Business and finance supplement

CHOICE RED TAPE DEBATE SOLUTION

ECONOMY RECYCLING

HOTELS RESTAURANTS FINANCE PENSIONS CHOICE

BARS PUBS

DRAM BUSINESS & FINANCE

SOLUTION

SUPPLEMENT

ECONOMY

DEBATE CHOICE

ECONOMY CHOICE LEGISLATION

SOLUTION RECYCLING

LEGISLATION

RESTAURANTS ECONOMY RED TAPE

GOVERNMENT PUB

HOTELS RESTAURANTS FINANCE

SOLUTION RECYCLING

PENSIONS BAR

ECONOMY CHOICE LEGISLATION

PENSIONS CHOICE

PUBS

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NOMY

EGISLATION GOVERNMENT CHOICE

OLUTION DEBATE PENSIONS

BAR HOTELS PUB

RESTAURANTS

SOLUTION RECYCLING

LEGISLATION APRIL 2016

ECONOMY RED TAPE DRAM BUSINESS & FINANCE SUPPLEMENT

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Tel: 0141 375 7999 E: info@people-solutions.co.uk www.people-solutions.co.uk For all your training and HR needs including:      

SCPLH and Refresher open courses in Glasgow and Edinburgh In-house courses throughout Scotland Staff and Management Development HR Support Employment law advice HR documentation

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Call 0141 375 7666 or visit thewhiskyambassador.com

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elcome to our first ever supplement. As many of you know the DRAM as a publication tends to focus on the new places opening and refurbishing, people in the trade and drinks news. As a result we don’t often carry legislative or financial articles. But this year we have decided to give you a publication that is less of a “Hello’, and more of a ‘Guardian’ read! We have some excellent articles of Pension Auto-Enrolment, Food Recycling, Finance, tips to help you grow your profit and even an in-depth feature on the fallacies around alcohol scaremongering. One thing is for sure this is a serious read! I would love your feedback.

I hope you find it helpful.

Susan Young, Editor

Contents BANK ROLLING BIG IDEAS

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TRADING PLACES 9 IMMIGRATION BILL SET TO IMPACT ON SCOTTISH TRADE

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HEALTH PROFESSIONALS SLAM ALCOHOL GUIDELINES

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GROW YOUR PROFIT… WITH OUR TIPS...

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MAKE ROOM FOR THE WORKPLACE PENSION!

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WANT TO SAVE £17K A YEAR? STOP SCRAPING THAT PLATE!

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DRAM DRINKS RETAILING AND MARKETING PUBLISHED BY MEDIA WORLD LIMITED UPPER FLOOR / FINNIESTON HOUSE, 1 THE STABLES YARD / 1103 ARGYLE STREET, GLASGOW / G3 8ND t. 0141 221 6965 e. dram@mail.com web. www.dramscotland.co.uk Editor Susan Young • Chairman Noel Young • Editorial Annabelle Love, Sophie Mead, Mairy Clark.

Advertising Lucy McGovern, Robert McManus, David Gildea • Production Michel Rahme • Admin Cheryl Cook Published by Media World Ltd. Subscriptions: DRAM is available by subscription for all other qualified persons involved in the Scottish Licensed Trade at the rate of £52 per annum including the DRAM Yearbook. The publishers, authors and printers cannot accept liability for errors or omissions. Any transparencies or artwork will be accepted at owner’s risk. All rights reserved. No part of this publication may be reproduced in any form without the written permission of the copyright holder and publisher, application for which should be made to the publisher. Articles published in this magazine do not necessarily reflect the opinions of the publishers. © Media World Limited 2016. Printed by Stephens & George Print Group.

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OTELS FINANCE RESTAURANTS

Welcome

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NEED HELP WITH

LIQUIDITY? WHERE BETTER TO GO THAN A BREWERY

At Tennent’s we take a refreshing approach to lending. Since 2010 we’ve significantly increased the size and number of investments we make to help our on-trade partners, providing millions of pounds worth of support. It’s already made a real difference as Paul Shevlane who runs Shevlanes, the Woodside and Wintersgills in Glasgow can testify: “Tennent’s was able to offer me an extremely competitive finance package which has provided me with security, flexibility and the opportunity to expand in the Scottish licenced trade.”

So if you’d like to expand, update your d cor or just install space-age hand dryers, have a chat with your Area Sales Manager to get some funds flowing.

GLASGOW 0141 202 7290 • IRVINE 01294 668 150 • DUMFRIES 01387 4460509

TENNENT’S AND THE RED T ARE REGISTERED TRADEMARKS OF THE C&C GROUP.

ROLLING BIG IDEAS

THE TIME HAS COME TO SPRUCE UP YOUR PUB FOR THE UNFORGIVING SUNSHINE (HOPEFULLY!) OF SUMMER, BUT THAT’S ALL GOING TO COST. MAIRI CLARK LOOKS AT THE DIFFERENT WAYS TO GET SOME FINANCIAL HELP.

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oney makes the world go round and that’s especially true in the pub of the loan balance. business. With trading pressures limiting profit, many operators are Jim from Yesbar said of his experience, “When we took on the lease, the bar looking to diversify their offering either by changing the look of their had been shut for nearly a year. We bought a lot of stuff off eBay and did the premises, offering something new like extending their food offering or perhaps bar on a very small budget. We’re now turning over twice the projections even buying a new outlet. But all of that takes cash. that we stated in the business plan, which is obviously great. I think when we Unfortunately, banks are often reluctant to lend money to the licensed trade, did the projections, we were cautious with the turnover and over-estimated unless of course you have a long-term relationship with a bank. So where can costs. One thing that was good is that you can take a break from repayments, you go? if you’re finding business tough, but we’ve been very lucky in that we’ve never There are several routes that you can go down to get finance, which bypass missed a payment. Our loan was for five years and I’m looking at paying the the restrictions of the bigger banks. loan off in August.”

Jim McLaughlin, who owns YesBar in Glasgow, obtained finance from DSL Another option for an unsecured loan, is to go with a company that recoups the Business Finance when he launched YesBar – money via a business’s PDQ card terminal. originally named as Vespbar - in 2011. He says, Liquid Finance is one company that has “When we launched I found that banks were very worked with licensees to help them raise QUITE OFTEN PEOPLE DON’T reluctant to lend to the licensed trade as it’s viewed to expand their businesses. The company GET THE RESPONSE THEY as a ‘high risk’ sector. They also want security. works out an amount to ‘advance’ to an WANT FROM BANKS, AS MANY With DSL it was all fairly straightforward, they operator, based on historical card receipts.

