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the<br />

Publican<br />

The Alliance of Beverage Licensees<br />

Spring 2013<br />

Featuring<br />

Monashee's<br />

Bar & Grill<br />

Agreement #40026059<br />

Renovations<br />

Top 5 Cost-Effective<br />

• Expansion Options for your LRS<br />

• Standing Apart from the Competition<br />

• Police Practices and Impaired Driving


CHAMPIONSIP<br />

[champ - ee - on - sip] verb<br />

Enjoying the taste of an<br />

award-winning beer that judges<br />

and consumers prefer!


Featured<br />

Publican<br />

Steve Pauls at<br />

Monashee's<br />

Bar & Grill<br />

Quarterly Publication for the<br />

Alliance of Beverage Licensees<br />

2nd floor 948 Howe Street, Vancouver, <strong>BC</strong> V6Z 1N9<br />

T 604-688-5560 F 604-688-8560<br />

Toll free 1-800-663-4883<br />

info@ablebc.ca www.ablebc.ca<br />

2012-2013 Board of Directors<br />

President<br />

Ron Orr<br />

Past President Al McCreary<br />

Vice President Jonathan Cross<br />

Vice President Poma Dhaliwal<br />

Vice President Mike McKee<br />

Treasurer<br />

Roger Gibson<br />

Executive Director Ian Baillie<br />

Directors Al Arbuthnot, Brady Beruschi, Sandy Billing,<br />

Don Calveley, Al Deacon, Mariana Fiddler, John Lepinski,<br />

Gavin Parry, Kurt Pyrch, Danny Rickaby, Stan Sprenger<br />

Director at Large Dave Crown<br />

The Publican Editorial Committee Damian Kettlewell,<br />

Ralf Joneikies, Mike McKee, Gary McPhail,<br />

Ron Orr, Brian Riedlinger, Cheryl Semenuik, Jeff Tennant<br />

Designed, Produced & Published by:<br />

EMC Publications<br />

19073 63 Avenue, Surrey <strong>BC</strong> V3S 8G7<br />

Ph: 604-574-4577 1-800-667-0955<br />

Fax: 604-574-2196<br />

info@emcmarketing.com<br />

www.emcmarketing.com<br />

Publisher<br />

Joyce Hayne<br />

Designer<br />

Krysta Furioso<br />

Copy Editor<br />

Debbie Minke<br />

<strong>ABLE</strong> <strong>BC</strong> Editor Ian Baillie<br />

Copyright EMC Publications<br />

PUBLICATIONS MAIL AGREEMENT NO. 40026059<br />

RETURN UNDELIVER<strong>ABLE</strong> CANADIAN ADDRESSES<br />

TO CIRCULATION DEPT EMC PUBLICATIONS<br />

19073 63 AVENUE<br />

SURREY <strong>BC</strong> V3S 8G7<br />

email: info@emcmarketing.com<br />

The statements, opinions & points of view expressed in<br />

published articles are not necessarily those of <strong>ABLE</strong> <strong>BC</strong>.<br />

Advertisers are not necessarily endorsed by <strong>ABLE</strong> <strong>BC</strong>.<br />

20<br />

Features<br />

10 14<br />

the<br />

PublicanSpring2013<br />

10 The Top 5 Cost-Effective Renovations<br />

14 Using Daily Deal Sites<br />

20 Featured Publican:<br />

Steve Pauls, Monashee's Bar & Grill<br />

22 Expansion Options for your LRS<br />

25 Police Practices and Impaired Driving<br />

26 Standing Apart from the Competition<br />

32 Legal Issues<br />

36 Protecting Margins<br />

22 26<br />

Departments<br />

4 President’s Message<br />

6 Executive Director’s Report<br />

7 What’s New?<br />

8 Spotlight on Gin<br />

9 Liquor Sales & Trends<br />

18 Product Showcase<br />

29 Wine Report<br />

30 LCLB Report<br />

31 Human Resources<br />

33 Names in the News<br />

34 <strong>BC</strong>HF Update<br />

35 <strong>ABLE</strong> Benefits<br />

38 LDB Report


President's Message<br />

by Ron Orr<br />

With this first issue of The Publican in 2013, I offer<br />

my best wishes for a year of growth, prosperity,<br />

and personal success. We certainly need it and<br />

I do believe there is reason for optimism in our<br />

industry. While 2012 may have been a year of<br />

transition and challenge, I believe that 2013 will be<br />

the year for rebuilding and strategically advancing<br />

the position of <strong>ABLE</strong> members.<br />

There has been considerable effort put into<br />

establishing and developing new relationships<br />

with all industry stakeholders including politicians,<br />

BDL, LDB and LCLB. <strong>ABLE</strong> has reached out to these<br />

groups and has been successful in developing an<br />

open line of communication with all of the key<br />

decision-makers affecting liquor policy. With open<br />

lines of communication, <strong>ABLE</strong> is well-positioned<br />

to consult and advocate on our issues. While we<br />

may not necessarily agree with all of the policy<br />

changes, it is expected that we will be involved<br />

in the process. Change is a constant and we can<br />

expect to see change affect some, if not all of the<br />

government agencies in the coming year. With an<br />

impending election it is critical that the potential<br />

for change be understood and assessed in light of<br />

potential effect on the liquor industry. The board<br />

and executive of <strong>ABLE</strong> are actively involved in this<br />

process to ensure the importance, relevance, and<br />

priorities of <strong>ABLE</strong> are known to all policy-makers.<br />

<strong>ABLE</strong> has similarly reached out to existing,<br />

past, and potential members in order to better<br />

understand the issues facing our industry. To<br />

date, regional meetings have been held in<br />

Victoria, Vancouver, and Surrey. Without a doubt,<br />

2012 has seen considerable financial strain<br />

put on our members, but beyond the obvious<br />

economic influences, it is clear that government<br />

policy and the enforcement of that policy can<br />

have a more dramatic impact than traditional<br />

economic factors. At <strong>ABLE</strong>, we need to hear<br />

about egregious enforcement actions that unduly<br />

impede operations and put customers, staff, and<br />

management in the untenable positions of trying<br />

to defend their right to operate. <strong>ABLE</strong> supported<br />

the challenge to the .05 drinking and driving<br />

legislation to ensure that people’s constitutional<br />

rights were protected in the government’s<br />

pursuit of public safety. While the court issues<br />

surrounding .05 continue to wind themselves<br />

through the court, it is incumbent upon <strong>ABLE</strong><br />

to ensure that those constitutional rights are<br />

similarly protected during the enforcement of<br />

the current law. Members should advise the <strong>ABLE</strong><br />

office with respect to enforcement actions that<br />

may be questionable. As we have seen in a recent<br />

case, the Branch’s position and philosophy may<br />

not always stand up in court. <strong>ABLE</strong> would much<br />

prefer to see questionable tactics discussed and<br />

resolved before it gets to a hearing or a court.<br />

<strong>ABLE</strong> is committed to delivering value back to its<br />

members and wishes to replicate the insurance<br />

model that currently delivers benefits to both<br />

the association and its members. We are currently<br />

reviewing arrangements with suppliers in the<br />

credit card processing field as well as the wellestablished<br />

ATM business. <strong>ABLE</strong> recognizes the<br />

challenges associated with ever-increasing credit<br />

card fees as well as everlasting non-cancellable<br />

contracts. We are seeking out value-added<br />

suppliers to work with our members.<br />

Change is also coming to our annual conference<br />

and trade show! The conference, which we held<br />

in partnership with the <strong>BC</strong> Hotel Association,<br />

has proven to be an institution in our industry.<br />

Many members looked forward to this annual<br />

event as an opportunity to network with other<br />

members, catch up on vendor developments,<br />

review industry trends, and have some fun. As<br />

with our industry and businesses, evolution is a<br />

constant that applies to the conference and trade<br />

show business. As a result, the boards of <strong>ABLE</strong><br />

and the <strong>BC</strong> Hotel Association have committed<br />

to partnering with the Canadian Restaurant &<br />

Foodservices Association (CRFA) to jointly present<br />

this year’s hospitality trade show. This will be a<br />

brand new show that will take place October 27<br />

& 28 at the Vancouver Convention Centre, West.<br />

We are excited about the opportunities that this<br />

expanded show will bring to our members.<br />

And finally, don’t forget about the transition back<br />

to PST and the associated 10% liquor tax. <strong>ABLE</strong><br />

presented a PST seminar, which was well attended<br />

by members and designed to make the transition<br />

easier. Feel free to call the <strong>ABLE</strong> office if there are<br />

any questions remaining as we approach the<br />

April 1st deadline. Please remember to register for<br />

your new PST number. It’s easy to do.<br />

Hockey is back so keep your head up and your<br />

patrons happy!<br />

4 The Publican


STOCK UP FOR SUMMER<br />

WITH THE LATEST ADDITIONS FROM<br />

MARK ANTHONY<br />

BRANDS<br />

NEW<br />

EASY-GRIP<br />

CAN!<br />

PRODUCT NAME UPC PACKAGE CONFIGURATION<br />

CAYMAN JACK BLOOD ORANGE & PRICKLY PEAR<br />

CAYMAN JACK PLANTER’S GINGERED PINEAPPLE<br />

MIKE’S HARD LEMONADE CANS<br />

OKANAGAN SUMMER BERRY<br />

PALM BAY COCO MELON PARADISE<br />

779305100639<br />

6 X 355 ML CANS<br />

779305100646<br />

6 X 355 ML CANS<br />

779469302405<br />

6 X 355 ML CANS<br />

779305100608<br />

6 X 355 ML CANS<br />

779469302467<br />

6 X 355 ML CANS<br />

TO PLACE YOUR ORDER, CONTACT YOUR MARK ANTHONY TERRITORY MANAGER OR THE MARK ANTHONY SALES DESK AT: 604-322-6000<br />

Please enjoy responsibly. ® is a registered trademark of Mike’s Hard Lemonade, ® is a registered trademark of Cayman Jack,<br />

® is a registered trademark of Palm Bay Beverage Co., TM is a trademark of Okanagan Cider Co., TM is a trademark of American Vintage Beverage Co.


Executive<br />

Director's Report<br />

by Ian Baillie<br />

Dear Members,<br />

I’m pleased to update you on a few key items we’re focused on to create a<br />

stronger and more effective Alliance of Beverage Licensees.<br />

Building <strong>ABLE</strong> & Member Engagement<br />

Since my last report to you a few months ago, <strong>ABLE</strong> has been active in reaching<br />

out to our members across the province with a renewed energy for member<br />

engagement. We are stronger together and that is a philosophy <strong>ABLE</strong> strongly<br />

believes in. Our commitment is to back up our words with real action on<br />

member engagement, and I’m happy to report that we are making progress. In<br />

the coming months, we will host more member meetings across the province<br />

and roll out innovative technology that we call <strong>ABLE</strong>builder, which will allow<br />

us to connect with you faster, more effectively, and will provide you with more<br />

choices in how we communicate with you. Stay tuned for exciting updates.<br />

Political Action<br />

Over the past several months, <strong>ABLE</strong> has been engaging with all levels of<br />

government to inform and educate them on issues that affect our industry.<br />

With the provincial election taking place in May, we encourage all <strong>ABLE</strong><br />

members to connect with MLA candidates in your home ridings. We would<br />

be happy to provide you with tips, issue backgrounders, and instructions on<br />

how to organize a meeting with MLA candidates in your area. <strong>ABLE</strong> wants to<br />

ensure that candidates for elected office understand our issues and support<br />

our industry as we build a responsible and profitable liquor licensee sector.<br />

<strong>ABLE</strong> members are significant job creators and community supporters across<br />

this province and a strong liquor licensee industry is vital to <strong>BC</strong>.<br />

Member Survey<br />

We’ve kicked off the year with a province-wide survey of Liquor Primaries and<br />

LRSs and we will use your feedback to strengthen our operations at <strong>ABLE</strong>. If<br />

you haven’t already completed your <strong>ABLE</strong> industry questionnaire or for some<br />

reason you need us to send you another one, let us know. Our goal is to have<br />

as many completed questionnaires as possible, so we know what you want<br />

and we can better serve you. As always the <strong>ABLE</strong> office is here as a resource,<br />

so please let us know if there is something we can help you with.<br />

2013 and Beyond<br />

There’s no doubt that our industry has been challenged both economically and<br />

by government regulations; however, despite those challenges I’m optimistic<br />

that 2013 is the year we will turn the corner and build our industry. Liquor<br />

primaries and LRSs provide a valuable service to British Columbians and we<br />

do so in a responsible way - providing hundreds of millions in tax dollars per<br />

year that help fund services like health care, education, public transportation,<br />

and skills training - to just name a few. Our industry is a large contributor to the<br />

tax base of this province and we will take every opportunity to advance that<br />

message, because if our industry does well, our communities benefit. With<br />

your support, 2013 is the year we advance our message, ideas, and vision. I<br />

hope you will join with us, because together we are stronger!<br />

6 The Publican


What's New?<br />

by Debbie Minke<br />

Beer, Cider, RTDs<br />

Award-winning Innis & Gunn Oak Aged Beer from Edinburgh, Scotland has some new additions<br />

to its <strong>BC</strong> lineup. Irish Cask has been matured in rare oak barrels from a famous Irish whiskey<br />

distillery. The result is a big, full flavoured, complex beer with a delightful warming finish. 330ml<br />

$3.99 Scottish Pale Ale is light with hints of vanilla, oak and hops appearing, and lots of refreshing<br />

sparkle. 330ml $3.99 Rum Finish - This deep red beer offers soft fruits and malt on the palate,<br />

balanced by a lively spiciness from the rum. 330ml $3.30 Spiced Rum Finish - This limited bottling<br />

has been finished over oak infused with Caribbean Spiced Rum. The beer bursts with the flavours<br />

of Caribbean spices along with signature notes of vanilla, toffee and oak. 330ml $4.99 All Spec<br />

Bruton Italian craft beers are unfiltered and unpasteurized, and undergo a re-fermentation in the<br />

bottle that enhances their character, complexity and ability to improve over time. Momus is stout<br />

and impressive, yet elegant, with notes of caramel and scents of toasted malt. 330ml $5.49 Dieci is<br />

a dark barley wine with complex, rich hops and intense taste. 330ml $6.99 Both Spec<br />

