New technology to control access to our venues

As we decorate our venues for Christmas, as discussed in my previous article, venue operators must also think about the wider management issues.

According to Home Office figures in February 2006, 6000 test-purchases took place in the run-up to Christmas resulting in 800 summons for serving under-age. A charge that carries up to £5000 fine, on the-spot-fines, 6 month imprisonment and the revocation of the DPS licence. Repeated offences could call the licence in for review.

The government, the media and numerous other authorities are constantly examining the relationship between alcohol (both underage and irresponsible consumption) and anti-social behaviour.

The British Beer & Pub Association (BBPA) has sent a letter to London MPs with the latest statistics from Camden and Westminster council, published as part of a consultation on revised licensing policies, which show a decrease in crime rates in the first year of the new Act. I may be cynical but I worry if this is just an industry smokescreen based upon some selective figures. I may be wrong but my perception isn’t this!

But it’s not just about crime on the street, under-age drinking or drink-driving, there are also issues about protecting staff and our property. Maybe, we need to think more about who we let into our premises in the first place and what technology is available to help us.

I came across a new product called clubscan VIS (Visual Identification System) - a complex piece of programming and hardware which is simply installed at the entrance to your venue which will verify and collect data from Customers ' personal ID such as Passports, Driver's Licences and Student IDs.

It processes all IDs placed through the scanner in seconds and uses OCR to extract all the data from the card and put it into a database. The information is then ready for you to analyse and use as you see fit.

I have seen a piece of kit like this in the US but it is the first UK product I have come across. If you are using it please drop me a review and I will include it on my site.

Website for clubscan is: http://www.idscan.co.uk/

Sampling in bars and nightclubs

How often has a drinks manufacturer come in with a bottle of their latest product and asked us to stock it? They ask us to sample it and, if we like the concept, we order some in to try and sell them.

If we do, the sales representative will usually organise some point of sale (POS) material and maybe some free stock to help things get going.

Mind you, I have even known for none of this to happen. We order some and no POS turns up.

If the manufacturer or supplier has their wits about them they will organise a sampling team to come around but, because of the costs involved, this is happening less and less. More often, they will offer us some free stock so we can do it ourselves.

I like sampling. It gets the product before the customer and onto their lips but it also allows the sampling team to interact and quickly build up a rapport with my customer; this works especially well with outside teams coming in rather than using my own staff.

It is all about getting the customer to try and then buy - it is not about a free drink between rounds, so the campaign has to be carefully thought out. Some managers get difficult about sampling and say it takes sales away from the bar but that is not my experience if the sampling is carefully thought through. What it can do is to retain customers for a longer period than they originally planned!

The worst case scenario is the big multiples whose head office direct their venues to "must stock" new lines without any POS or promotion. It just appears on shelves and then the manufacturer wonders why there is no repeat order - it's because it hasn't sold! And that is because there was no promotion!

My advice? Use sampling and use it well. Play games like the Corky's team are doing in the photo above - make the experience fun, maybe give away some badges or tee-shirts. Get the DJ to join in the fun and hype it up. Whatever it takes to get the product off your shelves in a way in which customers enjoy the experience and come back to your venue for more!

Deposits on beer kegs on the horizon

Recently, I received a letter from my brewery telling me that they had seen their kegs used as bbq's and as rafts in charity boat races. They cost a lot of money so implored their customers to ensure their safe return.

Regional brewers are coming round to the idea of charging licensees deposits on kegs, under a proposed scheme that could start in 2008.

That is according to the British Beer & Pub Association’s (BBPA) brewing director David Long, who heads the BBPA-backed working party looking at the idea.

Plans to charge licensees deposits of up to £50 per container were raised last year in response to a spate of thefts. The BBPA has sent out questionnaires to brewers asking their views on details of the scheme. Last week, the working party made a presentation about keg deposits to council members of the Society of Independent Brewers (SIBA).

Smaller brewers had expressed concern about the costs of implementing and operating a deposit system.

My view is that this is yet another burden on small businesses. The breweries have detailed statistics on each customer's purchases so they know who has had what number of kegs and returned how many.

It would not be rocket science to charge those that have failed to return them rather than Breweries take money from the rest of us and hold it in their bank accounts until such time as they see fit to return it.

John Hicks

Half year results from Luminar Leisure look promising

Nightclub operator Luminar has reported that the expansion and growth of its ‘branded destination’ business is progressing well.

From a single venue to a FTSE250 listed Company in less than two decades is an impresssive achievement for the dynamic and larger-than-life Steve Thomas. This is the force behind such brands as Oceana, Liquid, Lava & Ignite and Life, they're the largest operator of licensed late-night venues in the UK today.

They have announced that trading performance for the half year ended 31st August 2007 has been satisfactory.