OF THEM ARE RELUCTANT TO looked at my previous experience, my projections Generally it goes back 12 months to see how and concept plan. Because I’d been in the business much is being taken by card, and following LEND TO THE LICENSED TRADE, for so long, that went in my favour. I’d actually got a one-off fee, the loan is paid back direct OR DEMAND SECURITY. funding in place before for other projects, but a from the PDQ source. The percentage the friend had used DSL before and recommended company takes can be as low as 10% but MAXINE THOMPSON them to me.” generally it is around 20%.

LIQUID FINANCE DSL Business Finance works in partnership with Maxine Thompson of Liquid Finance, says the British Business Bank, and is a not-for-profit its system works as an alternative to a lender that is accredited by the Enterprise Finance Guarantee, which is a structured, fixed loan. “Quite often people don’t get the response they want government-sponsored scheme open to small and medium-sized businesses from banks, as many of them are reluctant to lend to the licensed trade, that lack security for a regular loan. The company grew out of the Glasgow or demand security,” she says. “There is no set repayment period, as the Regeneration Fund and expanded to cover the whole of Scotland in the last business can take as long as it needs to pay back, but normally businesses five years. take between 4-6 months.”

The company allows businesses to “buy” access to funds when the business/ Liquid Finance also takes into account seasonal variations, so if it’s a quiet guarantors have insufficient security to secure the borrowing. While the period for the business, obviously the repayments may go down. Maxine government guarantees the loan for the lender, the borrower is still liable says, “We had quite a few clients who had their pubs ruined in the floods, so for 100% of the debt, which can be up to £1million. DSL will only release we were able to help them with that. We’re finding that the majority of our advances of £50,000 at any one time, but if the bulk of that advance is paid customers use their finance to carry out refurbishments such as making the off, you can apply for another £50,000. but only a maximum of £50,000 at pub look attractive, or refurbish their kitchens to offer a wider menu. It can any one time. even be something smaller such as a marketing push. When the smoking ban To apply for a DSL loan, operators need to provide 1 year’s worth of cash came in, we had a rush of people wanting money to refurbish their premises, flow and projections, 2 years certified accounts, balance sheet and 3 months mainly to get rid of the smell of smoke and the smoke staining.” personal banking details. A fee is paid to the government, and is based on 2% The difference with a financing scheme like this is that repayments are only DRAM BUSINESS & FINANCE SUPPLEMENT

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CHOICE made when the business is making money. “A lot of our clients like the fact with just tables and chairs but as his crowdfunding grew, he has been able to that their finance is not a fixed expense,” says Maxine. “We work closely with add designer stools, a pool table and wall-mounted flat screen TV. the card companies and set up an account with them, so that when a card A more recent campaign has been run by Bruce McGregor, a Scottish folk transaction takes place, we take the percentage at source. There’s no set musician who launched a campaign through Squareknot.co.uk to open a craft period for repayment, so the more money an outlet takes, the quicker the beer bar in Inverness. Originally looking for £170,000 when he started the advance is paid off. On average, most customers pay their advance back in campaign Bruce has now found that he has been overfunded. His company, between 4-6 months.”

MacGregors Bars, is looking to open this summer and ran a pop-up bar in Another route to go down for expanding a portfolio is to negotiate with a December. Bruce is looking to take over Ireland’s crown for country-themed brewer such as Tennent Caledonian. Most recently, the company backed a bars by replacing them with Scottish themed bars showcasing craft beers, loan to Michael and Tony Woods, owners of Glasgow’s Saint Luke’s. Its deal whisky and good Scottish food. with the Woods saw it as key supplier of beer and cider as well as providing The main things with crowdfunding is to use social media as much mobile bars to ease pressure at peak trading times. as possible to get your pitch out to people. There is a huge array of “Since 2011 Tennent Caledonian Breweries crowdfunding sites available, but the most has invested £40 million in the Scottish popular is Kickstarter.com. The best advice on trade – more than any Scottish bank for doing a crowdfunding campaign is to know WE BELIEVE THERE IS A UNIQUE or drinks supplier.” says John Gilligan, your audience, create a pitch that explains OPPORTUNITY TO SUPPORT why your concept will succeed and create as business development director at Tennents.

INDEPENDENT OPERATORS much content to keep the pitch fresh. The “We believe there is a unique opportunity to support independent operators through THROUGH ON-GOING majority of crowdfunding sites will update on-going investment and our unique set of your funders as benchmarks are reached, INVESTMENT AND OUR UNIQUE strengths make us a perfect investment and you can tailor updates to let them know SET OF STRENGTHS MAKE of your progress. Kickstarter’s terms are partner for the on-trade. We are committed US A PERFECT INVESTMENT that it takes 5% of the funding raised and you to developing funding solutions, which are sustainable and share value between have to raise 100% of your target, or your PARTNER FOR THE ON-TRADE supplier and operator. We can also support donors will get their money refunded. There operators with proposals to banks to secure JOHN GILLIGAN are others out there that will allow you to set their backing as part of the overall funding TENNENT CALEDONIAN BREWERIES a deadline and take whatever money has been package. Our key aim is to provide the donated. But all – apart from some charity investment required to enable operators to and artists’ crowdfunding sites – will charge grow their business.” a percentage of the raised monies.

One of the more maverick ways to raise funding – but proving the most The beauty with all of these funding schemes means that despite the media popular – is crowdfunding. Brewdog is undoubtedly the poster child for saying everything is doom and gloom for pubs and bars, there is actually a crowdfunding in Scotland, having raised over £25million to fund its global lot of money out there for quality operators and budding bar owners. Let’s expansion. But other businesses have used crowdfunding successfully for face it, crowdfunding could be the most exciting way to raise money, as it less ambitious projects. Simon Collier, a trained cocktail bartender who shows that people have faith in you which is great encouragement, and you moved to Scotland in 2004, raised £20,000 through Equity CrowdFunding have more control over what you do with the money. And if a couple of twenty on BankToTheFuture.com to help him buy a closed-down pub in Thurso. His four year olds can launch a company like Brewdog and seven years later be crowdfunding campaign saw local people and businesses donating money to a global business with brands galore and nearly 50 bars worldwide, surely launch his cocktail bar, Mr C’s, which opened in July last year. The bar opened that could inspire you?

DS L BUSINESS FINANCE

DSL Business Finance Ltd is a not for profit organisation which lends to businesses based in Scotland who are unable to raise some or all of the finance they require from commercial sources. We can lend from £500 to £50,000 to both new and existing businesses and have been providing alternative sources of finance to businesses in Scotland since 1993.

DSL operates a number of loan funds. Our own internal loan fund can lend up to £50,000.

We are able to lend where the applicant has no security as DSL is an accredited Enterprise Finance Guarantee lender via the Government’s Department for Business, Innovation and Skills. Typically, these loans are provided at rates of c 12%.

