportunity to build relationships with local clubs. Why not have a couple of staff members work on welcoming a new local club to your venue? Better still, encourage them to create a club of their own and welcome some new engaged patrons to your venue. The beauty of giving ownership to your staff is that you get the benefit of motivating and engaging your most important resources. On top of this, you get a whole range of fresh, creative ideas which can make a he difference to your venue. Good luck.

Over the last month or two my colleagues have penned some great articles on what it is that helps venues become the social hub of their community. We’re in a fortunate position with our Australia wide network to really have a finger on the pulse of a huge cross section of pubs and clubs. I have really enjoyed seeing the different insights that the team have come up with. Some great suggestions on boosting atmosphere, driving visitation and spend and getting the most out of your sports broadcast. There are unlimited options for venues looking to take things to the next level. There is, however, in my opinion, one key component in selecting suitable entertainment offerings, broadcast providers or even new furniture or renovations. GETTING THE MOST OUT OF YOUR LIVE SPORT? The thing I notice time and again is that the best venues are skilled at identifying value. They spend time weighing up their options and make a selection on what is best for their venue and their patrons. I believe that there are three key components in getting the best value when investing in your venue. Vision There are a huge range of costs in running an Australian pub or club. From licenses to staffing, advertising to entertainment, it never ends. Rather than just paying bills and moving aimlessly on to the next expense, the best venues have a vision of what they want and what their investment will do to benefit their bottom line and the experience of their patrons. Research Once the vision is established the next thing a good venue will do is research. Let’s use entertainment as an example. A venue decides to add something fun to liven up a quiet night. It might be live music, poker, trivia or even bingo. The good venues will step back and think about what’s best for their existing clientele and what may bring in new patrons and make decisions based on their findings. THEMED TRIVIA TAKING VENUES BY STORM! Value vs Price This is the key component. There’s always someone offering lower prices. People who are willing to come in and undercut quality suppliers for a quick buck. But do they have pride in what they do? Can they efficiently market themselves to a major network? Are their staff trained professionally? Looking for value over price will always result in the best ROI and time and again the best venues are the ones with a keen eye for value. For more info on getting value for your entertainment spend please feel free to get in touch.