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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 />
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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 />
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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
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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 />
earthen pit where they slowly<br />
roast over hot rocks using<br />
Encino oak, and then are<br />
crushed using a traditional<br />
horse-drawn tahona,<br />
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 />
complexity on the palate,<br />
this rich, plush effort<br />
conceals enough structure<br />
to evolve for 2-3 years.<br />
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 />
German recipe with a blend of<br />
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 />
body and a clean lager finish.<br />
A refreshing blend of<br />
White Peony tea - a sweet<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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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.