DSL Business Finance

DSL is the only Scottish based Delivery Partner for The Start Up Loans Company. This is a UK Government Initiative providing unsecured personal loans for business use up to £25,000 per owner/director which offers a very attractive interest rate of 6%, particularly important for new and early stage businesses.

Moorpark Court, 5 Dava Street, Govan, Glasgow G51 2JA Tel: 0141 425 2930 e-mail: info@dsl-businessfinance.co.uk www.dsl-businessfinance.co.uk 6 DRAM BUSINESS & FINANCE SUPPLEMENT

Liquid finance

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Authorised and regulated by the Financial Conduct Authority [Telephone calls may be recorded and monitored]

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xpanding your business isn’t just about upgrading your offering, it can also mean by buying a new premises or selling your current one in favour of a change of direction.

As with all money deals, the devil is in the detail, and that detail is inevitably money. On both the buyer’s and seller’s side, the capability of the premises to make money is paramount. The seller has to prove that it’s a viable proposition, and the buyer has to prove that it has the money to buy it, which means they are either cash buyers or need financing from somewhere, most commonly a bank.

There’s often disagreement about the value of a premises from either side of the transaction, and more recently banks have been reluctant to lend against pubs, as they see them as high risk and have changed the terms of how they will lend money. Some banks will only look at what they call the ‘closed-doors’ value, i.e. what the actual building’s worth.

The turnover may be great, which makes the owner think it’s worth a couple of million. But if the building’s only worth £500K, then that’s what the banks will base their loan on.

“Money and valuations are real issues in the marketplace,” says Stuart Drysdale, associate director of Christie & Co. “One of the biggest problems we see is banks will offer buyers a loan of 65% of the market value (building value, goodwill, trading) or 70-80% of the ‘closed door’ value, as in whatever the building is actually worth, whichever is the lowest. Closed door value doesn’t mean that it’s a closed pub, just that the bank won’t take into account any turnover.”

Making your business bankable, is great for banks as they base decisions on the likelihood of them getting their money back. The first step of this is to help them understand how

you’re planning to pay the money back. Plan well ahead if you have to do anything to make your business more ‘bankable’.

If you think adapting your kitchen to do more covers will increase its value, it will only do so if you have – at a bare minimum – six months of trading figures to show the impact on turnover. It is impossible to do when you’re in the middle of negotiations. Also, securing a loan on a ‘non-licensed trade’ asset is easier, so consider what other assets you have that you could use for security.

Although the trade has experienced a downturn in business over the last decade, there are still opportunities for certain offerings, as you read about in these pages every month!

So if you’re in the fortunate position of looking to buy new premises, a good thing to look at – as ever – is location, and city centres are proving to be the hub of the pub trade.

Punch Taverns, has shifted its focus from buying up premises, instead channelling its money into its existing estate of 230 pubs in Scotland. “We’re investing more in urban premises, rather than suburban,” says Brian Davidson, regional operations director for Punch. “We’ve found people’s priority is now more circuit pubs. A combination of factors have led this, partly the drink driving change and partly the shift towards healthier lifestyles. Weekend trade in city centres is strong and you find that generally if people are going out at the weekend, they’re more likely to use public transport than drive. So they want a bigger selection of premises.”

Alan Creevy, director of CDLH, agrees, “We’re finding quality city centre premises are going very well,” he says. “More remote/village type venues are slower to sell. No banks will touch a closed down pub, as there is no turnover to analyse.

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YOU’VE BEEN TALKING FOR A WHILE ABOUT CHANGE, BE IT SELLING UP OR BUYING SOMEWHERE NEW, WHAT ARE THE OPTIONS, AND WHAT ARE PEOPLE LOOKING FOR IN THE MARKET? MAIRI CLARK INVESTIGATES.

BARBUYING&SELLING PUB PENSIO

TRADING PLACES

BARBUYING&SELLING PUB PENSIO

OTELS FINANCE RESTAURANTS CHOIC

The best places to get help with that, is to go to a brewer like Tennents or Belhaven Greene King.”

CDLH has a valuation app on its website, called QuickVal, where freeholders can find out how much their pub could go for. “Although not 100% accurate, it gives an initial assessment of a pub’s worth.” says Creevy. “Several factors are taken into account by estate agencies when property agencies come up with what’s called a Fair Maintainable Operating Profit (FMOP). The yield will make up a proportion of its value and can be anything from 4 to 8 % of the overall value, but capital and location also are important. It’s impossible to get an average price as you can have a really small pub that takes £1.5m and a massive one that takes half that, but both will go for similar prices.”

The other thing to look at is where does the business currently get its trade from. If there is a local car showroom or another business that pours trade into the pub, double and triple check that the long-term future of that company is solid. Visit the premises at different times of the day to witness the clientele changes. Find out who would be your rivals. Question the landlord as much as you can, preferably before you get introduced to him by your agency! That way you get to see whether the seller is getting out because it’s not making money.

Obviously the most profitable purchase is to buy a freehold, as

you are free to buy stock from anywhere – unless of course you’ve gained financing from one of the breweries- and you have control over every part of the business. You are also, however, responsible for any repairs; big or small. The other alternative is buying a leasehold.

With a leasehold the price will be worked out based on turnover and the length remaining on the lease. Leases frequently contain a clause barring the sale or assignment of the lease within the first two years unless the lessee has agreed to a penalty being paid. Be vigilant with the terms of any contract with regard to the current state of the building, and what will be left and any repairs that are outstanding.

Leaseholds are proving very popular, says Jonathan Clough, a director of Smith & Clough Business Associates. He says, “Many people haven’t got the funding to buy a freehold. With the city centres being so popular, you’ll find that a whole building is owned by one landlord. Typically a lease will be sold for 1 or 2 times its yearly turnover. We’d expect any lease to have a minimum of 10 years left, although it’s not been unheard of shorter term leases being sold.”

Whether you’re buying or selling, the industry is still buoyant and if you’ve had your fill of the restaurant trade or generally just starting out, the advice above could guide you towards a future you deserve.

THERE ARE SOME POINTS YOU SHOULD LOOK AT WHEN LOOKING TO BUY OR SELL YOUR BUSINESS: PROOF OF TRADE One of the most important, is the current trading position. Buyers will want to see normally 3 years’ audited accounts from a seller.

LEASE INFORMATION If want to sell a lease on, potential buyers will want to know the details and restrictions of the lease, including any rent reviews, both ongoing and upcoming. Your landlord or managing agent also needs to know and will need to approve your prospective purchaser, so keep them in the loop and discuss how involved they want to be.

ARE YOU BOTH READY TO GO? It’s amazing how often this is overlooked.

Has the seller made future plans? As a buyer, are you ready to move quickly, so there’s a continuity of trade? Often the selling process can be all consuming, so start preparations early.