Growers Blackberry Cider features the delicate flavour of naturally ripened blackberries blended<br />

with cider to create a refreshing drink. 330ml x 6 pack $8.49 Listed<br />

Betty’s Peach Vodka Iced Tea is a refreshing blend of sweet, mild White Peony tea and the full<br />

flavour of peaches. Light carbonation makes for a bubbly, sweet, and smooth refreshment with a<br />

touch of vodka. 6x355ml $9.95 Listed Betty’s Raspberry Vodka Iced Tea teams White Peony tea<br />

with the citric flavour of raspberries. 6x355ml $9.95 Spec<br />

Spirits<br />

Agave de Cortes Mezcal has been produced in the town of Santiago Matatlan, Oaxaca, Mexico by<br />

one family for more than 120 years. Love, traditions, and care have been embraced for generations to<br />

craft these exceptional Mezcals. Blanco is presented unaged or "joven". 750ml $69.95 Reposado is<br />

matured for over 6 months in American white oak barrels. 750ml $74.95 Añejo is matured for over 18<br />

months in American white oak barrels. 750ml $85.95 Extra Añejo is aged more than three years in<br />

French Oak barrels and offers soft notes of chocolate, pear, cinnamon, walnuts, dates, almonds, cooked<br />

agave and wood. 750ml $114.99 All Spec<br />

Crown Royal Maple is an exceptionally smooth Canadian Whisky blend with an authentic light maple<br />

taste and a warm, woody caramelized note on the finish. 750ml $32.99 Listed<br />

Wiser’s Spiced Whisky is a dark amber, full bodied Canadian Whisky. The nose is vanilla with traces of<br />

raisins and caramelized toffee. On the palate enjoy toffee and dried fruit rounded off with vanilla. 750ml<br />

$27.49 Listed<br />

Bowmore Tempest Islay Single Malt Scotch Whisky is a small batch release that is 10 years old. The<br />

bright, golden brew offers a nose of Seville orange zest and Islay peat smoke. The palate is initially<br />

dry but gives way to orange blossom and a sea salt tang, finishing with warming peat. 750ml $84.99<br />

Bowmore Laimrig Limited Release is 15 years old, with notes of chocolate, sherry, raisins, and smoke.<br />

750ml $109.99 Both Spec<br />

Compass Box - The Peat Monster - This Blended Malt Scotch Whisky is a peaty, smoky malt with<br />

hints of fruitiness; a balanced whisky with great depth and complexity. 750ml $74.99 Spec<br />

Four Roses Yellow Label Bourbon has hints of pear and apple complimenting floral aromas and<br />

mixes with a taste of honey and spice. Smooth and mellow with a unique, long, and soft finish. 750ml<br />

$31.99 Four Roses Small Batch Bourbon - Four original and limited Bourbons have been combined<br />

to create a perfectly balanced small batch Bourbon with a mellow symphony of rich, spicy flavours<br />

along with sweet, fruity aromas and hints of sweet oak and caramel. 750ml $49.99 Both Spec<br />

Korean Ginseng Liquor is distilled with ginseng that is at least 4 years old. Traditional Korean Ginseng<br />

is often referred to as the herb of life and is widely believed to have mysterious and spiritual properties<br />

that are conducive to good health. 700ml $69.90 Specialty<br />

Wines<br />

Ramos Pinto 10 Year Tawny Port is a blend of high<br />

quality Portuguese wines. Fruit aromas include orange,<br />

apricot, and plum. Vanilla and old Port casks create woody<br />

aromas. It’s smooth and full-bodied with a soft fruitiness.<br />

375ml $21.99, 750ml $39.99 Spec<br />

Terra Dei Ri Basilicata Rosso 2010 - This Italian dessert<br />

wine is crafted from soft-pressed grapes grown on the hills<br />

around Mount Vulture, picked when they have begun to dry<br />

out slightly on the vine. It boasts complex flavours of pink<br />

peach and red guava with subtle, silky sweetness. 500ml<br />

$33.00 Spec<br />

Eradus Awatere Valley Sauvignon Blanc 2011 is<br />

delicious, explosive and zingy with tropical and floral notes.<br />

This fresh wine has the complexity to pair well with food and<br />

the elegance to be served anytime. 750ml $21.99 Spec<br />

Villa Conchi Cava Rosé has fine, long-lasting bubbles with<br />

an intense nose and clean aromas of ripe fruit. It has good<br />

structure with medium intensity, fresh and pleasant. 750ml<br />

$17.99 Spec<br />

Santa Carolina Key Range Sauvignon Blanc 2011<br />

bursts with fresh citrus flavours, with a crisp and refreshing<br />

finish. Pairs well with salads and seafood. 750ml $9.99 Spec<br />

Vina Chela Organic Malbec 2011 boasts intense black<br />

fruit aromas combined with a hint of mocha and tomillo.<br />

The tannins are smooth and sweet, and it offers a round and<br />

persistent finish. 750ml $13.99 Listed<br />

Grand Pacific Heritage Red 2010 - A soft, silky blend<br />

with smooth lingering tannins. Aromas of Bing cherries and<br />

fresh strawberry jam gently entwined with soft caramel.<br />

750ml $11.99 Spec<br />

Renaud Boyer Bourgogne Les Riaux 2010 is a fullbodied<br />

Pinot Noir with floral aromas of rose, peony, and<br />

violet. Flavours of spice and flinty minerality on the palate<br />

with good acidity and balance. 750ml $25.99 Spec<br />

Bodega Vistalba Arido Malbec 2011 is a deep, intense<br />

red colour. It has chocolate, raisins, and quince on the nose,<br />

and fruity character to taste. It’s well-bodied and lively. 750ml<br />

$15.99 Spec<br />

El Masroig Sola Fred Montsant 2009 is 90% Samso<br />

(Carignan) and 10% Grenache grown in slate soils. This<br />

unoaked Mediterranean red is loaded with aromas of cherry,<br />

black raspberry and violet. The mineral and floral notes<br />

repeat on the persistent finish. 750ml $15.95 Spec<br />

The Publican<br />

7


The Resurgence of Gin<br />

by Trevor Kallies<br />

When I first started drinking alcoholic beverages,<br />

my “cocktail” (and I use this term very loosely) of<br />

choice was a shot of London Dry Gin mixed with<br />

Mountain Dew. It was a sugar-bomb and I was<br />

definitely drinking it for the sugar and not so<br />

much for the juniper. Thankfully, that drink only<br />

lasted a summer and before long I was enjoying<br />

the complexities of gin on its own or mixed in<br />

cocktails.<br />

Gin dates back a few years, to say the least. The<br />

mention of juniper in alcohol can be found as early<br />

as the 1300s during the bubonic plague. Juniper<br />

was known to be diuretic, so throughout history,<br />

you can see the use of juniper spirits emerge in<br />

times of this sort of hardship.<br />

Leaps and bounds have been made in gin<br />

production over the past 700 years. On a retail<br />

level, as little as ten years ago you would be hard<br />

pressed to find more than five options for gin in<br />

a liquor store. The usual suspects were there, of<br />

course, and when combined with grocery store<br />

grade tonic water, you’d be able to mix a drink. It<br />

was easily a spirit category gone by the wayside.<br />

I watched daily from behind my bar as the people<br />

around me gave up gin martinis for vodka, and<br />

the Vodka Soda rose to super stardom. Enter the<br />

vodka hater inside me.<br />

The cocktail bartender in my head shouts to be<br />

heard over the din of a busy cocktail bar: “Why not<br />

have a gin and soda instead of vodka? There’s so<br />

much more flavour!”<br />

The culture bartender (vests, armbands and<br />

twisted moustaches) all had the same opinion:<br />

vodka just wasn't cool to mix. It all just ended up<br />

tasting like what you put it in.<br />

Thankfully, the spirits companies were not<br />

discouraged by the giant that is vodka. In the<br />

past ten years, those five gin choices of old have<br />

grown to hundreds. Artisanal distilleries have<br />

popped up all over the world and are producing<br />

amazing juniper spirits. The first new distillery in<br />

over 200 years has opened within the London<br />

city limits and is producing gin! Iconic brands<br />

that are hundreds of years old are coming out<br />

with line extensions that make sense (you won’t<br />

find whipped vanilla gin). The botanicals within<br />

the liquid have reached new heights. The use of<br />

aromatic and flavourful tea has been added to<br />

production, so we’re not trapped in the box of<br />

only grain spirits. There are gins out there using<br />

grape and grape flowers as the base. The list of<br />

new forms and flavours of gin goes on and on.<br />

So, why do we suddenly have a resurgence of gin?<br />

There are a few angles to the answer:<br />

First - the bartender, who is a very dominant force<br />

when looking at what people drink. If a company<br />

can get a few bartenders behind them to push a<br />

product, the sky is the limit. The gin industry made<br />

some smart moves when it started hiring the<br />

world’s most influential bartenders to represent its<br />

brands. The likes of Charlotte Voissey, Phillip Duff,<br />

Simon Ford, and Dan Warner were all pushing gin,<br />

and bartenders loved it.<br />

Second - We aren’t drinking our grandmother’s<br />

gin. There is a whole new sub-category of gin on<br />

the market today. This contemporary gin isn’t Old<br />

Tom, Plymouth, or London Dry. It has added softer<br />

flavours and in some cases reduced the juniper. It<br />

is floral, aromatic, and flavorful with many layers<br />

and is very drinkable. The old boys still do very<br />

well, but the consumer now sees a flashy package,<br />

a luxury price point, and a drinkable product. The<br />

experience begins.<br />

Third - Cocktails. It is safe to say that cocktails have<br />

gone mainstream. Ryan Gosling is making Old<br />

Fashioned cocktails for Emma Stone in romantic<br />

comedies. Alfred Pennyworth is name-dropping<br />

Fernet Branca in Gotham City. These references<br />

may have been subtle for some, so I’ll add one<br />

more: GQ magazine is running multi-page<br />

pictorials of the most inspiring gin bartenders in<br />

North America. Their monthly readership: 824,334<br />

paid subscriptions in the US alone. There you have<br />

it - GQ wants you to drink gin too.<br />

So, be sure your bar and store are stocking up<br />

on some of the new additions to the gin lineup.<br />

Killjoy Barbers G&T<br />

• 2 oz. contemporary gin<br />

(look for something with a modern feel<br />

to it, with cucumber as a flavour agent,<br />

grape, or tea - many will work)<br />

• 1 sprig fresh thyme<br />

• 1 orange peel (just the peel, no pith,<br />

wide is ok)<br />

• Bitters (look for something modern and<br />

outside the Angostura realm; Bittered Sling<br />

makes an amazing orange & juniper)<br />

• 1 thin slice cucumber<br />

• Tonic<br />

Mix in a rocks glass over quality ice.<br />

Trevor Kallies is Bar & Beverage Director at Donnelly Group.<br />

8 The Publican


Beer<br />

LIQUOR SALES & TRENDS<br />

For Total <strong>BC</strong> Market April 1, 2012 to November 24, 2012<br />

Volume % Change Gross Sales % Change Marketshare<br />

Litre Sales<br />

<strong>BC</strong> Liquor Stores 54,659,034 -2.3% $233,500,798 -2.0% 29.9%<br />

LRS 82,378,013 0.2% $351,006,001 0.3% 45.0%<br />

Licensee 40,003,050 -3.9% $151,021,184 -2.7% 19.3%<br />

Other 10,606,335 -2.1% $45,277,518 5.8%<br />

Product Total from All Sources 187,646,433 -1.5% $780,805,501 -1.2%<br />

Spirits<br />

Volume % Change Gross Sales % Change Marketshare<br />

Litre Sales<br />

<strong>BC</strong> Liquor Stores 7,274,395 -2.2% $235,660,487 -0.3% 47.1%<br />

LRS 5,530,988 3.9% $173,614,335 4.9% 34.7%<br />

Licensee 2,014,421 -1.0% $65,464,679 -0.2% 13.1%<br />

Other 1,075,010 0.8% $25,905,251 5.2%<br />

Product Total from All Sources 15,894,814 0.2% $500,644,752 -0.7%<br />

Wine<br />

Volume % Change Gross Sales % Change Marketshare<br />

Litre Sales<br />

<strong>BC</strong> Liquor Stores 20,370,181 0.7% $285,652,691 2.8% 45.4%<br />

LRS 10,655,636 5.9% $138,515,601 8.1% 22.0%<br />

Licensee 5,478,092 -0.7% $91,170,315 0.0% 14.5%<br />

Other 5,252,394 5.6% $113,469,376 18.0%<br />

Product Total from All Sources 41,756,303 2.4% $628,807,983 3.8%<br />

Refreshment Beverage<br />

Volume % Change Gross Sales % Change Marketshare<br />

Litre Sales<br />

<strong>BC</strong> Liquor Stores 6,812,900 2.3% $31,739,826 2.3% 32.2%<br />

LRS 10,804,167 7.7% $52,003,744 7.3% 52.8%<br />

Licensee 1,581,257 -2.4% $7,959,978 -2.7% 8.1%<br />

Other 1,390,180 6.8% $6,726,983 6.8%<br />

Product Total from All Sources 20,588,504 5.0% $98,430,531 4.5%<br />

Note: (1) Measured in Gross Retail Sales Dollars. (2) Report includes all liquor sales from <strong>BC</strong> market. Source: <strong>BC</strong> Liquor Distribution Branch<br />

The Publican<br />

9


THE TOP 5 COST-EFFECTIVE<br />

RENOVATIONS FOR PUBS & LRSs<br />

by James Bradley<br />

10 The Publican


Photo courtesy of Crow & Gate Pub<br />

Renovations: It’s a word loaded with questions begging answers. What? Where?<br />