A statement released said: “We have continued to enjoy the positive trend in the Branded Dancing Division with like for like sales 13.4% ahead. Overall company like for like sales improved 4.1% for the half year ended 31st August 2007."

“As anticipated, gross margins have fallen to a level slightly below last year due to the tactical promotional investments made during the quieter summer months of July and August.”

“As part of the company's commitment to return cash to shareholders, the company has acquired 1,815,422 shares for cancellation representing £13.3m in cash and over 2% of the issued share capital. This was carried out predominantly between May and July 2007.

“The Scheme of Arrangement, to enable a further return of capital to shareholders is progressing to plan and is expected to be effective in October 2007.

“During the second half of the financial year the company will continue to focus on its core strategy.

“The company is implementing clear operational plans for the key trading periods and the 2007/8 opening programme remains on track.

“At this early stage the Board continues to be optimistic of the outlook for the year as a whole. The company will report its interim results for the period ended 31st August 2007 on 30th October 2007.”

Wine and Spirits Wholesalers of America publishes "Smart National Alcohol Practices" policy

WSWA CALLS FOR "SMART NATIONAL ALCOHOL PRACTICES"

By John Hicks

The Wine and Spirits Wholesalers of America has announced the release of its "Smart National Alcohol Practices" policy statement. I think that it has some interesting lessons for us here in the UK.

“WSWA's policy statement is designed to promote smart national alcohol practices, help shape legislation in the states and guide legislators and regulators to enact effective and commonsense laws related to responsible access and consumption of alcohol,” WSWA President and CEO Craig Wolf said. “And WSWA members are committed to advocating and lobbying for these important policies nationwide.”

According to the US National Highway Traffic Safety Administration, the number of alcohol-related traffic deaths appears to have inched up for the first time in 15 years.

"We must continue to educate people about the dangers of driving while intoxicated and do everything we can to prevent underage access to alcohol,” Wolf said. “The alcohol industry has a unique and special responsibility to encourage and support government and community programs that inform everyone about the dangers of unregulated access to and over-consumption of alcohol.”

Beyond continued education, we must be sure there is also effective treatment for offenders—and when warranted—those who fail to follow the law must be held accountable and punished for their actions, Wolf said.

WSWA urges others in the industry to join with them to help put these commonsense policies into practice and on the books in every state.

WSWA Policy Statement to Promote "Smart National Alcohol Practices" says:

• Media Supporting Enforcement: Support public education campaigns educating the public on the dangers of DUI, underage access and the penalties associated with them.


• Administrative License Revocation (ALR): Support laws that provide for the prompt administrative suspension or revocation of a DUI offender’s drivers license for either failing or refusing a BAC test.


• Graduated Penalties for Repeat Offenders: Support increased penalties for offenders who violate DUI laws more than once.


• Ignition Interlock: Support laws requiring the installation of a device that integrates a breath-alcohol test into a vehicle and requires a zero BAC for engine start, for repeat offenders (2+ offences).


• High BAC Penalties: Support laws that provide for increased sanctions for DUI offenders with BAC levels above .15.


• Increased Penalties for Driving While Suspended (DWS): Support increased penalties for offenders who are caught driving on a license suspended as the result of a prior DUI conviction.


• Increased Penalties for People Who Cause Injuries: Support laws that increase penalties on those who commit bodily injury or death while under the influence.


• Mandatory Alcohol Screening: Support mandatory assessment of DUI offenders prior to conviction or sentencing to determine the potential for alcohol dependency or abuse and to make the appropriate treatment referrals.


• Comprehensive Drinking Age Laws: Support drinking age laws that prohibit the purchase, attempt to purchase or possession of alcohol, or the use of fraudulent identification by an individual under the age of 21; as well as the sale of alcohol or provision of alcohol to an individual under 21. Including increased penalties for parents who unlawfully provide alcohol to minors, and carriers who deliver alcohol to minors.


• Designated Driver and Safe Ride Programs: Support programs that promote the use of sober designated drivers and sober safe rides, and make sober safe rides available as an alternative to prevent impaired driving.


• Fake IDs: Support increased penalties for those who use or manufacture fake IDs.


• Law Enforcement Funding: Support state programs that track underage access.


• Alcohol Education: Support mandatory alcohol orientation for all college freshmen and mandatory alcohol education for college offenders.


• AWOL Machines: Support bans on AWOL machines (see picture above)


• Drunk Driving Hotlines: Support hotlines that motorists can use to report drivers operating vehicles while under the influence of alcohol.
  

There is talk of raising the drinking age to 21 here in the UK. Personally, I would support this move but I cannot see it happening.

This AWOL machine concept is rather disturbing. As you can see from the photo, the customer takes in the alcohol directly to the lungs. It is said to avoid hangovers but means that you cannot be breathalysed by the police at the roadside. I am note sure I like this concept!