PRESENTATION Like with houses, the way a pub is presented can affect the buyer as much as the trading figures. Set aside time and resources to finish off all of the niggly little jobs that could unnecessarily put off potential buyers. When looking at a potential purchase, work out how much a refurb, if needed, would cost.

STAFF Staff are a real asset when it comes to pubs. If you’re selling, make sure they know. If they find out via gossip, they may not be so professional when a buyer comes round. See if you can find out if the buyer is planning to take them on. Similarly, if you’re buying somewhere do a recce on different nights to see if the problem is the staff.

SOLICITORS Getting a specialist solicitor on board early, is money well spent. He/she can

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start to prepare your file, gain access to the original lease, check with the landlord’s team on matters such as suitability of potential lessees etc.

DILAPIDATIONS & REPAIR Any items of disrepair need to be addressed at the outset as they will become an issue at a later stage if they have not been dealt with. Whether it is a condition of the assignment process or as part of a Survey and Valuation for funding, the later you leave it the bigger the problem will be.

IS THE ASKING PRICE FAIR? Do not be tempted into asking an unrealistic price for your property as this will simply mean that it remains on the market and unsold. Similarly, don’t try to drive a seller’s price to rock bottom.

Be astute when it come to agents, as some will entice sellers with elevated prices, but the property isn’t worth it.

IMMIGRATION BILL SET TO

IMPACT ON SCOTTISH TRADE

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cottish licensing reform continues at a pace which is dizzying to say the least. 2016 appears to be another year in which significant change will occur for licensed businesses. Now we may also have to contend with changes to the Licensing Act emanating not from Holyrood, but from Westminster.

The Immigration Bill 2015/16, a significant piece of law from Westminster, may have profound changes to the Scottish licensing Act. It is all very complicated and the relationship between the Bill and the separate Scottish licensing laws is fraught with constitutional law gremlins as well as practical problems for those of us advising the licensed trade north of the border.

The key issue here is about the right to work in the UK. This new Bill has created a whole host of new powers for English licensing authorities the purpose of which are to effectively use licensing as an enforcement tool to prevent illegal working. It is important to note that this is in the context of the English Licensing Act 2003 which does not apply in Scotland – but there is some suggestion that our own laws will be similarly amended.

NEW POWERS PROPOSED INCLUDE: q Adding immigration offences as relevant offences to licensing. q Premises licences will lapse if the holder loses the right to work in the UK. q Personal licences will lapse if the holder loses the right to work in the UK. q An applicant for a premises licence or a personal licence has to prove they have the right to work in the UK. q An applicant for the transfer of a premises licence has to prove they have the right to work in the UK. q Rights of entry to licensed premises are given to Immigration Officers. q The Secretary of State becomes a “responsible authority” alongside the police and others, requiring that she be given notice of all licence applications. q A new Closure Order power where illegal workers are found on the premises where the licence holder has been previously convicted of an immigration offence.

Fundamentally, what this means is that immigration status will become a part of the licence application process. Here comes the interesting bit. These amendments are solely to the Licensing Act 2003 which only applies down south – but I have learned through my contacts at the Scottish Government that Westminster believes that these powers should be

“transplanted” onto the Licensing (Scotland) Act 2005! It is of course logical that such a significant swathe of powers in relation to immigration should apply across the whole of the UK because otherwise it creates a two tier system where it is “easier” for illegal workers to remain in Scotland; thus Scotland becomes more attractive to those looking for work but who do not have the necessary legal entitlement to be here. But there is a constitutional law point here. I am not sure how these powers can be transmuted to Scotland without amendment of the Licensing (Scotland) Act 2005.

Immigration is a devolved matter so the Scottish Parliament cannot legislate on it. How then can Westminster amend an Act of the Scottish Parliament? There appears to be a mechanic to allow this sort of thing through processes which require explanation from greater legal minds: but the bottom line is that Westminster believes that these rules can be applied to the Scottish licensing system and my understanding is that this is what they propose to do.

But this cannot be done without drafting problems or other legal gremlins. Whilst on the face of it the English and Scottish licensing systems are broadly similar with licensing objectives, premises licences, personal licences and so on, the statutory soil in which they flourish is entirely separate. The Scottish Act is purely about the sale or supply of alcohol. The English Act licenses other things such as entertainment and late night refreshment. Scottish licensing boards have been interpreted in the Scottish courts to have an “essential function” of the control of alcohol. Wider public interest issues such as the immigration status of an applicant or worker do not, in my submission, fall at the feet of a Scottish licensing board. The English licensing authority is a committee of the council, the Scottish licensing board is not.

There are a number of examples of licensing boards looking into immigration related issues. In some cases licences have been revoked because of the presence of illegal workers.

In other cases hearings have been dropped because of this wider rule that they should get involved with anything other than the sale of alcohol. None of the cases where immigration has been used as a reason to sanction a licence have been appealed but in my view a licensing board should not get involved. Licensing should not be used for another purpose, whether it is to control how clean the potato peelers in the kitchen are, whether it is how steep the stairs are leading to a rooftop terrace, or whether it is the immigration status of workers.

We have already seen formal amendments lodged to the Immigration Bill to specifically amend the Civic Government (Scotland) Act 1982 in relation to taxi and private hire drivers.

Watch this space for changes to the alcohol licensing regime.

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ARLEGAL PUB LICENSEE PENSION

by Stephen McGowan Partner, Head of Licensing (Scotland) for TLT LLP

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HEALTH PROF SLAM ALCO THE CONSULTATION ON THE NEW ALCOHOL GUIDELINES WHICH, EFFECTIVELY, MEAN TV AND THE ODD BACON SANDWICH ARE MORE DAMAGING THAN ALCOHOL HAS CLOSED, BUT WHAT IS BEHIND THE DEBATE ON ALCOHOL? ANNABELLE LOVE INVESTIGATE.

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RINKING a maximum of two to three units of alcohol people needed to take into account the clear link between a day is not only safe, but may actually have positive alcohol and cancer. She added: “Drinking any level of alcohol benefits for health and even offer protection against a regularly, carries a health risk for anyone, but if men and range of serious illnesses including cancer, heart disease, women limit their intake to no more than 14 units a week, diabetes and dementia, right? Well not any more, according it keeps the risk of illness like cancer and liver disease low.” to Chief Medical Officer (CMO) Dame Sally Davies.