When? Don’t forget the rest: Who? How? How much should we renovate? And<br />

the clincher for owners: How much will it cost?<br />

In the constantly changing and always unique pub and private liquor store<br />

industry, keeping up can be a challenge. You need to decide where your money<br />

is best spent, which details to focus on, and how far to go. Addressing these<br />

issues will ensure that your investment will be concentrated on the areas that<br />

will best impact your establishment, patrons, and sales.<br />

Pubs<br />

When considering updating your establishment, you must first decide if full<br />

renovation is needed, or just a partial renovation. When a partial renovation<br />

is considered, it is important to work on areas that will satisfy and please your<br />

existing clientele while attracting new business. <strong>Here</strong> is a list of cost-effective<br />

renovations that will have the most significant impact on your business.<br />

" Your front entry creates an<br />

experience of your pub before your<br />

clients have even stepped through<br />

the door."<br />

Entrance<br />

Your entrance provides curb appeal and gives the first impression of your<br />

establishment. It can also add a signature to your pub. In fact, your front entry<br />

creates an experience of your pub before your clients have even stepped<br />

through the door, so it is an important area to focus on. Custom front doors<br />

and landscaping are excellent ways to create a lasting impression.<br />

It’s just as important to consider what customers experience when they walk<br />

in. Are they arriving into an open and inviting space, or is it a tight, closed-in<br />

area? People go to pubs because they want to be around others, and they<br />

want to see people when they come into your establishment. If you have a<br />

vestibule type-entry, you can consider replacing the inner doors with frameless<br />

glass doors. This will open up the space and give you a fresh, timeless feature.<br />

Courtesy of James Bradley Consulting Inc.<br />

Windows<br />

Window treatments are one of the most overlooked, cost-effective opportunities<br />

to impact your space, attract new clients, and let your regulars know that you<br />

care about their experience and surroundings. Window coverings help create<br />

scene and effect while complementing the exterior appearance of your building.<br />

Through the use of fabrics or blinds - or a combination of both - you can control<br />

lighting while creating impressive looks that can change, while updating the<br />

whole appearance of your space.<br />

Paint and Wall Coverings<br />

One of the quickest, cost-effective ways to protect and enhance your space<br />

is through the use of paint and wall coverings. These can add texture and<br />

atmosphere to your interior while brightening up areas, making them more<br />

inviting and comfortable. Regular painting and maintenance to the exterior<br />

of the space will allow you to make subtle changes and enhancements while<br />

protecting your investment.<br />

The Publican<br />

11


Courtesy of James Bradley Consulting Inc.<br />

Flooring<br />

With current advancements in vinyl plank, tile, concrete, and carpet, the choices<br />

are unbelievable and combinations infinite. What used to entail a substantial<br />

cost and inconvenience is now a reasonable option with a minimal impact to<br />

operations. The options in vinyl wood planking and vinyl tile are realistic and<br />

in most cases more durable and quicker to install than their “real” wood and<br />

tile counterparts. A top quality commercial grade nylon carpet or carpet tile<br />

offers all the benefits of wool with a multitude of additional colour and pattern<br />

options. Your floor is the most abused area in your space, and it is the base by<br />

which all else is reflected. If it is time for a change, you can now consider many<br />

more options and solutions than in the past.<br />

Washrooms<br />

We have left this last on the list for a reason: This can be your greatest<br />

opportunity to create an impressive impact on your bottom line. What do<br />

women want even more than great food and service? Clean and comfortable<br />

washrooms! They are tired of going into dingy, dirty washrooms. Men? Their<br />

top draw is women! They want a fun place with lots of women. One solution<br />

solves two issues. We all know a certain restaurant chain that created a buzz<br />

in the industry that others are still attempting to match. Give your patrons,<br />

clean, unique washrooms and the women will frequent your space - and the<br />

men will follow!<br />

Liquor Stores<br />

Liquor stores have two key issues that affect their bottom line: sales and security.<br />

All design decisions should be made around these two factors. Many LRS<br />

operators are still missing key opportunities for additional sales and product<br />

turnover, and several are losing product to theft. Following is a list of tried and<br />

tested solutions to increasing sales and creating a comfortable, secure space<br />

that works.<br />

Entry and Exit Systems<br />

If at all possible, a separate entry and exit door system should be established.<br />

When you control how people enter and exit your space, you can implement<br />

several security options such as entry cameras and monitors, door jamb exit<br />

cameras, and bottle tags. From a sales perspective it allows you to direct how<br />

people enter your store and what is presented to them first. It also offers an<br />

opportunity to line their exit path with impulse-buy items.<br />

12 The Publican


Store Layout<br />

When planning a store we consider several factors<br />

and implement as many as possible into the layout<br />

and design. Sight lines are critical to reducing<br />

theft; if people feel that there is no place to hide<br />

they are less likely to see what they can get away<br />

with. The racking should be laid out in such a<br />

way that it minimizes blinds spots and maximizes<br />

visibility from the cash area. The layout should also<br />

consider buying habits and tendencies. With beer<br />

being the highest seller in most markets, and men<br />

being the worst browsers, you need to ensure<br />

there is not a direct path to the beer and out the<br />

door. What you want to do is hit this demographic<br />

with additional products, with higher markups, so<br />

they remember to pick up a bottle for the party<br />

on Friday night or get some wine for their wives.<br />

Cash Area<br />

Cash areas should always be raised, giving the<br />

staff a better view over the racking and displays.<br />

This is part of eliminating opportunities for theft<br />

and supporting the staff to provide better service<br />

to their customers. The cash area is another<br />

excellent location for generating additional sales<br />

and should have sufficient counter and space<br />

to support product display. By adding onto the<br />

existing face of your cash counter, you create<br />

" With beer being the highest seller in most markets,<br />

and men being the worst browsers, you need to<br />

ensure there is not a direct path to the beer and out<br />

the door."<br />

display space for chips and candy, and can<br />

extend tops to accommodate smaller impulse<br />

buy items. We are not saying to clutter the cash<br />

area; organized, well positioned products are key.<br />

Lighting<br />

Lighting is an effective tool for directing people’s<br />

attention where you want it. You always want to<br />

light the product and have the product light the<br />

store. LED track lighting is the best solution for<br />

this. Pendant lighting at the cash counter can be<br />

used to add unique detail.<br />

Liquor Racking<br />

This is one area where government stores are<br />

generally well ahead of the private sector. They<br />

have been displaying product on wire racking for<br />

several years, while some of their private sector<br />

counterparts are still using bulky custom displays.<br />

Wire display racking is versatile, efficient, and cost<br />

effective. It provides built-in price rails, effective<br />

sign options, and the ability to easily expand. If<br />

you are still holding onto those custom displays,<br />

do yourself and your customers a favour by seeing<br />

what else is available. It will not only open up your<br />

space, it will take more products off the floor or<br />

out of the back and put it on the shelves!<br />

Whether you are considering future renovations or<br />

about to start one tomorrow, contemplate these<br />

ideas and make sure your renovation has a great<br />

impact on your existing patrons, new clientele,<br />

and most importantly, your bottom line!<br />

For all hospitality design and consulting services contact James<br />

Bradley Consulting Inc. - the liquor industry experts at 604.781.1477<br />

or james@jbconsultinc.com.<br />

The Publican<br />

13


USING<br />

DAILY DEAL SITES<br />

by Ronald Lee<br />

14 The Publican


If you own a pub, chances are you’ve considered<br />

using a daily deal website to attract more<br />

customers. Perhaps you’ve already run a daily<br />

deal offer (or a few) and survived to tell about it.<br />

While daily deals sound like an ingenious way to<br />

build your business - through massive exposure<br />

to drive lots of people into your establishment -<br />

the concept may have passed its peak having left<br />

many pubs burnt in its wake. It has also changed<br />

your customers’ buying behaviour forever (at least<br />

until the next fad).<br />

The daily deal phenomenon started in 2007 when<br />

Andrew Manson, Groupon’s founder, noticed<br />

that a social group he was in charge of was very<br />

active in organizing groups to take advantage<br />

of local businesses’ group deals. In 2008, he<br />

launched Groupon, which started the group<br />

buying craze that eventually evolved into the<br />

daily deal concept.<br />

The Rise of the Daily Deal<br />

At its height, group buying was huge; proving that<br />

cash-strapped, post-recession consumers loved<br />

discounted deals. In 2010, Groupon erroneously<br />

turned down a $6 billion ownership offer from<br />

Google, despite the fact that it hadn’t actually yet<br />

made a profit. The website had plans to launch its<br />

own IPO to go public on the stock market.<br />

Today, the company is worth less than Google’s<br />

initial offer, but may actually turn a profit for<br />

the first time in 2013. It has been busy using its<br />

revenue to cover overhead, marketing, growth,<br />

and acquiring smaller companies.<br />

Many copycat competitors have popped up using<br />

the daily deal model. Consumers can choose from<br />

at least ten daily deal websites in Vancouver alone,<br />

and there have been many more sites started, but<br />

they were weeded out by the marketplace.<br />

Why Did Daily Deals Have Such a Meteoric<br />

Rise?<br />

Daily deal site operators, confident in their<br />

ability to market to large audiences, saw dollar<br />

signs. Vendor businesses - particularly pubs and<br />

restaurants where there is high customer turnover<br />

- thought the concept would be good for a large<br />

infusion of cash and for finding new customers.<br />

Common reasoning for using a daily deal has<br />

been: “If I show them a good time and they like the<br />

food, they’ll come back for more. Hopefully they’ll<br />

even tell their friends who also love bargains.”<br />

Sound familiar?<br />

Customers - the true winners of the daily deal<br />

game (except when the deal is sold out) - are<br />

driving the daily deal industry; however, this<br />

exposure to a plethora of deals has now created<br />

a much savvier consumer.<br />

The main advantage of using a daily deal site<br />

is that your pub will get exposure to a highly<br />

desirable demographic. The numbers tell the tale:<br />

• 60% of daily deal site users are between 18 to<br />

34 years old.<br />

• The next biggest demographic is 35 to 55 years<br />

old.<br />

• 68% of all online shoppers subscribe to one<br />

daily deal site.<br />

• 46% subscribe to two.<br />

• Most people who bought a daily deal ended<br />

up buying at least three over the past year.<br />

Now that we’ve matured into the fifth year of<br />

daily deals, a lot has changed since the early days.<br />

When daily deals first came out, most businesses,<br />

particularly spas and restaurants, didn’t realize<br />

the true cost of running a daily deal campaign,<br />

and many of those vendors couldn’t afford to run<br />

them. Worse, many thought these were a source<br />

of additional revenue.<br />

Today, many restaurant associations strongly<br />

caution against daily deal sites, concerned that<br />

these coupons devalue the industry as a whole.<br />

Unfortunately, many owner/operators work alone<br />

or are new to daily deal sites and still use them.<br />

You can also add “desperate to stay afloat” owners<br />

into that mix as well.<br />

Consumers are now trained to look for businesses<br />

that offer the best (i.e. cheapest) deal. In the past,<br />

a vendor could expect a coupon user to spend<br />

20 - 30% over the value of the coupon; now,<br />

consumers are careful to only order the bare<br />

minimum to get the deal.<br />

The Split Revenue Model - How Daily Deals Work<br />

The concept of the daily deal is relatively simple. A daily deal site offers to sell your gift certificate or<br />

menu item at a discount, usually at 50% (or more) off the regular price. The site gets half the money<br />

from the sale of the coupon, with the other half going to you. This essentially means you are selling<br />

your regular service at 25%, which often means a loss to the business owner.<br />

The biggest advantage to doing a daily deal offer is the massive exposure your brand could get with<br />

the right daily deal site. Consider the loss to be a marketing expense.<br />

The Publican<br />

15


The Real Cost of Daily Deals<br />

In the beginning, vendors mistakenly thought that inviting customers to try them<br />

out at a discount would encourage them to come back and pay full price, but<br />

this hasn’t been the case for daily deal site users. The rate of return has always<br />

been low because bargain hunters care more about finding the next bargain, and<br />

are more loyal to the daily deal site than they are to the pub offering the deal.<br />

In an industry where operating and food costs allow for thin margins of 4 - 10%,<br />

businesses really need to have a plan before running a daily deal because<br />

chances are they will lose money. There are cases where pubs may break even,<br />

but even then there’s the lost opportunity of getting full price and better serving<br />

your existing customers.<br />

Part of the reason why vendors don’t understand the true cost of their daily deal<br />

is because so much time passes between the initial offer and receiving their<br />

cheque from the daily deal site. Chances are you won’t have profits when it is<br />

finished, but it’s hard to tell unless the business is on top of tracking the return.<br />

What these daily deals do give are good metrics. Most sites will give you sales<br />

numbers, which you can use as a starting point to calculate several other key<br />

figures such as the number of redemptions, revenue per coupon, costs versus<br />

ROI, etc.<br />

Some Big Daily Deal Sites<br />

Groupon - www.groupon.com<br />

Living Social - www.livingsocial.com<br />

Indulge Living - www.indulgeliving.com<br />

Wag Jag - www.wagjag.com<br />

Social Shopper - www.socialshopper.com<br />

The Pros and Cons<br />

<strong>Here</strong> are some of my favourite pros and cons when it comes to using daily<br />

deal sites:<br />

Pros<br />

• You get immediate, massive exposure to a list of previous daily deal buyers<br />

who may not have known about your business before.<br />

• The daily deal site handles the order.<br />

• Perhaps 10% to 20% of people never redeem their discount voucher (free<br />

money). On the other hand, 80% to 90% is a high redemption rate.<br />

• With very desirable customer demographics for pubs and restaurants, it is a<br />

natural marketing tool for customers who love to share and talk about<br />

bargains.<br />

• Expect the daily deal site to translate into more visits to your website and<br />

social media (are you ready?) as you get fast and massive, short-term brand<br />

awareness.<br />

Cons<br />

• You give away a deep cut of your gross revenue with every deal sold.<br />

• Daily deal users have no loyalty to the vendor and only a small percentage<br />

return to pay full price.<br />

• You are forced to work on the daily deal site’s terms.<br />

• Constant discounting can hurt your brand’s reputation.<br />

• Servers get low tips because of low check averages.<br />

• Customers are now savvy enough to order carefully, resulting in no profits.<br />

• What you spend (i.e. lose) on daily deals could have been used on other<br />

marketing or advertising.<br />

• Customers are experiencing deal fatigue with too many available deals.<br />

The daily deal trend appears to have reached a plateau.<br />

• If you run too many deals in a short time, you can put yourself out of business.<br />

