What makes a great licensee?

September 3, 2007: Licensees can no longer rely on charisma and personality to run a successful pub — entrepreneurship, innovation and business acumen are the most important skills needed today, according to a new survey.

The study, undertaken by Greene King, reveals that 70% of people cited pubs as their ideal socialising venue. But in order for pubs to match consumers’ expectations, almost half of respondents (41%) said that customer service is the most important skill for pub landlords to possess, and a third (28%) cited sales and marketing.

Some traditional perceptions still exist, however — a third of those surveyed (31%) agreed that it was a landlord’s responsibility to provide a focal point for the community.

The findings of the report — which have been analysed by the Institute of Leadership and Management (ILM) — show that British pub-goers are demanding ever higher standards from their pub landlords and acknowledge the business skills that are required of the modern licensee.

Landlords are no longer expected to simply pull pints and chat to regulars, but must possess a whole package of entrepreneurial and business skills — from marketing to human resources and innovation — o meet customers’ expectations.

Over half of those surveyed (56%) said that being able to meet and mingle with people like them was their most important criteria for a perfect pub, with the expectation that landlords will create and maintain this environment for existing and new customers. Nearly a third (28%) identified having a licensee who is both friendly and knowledgeable as the most important factor in creating their perfect pub.

Pub-goers rated Richard Branson, Alan Sugar and Stelios Haji-Ioannou as their perfect pub landlords, implying the likes of Peggy Mitchell and Al Murray are outdated stereotypes. David Elliott, managing director of Greene King Pub Partners, has called on TV scriptwriters to update their characters in line with consumers’ expectations.

"We have moved on from the days when landlords were perceived to be simply a friendly face behind the bar," he said. "While customers still expect good service and friendly banter, landlords are undoubtedly being called upon to provide more in terms of the business management required to create customers' ideal venues for socialising.

"Our research shows that pubs are overwhelmingly at the heart of British society in 2007 and today's consumers are looking for an entrepreneurial individual to run their local — someone who understands sales and marketing and can therefore target new customers for them to meet.

"Given that more than 15 million people in the UK go to the pub at least once a week I think the message is loud and clear — Peggy Mitchell-type characters are a thing of the past. Today's successful landlords are entrepreneurial business people whose role is that of small business managing director."

Having analysed the report findings Terry Rich, small business development consultant at the ILM, said: "The best licensees offer something for everyone. The best managers in all industries are often those whose skills go unnoticed, but I think this is particularly true of pub landlords.

"Customers clearly expect things to run smoothly but are often unaware of all the hard work that requires behind the scenes. Pub landlords in particular need to have skills in HR, finance, leadership and customer service amongst other attributes."

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