Adopting the ‘low-risk’ approach marks a departure from Dame Sally has spent the last three years conducting a the premise on which previous guidelines were based, that comprehensive review of 28 pieces of evidence looking at is to say, a weighing-up of the possible benefits and harms, alcohol harm and the public’s behaviour, and has Instead, the new low-risk guidelines attempt to set stated there are now no safe levels when it comes to limits below which the risk of alcohol-related harm drinking alcohol. Instead, we should all be pouring a is minimal. Controversially, the new guidelines cup of tea after a hard day’s work, and when women concluded that: “…there is no level of regular think about reaching for a glass of wine they should drinking that can be considered as completely safe.” be debating whether they really want it or whether However, experts at the Royal Statistical Society they actually want to raise their risk of developing were quick to argue that it is not true that all alcohol breast cancer, suggests Dame Sally. is dangerous and highlighted a ‘protective effect’ The public consultation on alcohol guidelines – from small amounts. In a letter to Health Secretary which closed on April 1 – asked for Jeremy Hunt, they also stated, “We comments on what people through are concerned that… the Department each of the new guidelines, and the of Health did not properly reflect DRINKING ANY LEVEL OF the statistical evidence provided… reasons behind them, were clear and easy to understand. But it also ALCOHOL REGULARLY CARRIES and this could lead to both a loss of stated: “We are not asking for your A HEALTH RISK FOR ANYONE, reputation and reduced public trust thoughts on the scientific evidence or in future health guidance.”

BUT IF MEN AND WOMEN LIMIT One of the signatories, Sir David how the expert group has used it to THEIR INTAKE TO NO MORE Spiegelhalter, professor of the public decide on their recommendations…”

The current guidelines were last THAN 14 UNITS A WEEK, IT understanding of risk at the University changed in 1995 to add maximum KEEPS THE RISK OF ILLNESS of Cambridge and President-Elect daily limits of two to three units of the RSS said the new guidelines LIKE CANCER AND LIVER define ‘low-risk’ drinking as giving for women (14 units a week) and DISEASE LOW. three to four for men (21 units a you a less than one per cent chance DAME SALLY DAVIES of dying from an alcohol-related week). Dame Sally was asked by the CHIEF MEDICAL OFFICER condition. At risks of this level, he Government to review the limits in 2012 over concerns they were not said, that watching TV for an hour safe. a day, or eating a bacon sandwich a She convened a group of experts including Professor Sir Ian couple of times a week is actually more harmful to our longGilmore, a liver specialist, and the Chief Medical Officers of term health.

Scotland and Wales to look at updating the advice in the light Writing in the Daily Mail, award-winning science journalist of scientific progress and the new guidelines were announced Tony Edwards also insisted that Dame Sally’s message was on January 8. “simply wrong”.

One of the key recommendations is that both men and women While cancer is a potential risk if you drink, with the most should be drinking no more than 14 units a week – making the clearly alcohol-related cancers occurring in the parts of new weekly limits for men and women the same for the first the body where it is first ingested – the mouth, throat and time in its history. oesophagus – these types of cancer are fairly rare in drinkers The guidance also recommends that people have several who do not smoke, he said. This suggests that smoking booze-free days a week and not save up all 14 units for a increases the risk of developing these types of cancer. binge.

Mr Edwards, author of The Good News About Booze, has Unveiling the new guidelines process, Dame Sally said that also uncovered a major flaw in the way that statistics on liver

12 DRAM BUSINESS & FINANCE SUPPLEMENT

disease deaths are compiled by the UK Office for National rates. Some have raised concerns that this will actually Statistics. They admitted to him that ALL deaths from liver encourage women to think that they can now drink the same cirrhosis (apart from biliary cirrhosis) are recorded under the as men and match them drink for drink. It also means that heading of ‘alcohol-related deaths’ despite the fact that liver only three other countries – the Netherlands, Grenada and cirrhosis can also be caused by things like obesity, drugs and Guyana – now have lower limits for men than the UK. The hepatitis C. latest guidelines were issued against a statistical backdrop It is true that breast cancer, colon cancer and liver cancer which suggests that alcohol is actually becoming less of a are more commonly associated with drinking but alcohol has problem in the UK. Total alcohol consumption has fallen by actually been found to reduce the risk of several almost 20 per cent since 2004, binge drinking cancers too – including kidney, thyroid and some has fallen by 20 per cent since 2007 and alcohol types of blood cancer. consumption by children (aged 11-15) has fallen Hundreds of scientific studies have found that it can 36 per cent since 2003. In a statement issued on also have a preventative effect in heart disease – the the day the new guidelines were unveiled, Henry number one killer in the UK and the world – boosting Ashworth, Chief Executive of the Portman Group, good cholesterol and reducing blood clotting. said, “The vast majority of us – more than four in Similarly, rates of diabetes are lower in moderate five adults – drink within the current risk guidelines. drinkers and moderate drinkers are also at reduced Guidelines are important because they help people risk of other health problems including dementia, make informed choices about their own drinking so strokes, arthritis and prostate it is vital that they are trusted and problems. understood by consumers.” Mr In fact, in 2001, researchers at Ashworth also said it was surprising WATCHING TV FOR AN HOUR London University calculated that, if that the UK was breaking with everyone in Britain stopped drinking A DAY, OR EATING A BACON international established precedent any alcohol at all national death rates SANDWICH A COUPLE OF TIMES by recommending the same would actually rise by about two per A WEEK IS ACTUALLY MORE guidelines for men and women. cent.

He later added that it: “…does not HARMFUL TO OUR LONG-TERM Dr Richard Harding, who helped draw pass the common sense test,” and up the booze limits in 1995, also HEALTH suggested that the new guidelines SIR DAVID SPIEGELHALTER believes that the health of the nation could be counterproductive if they UNIVERSITY OF CAMBRIDGE might worsen, rather than improve, are not credible or put in context, PRESIDENT-ELECT OF THE RSS if people follow the new guidelines. In because people might choose to an open letter he wrote: “The danger ignore them. is that, if existing light to moderate Other critics have accused the Dame drinkers drink less frequently or abstain completely, they will Sally of a nanny-state approach – with certain advice branded have shorter and less healthy lives.” basic common sense. Some of it – that people should drink But instead of assimilating the huge body of evidence from more slowly, avoid ‘risky places and activities’ as well as making around the world which points to the potential benefits of low to sure they get home safely – would surely seem obvious to moderate levels of drinking, the new guidelines seem to simply most people without it needing to be spelt out to them. Some ignore it. Dame Sally even went so far as to dismiss the notion suggestions in the 2016 guidelines however are welcome, that drinking a glass of red wine a day is good for you as “an including advice on encouraging people to avoid ‘risky’ drinking old wives’ tale.” patterns, identifying ‘at-risk’ groups like young people and the Critics of the new guidelines have also raised concerns about advice that pregnant women and those planning to conceive what message reducing the number of units for men to the should avoid alcohol altogether. same for women will send out. The move means that the So what happens now?

UK will be one of only six countries (out of the 34 in the The public consultation closed on April 1 and hopefully the world who issue drink advice) to set the same limits for both majority involved in the licensed trade responded – everyone genders despite a wealth of scientific evidence showing that from those running the major drinks firms right down to men and women process alcohol differently and at different individual licensees running single venues.