16 The Publican


How to Run Your Daily Deal<br />

If you’re thinking of running your own daily deal,<br />

here are some tips to getting the most of your<br />

vendor experience without losing your shirt:<br />

1) Ensure your deal does not promote or include<br />

liquor.<br />

2) Learn your business inside and out, especially<br />

the true cost of your offer, which is the sum of your<br />

food costs, labour and overhead. Can you afford to<br />

lose $10, $20, $40 per coupon sold and redeemed?<br />

What if you sell 1,000 coupons? Do the math.<br />

3) Have a strategy to turn daily deal users into<br />

repeat customers. For example, collect their<br />

contact information so you can offer them another<br />

deal, this time with no middleman.<br />

4) Don’t be afraid to negotiate better terms. For<br />

example, ask for caps on the number of deals<br />

sold and put restrictions on when, how, and for<br />

what they can be used. Schedule the deal for slow<br />

nights and put your lower cost, higher-margin<br />

items in the deal.<br />

5) Make sure your employees are prepared for<br />

the initial influx of customers and that your social<br />

media and website are up-to-date and full of<br />

relevant information.<br />

6) Ensure you have a plan for the backend to<br />

encourage customer loyalty and make upsells, so<br />

you can get a more favourable ROI from the deal<br />

over time. Don’t give away 75% of your business<br />

for free.<br />

7) Don’t make the mistake of using daily deal<br />

sites to bankroll your business. I’ve seen several<br />

restaurants use one daily deal site after another<br />

to stay afloat only to eventually close their doors.<br />

8) Don’t think the daily deal site will do all the work<br />

for you. It’s up to you to convert new customers<br />

into loyal customers.<br />

Proceed with extreme caution.<br />

Ronald Lee is the senior marketing consultant at Eat Marketing, a<br />

restaurant, food and hospitality marketing agency. He also works with<br />

Google to offer their premiere Google Business Photos service and can<br />

be reached through www.eatmarketing.com.<br />

Restaurant Daily Deals: The Operator Experience<br />

by Joyce Wu, Sheryl E. Kimes Ph.D., and Utpal Dholakia Ph.D.<br />

A survey of 273 restaurateurs who have<br />

offered daily deals presents a mixed picture<br />

regarding the deals’ success and the operators’<br />

attitudes on past and future deals. About half<br />

of the restaurateurs, a substantial majority of<br />

which were independents, had offered at least<br />

one deal, most of them through Groupon or<br />

LivingSocial. These operators reported that<br />

about 40% of the deal purchasers were new<br />

customers, meaning that there was substantial<br />

cannibalization of existing customers. However,<br />

35% of the first-time deal customers returned<br />

to the restaurant without a further incentive.<br />

Although many restaurant operators said<br />

revenues increased, the number that said<br />

they made money on the deal was about the<br />

same as those who reported losing money.<br />

Additionally, a comparison of deal buyers’<br />

attitudes with the restaurateurs’ view of the<br />

deal buyers found that the operators misjudged<br />

their guests in some regards but were correct<br />

on others. The operators underestimated deal<br />

buyers’ likelihood of returning to the restaurant<br />

without a subsequent deal, and missed a key<br />

characteristic of the deal buyers, which is that<br />

they want to be opinion leaders, or “market<br />

mavens”. This aspect of deal buyers can be<br />

important for future sales. Given the consumers’<br />

attitudes, the best strategy to bring back deal<br />

buyers is to offer them a first-class experience<br />

so that they can see a restaurant’s full value<br />

proposition.<br />

The writers are with the Centre of Hospitality Research at Cornell<br />

University’s School of Hotel Administration.<br />

The Publican<br />

17


Product Showcase<br />

Pablo Old Vine<br />

Garnacha 2011<br />

Red Wine<br />

Spain<br />

St. Lucia Chairman’s<br />

Reserve Spiced Rum<br />

Rum<br />

St. Lucia<br />

Sombra Mezcal<br />

Mezcal<br />

Mexico<br />

STIEGL GRAPEFRUIT RADLER<br />

Beer<br />

Austria<br />

TIERRA ARANDA 2009<br />

Red Wine<br />

Spain<br />

New<br />

Produced by Bodegas San<br />

Alejandro in the region of<br />

Calatayud, Spain.<br />

The gnarly old bush vines that<br />

bear the precious fruit that go<br />

to make this delicious wine<br />

were planted up to 100 years<br />

ago in the mountain vineyards<br />

of Atea.<br />

Lush blackberry and cherry<br />

flavours cram the mid palate<br />

with an underlying spicy<br />

pepperiness that delivers a<br />

punch of juiciness that will<br />

leave the palate stunned.<br />

Perfect partner to roasted<br />

meats, casseroles and various<br />

cheeses.<br />

Specialty<br />

750ml $13.99<br />

SKU 205518<br />

604-737-0018<br />

www.dhs-wine.com<br />

96 pts. Wine & Spirits<br />

This rum contains local<br />

spices and fruits including<br />

cinnamon, clove, nutmeg,<br />

vanilla, coconut, allspice,<br />

lemon and orange.<br />

We have also added Richeria<br />

Grandis, known locally<br />

as “Bois Bande” - a bark<br />

renowned in the Caribbean<br />

as a potent aphrodisiac - to<br />

give an added kick to the<br />

rum.<br />

Restricted/Spec<br />

6 x 750ml $38.99<br />

SKU 761965<br />

604-737-0018<br />

www.dhs-wine.com<br />

100% Agave Espadín<br />

Sombra Mezcal is produced<br />

at 2400 metres from agave<br />

hand-harvested from the<br />

steep slopes of the Sierra<br />

Madre in Oaxaca, Mexico. The<br />

agave hearts are buried in an<br />

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roast over hot rocks using<br />

Encino oak, and then are<br />

crushed using a traditional<br />

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fermented in open pine vats,<br />

and expertly distilled. The<br />

smoky, spicy, fruity result is<br />

one of the most tasteful and<br />

finest spirits produced on<br />

and of this earth.<br />

90 pts. Wine Enthusiast<br />

Ultimate Spirits Challenge<br />

2012 - 91 points<br />

Other 100% agave Mezcals<br />

and Tequilas available.<br />

750mL $74.99<br />

SKU 856914<br />

604-836-4319<br />

www.agavespirits.com<br />

Stiegl Radler is half Stiegl<br />

Goldbrau Lager & half<br />

grapefruit juice made with<br />

purely natural flavours.<br />

What makes Radlers so popular<br />

is their sophisticated, perfectly<br />

rounded and fruity taste.<br />

Lower in calories and it’s light<br />

and refreshing! Only 2.5% and<br />

75 calories per half pint.<br />

The purity of Stiegl with pure<br />

grapefruit juice.<br />

500ml cans<br />

Coming Soon<br />

Ryan Somers<br />

604-838-6389<br />

www.mcclellandbeers.ca<br />

A fresh, full-bodied<br />

Tempranillo with oak, spices,<br />

blackberry notes.<br />

Wine Advocate - Ribera del<br />

Duero, Spain - “Deep purple<br />

in colour, it offers up an<br />

inviting nose of sandalwood,<br />

Asian spices, tapenade,<br />

mineral, and blackberry.<br />

Already exhibiting some<br />

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this rich, plush effort<br />

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Drinking window to 2024.”<br />

Parker Barrel Score:<br />

90-93 points<br />

14.5% Alc/Vol<br />

Spec<br />

750 ml $19.50<br />

SKU 831651<br />

250-483-5633<br />

www.markat.ca<br />

www.markatwines.com<br />

18 18 The Publican


HERMANN'S DARK LAGER<br />

Dark Lager<br />

Canada<br />

BETTY’S PEACH VODKA<br />

ICED TEA<br />

Refreshment Beverage<br />

Canada<br />

BETTY’S RASPBERRY<br />

VODKA ICED TEA<br />

Refreshment Beverage<br />

Canada<br />

IMPERIAL IPA FOR AUTISM<br />

Extra-Strong Beer<br />

Canada<br />

TAKARA - HANA LYCHEE<br />

FLAVORED SAKE<br />

Sake<br />

USA<br />

A proud and passionate<br />

Bavarian, Hermann was one of<br />

our original Brewmasters.<br />

He handcrafted this traditional<br />

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Caramel, Chocolate and Black<br />

malts to satisfy his longing for<br />

a local beer that reflected the<br />

true taste of his homeland.<br />

Consistently recognized as<br />

one of the world’s best dark<br />

lagers, this refreshing beer has<br />

aromas of coffee and chocolate<br />

combined with a toasty malt<br />

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The Publican<br />

19


Monashee’s Bar & Grill<br />

by Jonathan Niven<br />

Something for Everyone<br />

When Steve Pauls and his two partners, Bruce Webster and Rick Roberts, bought<br />

Vernon’s Monashee’s Bar & Grill in 2006, they had no idea that the economy was<br />

about to take the hardest hit that anyone can remember in decades.<br />

Coming from Alberta, where the three partners had just sold the Beddington<br />

Group chain of 12 liquor stores, Monashee’s Bar & Grill was just part of the deal<br />

to acquire the LRS it was attached to. In a little over six years, Steve has turned<br />

the venue into an upscale pub with multiple personalities.<br />

A booming business lunch crowd gives way to a busy after-work group.<br />

A different dinner crowd arrives soon after, which eventually gives way to<br />

enthusiastic partyers who pack the nightclub on weekends. Monashee’s really<br />

does have something for everyone. However, cultivating these very different<br />

markets and demographics has been anything but easy. As Steve explains,<br />

“We have customers from 19 to 75 years old. We serve high-end pub food,<br />

not your basic burgers. The portions are larger and the quality is high. It’s all<br />

about perceived value. We’ve hired great chefs and we want to make sure our<br />

customers feel they are getting value.”<br />

The menu has been designed to work closely with the huge variety of craft<br />

beers the bar is now serving. “We have redone our bar counter and installed<br />

new draft taps, which exclusively feature craft beers. People are drinking far less<br />

these days, but are willing to spend more on a quality craft beer.” Steve went on<br />

to say, “That’s where the market is going so we have to react and be different.”<br />

He is bringing in draft beers from wherever he can find them - such as Barking<br />

Squirrel from Ontario, or Maple Lager from Granville Island. It’s a trend Steve<br />

has seen at his other pub, Kal Sports Bar, where they sell 99 different types of<br />

beer from around the world.<br />

On four corners in the busy downtown area of Vernon, Steve and his partners<br />

now have two pubs and two liquor stores. Just a few months after purchasing<br />

Monashee’s, the opportunity came up to buy an old beer parlour and liquor<br />

store kitty-corner to Monashee’s. According to Steve, the pub was in pretty bad<br />

20 The Publican


We’re on Facebook, Twitter, Urban Spoon,<br />

Yelp, Trip Advisor, and Pinterest. We get more<br />

traffic from Facebook than our website.<br />

shape given the building is 130 years old and the carpet in the pub seemed like it was original!<br />

They cleaned it up and made it into a sports bar with 35 TVs, off-track horse racing, and stateof-the-art<br />

golf simulator games with digital photo graphics. “It’s funny to see people walking<br />

down the street in winter with a set of clubs over their shoulder coming to Kal Sports Bar to play<br />

golf,” said Steve. “You have to give customers something different to get them into your bar.”<br />

Along with 99 different types of beer to try at Kal’s, there are also 99 flavours of wings.<br />

Customers get a passport and anyone who eventually tries all 99 beers goes in a draw for a<br />

trip, so they can visit their favourite craft brewer anywhere in the world.<br />

Having two liquor stores across the street from one another presents its own challenges. In<br />

order to try and capture a wider market, Steve has branded each of them to reach a different<br />

clientele. The 30th Street Liquor Store sells product at government prices and sells mostly beer,<br />

while Kalamalka Wine and Spirits sells higher-end wines, vintages, and specialty products.<br />

Since acquiring both pubs and liquor stores in 2006, the industry has had its share of challenges.<br />

With the recession, new smoking regulations, and stricter drinking and driving laws, Steve<br />

has been forced to look at every aspect of the business and do things differently. Vernon, like<br />

most <strong>BC</strong> communities, has also seen an increase in chain restaurants moving in. Operators<br />

like Original Joes and Brown’s Social House have made their mark in the local market, forcing<br />

independents like Monashee’s to be innovative. “There’s no question, it puts demands on<br />

independents, but we can’t be afraid of the competition - we just need to be better. We can<br />

react faster than the chains and if I want to put out a new promotion today, I just go ahead<br />

and do it.” That’s the kind of advantage that independent operators have, according to Steve.<br />

He has also noticed a marked change in the way he markets his businesses. Gone are the days<br />

when just a quarter page ad in the local paper would draw new customers. Today, it’s all about<br />

social media. “We’re on Facebook, Twitter, Urban Spoon, Yelp, Trip Advisor, and Pinterest. We<br />

get more traffic from Facebook than our website,” observes Steve. “You simply have to be there.<br />

If you’re afraid of social media or think that you might get a bad review on Urban Spoon, and<br />

therefore you don’t go there, you’re missing out. With Urban Spoon or Trip Advisor, you have<br />

the ability to reply back to negative feedback and face it head on. I have been able to turn<br />

around 90% of any negative comments we’ve received. We’re all going to get bad reviews<br />

from time to time, it’s how you handle them that counts.”<br />

As social media has become a bigger and bigger part of Steve’s marketing efforts, he has<br />

reached out to the marketing program at U<strong>BC</strong>O (University of <strong>BC</strong> Okanagan) for co-op<br />

students. “This is a win/win. We get young, enthusiastic marketing students doing a co-op<br />

practicum and they get some real world experience marketing a pub and nightclub through<br />

social media channels.”<br />

Looking ahead, Steve sees some slow, steady growth for the industry over the next several<br />

years. “It’s a challenge for Vernon because young people are looking for good paying jobs<br />

elsewhere like northern Alberta. Thankfully, tourism is starting to come back.” Industry trends<br />

are difficult to predict, but Steve is pleased about the continuation of the LRS moratorium until<br />

2022. “With the liquor industry, you are always going to have challenges with government<br />

because policies change. We work closely with <strong>ABLE</strong> and are just trying to keep on top of<br />

where things are going.”<br />

Steve’s advice for any publican or LRS owner looking to grow their business: “Do something! If<br />

you don’t do anything, you won’t get anything. Look for constant innovation in everything you<br />

do, and just keep trying new things!” That philosophy certainly is working at Monashee’s.<br />

