The rate for the job

In the last few years pubs and bars have had to work increasingly hard just to avoid going backwards. The economy hasn’t helped, nor have increased taxes on alcohol, the smoking ban and rivalry from supermarkets. Nevertheless there remain a great many positive career options within the sector. Sally Wigg of specialist recruitment consultancy Hospitality & Leisure Recruitment provides a market snapshot plus the all-important salary information.

The last 12 months have been a very difficult time for operators of pubs and bars. The smoking ban, the continued rise of duty on beers and spirits, cheap alcohol off-trade (i.e. retail) sales and a lack of financial lending ,not to mention the deep recession, have all presented their own challenges. Nationally we have witnessed the closure of many of our traditional community pubs – 2,400 pubs poured their last pint in 2009 according to the British Beer & Pub Association (BBPA).
The industry however has good support, with many people recognising its value in the social fabric of many rural areas and the number of jobs that this sector creates for skilled and non-skilled workers. The BBPA, Campaign for Real Ale and Society of Independent Brewers have all joined forces to lobby the Chancellor to freeze duty for a period of time to support this industry. Although the outlook is still cautious, 2010 has shown green shoots of recovery with closure rates 25% down on the first six months of 2009.
The managed branded food pubs and bars have shown more resilience to difficult trading conditions in comparison with the unbranded owner-operated businesses. This is backed up by some recent encouraging financial results from Greene King and Whitbread – major players in this arena. Greene King has noted a significant rise in profits in the managed concepts ‘Hungry Horse’ and ‘Old English Inns’ and has consequently announced a future 23% increase of branded pubs across its estate by acquisition and transfers from tenancies – this will in turn create many new jobs at management level and below.
Despite the rather gloomy economic trading conditions across the pubs and bars sector the industry has continued to recruit. According to the ‘State of the Nation Report’ in 2010 nearly half (45%) of businesses within this sector have recruited new staff in the six months up to March 2010. It also states that 55% of businesses believe that the recession has made it easier to retain staff, decreasing turnover in some areas which can only be good for business.
Whilst the industry finds it relatively easy to recruit personnel it is more difficult in areas of low unemployment and where there are skill shortages – particularly in management and experienced chefs. As the industry has shifted from ‘wet-led’ community locals to ‘food-led’ businesses, candidates with these skills have become increasingly attractive to both private and corporate operators.
Salaries & benefits
Overall, salaries have remained fairly static within the sector over the last year. Geographically, roles in the capital still tend to include salary weighting. This is generally up to £5,000 for unit-based roles and up to £10,000 for area or regional management. Outside of London any regional salary biases are minimal. That said, with the sector comprising both large corporates and solus owner-operated independents, there is, of course, the potential for considerable variations in ranges of salaries. Generally speaking, however, the branded pubs and bars tend to pay higher annual salaries, particularly at entry level, than the unbranded/independent operators. General managers’ salaries can start at £18k for £2k–£3k per week turnover, increasing to £60k for high volume destinations and high street businesses.
Benefits can also differ from company to company and brand to brand, but a unique selling point of the pub sector is the offer of free live-in family accommodation; the only cost in these situations to the manager is council tax. Most of the larger companies also offer a contributory pension scheme; private healthcare will generally be fully expensed in regional roles and discounted at unit level.
Bonus schemes are available in most cases and will range from fixed cash amounts on KPIs such as mystery diner and audit results to profit share schemes against budgets annually. Cars or car allowances will generally be available at area management level and with some senior general manager roles within high volume brands.
As an industry there is little doubt that pubs and bars have been hit hard by the economic maelstrom of the last two years. That said there is equally little doubt that there remain many excellent career opportunities for hospitality professionals. Operators in this sector have been forced to evolve and innovate in order to survive, a challenge that thus far they have risen to admirably.