DRAM BUSINESS & FINANCE SUPPLEMENT

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BARRECYCLINGALCOHOL

OHOL GUIDELINES

HOTELS FINANCE RESTAURANTS

FESSIONALS

CHOICE

Mii-Promo puts the power of personalised marketing straigh into the hands of independent Pubs and Restaurants.

nsing trade outlets use Point of Sale terminals, you just can’t do without them. So isn’t it time those same terminals earnt their d actually added some real value to your business?

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Mii-Promo puts the power of personalised straight l Build a detailedmarketing profile of your customers and understand th spending habits through a unique online portal intoterminal the can hands Pubs and Restaurants. know that your payment be turnedof intoindependent an

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l Generate loyalty, increase your customers average spend and encourage more frequent visits via special offers & loyalty rew

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Mii-Promo puts the power of personalised marketing straight www.markadis.com into the hands of independent Pubs and Restaurants.

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W YOUR

PROFIT… WITH OUR

TIPS...

NO MATTER HOW BIG OR SMALL YOUR BUSINESS, THERE ARE ALWAYS PLENTY OF WAYS TO CUT COSTS AND INCREASE OUR PROFIT. THE BEST ADVICE COMES FROM THOSE IN THE INDUSTRY, SO WE ASKED A NUMBER OF PEOPLE FOR THEIR TOP TIPS FROM LICENSEES TO STOCKTAKERS.

WAGES AND ROTA’S

Douglas Cumming of Computastock: “The biggest expenditure in a pub or restaurant is often the wage bill. The wage percentages that we would recommend for a bar operation are between 17% and 25% and for a bar and food operation between 25% and 32%. If you try to stick to those parameters that should help with running a business.”

Adrian Gomes of 10 Dollar Shake, Aberdeen: “For rotas, gauge your peak trading times using your back office till system and use this to compile an efficient staffing schedule. Labour is one of the largest outlays in heir our business and you must understand the correlation between revenue and cost-control. Too little staff, you d lose sales. Too many, you lose money.”

Chris Wilson from Lebowskis, Glasgow: wards “Take time to make your rota as effective and it can marketingpossibly be.”

ht

ur

now.

SOCIAL MEDIA

Social media is a cost-effective way to market your business. Twitter allows you to connect directly with your customers. You can also use applications to schedule tweets, Facebook and Instagram posts at prime times to maximise your visibility.

Says Adrian Gomez - “Social media is free marketing.

If you’re not on it, you’re irrelevant.”

BRAND SUPPORT

Adrian Gomes: “Never underestimate the benefits of brand support, be it financial or otherwise. It’s up to everyone to negotiate their own brand support so I keep my cards close to my chest, but you’ll be amazed what can be bargained for.”

TECHNOLOGY W

hy not choose a card acquiring service which does more than simply process transactions? Mii-Promo is a card analysis system designed by Markadis which gives clients a clear understanding of their customer’s spending behaviours. When customers opt into the scheme, Mii-Promo tracks their spending habits and creates a profile which includes their email address mobile phone number. A team of marketing specialists then analyse the data and advise the client on how best to win back customers. Mii-Promo aims to give licensees the strength to reconnect with customers who have stopped visiting them, and target their individual demographics more effectively.

Michael McCabe, Head of Business Development at Markadis said, “We are in an age where data is king and

some businesses don’t realise the benefits of being data rich. We offer clients a 360-degree view of their customer’s card spend habits. We’ll phone every month to point out quiet times and how best to fill them using your database. Offers go out via email and text to customers with discounts or personal birthday messages and deals.

We are the first marketing company who are regulated by the Financial Services Authority.”

“With Mii-Promo you are making an investment instead of a dead spend.

Whereas other card providers have a simple chip and pin service, we provide marketing and data analysis. We send out campaigns tailored to customers, depending on their spending habits.

We would only target people with a campaign that was within their budget.”

“Many restaurants don’t have the contact details of their customers so they don’t have anyone to market to. Then they go to a third party like Groupon which makes them slash their prices, and that doesn’t send a good message to regular customers.”

Domenico Sorrento of The Butterfly and Pig South, Glasgow - “It is really useful to analyse your Epos reports every month. They will allow you to see where you can drop certain products and stock more of what is selling well.”

DRAM BUSINESS & FINANCE SUPPLEMENT

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Adrian Gomez, “Avoid buying glass bottles for syrups, juices and infusions.

With a huge amount of glass already being disposed of in bars, it’s worth checking to see if these are available in plastic or pouches to save cash.”

“For fruit and ingredients, try to have a zero-waste strategy on the bar. Used citrus peels? Juice the fruit afterwards.

Oxidised wine or champagne? Turn them into wine vinegars for cooking.

Using egg whites only, not yolks? Ask the kitchen to separate and keep the yolks for crème brûlées, carbonara’s, etc. Operate a zero waste policy across the bar and kitchen.”

SUPPLIERS

Adrian Gomes: “Always monitor your top-selling stock (your back office till system should assist with this) and ensure you price-check these at least twice a year. Bear in mind tax/duty and distributor increases can come into play at various times of the year.

Most importantly, ensure you check your invoices to ensure your suppliers are charging you the quoted price.”

Chris Wilson: “When choosing suppliers, make sure you compare the price of products each week. If you are changing to a different supplier, tell the previous one - they might lower their price!”

UTILITIES

Check your water suppliers. Scotland is the first country in the world to offer non-household customers choice in their water supply. Scotland on Tap provides you with all the facts in order to help you make an informed choice about your supplier. Business water rates are now competitive, and this means that licensees have a wider choice, and can compare prices.

Rory McGhee of The Dragonfly, Edinburgh - “It is always important to look for the cheapest gas and electricity for your business.”

Josh Gill Customer Services Director at EverFlow “Changing your water supplier is one really easy way to increase business profitability. Since 2008 businesses have been able to switch their water supplier. One independent supplier, Everflow has been able to save customers an average of 17% on their water bills when they’ve switched, and some have saved as much as 56%.

“Within the on-trade industry, becoming water efficient is

OTHER TIPS

Cutting costs is most effective when everyone is in the loop. Ensure that all staff are briefed on what they should be doing to help save the company money. Once people know exactly what they can do to help you, they may be more likely to turn off unused equipment or find ways to avoid wasting food. Chris Wilson, ‘“Incentivise! You could reward employees for carrying out cost-cutting behaviour.”

Try to avoid getting multiple deliveries from multiple suppliers to save on delivery costs. You may be able to negotiate lower prices with one supplier.

Be careful not to over-staff your venue. Know when your slowest and busiest nights, are and organise staff accordingly. Find out what people’s strengths are and use them to their full potential.