The Publican<br />

21


EXPANSION OPTIONS<br />

FOR YOUR LRS<br />

by Bert Hick<br />

22 The Publican<br />

The Brewery Creek Liquor Store


The moratorium on issuing new licences for liquor<br />

stores will be in place for many years to come, and<br />

the current policies and regulations regarding<br />

store size, hours, and restrictions will also likely<br />

exist on relocation of stores as well and are not<br />

expected to change. What options are available<br />

to store operators looking to expand and improve<br />

their stores?<br />

Changing the Size of a Liquor Store at<br />

Current Site<br />

How big is big enough, or how big is too big? The<br />

Class G Licencee (retail liquor store) was first rolled<br />

out in 1988 when I was General Manager of the<br />

Liquor Branch, and the maximum store size was<br />

1,000 sq ft in the retail area. This number was not<br />

selected as a result of very thorough investigation<br />

and research. The Minister of the day simply didn’t<br />

want large stores and he was asked during a<br />

meeting what size he had in mind, so he looked<br />

around his office and asked, “How big is my office?”<br />

An aide in the meeting paced off the size and it<br />

measured around 1,000 sq ft, so the minister said<br />

“that should be big enough!” (Hence the 1,000<br />

sq ft policy.) Later on, the Branch eliminated the<br />

size policy, and now a store can be as large as the<br />

licencee wants to make it. However, owners must<br />

check with their local government, which may<br />

have size restrictions.<br />

While there is no set store size, the size you want<br />

has to be a formulation of lease rate, market size,<br />

store concept, clientele, staff supervision, and<br />

control. I personally prefer smaller stores of 1,000<br />

to 1,500 sq ft in the public area. Even if you have<br />

a good lease rate now, your landlord may want a<br />

substantial Toro's increase when renewing your lease,<br />

so be sure to examine other options before you<br />

renew.<br />

If you go to a smaller store and have surplus space,<br />

consider subleasing an area to another business.<br />

Perhaps you could set up another business<br />

that sells inventory an LRS cannot sell that<br />

complement your liquor store, e.g. a convenience<br />

store, deli, cheese shop, etc. Changing the size of<br />

your store involves a structural change application<br />

to the Liquor Branch, and once approved, you’ll<br />

need to deal with your local government for a<br />

building permit and other requirements.<br />

If you have a pub attached to your LRS, you can<br />

also consider taking space out of your pub to<br />

allocate to your LRS.<br />

Relocation of Your Liquor Store within the<br />

Same Local Government Jurisdiction<br />

This past fall, the City of Surrey amended its zoning<br />

bylaw and no longer requires an operating liquor<br />

primary licence to exist beside an LRS. I think<br />

Surrey was the last municipality to make this<br />

change. As current leases come up for renewal,<br />

store operators should look for new opportunities<br />

and better locations. Use the following checklist<br />

to find the best location:<br />

• A good, solid landlord who will work with you<br />

(count your fingers after you shake hands to<br />

make sure you get all five back!)<br />

• A location in a mall or strip development with<br />

other compatible tenants, e.g. a grocery store,<br />

drug store, bank, or dry cleaners - somewhere<br />

customers can do one stop shopping.<br />

• High visibility from the road, and preferably on<br />

a corner of an intersection, with easy access<br />

and parking, preferably on a surface lot directly<br />

in front of your store.<br />

• More than one kilometre from an existing<br />

private liquor store, where you can create your<br />

own market area<br />

• A substantial population in the neighbouring<br />

area comprised of residents who would<br />

frequent your store.<br />

• A site suitably zoned for a liquor store. Check<br />

with your local government if a liquor store has<br />

site-specific zoning in your municipality. Talk<br />

with municipal staff to get a reading on<br />

whether they would support a store at the<br />

proposed site.<br />

A relocation application must be filed with<br />

the Liquor Branch and you need to have an<br />

“option to lease” for the proposed site. Once<br />

preliminary approval is provided by the Liquor<br />

Branch, you’ll need to submit a detailed floor<br />

plan of the proposed store. When the floor plan<br />

is approved, you have one year to get all the local<br />

approvals - including building permits and the<br />

final inspection and license. Remember, for the<br />

relocation of a liquor store, you have to maintain<br />

a valid interest in the property at the existing site<br />

up to and including the final inspection by the<br />

area liquor inspector and licensing at the new site.<br />

Following these steps is essential!<br />

Relocation vs. Structural Alterations<br />

The Liquor Branch carefully reviews applications<br />

for changes to a liquor store to determine if it is<br />

a relocation of the store or a structural change<br />

application. If you are relocating your store in the<br />

same building or on the same legally described<br />

property and at the same civic address, the Branch<br />

will treat it as a structural change as opposed to a<br />

relocation. In this situation, the 1 km separation is<br />

not a factor as it is not a relocation. Generally, if the<br />

new store is abutting the existing building, it is a<br />

structural change. In any event, I would encourage<br />

you to research this in advance to know what you<br />

are getting into.<br />

Relocation to a Different Local Government<br />

Jurisdiction<br />

Current Liquor Branch policies allow a liquor<br />

store to move from the current site and city up<br />

to 5 km into neighbouring municipalities. The<br />

Branch has also approved store relocations from<br />

The Publican<br />

23


Vancouver to Richmond, Vancouver to West Vancouver, Victoria to Saanich, and<br />

recently, Comox to Courtney. Always make sure at the outset that the receiving<br />

municipality is receptive to relocations, and check their requirements with the<br />

planning department. Again, be mindful of the 1 km separation between your<br />

proposed site and any existing LRS.<br />

Relocation of a Store within 1 km of an Existing Store<br />

There have been some stores that were able to relocate within 1 km of an<br />

existing LRS. However, these applications are extremely complicated and take<br />

some time, since in addition to filing a relocation application with the Branch;<br />

one has to file a request for exercise of discretion to Branch regulation and<br />

policy, which generally prohibits a relocation within 1 km of an existing store.<br />

The Liquor Branch does a very thorough and complete investigation of these<br />

applications to ensure the regulatory criteria has been satisfied completely.<br />

The Liquor Branch policy on relocation applications within 1 km of an existing<br />

store, under section 4.4.5 of the Liquor Licensing Policy Manual, is very clear,<br />

limiting, and states in part the following:<br />

15.2.2 Relocations<br />

Relocations are defined in section 4.4 and 4.4.2.<br />

LRS licensees may apply to relocate their store to another location in the same local<br />

government jurisdiction, or to a location outside the local government jurisdiction<br />

that is within five kilometres of the existing LRS.<br />

Applications to relocate an LRS will not be approved by the general manager if the<br />

proposed site is within 1 km of an existing LRS or the site of an LRS application in<br />

progress. There are only four circumstances under which the general manager may<br />

approve the relocation of an LRS to a location within 1 km of another LRS. These are:<br />

• Where the address of the proposed location is the same legal address as the<br />

existing site;<br />

• Where the proposed location is not closer to an existing or proposed LRS than<br />

the current location;<br />

• Where the travelling distance between the proposed location and any existing<br />

or other proposed LRS is 1.0 km or more because of the existence of a natural<br />

barrier; or<br />

• Where the relocation is necessitated by a fire or natural disaster and the store<br />

has been substantially destroyed as a result.<br />

The general manager has no discretion or authority to make exceptions for LRS<br />

that do not meet these criteria.<br />

Relocation applications are subject to standalone policy (see section 15.3).<br />

www.pssg.gov.bc.ca/lclb/docs-forms/lclb207-policy-licensing.pdf<br />

Stocking Your New Store or Expanded Store<br />

What you carry in your store is very much a function of your new market<br />

trading area and customer choice. An updated study of your local demographic<br />

profile will be of utmost importance when deciding on new products and<br />

shelving requirements. Many rural communities are transitioning to bedroom<br />

communities for urban workers, and urban communities are transitioning to<br />

attract higher income residents, so what you display on your shelves and in<br />

your coolers must have relevance to your customers.<br />

If your LRS is located in an affluent area, you will be well served to consider<br />

broadening your wine and craft beer selections, as well as stocking a broader<br />

selection of premium and deluxe brands of spirits on your shelves.<br />

It is wise to remember that local competition is generally the less expensive<br />

Government Signature Liquor Store, which has done its homework on<br />

demographics and product demand for your community. Make your shelving<br />

positioning and stocking decisions with this competition firmly in mind.<br />

Now go forth and explore your options.<br />

Bert Hick is President of Rising Tide Consultants Ltd. He can be reached at 604-669-2928 or risingtide@shawcable.com.<br />

24 The Publican


Police Practices and Impaired Driving<br />

under the Automatic Roadside<br />

Prohibition Regime<br />

by Shea Coulson<br />

Since September 20, 2010, the provincial<br />

government’s Automatic Roadside Prohibition<br />

regime (ARP regime) has imposed penalties<br />

for drivers who blow above 0.05 blood alcohol<br />

content into an Approved Screening Device (ASD)<br />

administered at the roadside. The ARP regime<br />

has dramatically altered the landscape for liquor<br />

licensees in the province, both in terms of the<br />

law itself and police practices enforcing the law.<br />

On November 30, 2011, the <strong>BC</strong> Supreme Court<br />

struck down the portion of the ARP regime dealing<br />

with drivers blowing over 0.08 blood alcohol,<br />

but upheld the remainder of the ARP regime.<br />

This decision, which is known as Sivia v. British<br />

Columbia (Superintendent of Motor Vehicles), is<br />

now under appeal to the <strong>BC</strong> Court of Appeal. In<br />

the meantime, the provincial government has<br />

amended the ARP regime to address the Supreme<br />

Court’s concerns and the ARP regime remains in<br />

force. However, if the appeal is successful, the<br />

entire ARP regime will be struck down and the<br />

government will have to reconsider its approach<br />

from scratch.<br />

Given the outstanding appeal, the full ramifications<br />

of the ARP regime have not yet been realized as the<br />

government awaits the Court of Appeal’s ruling.<br />

Despite this, there are already early indicators of<br />

changing police practices. Some licensees have<br />

reported that police officers are “camping out” in<br />

licensee parking lots, waiting to administer the<br />

roadside ASD on patrons exiting<br />

the establishment. In some cases,<br />

police are allegedly sitting in pub<br />

parking lots during the day as well<br />

as at closing time. Licensees have<br />

expressed concern that these<br />

police practices may deter patrons<br />

from their businesses. Licensees<br />

are rightly asking whether there<br />

is a legal solution to this dilemma.<br />

The police operate with a broad discretion to<br />

enforce the law, including the ARP regime. As<br />

such, barring highly arbitrary actions that directly<br />

harm the licensee, there is little that licensees can<br />

do legally to change police practices. Further,<br />

with respect to the driver, so long as the police<br />

form a reasonable suspicion that an individual<br />

has been consuming alcohol, they are entitled<br />

to administer the roadside ASD test. In most<br />

cases, it is likely that a police officer’s observation<br />

of an individual entering a pub or bar for a<br />

reasonable period of time and then leaving in a<br />

car constitutes reasonable suspicion. Even if not,<br />

the ARP regime leaves virtually no room to raise<br />

the issue. Any such argument would have to be<br />

made on a driver-by-driver basis.<br />

The outcome of the Sivia appeal will therefore<br />

have the most significant impact on police<br />

practices enforcing impaired driving laws. If the<br />

appeal is successful, then the ARP regime will<br />

be invalid and police will return to using the old<br />

Automatic Driving Prohibition regime, which<br />

only contains penalties for drivers above 0.08%<br />

blood alcohol content and requires police to test<br />

drivers at a police station using the breathalyser<br />

device. These requirements will very likely render<br />

the police parking lot “camp out” impractical and<br />

curb the practice.<br />

However, if the Sivia appeal is unsuccessful, then<br />

the “camp out” practice is likely to continue. The<br />

best resort for licensees is therefore to construct<br />

a due diligence regime to prevent patrons who<br />

may be impaired from leaving the establishment<br />

with the intention to drive.<br />

Shea Coulson is a civil litigator at Gudmundseth Mickelson LLP with<br />

expertise in liquor licensing and liquor distribution law, and is cocounsel<br />

with Howard Mickelson, Q.C. on the Sivia appeal challenging the<br />

constitutionality of the ARP regime.<br />

The Publican<br />

25


STANDING APART<br />

FROM THE COMPETITION by Joanne Sasvari<br />

26 The Publican


For a small, independent establishment, it’s not easy competing against the<br />

big guys. Still, many pubs, bars and private liquor stores across <strong>BC</strong> are not only<br />

surviving, they’re thriving. Despite the challenges of fighting for the same<br />

business as chain restaurants or government liquor stores, they have found<br />

ways to offer something unique through their products, expertise, relationships<br />

with the community, and the special experiences they provide. <strong>Here</strong> are just a<br />

few things they do to stand out from the crowd.<br />

Offer Exceptional Products and the Occasional Surprise<br />

Queens Cross Pub<br />

“Chain restaurants are predictable,” says Andrew Wong, manager of the Black<br />

Sheep Pub & Grill in Maple Ridge. “You get the same experience every time<br />

you go. Where we differ is that we can do whatever we want with our menu.”<br />

You used to be able to step into just about any pub in <strong>BC</strong> and find the same few<br />

mass-produced beers on tap and the same handful of dishes on the menu. Not<br />

any more. Today’s pubs specialize in gourmet food and high-quality beverages<br />

that hail from every corner of the globe.<br />

Food has become especially important in the past few years. Thanks at least<br />

in part to tougher drinking and driving laws, food sales have skyrocketed.<br />

At the Black Sheep, the menu features everything from burgers to schnitzel,<br />

quesadillas and Asian dishes, while the Fox & Hounds Pub & Restaurant<br />

in Aldergrove has added a children’s menu on the restaurant side of the<br />

establishment. “People are a lot more responsible drinking that way,” explains<br />

manager Karen Ruchty.<br />

Being a smaller place also means that pubs and private stores can respond<br />

quickly to customer requests without the time-consuming hassle of going<br />

through a head office. “Flexibility [is key] - we can move as the customers move,”<br />

Wong shares. “We pretty much cater to our customers.”<br />

That’s even more important when it comes to drink selections, especially as the<br />

public grows more informed - and demanding - about beer, wine, and spirits.<br />

