Avance

Smoking ban offers the hope of new customers

The smoking ban could be the biggest marketing opportunity to hit English pubs in a generation, according to customer management specialist Avance Group.

Micromarketing – tailoring individual pub offerings to local tastes – has allowed pubs in Scotland and Ireland to boost business since earlier smoking bans were introduced, often by attracting customers who previously stayed away from pubs altogether.

But an investigation into 250 pubs in Scotland that faced trading difficulties after the smoking ban was introduced last year has revealed that seven out of ten pub landlords blame the smoking ban for their financial problems.

Graham Higgins, director of leisure services for Avance says, “The typical pub customer has been changing constantly for over a decade, but still many operators rely on a one-size-fits-all approach to running a pub – two beers on tap, a handful of spirits and ashtrays on the tables.

“Big pub companies are using the smoking ban as an opportunity to innovate and capitalise on local tastes, attracting new customers to their outlets for the first time. It is a recipe for success, and one that the entire industry – small players especially – needs to adopt.�

Avance Group operates a nationwide team of licensed trade turnaround experts who investigate the underlying causes of financial failure among pubs, clubs, restaurants and hotels. In Scotland last year, their investigations found that in two fifths of struggling pubs, trading difficulties were indeed related to the smoking ban, but only where publicans failed to adapt to changing customer expectations after the ban.

On the other hand, Avance has found evidence of pub operators who have managed to turn the smoking ban to their advantage, relaunching male-dominated “wet-led� drinking venues as entertainment or food-led businesses.

A national survey conducted by Lansdowne Market Research in 2004, six months after a smoking ban was introduced in Ireland, established that 70% of the 1,000 people surveyed said the ban had improved their experience of pubs, while 78% said it improved their experience in restaurants. Over half (53%) said they would be more inclined to eat in a pub after the ban was introduced.

Says Higgins, “Our work in Scotland has uncovered real success stories where publicans have capitalised on new customer opportunities, turning their businesses into food-led operations, or entertainment venues. Publicans in England must learn from the experience of their counterparts in Scotland and Ireland, where there is also a wealth of evidence that the smoking ban actually had a positive effect on people’s perceptions of pubs and restaurants as places to spend time and eat.