Be careful not to lower quality by substituting products. People expect a certain drinking and dining experience and will notice if you change something that they associate specifically with your premise.

When orders come in, always visually check what has been delivered to ensure you don’t waste time and money on the phone re-ordering.

Make sure staff are properly trained when it comes to pouring beer.

If they have been trained properly there will be less waste. For every draft beer successfully poured, you waste one. Don’t allow that to rise with bad pouring techniques.

Keep tabs on your waste. Ensure you have a clear idea of what is being spilled, broken, and mistakenly ordered and by whom. This will allow you to spot areas where more training is required.

Heineken are excited about the response from the trade to its 16 DRAM BUSINESS & FINANCE SUPPLEMENT

another great way to increase profitability, and the deregulation of the water market is helping to drive innovation in that area.

Everflow has been pioneering in helping business reduce their operational costs further by offering Water Audits on a monthly tariff. This allows businesses to save more money each month by reducing their water consumption through Water Efficiency measures without any expensive capital outlay. This has seen the average business save more than 15% of their water consumption, driving down costs further.”

Iain Pert, Director PG Taverns - “Remember to negotiate a price for call outs with a local plumber and electricians. Before negotiating, ask any friends in the trade what they pay for utilities so that you have a good comparison. Also try to have as many service agreements for equipment in place as you can - this saves money in the long term. It’s also a good idea to get your food suppliers to set prices for a minimum of 3 months at a time.”

SmartDispense System. They claim that it is a draught dispense system that will save you money on every pint. To identify your SmartDispense potential, Heineken has a team of dispense specialist who can calculate your bars savings, as well as identify the potential of greater sales we know a great quality pint can bring. In traditional cellar case study, Heineken identified that cellar cooling and standard dispense systems are less than 10% efficient in actually cooling beer and cider liquid. To improve this SmartDispense has better insulation and coolers which are 20% more efficient than a standard cellar cooling system and the SmartDispense coolers also have a significantly lower global warming potential than the industry standard.

Licensees also love the fact that they don’t have to clean their lines every week. The SmartDispense System reduces the need to clean your lines from weekly to 4-weekly and this is carried out by a service technician, saving your time, water, cleaning chemicals and of course beer!

Douglas - “Work closely with your stock audit company to maximise what you’ve already got. They will advise you on things like pilferage so you can limit lost profit. They will also tell you what your trading profit is on a monthly basis. After taking off utilities and wages you’ll be able to work out your net profit. If you keep on top of all profit and loss you can deal with it as and when it’s happening.”

Douglas: “Keep an eye on price rises like the minimum wage and budget accordingly. Choose a stock audit company who will take the time to sit down and go through the prices with you.”

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OTELS FINANCE RESTAURANTS

ARRECYCLINGPENSION

PUB

CHOICE

MAKE

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THE WORKPLA

IF YOU RUN A BUSINESS WITH AT LEAST 1 EMPLOYEE THEN AUTOMATIC ENROLMENT (AE) AFFECTS YOU: 500,000 SMALL AND MICRO EMPLOYERS WILL HAVE TO DEAL WITH THE WORKPLACE PENSION RULES FOR THE FIRST TIME DURING 2016. MANY OF THESE, LIKE YOU, WILL BE IN THE HOSPITALITY INDUSTRY.

When should I start?

You will possibly already have received letters or emails from The Pensions Regulator telling you of your ‘Staging Date’.

This is the date when you must begin to assess and enroll staff into your chosen workplace pension. Alternatively, you can confirm your Staging Date by going onto The Pensions Regulator website (www.thepensionsregulator.gov.uk) and using their simple on-line tool - you’ll need your employer PAYE reference. The website is also a useful source of information about what you’ll have to do to comply with the new law.

What do I need to do?

You may already have a current Pension Scheme for some or all of your employees but to use this you’ll need to be sure that it meets all the AE requirements (your scheme provider should be able to tell you this) or replace/supplement it with one that does if it can’t be changed to suit. There are many commercial scheme providers that you can consider if you need a new scheme, including Government sponsored NEST (www.nestpensions.org.uk) which must accept every business that submits an application (some providers have lower limits for the number of employees in a scheme).

Once you have a scheme that is suitable for AE you must assess all employees for membership and enroll those who qualify. The devil is in the detail of course but generally speaking everyone who is between 22 and State Pension Age; has a contract of employment and earns more than the earnings trigger in the period they are assessed will be eligible to join and must be enrolled, unless they are a member of another qualifying scheme. The earnings trigger is currently £10,000 a year but may change in the future

18 DRAM BUSINESS & FINANCE SUPPLEMENT

years. Employer contributions start at 1% of basic pay rising to 3% from 2018 with employee contributions beginning at 1% and rising to 5% from 2018. Employees who do not wish to contribute can opt out of a Scheme but only after being auto-enrolled. If they do this within one month their contributions will be refunded, after that they will remain invested within the scheme. Employers must re-enroll opted out employees every three years. New procedures will have to be integrated into your payroll processes and there will also be the burden of compulsory letters to all employees, record keeping and routine on-line data submissions to The Pensions Regulator. Software is available to assist with this but it can be expensive smaller businesses may prefer and to make their own record keeping systems to run alongside personnel files to keep costs down. As an employer it’s your responsibility to make sure you are ready for your Staging Date and to make the changes required to comply with AE legislation. This is not a responsibility that can be transferred so you need to be on top of what’s happening even if you are receiving professional help.

Where can I get help?

While you may not wish to pay for it, a relatively small initial investment in professional advice may save you time and money in the long run as fines for non-compliance start with a Fixed Penalty of £400. Speak to your accountant or payroll contractor who may have systems in place that can do some of the work. Alternatively find a Regulated Financial Adviser to help you and try to negotiate a fixed fee because things can get quite expensive if charged on an hourly basis (commission isn’t allowed on AE schemes).

PUB

PENSION!

by Pauline Forbes

So what can you expect to pay for help?

Well, at Caledonia we have provided help on a ‘pick and mix’ basis to suit individual needs and we’ve helped quite a few small employers establish Schemes then handed everything over to the employer or payroll, and will only come back on board for new members or annual reviews if requested.

Other advisers may do this or may only offer a full service, and some charge additional regular monthly fees to maintain or supervise a Scheme. Advisers will normally list services and indicative costs on their websites, so be sure to shop around. Your help/advice costs will be very much down to the agreement you reach so…..negotiate!

An example of what contribution costs may be can be found via The Pension Regulator website which has a useful on-line calculator. An indicative example is given in the chart below.

Totally unprepared?

You can postpone the implementation of your AE duties by up to 3 months and once your Scheme is established in certain circumstances you can also postpone enrolling any new employee for up to 3 months, which may be relevant to how you handle very short term seasonal workers.