Queens Cross Pub in North Vancouver, for instance, recently added 10 new<br />

taps so it could jump on the craft beer trend. It has also increased its wineby-the<br />

glass program and added cocktails to the list. “Over the years, people<br />

have gotten a better wine knowledge, so we decided to get a better product,”<br />

describes manager Brent Armstrong. “We’re also starting to get into Scotch,<br />

wine, and beer tastings, and they seem to be really popular.”<br />

Staff Know What They’re Talking About<br />

The same customers drinking better beverages on pub night are the ones<br />

frequenting the province’s private liquor stores, knowing they will find<br />

exceptional products and expertise. Customers flock to The Strath Ale Wine &<br />

Spirit Merchants in Victoria for rare spirits, seasonal specials, and the province’s<br />

biggest whisky selection. They’ll also find a highly trained staff that includes<br />

several sommeliers along with assistant manager Richard White, who is a<br />

well-regarded expert on whisky. “I want to provide a store that I want to shop<br />

at myself,” he says. “We try to carry those harder-to-find spirits and liqueurs.”<br />

Meanwhile, over at St. Regis Fine Wines & Spirits in downtown Vancouver,<br />

manager George Baugh is a pro at suggesting what wine to pick up for dinner<br />

on your way home. After all, he has been in the wine business for more than 20<br />

years, including a stint as the wine-obsessed owner of the legendary Piccolo<br />

Mondo restaurant. “It’s a small store, so we are not able to carry everything<br />

that we would like to carry, but we do try to stock products that are harder to<br />

find,” he describes. This includes large format wines and <strong>BC</strong> wines that are not<br />

readily available at government liquor stores.<br />

The Publican<br />

27


Be the Kind of Place Where Everyone Knows Your Name<br />

At a smaller joint, it’s easy for staff to get to know their customers. Armstrong<br />

estimates that 90% of guests at Queens Cross are repeat customers. “It’s almost<br />

like Cheers,” he says. “It’s a place where people can meet and have a good<br />

conversation. It’s not a nightclub.” Over at the Black Sheep, Wong shares, “A<br />

person will walk in the door and we’ll have his drink on the table even before<br />

he sits down.”<br />

Small independents also have strong relationships with colleagues - including<br />

bartenders, restaurateurs, brand ambassadors, and distributors. “The sales reps<br />

love popping into the store when they’re in town,” White reports.<br />

Those relationships extend to the community around the establishment, which<br />

is why so many pubs and private liquor stores find themselves promoting and<br />

sponsoring events in their neighbourhoods. “We do fundraisers for hockey and<br />

soccer. We have lots of teams out here,” Ruchty describes. “And we try to do<br />

community events. We’re approached by charities a minimum of once a week.”<br />

Similarly, Queens Cross has a sports team sponsorship program, and the Black<br />

Sheep has yet to turn down a request, while The Strath is a major sponsor of<br />

the Victoria Whisky Festival.<br />

"Being a smaller place also means that<br />

pubs and private stores can respond quickly<br />

to customer requests without the timeconsuming<br />

hassle of going through a head<br />

office."<br />

Provide Added Value - and Just Plain Value<br />

Don't forget those little extras that make each location unique. Some pubs<br />

have private liquor stores, some have exceptional décor, and others are a sports<br />

enthusiast’s dream. Many offer entertainment ranging from sports on big screen<br />

TVs to karaoke, trivia games, DJs or live music nights. At the Black Sheep, Wong<br />

jokes, “The staff are our live entertainment. We’re a pub, and restaurants cater to<br />

a different clientele,” he adds. “There are a lot of people who want to get away<br />

from children. There’s a different atmosphere here.”<br />

Location also makes a difference, especially for the private stores. “We’re next to<br />

the Granville Street Skytrain station,” Baugh notes. “If someone needs to get a<br />

bottle for a party and they’re in the area or catching Skytrain somewhere, they<br />

can just take a stroll to the store and jump back on the train.”<br />

Best of all, pubs and bars can set their own prices and private stores can offer<br />

special promotions to attract customers (although they need to get approval<br />

from the LDB first). “Chain restaurant prices are almost double ours,” Wong<br />

explains. “We can sell things at or below cost, which a chain restaurant will<br />

never do because they have to meet their margins.”<br />

Still, it isn’t easy competing with a giant corporate entity like a chain restaurant.<br />

It’s even harder when your competition is the provincial government, which<br />

sells some of the same products, controls distribution, and sets the rules about<br />

what you can and can’t do. “There’s a lot of politics,” White laments. “It’s tough<br />

when you’ve got so much competition out there.”<br />

Successful owners of pubs, bars, and private liquor stores actually welcome the<br />

challenge. They know that if the big guys move in, there’s money to be made.<br />

Besides, it keeps everyone on their toes, making sure their establishments look<br />

great and offer an exceptional experience for the customer. As Armstrong says,<br />

“It’s really healthy competition, I think.”<br />

28 The Publican


Wine Report<br />

by Ralf Joneikies<br />

Wine on Tap<br />

If you’re ordering a glass of wine when you’re in a<br />

bar, how is it being poured?<br />

Are you still getting the by-the-glass bottle pour or<br />

have you graduated to the latest way to enjoy your<br />

favourite glass of wine: wine on tap? What has long<br />

been the only way to enjoy unique and truly fresh<br />

craft beer has now become a sophisticated way to<br />

sample an array of wines with your dinner. Dining<br />

establishments throughout <strong>BC</strong> are eager to catch<br />

the wave for a variety of reasons.<br />

According to Sebastien Le Goff, Sommelier and<br />

Service Director of 3 Cactus Club restaurants, wine<br />

on tap technology has been available in Europe<br />

for 20 years now, but it’s been just over a year that<br />

this service has been enjoyed by foodies and wine<br />

lovers in the Lower Mainland.<br />

Steve Thorp and Mike MacQuisten, both with<br />

backgrounds in sales and marketing, are the<br />

visionaries behind FreshTAP. It was during their<br />

travels in California, Oregon, and New York that a<br />

unique wine delivery system caught their attention.<br />

Their overwhelmingly positive experiences<br />

enjoying wine coming from a tap opened their eyes<br />

to the possibility of bringing this technology to <strong>BC</strong>,<br />

and they started making licensing arrangements<br />

with the developer Free Flow Wines of California.<br />

For Le Goff, who has spent decades serving wine,<br />

the benefits of a wine on tap system are a nobrainer.<br />

“There are many reasons for this system:<br />

it reduces storage needs in a big way. You also<br />

eliminate a great deal of recycling, and breakage<br />

is non-existent. For the customer there is greater<br />

consistency from glass to glass because there is<br />

no oxidation or cork taint.”<br />

The FreshTAP system is successful at preserving<br />

the freshness and intended flavours of a wine due<br />

to a 14-step cleaning process of the tap tanks to<br />

be filled, followed by a 10-point sterilization and<br />

testing process of the filling machine, so that there<br />

is no cross-contamination between individual<br />

products. This assures the integrity of each wine<br />

and secures the confidence of 26 <strong>BC</strong> wineries that<br />

send their wines to be filled at the facility.<br />

Oxidation is eliminated courtesy of an inert gas<br />

blanket that prevents oxygen from making contact<br />

with the wine. Worries about the quality of that last<br />

glass-from-bottle pour are eliminated because each<br />

glass of wine delivers a brightness and clarity of fruit<br />

flavours. This results in savings on cost of goods<br />

sold and an increase of the bottom line because<br />

the customer will not be sending it back. Another<br />

saving comes from the calibrated wine tap delivery<br />

system that eliminates overpours.<br />

Despite the business benefits, Le Goff knows that<br />

there are still minor consumer perception hurdles to<br />

be overcome. “There are some people who think, ‘I<br />

drink beer on tap. I don’t drink wine on tap’. Others<br />

may think that it’s cheap and not sophisticated. But<br />

when they taste the wine, those concerns are gone.”<br />

While FreshTAP is the sole service provider of<br />

putting wines into kegs, there are approximately<br />

five companies installing taps and lines for both<br />

wine and beer in <strong>BC</strong>, with a service agreement to<br />

clean the lines every two to three weeks included<br />

in the cost. More than 30 <strong>BC</strong> licensees have<br />

installed this system in the last year with another<br />

65+ licensees considering the system or having it<br />

installed in the near future.<br />

Wine on tap is the wave of the future, delivering<br />

high quality wine to discerning and delighted<br />

customers.<br />

Ralf Joneikies is the manager of two private LRSs and has a formal<br />

background in winemaking, wine chemistry and viticulture.<br />

The Publican<br />

29


LCLB Report<br />

by Karen Ayers<br />

Why We Have the Minors as Agents<br />

Program<br />

During the past year there has been a lot of<br />

discussion about the Minors as Agents Program.<br />

We often talk about stats and our mutual goal of<br />

100% compliance; however, we rarely talk about<br />

why the program is so important.<br />

Often the conversation is about how we use olderlooking<br />

kids (not true - we hire agents who look<br />

their age), how the agents purposely visit when it’s<br />

busy (we actually prefer it to be quiet to minimize<br />

patron involvement), how the licensee does a<br />

lot of training, how it can be a challenge to find<br />

good staff, how the licensee has put up signs or<br />

holds regular staff meetings to educate staff about<br />

not selling to minors, and so forth. Some of this<br />

is the right conversation to be having, but none<br />

of it holds much meaning unless we understand<br />

why there are age-based restrictions on the sale<br />

of liquor in the first place.<br />

Study after study show that alcohol consumption<br />

by minors is associated with a greater risk of<br />

unwanted pregnancies, smoking, violence, sexual<br />

assaults, bullying, poor school performance,<br />

suicide, and death or injury from driving and other<br />

accidents. Also, early alcohol abuse is known to<br />

have negative impacts on the development of<br />

the part of the brain responsible for higher-level<br />

thinking.<br />

Sadly, a one-time sale of liquor to a minor can<br />

potentially lead to a life-altering event. British<br />

Columbians believe that the public interest is best<br />

served by taking every reasonable step to mitigate<br />

the risks that go along with alcohol consumption,<br />

especially as it applies to minors. This is why the<br />

Minors as Agents Program exists.<br />

The Minors as Agents Program will not eliminate<br />

access to liquor by minors; however, it will restrict<br />

that access in retail outlets. Together, the Branch<br />

and industry can make a significant and positive<br />

contribution to hindering minors’ access to<br />

liquor. Minors and their parents have the right<br />

to be confident that we are doing everything<br />

reasonable to make our communities safe.<br />

We know you explain to your staff that a sale<br />

to a minor is against the law, that the fines are<br />

significant, and that staff themselves may get<br />

fired if they sell to a minor. We know you hold staff<br />

meetings where this is emphasized over and over<br />

again. A value-added step may be to educate your<br />

staff on why there are age-related prohibitions in<br />

the first place.<br />

We continue to do our part by making signage<br />

available as tools for you and your staff to educate<br />

each other about why it is so important to prevent<br />

minors’ access to liquor. These tools will help<br />

everyone understand why the question, “May<br />

I see two pieces of identification please?” is so<br />

important.<br />

30 The Publican


Human Resources<br />

by Shane Isley and Donnie Staff<br />

Good Job Descriptions Can Save You Time and Money<br />

Why Are Job Descriptions Important?<br />

Bringing out the best in your employees, and continuing to meet your business<br />

goals, starts with the development of thorough job descriptions. A good job<br />

description will provide employees with clear expectations, and can also<br />

take the place of more expensive and time-consuming training. Well-written<br />

job desciriptions can add value to many parts of your business. A good job<br />

description can: (1) help attract a strong pool of candidates more efficiently<br />

by describing the qualities, qualifications, and experience required to be<br />

successful in the position; (2) guide your training and development, ensuring<br />

your managers focus only on the skills & knowledge the employee needs<br />

to do the job; and (3) enable your managers to engage in meaningful and<br />

productive performance conversations with their direct reports. Well writtten<br />

job descriptions, while typically underrated, can be one of the most influential<br />

contributions to your business success.<br />

How to Create a Good Job Description<br />

Step 1: Mapping The starting point for writing a good job description is<br />

“mapping” the position. This helps you identify what someone serving in a<br />

position is expected to accomplish and whom they are expected to deliver work<br />

products to. Mapping a position requires an understanding of the company’s<br />

culture as well as the duties, responsibilities, and demands of the position. It<br />

also requires a familiarity with the position, specifically, knowledge of whom<br />

the employee will interact with both inside and outside the business. Before<br />

you begin mapping a position, it’s important to specify the position you<br />

wish to describe and not a person you want to convey information to (e.g.,<br />

write a job description for your pub’s head bartender, not for Peter the head<br />

bartender and manager). After you have specified the position, identify all of<br />

the people that expect to receive work products from the employee, including<br />

co-workers (internal customers) as well as customers, vendors, and partners<br />

(external customers). Your mapping assignment is complete once you identify<br />

the position's work products and which internal and external customers they<br />

are delivered to.<br />

Below are some tips for selecting work products.<br />

A work product is:<br />

• A product of behaviour, not a behaviour itself<br />

• A thing, not the measure of a thing<br />

• A valuable contribution to business results<br />

• A noun, not a verb<br />

Tips for writing work products:<br />

• Add criteria to help clarify what counts as an acceptable work product.<br />

• Ask yourself if you can state the work product in a plural tense. If so, then it is<br />

likely you have identified a countable noun that will function as a work<br />

product.<br />

Step 2: Defining The second step in writing a job description involves describing<br />

why the work products are important to the business as well as stating the<br />

criteria for an acceptable one. In order to show how work products contribute to<br />

the business’ overall success, link the work products to business results. Business<br />

results are the metrics a company uses to measure its success as a business,<br />

(e.g. profit margins, customer satisfaction, employee turnover, marketshare,<br />

etc.). Once you have shown the link between work products and business<br />

results, detail the criteria for what constitutes an acceptable work product. A<br />

list of criteria allows an employee and his manager to evaluate the quality of<br />

the employee’s work product(s) more easily.<br />

Lastly, list the actions or approaches recommended to complete each work<br />

product. Providing an employee with guidance as to how to produce work<br />

products can help ensure they follow company policies, engage in best practices,<br />

and are on track to becoming a more independent team member. Continue<br />

to link work outputs to business results, detail performance criteria and list<br />

actions until you have described all of the major work products for the position.<br />