WSWA is a national trade association representing the wholesale tier of the wine and spirits industry and supports government policies that ensure sales and deliveries of alcohol are conducted only by those licensed by the state and in compliance with state and federal law.

Reminder to operators of new legislation from 1st October 2007

Operators of nightclubs, bars, pubs, clubs themed bars and late night venues in the UK are reminded of imminent changes to the law

Raising the minimum legal age for tobacco sales:
From 1st October 2007 you must not sell cigarettes, cigarette papers or any other tobacco products to anyone younger than 18.

To comply with the law, signs must be displayed which are at least A3 in size and with lettering no less than 36mm in height.
In retail premises: “It is illegal to sell tobacco products to anyone under the age of 18”
On vending machines: “This machine is only for the use of people aged 18 or over”

From October 1st 2007, selling tobacco products to someone under 18 from could lead to a fine of £2,500 and failing to display the statutory notice could result in a fine of £1,000.

John Hicks, operator of a major live music venue in the south of England, suggests "Staff training is essential to ensure compliance with the regulations as even the sale of cigarette papers to under 18's will now be illegal. I also recommend that you check that your cigarette vending machine is close to the bar so that staff can observe it's use; if there is a risk that under 18's can use it without being noticed by staff this could expose you to prosecution."

New national minimum wage rates
From October 1st, eligible workers must be paid the following;£5.52 an hour to adult workers aged 22 and over£4.60 an hour to workers aged 18 – 21£3.40 an hour to workers below 18 who are no longer of compulsory school age

John Hicks reminded operators that where accommodation is provided for employees, the maximum amount you can offset against the national minimum wage is a total of £30.10 a week.

Increase in statutory holiday entitlement
From October 1st 2007 the statutory minimum holiday entitlement will be 4.8 weeks (24 days) which can include bank and public holidays. (This will increase to 28 days from April 1st 2009).

Employees will not have to work a qualifying period to be granted this entitlement but you can restrict the rate at which they take leave in their first year.

Part-time workers must receive annual leave equal to 4.8 times their usual working week.

Coming soon, the resource for all nightclubs, late bars and venues: http://www.nightclubmarketing.co.uk/

Safe use of Christmas decorations in nightclub and bar marketing

Safe use of Christmas decorations in nightclub and bar marketing

By John Hicks

It’s that time of year when late night bars, nightclubs and restaurants, having started their Christmas and New Year promotions, think about decorating their venue ready for the festive season.

Many businesses make more profit over Christmas and New Year than they do over the whole of the rest of the year so this is critical to their profit and loss account!

Decorating your venue is a key component to customer satisfaction, generating business and upselling. Yet so many managers will leave this to new and junior members of staff with little or no guidance.

I cannot help with the artistic guidance but I can share some practical health and safety tips to ensure that this experience does not lead you into insurance claims!As always, the exercise must start with PLANNING.

Walk round the venue and sketch out your ideas on paper and ensure that you make good use of the materials you have; this saves you problems later when you find the fixings are in the wrong place or electrical power can only be supplied by using extension leads. I always then take out all my decorations and place them around the venue before I start putting them up. Remember for maximum impact it is best to block all your displays together rather than spread them round sparsely!

Inevitably, it seems, staff will try and put up decorations at height using the nearest available chair or bar stool rather than get out the stepladder and work with a buddy for safety. As a manager, cover yourself legally by reminding all staff that they must take care when working at heights; insist that they work in pairs and use a stepladder. Tell them that if it is too difficult to fix a display at height do not do it because not only will it be unsafe now but it has to be taken down next January when it will be just as difficult or unsafe!Tell them not to fix decorations near naked lights or other sources of heat, over air intakes or ventilation and air con grilles or over Emergency Exits which must remain clear at all times. In particular, no emergency signage should be obscured.

From an operator’s viewpoint, walk round to see their handiwork when completed. Ensure that the decorations do not obscure your promotional signage or product displays. Also, I have found over-enthusiastic staff plaster the back bar with displays which causes problems when serving on busy nights so check practical issues.

They are also keen to use extension leads for lights which are okay by themselves but check that the leads are not wound up so they can overheat. I always use external lighting kits even indoors as my gut feeling, rather than scientific fact, is that they are safer in an environment which can get very dusty and, maybe, wet sometimes. Make sure that trailing leads are secure and taped down if necessary to avoid trip hazards. Make sure that all lighting decorations and disconnected from the mains at closing time.

Come January, make sure that staff take down decorations in a safe manner and store them in their boxes in a dry store. A lot of money is wasted by businesses every year when careful storage will render the decorations good for many years service!

In the meantime, have a busy and profitable Christmas and New Year.

For my part, I have planned a tremendously busy period of Christmas and New Year parties with a vibrant programme of live music in my venue so am taking a couple of weeks off before kick starting my intense promotional programme!

This article was first published in John's Telegraph blog - September 2007

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