Below is an example of one item, out of several, you may find on a store, pub,<br />

or bar manager’s job description.<br />

Business Results<br />

Work Product<br />

Criteria<br />

Behaviour<br />

Revenue streams<br />

Customer satisfaction<br />

Profit margin<br />

Cash flow<br />

Purchase order<br />

Includes the appropriate amount<br />

of supplies for the current business<br />

needs<br />

Replenishes inventory<br />

Establishes supplies to meet future<br />

customer demands, expected future<br />

sales, and daily sales goals<br />

Expands selection based on customer<br />

habits and current business plans<br />

Requests needed supplies at the<br />

lowest possible cost<br />

Placed in a timely manner so<br />

that stock is not depleted before<br />

purchased items are received<br />

Includes the business’ license number<br />

Is signed<br />

Research vendor costs and selection<br />

Take inventory of current stock<br />

Review past sales data<br />

Predict future sales<br />

Submit purchase order<br />

Shane Isley is President<br />

and Donnie Staff is VP of<br />

Consulting Services at Optimal.<br />

They can be reached at<br />

206-905-4660<br />

©2013 West Coast Behavioral<br />

Consultants, Inc. All Rights<br />

Reserved.<br />

The Publican<br />

31


LEGAL ISSUES<br />

by Dennis Coates<br />

Separating Operations for Tax Purposes<br />

Many operators still have not separated their<br />

former pub operations into the pub business, the<br />

property ownership, and the LRS ownership. This<br />

should be done for planning and tax reasons and to<br />

allow flexibility in dealing with these three separate<br />

business components. It requires careful tax advice<br />

so that tax is either deferred or avoided. It will<br />

also require a valuation of the LRS if that is being<br />

transferred out of the original corporate setup.<br />

The valuation (as previously discussed in the Fall<br />

2012 issue of The Publican) is either based on an<br />

intrinsic value for an operation that is not running<br />

profitably in a normal way, or as a reflection of net<br />

profit or EBITDA (earnings before interest, taxes,<br />

depreciation, and amortization). The original<br />

EBITDA multiplier started around 5 but has crept<br />

up recently to the 7 range and sometimes higher.<br />

The intrinsic values have similarly crept up from as<br />

low as $100,000.00 to as much as a million dollars<br />

in the Vancouver market. Both values depend on<br />

external factors such as margins, proximity of<br />

government stores, track record, new relocations<br />

in the area, and geographic location in the<br />

province e.g. Vancouver vs. Logan Lake.<br />

The LCLB transfers of the LP or the LRS license are<br />

reasonably simple, but the tax issues sometimes<br />

are more complex.<br />

Signage<br />

The LCLB has recently been paying more attention<br />

to LRS signage on new and existing stores. Their<br />

issue is that the descriptive word or symbol should<br />

be significant enough so that the signage does<br />

not imply that it is a government store. Due to the<br />

expense of signage, make sure you check and get<br />

approval before changing signs, or in the case of<br />

relocations, putting up new ones.<br />

Delivery Service<br />

An LRS is allowed to offer delivery options for their<br />

products. Recognize that all business of the LRS<br />

must be conducted from the physical premises<br />

of the LRS. This means the handling of orders and<br />

deliveries and the storage of excess inventory<br />

must all be at the store.<br />

Fines for Serving Minors<br />

The campaign related to the use of minors for<br />

undercover purchase of product continues.<br />

Recently, there have been repeat visits to stores<br />

that failed to identify a minor and were fined<br />

$7,500 as well as to those that passed the process<br />

and asked for ID. There was a successful judicial<br />

review of a case from Duncan on the issue of due<br />

diligence. To that point, the LCLB did not accept<br />

any actions of the licensee to meet the test of due<br />

diligence as a defense to these cases. After the<br />

rehearing of the Duncan case, we will hopefully<br />

get some guidance as to acceptable due diligence.<br />

In the meantime, the safe approach is to use an<br />

age such as 30 as the cut off for asking for ID, and<br />

hopefully this will minimize the chance of an<br />

employee not asking for necessary ID.<br />

Dennis P. Coates is with MJB Law and can be reached at 250-319-4808<br />

or dpc@mjblaw.com.<br />

32 The Publican


Names in<br />

the News<br />

by Debbie Minke<br />

<strong>ABLE</strong> welcomes the following new LP/LRS<br />

members: Grand Pub & Grill in Merritt, Dana<br />

Egan; Johnson Street Liquor Store in Coquitlam,<br />

Ian Krampitz; River’s Reach Pub and River’s<br />

Reach Liquor Store in New Westminster, George<br />

Petropavlis; Southpoint Station Liquor Store in<br />

Surrey (under TAG The Arbuthnot Group), Mike<br />

Taylor. Three new LRS members are from the<br />

Berezan Hospitality Management Group: Berezan<br />

Liquor Store - Cloverdale in Surrey, Berezan<br />

Liquor Store - Dillworth in Kelowna; and Berezan<br />

Liquor Store - Willoughby in Langley.<br />

Wine Access Canadian Wine Awards<br />

Congratulations to Nk’Nip Cellars in Osoyoos<br />

for winning the second place in the 25 Best<br />

Wineries in Canada. Painted Rock Estate Winery<br />

in Penticton captured third place for the second<br />

year in a row. Road 13 Vineyards in Oliver took<br />

fifth place. More winners include:<br />

Best Canadian Red Wines 2012<br />

1. Quinta Ferreira 2009 Syrah, <strong>BC</strong><br />

2. Laughing Stock 2010 Syrah, <strong>BC</strong><br />

3. Church & State Wines 2010 Coyote Bowl Series<br />

Syrah, <strong>BC</strong><br />

Best Canadian White Wines 2012<br />

1. Hidden Bench 2010 Rosomel Vineyard Riesling<br />

Roman’s Block, ON<br />

<strong>BC</strong> Beer Awards<br />

2. Tawse 2010 Carly’s Block Riesling, ON<br />

3. Quails’ Gate 2010 Chardonnay Stewart Family<br />

Reserve, <strong>BC</strong><br />

Top 5 <strong>BC</strong> Wines 2012<br />

1. Meyer Family Vineyards 2010 Old Main Road<br />

Vineyard Tribute Series Sonia Gaudet<br />

Chardonnay, Okanagan Valley $35<br />

2. Painted Rock Estate Winery 2009 Estate Grown<br />

Syrah, Okanagan Valley $36<br />

3. Laughing Stock Vineyards 2010 Syrah,<br />

Okanagan Valley $34<br />

4. Quails' Gate Winery 2010 Stewart Family<br />

Reserve Chardonnay, Okanagan Valley $35<br />

5. Quails' Gate 2010 Totally Botrytis Affected<br />

Optima, Okanagan Valley $30<br />

SpierHead Winery, based in Kelowna, captured<br />

"Best New Winery" at last year’s Fall Okanagan<br />

Wine Festival. SpierHead's gold medal-winning<br />

2010 Pinot Noir was judged to be the #1 Pinot Noir<br />

in Canada, coming out on top among 94 entrants.<br />

The Black Bear Pub in North Vancouver donates<br />

$0.50 per every signature Quesadilla they sell<br />

to the North Shore Disability Resource Centre.<br />

To date, they have donated over $11,000! In<br />

December, Granville Island Brewing partnered<br />

with Black Bear and matched all donations.<br />

Wines of British Columbia<br />

Quick Facts<br />

• <strong>BC</strong>'s wine industry has grown from just 17 grape<br />

wineries in 1990 to over 210 today<br />

• There are now over 9,800 acres (3,946 hectares)<br />

of vines in British Columbia's five designated<br />

viticultural areas (Okanagan Valley, Similkameen<br />

Valley, Fraser Valley, Vancouver Island, and the<br />

Gulf Islands) and beyond<br />

• Over 65 different grape varieties are grown in<br />

British Columbia; Merlot is the most planted red<br />

grape, and Pinot Gris is the most planted white<br />

grape<br />

• Viator Travel Blog rated the Okanagan Valley<br />

number 1 on their list of "Top 10 Wine<br />

Destinations Around the World"<br />

• Sipping wine in the Okanagan was rated<br />

number 8 on MSN Travel's "10 top places to try<br />

something new" in 2012<br />

• <strong>BC</strong>’s wineries receive over 1.5 million visitors<br />

each year<br />

Source: <strong>BC</strong> Wine Institute<br />

Category Beer Brewmaster, Brewery<br />

Best of Show Steamworks Pilsner Conrad Gmoser of Steamworks Brewing Company<br />

Lager/Pilsner Steamworks Pilsner Conrad Gmoser of Steamworks Brewing Company<br />

Special Lager Brewmaster’s Black Stefan Tobler of Okanagan Spring Brewery<br />

Session High Country Kolsch Bart Larson of Mt. Begbie Brewing Company<br />

Wheat/Rye Belgian White Dean Mcleod of Lighthouse Brewing Company<br />

Pale Red Racer Classic Pale Ale Gary Lohin of Central City Brewing Company<br />

Cascadian Dark Ale Skookum Cascadian Brown Ale Matt Phillips of Phillips Brewing Company<br />

Porter/Brown Pow Town Cedric Dauchot of Townsite Brewing Inc<br />

Scottish/Irish Big Caboose Red Ale Gord Demaniuk of Fernie Brewing Company<br />

Fruit Blackberry Festivale Cedric Dauchot of Townsite Brewing Inc<br />

Stout Keepers Stout Dean Mcleod of Lighthouse Brewing Company<br />

IPA 5 Rings IPA Derrick Franche of High Mountain Brewing Company<br />

Sour/Brett Oud Bruin Iain Hill of Yaletown Brewing Company<br />

Specialty Smoke & Mirrors Imperial Smoked Ale Kevin Emms of Coal Harbour Brewing<br />

Strong Hermannator Ice Bock Ralf Pittroff of Vancouver Island Brewery<br />

If you have any noteworthy community contributions, please email the details to Debbie at debbie@emcmarketing.com.<br />

The Publican<br />

33


<strong>BC</strong> Hospitality<br />

Foundation<br />

by Renee Blackstone<br />

<strong>BC</strong>’s pub owners and their employees put on the<br />

afterburners and raised thousands of dollars for<br />

the B.C. Hospitality Foundation last year, reports<br />

<strong>BC</strong>HF Executive Director Alan Sacks. “Through<br />

their efforts, the pubs have made a significant<br />

contribution to our successful fundraising work<br />

in 2012.”<br />

As a prime example, Sacks pointed to the efforts<br />

of bartender Bruce James of Doolin’s Irish Pub in<br />

Vancouver. In May of 2012, the foundation heard<br />

that Bruce was facing financial hardship due to<br />

a medical condition. His friends and coworkers<br />

organized a fundraiser to help him through the<br />

crisis, and the <strong>BC</strong>HF matched the $3,000 raised<br />

by the event.<br />

“Six months later, when Bruce was in better<br />

health after receiving treatment for his illness,<br />

he astonished us by planning another fundraiser<br />

with the goal of paying back the money we<br />

had given him with no strings attached,” notes<br />

Sacks. The event, held in November in The Cellar<br />

nightclub and dubbed the “Magic Bru”, was a<br />

smash hit, raising $3,700 for the <strong>BC</strong>HF. Bruce was<br />

happy that the foundation could “pass it along<br />

to someone else.”<br />

“We salute Bruce’s generous spirit, and we find<br />

his actions inspiring. Thank you Bruce: 'Giving<br />

back' never looked so good,” says <strong>BC</strong>HF Board<br />

Chairman Bing Smith.<br />

Other pubs were equally spirited and generous<br />

in their fundraising efforts. In November, The<br />

Roxy - which along with Doolin’s is part of<br />

the Granville Entertainment Group - held a<br />

Beer Olympics that raised nearly $2,000. In<br />

addition, workers at Doolin’s and The Roxy<br />

contributed tips throughout the month allowing<br />

Granville Entertainment to raise $9,800 from<br />

their combined efforts. Pubs in the JAK Group<br />

(Moonrakers, Roo’s, and Great Bear) held an<br />

industry Fun Night and raised $1,800. The Mark<br />

James Group, which includes Yaletown Brewing,<br />

Big Ridge Brewing and the BrewHouse, held a<br />

number of events during the Tip Out To Help<br />

campaign, with workers donating tips matched<br />

by the company, and asking patrons to round up<br />

their bills. Their efforts raised $3,280.<br />

Meanwhile, <strong>BC</strong>HF funds continued to help those<br />

in the industry who faced financial crises due to<br />

medical problems. Ashlyn Lang, the three-yearold<br />

daughter of Lisa Lang, a former worker at<br />

the Ramada Hotel in Kelowna, is battling a liver<br />

disease. A fundraiser held on the family's behalf<br />

raised $22,514 and the <strong>BC</strong>HF contributed another<br />

$3,000 to help defray costs of Ashlyn's treatment<br />

and recovery.<br />

Another beneficiary of <strong>BC</strong>HF funds was Janice<br />

Tayner, a former wine agent employee living<br />

in Surrey. Janice suffers from cancer and other<br />

serious conditions, and the <strong>BC</strong>HF provided<br />

support of $5,000 to help her through her postsurgery<br />

recovery period.<br />

In other <strong>BC</strong>HF news, scholarships continue to be<br />

a large part of the foundation's efforts. With the<br />

sponsorship and support of Okanagan Crush Pad,<br />

five sommelier scholarships - each worth $1,000<br />

- were awarded in November. A new scholarship<br />

category was also created for children whose<br />

parents work in the hospitality industry. Among<br />

the three receiving a $1,000 scholarship to pursue<br />

hospitality careers was Gabrielle Gower, daughter<br />

of George Gower, who has worked in Sooke<br />

Harbour House kitchens for 18 years.<br />

For more information on the <strong>BC</strong>HF and its work,<br />

please visit www.bchospitalityfoundation.com.<br />

Renee Blackstone is a freelance journalist who sits on the <strong>BC</strong>HF<br />

Advisory Board.<br />

34 The Publican


<strong>ABLE</strong> Benefits<br />

by Ian Baillie<br />

Have you ever tried to lift a couch yourself? Hard,<br />

wasn’t it? Now what about with 2 people? And<br />

4? One person becomes much stronger as others<br />

join because there is a real strength in numbers;<br />

likewise, <strong>ABLE</strong> <strong>BC</strong> and its members are much<br />

stronger when other LPs and LRSs come together.<br />

Through steady growth in our membership this<br />

past fiscal year, we have shown government and<br />

other key industry players that our association’s<br />

voice carries the weight of the industry behind it.<br />

Moving forward, we encourage new members to<br />

join our ranks to show that the association has an<br />

increasing percentage of businesses supporting<br />

the voice of our industry.<br />

<strong>ABLE</strong>’s strength and voice is used for one purpose<br />

- to advocate on your behalf. <strong>ABLE</strong> communicates<br />

with government and regulatory authorities to do<br />

such things as:<br />

• Increasing the discount for LRSs from 10% to<br />

16%<br />

• Increasing the distance between LRSs to 1 km<br />

and strengthening stand-alone requirements<br />

• Inspection and enforcement program for<br />

government liquor stores developed to ensure<br />

equal monitoring of both public and private<br />

liquor establishments<br />

• Continuing to raise concerns with LCLB over<br />

fines that are too high for first-time offenders<br />

of the “Minors as Agents” program<br />

• Elevating concerns of police presence in and<br />

around LPs and LRSs<br />

• Fighting for a fairer .05 regime that respects<br />

constitutional rights<br />

<strong>ABLE</strong> is also full of resources for your use and<br />

benefit. The <strong>ABLE</strong> office is your best resource for<br />

any industry-specific questions you may have.<br />

<strong>ABLE</strong> follows the industry very closely to help<br />

provide you with all the information you may<br />

need. We use this information to provide our<br />

members with updates on issues and trends as<br />

well as other important information that you may<br />

need to know.<br />

While offering resources and industry updates,<br />

<strong>ABLE</strong> also has a variety of programs and discounts<br />

to help you save money while operating your<br />

business. Programs include tailored medical and<br />

dental coverage through Johnstone’s Benefits<br />

and access to the Hospitality Insurance Program<br />

(HIP) through Western Financial. The HIP program<br />

includes property insurance, general liability<br />

insurance, and host liquor liability insurance as<br />

well as business interruption and crime coverage.<br />

To help you save money while running your<br />

business, you can also take advantage of discounts<br />

offered to <strong>ABLE</strong> members. These include discounts<br />

on ID Checking Guides, which can help your<br />

employees spot fake IDs as well as special perks<br />

with Shaw for Business including no contracts, no<br />

cancellation fees and complimentary service calls.<br />

<strong>ABLE</strong> members also have the option of joining a<br />

Bottle Refund Program from which you receive<br />

18¢ per dozen handling refund back to your LRS.<br />

Joining <strong>ABLE</strong> will not only benefit you and your<br />

business through programs and resources; it will<br />

also benefit our industry as a whole, especially<br />

during an election year. Pre-election is a time of<br />

great opportunity to influence policy and policy<br />

makers, and <strong>ABLE</strong> is prepared to defend our<br />

industry’s interests.<br />

Please consider joining our industry association<br />

and together we will drive our industry forward!<br />

The Publican<br />

35


PROTECTING MARGINS<br />

DRINK CONSISTENCY LEADS TO CONSISTENT PROFITS<br />

by Robert Plotkin<br />

Product consistency is as crucial to profitability<br />

behind the bar as it is in the kitchen. The drinks<br />

you serve should taste the same regardless of the<br />

night or who’s behind the bar. Otherwise, your<br />

staff may be serving a product that is different in<br />

taste, cost, and presentation from what you had<br />

originally intended. The result is financial chaos.<br />

For example, let’s say you recently introduced a<br />

specialty Margarita that has become so popular<br />

it’s become a signature drink on your bar’s<br />

menu. The cocktail features a premium brand<br />

of reposado 100% agave tequila, equal parts of<br />

Cointreau and Grand Marnier, a splash of ruby<br />

red grapefruit juice and fresh lime sour mix. The<br />

drink costs $3.63 and sells for $10, which yields<br />

a 36% cost percentage and gross profit of $6.37.<br />

[See example.] Especially in today’s economy,<br />

devising a cocktail with a brisk sales volume<br />

that generates such a healthy amount of profit<br />

is optimum.<br />

Unfortunately, concept often breaks down in<br />

execution. As it turns out, the cocktail your<br />

36 The Publican<br />

bartenders are preparing is different than the<br />

drink you devised. Instead of the jigger of tequila<br />

the recipe calls for, the bartenders are pouring 1¾<br />

ounces. Likewise, instead of a one-ounce portion<br />

of Cointreau and Grand Marnier, they’re using a<br />

combined 1½ ounces. [See example.] Although<br />

in each case the variance is a mere ¼ ounce, the<br />

impact on your financial bottom line is significant.<br />

As it turns out, the cocktail your bartenders are<br />

preparing costs the business $4.71, which is 30%<br />

higher than your version, and since they’re selling<br />

the drink for the same price, the bar’s gross profit<br />

decreases 17% to $5.29, a difference of over $1<br />

per transaction. Perhaps losing a dollar in profit<br />

doesn’t sound like too bad of a hit, but consider<br />

the long-term ramifications. If on average your bar<br />

sells eight of the specialty Margaritas per hour for<br />

a total of 10 hours each day, that equates to an<br />

annual loss in profit of $31,536.<br />

In addition, that figure doesn’t factor in the impact<br />

of serving a drink that contains more than the<br />

legal 3 ounces of alcohol. The bartenders’ version<br />

has 30% more alcohol than what your recipe calls<br />

for. Not only do overly potent drinks inevitably<br />

cost you potential sales, they also place the<br />

public at risk.<br />

Wrenching Order<br />

Inconsistency behind the bar leads to fluctuating<br />

costs and hit-or-miss drinks, which is why it’s<br />

important to ascertain firsthand if your bartenders<br />

are all pouring the same recipes and charging<br />

the same prices. It doesn’t require installing a<br />

surveillance system or hiring spotters or a shopping<br />

service. The information is yours for the asking.<br />

Schedule a bar staff meeting and give them<br />

a written test of sorts. Ask the bartenders to<br />

provide recipes and prices for the 10 or 20 most<br />

frequently requested mixed drinks at your bar. The<br />

best-case scenario is that their answers reveal that<br />

they’re all operating from the same page of the<br />

playbook. However, more often than not, these<br />

tests reveal that there’s little consensus between


the bartenders as to how to prepare and portion basic cocktails, what glasses<br />

the drinks should be presented in, how they should be garnished, and what<br />

prices should apply.<br />

If the test results you obtain are along these lines, don’t worry. Unless your<br />

bartenders are crazed anarchists, they won’t much care for having their lack<br />

of professionalism exposed. After explaining what operational difficulties the<br />

business is experiencing from the lack of drink consistency, you’ll likely have<br />

their undivided attention.<br />

After the bartenders have been made to realize that they’re not preparing the<br />

same recipes, the next step involves establishing what recipes they’ll be asked<br />

to pour. It’s a positive step, a forward-looking process in which the bartenders<br />

will play a pivotal role. With few exceptions, most bars need to have set recipes<br />

for about 40 to 50 drinks. Challenge the staff to determine what those recipes<br />

should be. Conduct tastings of the various recipes vying for each slot. Make a<br />

night of it - invite guests, and serve hors d’oeuvres or light fare.<br />

At the end of the process you’ll have a revamped, reborn, and reinvigorated<br />

beverage program featuring a set of drink recipes in which the bartenders feel<br />

a sense of ownership. Not only will consistency improve, but you’ll also likely<br />

notice that they have a better attitude presenting the drinks they prepare<br />

because they were involved in creating the recipes.<br />

Afterwards, review your pricing structure to ensure that it still makes financial<br />

sense. Changing recipes typically involves changing portioning, which in turn<br />

changes drink costs. Once the new recipes have been assigned sales prices,<br />

reprogram your bar’s point of sale system and throw open the front door.<br />

What Effect Does Chaos<br />

Have on the Bottom Line?<br />

Signature Margarita - House Version<br />

1½ oz. El Jimador Reposado Tequila $1.80<br />

½ oz. Cointreau $0.70<br />

½ oz. Grand Marnier $0.86<br />

½ oz. Ruby Red Grapefruit Juice $0.03<br />

1½ oz. Fresh Lime Sour Mix $0.24<br />

Drink Cost $3.63<br />

$3.63 drink cost ÷ $10.00 sales price = 36.3% cost percentage<br />

Gross Profit = $6.37<br />

Signature Margarita - Bartender’s Version<br />

1 3/4 oz. El Jimador Reposado Tequila $2.10<br />

3/4 oz. Cointreau $1.05<br />

3/4 oz. Grand Marnier $1.29<br />

½ oz. Ruby Red Grapefruit Juice $0.03<br />

1½ oz. Fresh Lime Sour Mix $0.24<br />

Drink Cost $4.71<br />

Robert Plotkin is a judge at the San Francisco World Spirits Competition and author of 16 books on bartending and<br />

beverage management including Secrets Revealed of America’s Greatest Cocktails. He can be reached at www.<br />

AmericanCocktails.com or by e-mail at robert@barmedia.com. ©2011 BarMedia<br />

$4.71 drink cost ÷ $10.00 sales price = 47.1% cost percentage<br />

Gross Profit = $5.29<br />

The Publican<br />

37


LDB Report<br />

Register Now for Your Provincial Sales Tax Number<br />

Prior to April 1, 2013, all Licensee Liquor Stores, Rural Agency Stores, Licensed<br />

Establishments and Independent Wine Stores must obtain a Provincial Sales<br />

Tax (PST) number to purchase liquor, and to collect and remit the PST.<br />

The <strong>BC</strong> Liquor Distribution Branch recommends all wholesale customers register<br />

promptly to avoid disruption in purchasing liquor when the PST returns to <strong>BC</strong>.<br />

How to Register and Obtain a PST Number<br />

Registration is now open and will take approximately 10-20 minutes. When you<br />

register, you will be assigned a new PST number. New PST numbers will be 11<br />

characters long and will be in this format: PST-1234-5678.<br />

Online Registration with eTax<strong>BC</strong><br />

A new website has been developed to facilitate online registration. Visit www.<br />

gov.bc.ca/etaxbc/register. Additional info and a direct link to register can be<br />

found on the “Policy Releases” page of LDB Web Store www.ldbwholesale.com.<br />

Fax/Mail Registration<br />

The PST registration application form is available at www.gov.bc.ca/etaxbc/<br />

register. Navigate to the left-hand side of the webpage and click on “Mail or<br />

Fax” under “Register to Collect the PST” section and access the application form.<br />

In-Person Registration<br />

You can register in person at a Service <strong>BC</strong> Centre or at 1802 Douglas St in Victoria.<br />

Service centre locations are available at www.servicebc.gov.bc.ca/locations.<br />

Before You Start<br />

Prior to beginning registration, please have the following information ready:<br />

• Your federal business number (BN). If you don't have one yet, the PST<br />

registration process will create one for you.<br />

• If you have a BN, a copy of an HST return from a filing period before August<br />

2012 to verify information about your business.<br />

• Your driver’s licence number or <strong>BC</strong> ID number, if you are a sole proprietor,<br />

or for all partners in a partnership.<br />

• Your incorporation number, if your business is incorporated.<br />

• Your liquor licence number (for each location as applicable).<br />

• The address of your business location (for each location as applicable).<br />

• The amount of your total annual sales, or the estimated amount if you have<br />

been in business less than 12 months.<br />

• The amount of your anticipated monthly taxable sales;<br />

• If you are leasing the business premises, submit a signed copy of the lease<br />

agreement to show your legal right to operate in the location(s);<br />

• If you are operating the business, and do not own the business, submit a<br />

management/operator agreement;<br />

• If you are purchasing a business, submit a copy of the signed bill of sale or<br />

purchase agreement.<br />

Multiple Liquor Retailing Location<br />

If you own/operate an outlet with multiple locations, decide before you start<br />

registration if you want to register all locations under one PST account or under<br />

separate PST accounts.<br />

If you register all your locations under one account, you will have one PST<br />

registration number that covers every location and you will file one PST return<br />

each reporting period.<br />

If you register your locations separately, you will have multiple PST registration<br />

numbers and you will file multiple PST returns each reporting period – one for<br />

every location you register.<br />

Tax Specialist Consultations<br />

If you need assistance in understanding how the PST applies to your outlet, you<br />

may request a free consultation with a provincial sales tax specialist from the<br />

Ministry of Finance. Visit www.gov.bc.ca/PSToutreach to request a consultation.<br />

Interactive PST Webinars<br />

The Ministry of Finance offers free online interactive seminars to provide<br />

information on transitioning to the new PST. To join, complete a registration<br />

form by accessing www.sbr.gov.bc.ca/applications/PST_Webinars/.<br />

PST Seminars Across <strong>BC</strong><br />

The Ministry of Finance is conducting seminars across the province to assist<br />

wholesale customers in transitioning to the PST. Seminars are presented through<br />

local Chambers of Commerce and similar organizations. Please contact your<br />

local Chamber of Commerce to learn if they are participating.<br />

Questions<br />

Please contact the Ministry of Finance by mail, phone, fax or email.<br />

PO Box 9435 Stn Prov Gov, Victoria <strong>BC</strong>, V8W 9V3<br />

Phone: Monday through Friday, 8am to 8pm, 1-877-388-4440 Fax: 250-356-2195<br />

Email: CTBTaxQuestions@gov.bc.ca<br />

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Homelife Benchmark 13<br />

James Bradley Consulting Inc. 32<br />

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Lorenz Agave Spirits 18<br />

Mark Anthony Group 5<br />

Markat Wines Ltd. 18<br />

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McClelland Premium Imports 18<br />

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Orca Dynamics 16<br />

PMA Canada - Infusions 25<br />

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Prudential Sterling 9<br />

R<strong>BC</strong> Royal Bank of Canada 28<br />

Rising Tide Consultants 23<br />

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Sysco Vancouver 27<br />

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Vancouver Island Brewing 6, 19<br />

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Insurance Solutions 37<br />

38 The Publican


INTRODUCING<br />

MAPLE FINISHED<br />

THE SMOOTH TASTE OF CROWN ROYAL NOW WITH A HINT OF MAPLE FLAVOR<br />

© Diageo Canada Inc. 2013. All rights reserved./ Tous droits réservés.

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