However you can’t postpone your Staging Date, and all communications with employees must still be aimed at that so while postponing the initial implementation might give you more time to put things in place and be in a position to pay for employer contributions it will mean more work as you’ll have to do some things twice.

Once I’ve set up a pension scheme is that it?

Sadly not. As well as Annual Returns to The Pensions Regulator and ongoing enrolment or re-enrolment and record keeping, employer responsibilities include an annual review of the chosen scheme and investment proposition to ensure that it is appropriate, cost effective and performing as expected.

It will be your job as an employer to ensure that your Scheme is run properly has good records and provides value for money and importantly that funds are invested well.

What happens if I do nothing?

Doing nothing isn’t really an option and in the long run most would agree that it’s better spending money on complying than adding a fine and the hassle of the regulator contacting you to a cost you will have to incur anyway.

For further information contact: Pauline Forbes Caledonia Asset Management Ltd Authorised & Regulated by the Financial Services Authority Tel: 0131 225 4488 - www.calam.co.uk

An indicative example of what contribution costs Basic Salary of £20,000#

Up to 6th April 2018*

Employer minimum Annual contribution

Employee minimum Annual contribution

From 6th April 2018 to 5th April 2019*

From 5th April 2019 Onwards*

1% = £141.76

2% = £283.52

3% = £425.28

1% = £141.76

3% = £425.28

£5% = £708.80

Notes: Rates may change and your scheme provider may calculate contributions differently. # Minimum contribution level is calculated on pensionable pay above £5,824 calculations based on basic salary only. * Dates subject to Parliamentary approval and may change.

DRAM BUSINESS & FINANCE SUPPLEMENT

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SINCE JANUARY 1ST, BUSINESSES RISK BEING FINED UP TO £10,000 IF THEY PRODUCE 5KG OF FOOD WASTE AND DON’T RECYCLE IT. BUT WHY ARE WE RECYCLING AND WHAT ROLE DOES THE TRADE HAVE TO PLAY? NICOLA YOUNG EXPLAINS. Recycling is a hot topic, literally. Whenever it’s talking about, Climate Change is mentioned but but what exactly is Climate Change and does it really matter? Climate Change is basically the changing temperature of the earth. The reason this is a big problem is because our planet was created to work within a temperature range, but the actual temperature is rising, due mainly to man-made Carbon Dioxide emissions (as well as other Greenhouse gases).

Most of our atmosphere is made up of Water (H2O), Oxygen (O2) and Nitrogen (N2) but it is also made up of other gases known as Greenhouse gases, so-called because they keep heat trapped on the earth creating a liveable temperature for most things on earth.

The Greenhouse gases are very important as they act like a shield or a blanket. They are made up of lots of different gases but the most important ones for us to know about are Carbon Dioxide (CO2), Methane (CH4) and sometimes Water (H2O).

The earth has looked after the amount of Greenhouse gases for hundreds of thousands of year in a variety of natural ways.

But over the last 100 years, humans have started adding manmade Greenhouse gases and this has meant that the earth itself cannot cope with all the extra that we are making. We know they are man-made because the carbon we produce in our man-made processes are slightly different. Most of these extra Greenhouse gases are created by burning carbon - or fossil fuel - coal, oil and gas. We burn these fuels in order to make energy so that we can make/and manufacture goods, to grow food in fact almost everything we make needs energy (clothes, food, cars, houses, bottles, newspapers, cans, computers, phones, windows, bricks) and all these things are made from ‘resources’ or they use ‘resources’ (Carbon in the form of energy) to make them.

Why is food waste so important?

Food and drink is responsible for around 20% of all carbon equivalent emissions and in the hospitality and food service sector more than 13 billion meals are wasted annually.

It is not just the cost of creating the wasted food in the first place that is important (the carbon cost) but also food that goes DRAM BUSINESS & FINANCE SUPPLEMENT

21

HOTELS FINANCE RESTAURANTS

CHOICE

OTELS FINANCE RESTAURANTS

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CHOICE to landfill produces large quantities of Methane gas as it rots.

UK waste policy is mainly driven by the EU Waste Framework Directive and food waste is a devolved issue. In Scotland and Northern Ireland, regulations require food waste to be collected separately for anaerobic digestion (naturally breaking down) rather than landfill. In England most food waste is still sent to landfill. The reusing of food waste creates a unique opportunity for Scotland. Rather than food waste going to landfill it can be used as biofuels - creating an alternative energy source as well as jobs.

What is food waste ?

Food waste is generally created by peeling, washing, slicing, trimming and preparation waste, incorrect storage, contamination, customer plate waste, damaged stock, theft.

Avoidable food waste was responsible for greenhouse gas emissions of 20 million tonnes CO2 equivalent per year, accounting for the whole life cycle with avoidable food waste representing approximately 3% of the UK’s domestic greenhouse gas emissions. Equivalent to those produced by over 7 million cars per year.

Where does the carbon cost of food come from?

The carbon cost of food involves using energy and carbon across a number of areas in order for it to grow and reach the consumer; Farm equipment, fertilisers, processing plants, packaging and it uses an awful lot of water. Transportation from farms to manufacturers to shops (and then customers get in a car to and from the supermarket).

Anywhere selling food for consumption gets a delivery by van.

There are other ways food guzzles carbon - food grown out of season and transported long distances costs more carbon then food grown and sold in season. It is better to use in season food, even if it is imported, than out-of-season food.

It’s not only the carbon and financial cost or even the atmospheric impact that needs considered around overall Climate Change. We also need to be aware that we are using-

up natural resources to make energy. Think about it this way when the earth started it had carbon, minerals, water and soil.

Even top-soil matters, and it’s running out too. Top soil takes hundreds of years to replenish - but at least it does. Carbon and minerals don’t (at least not for millions of years) - and neither does water. What we started out with all those millions of years ago is IT. All that we have.

Carbon makes almost everything in our world today. It gives us oil and coal and is the giver of energy that powers everything we do. Glance around you. Every single thing you can see – including this supplement - is made by carbon or has used carbon as a source of energy to create it.

The reality is, carbon is running out. For example, many believe that peak oil production was reached in the USA around 1979.

Yes, there is new oil being discovered, but not at the volume that is was in the 70’s and 80’s. And not at the level we need it today to ‘fund’ our carbon-hungry lifestyles. Even oil itself costs carbon for extraction - there is a point at which the cost of carbon used to extract the carbon (oil) is greater than the carbon energy value in oil being retrieved. Our old oil fields used to last for 40 years or more. - their lifecycle if you like. The extractions from fracking last only a few years (regardless of your view on fracking itself).

The next problem is we have no idea when it’s going to run out. When it does, it will be a gradual slowing down, but who gets the oil and the energy as it is depleted? Some experts have said the world could run as it did in 1959 in as little as 50 years time. Imagine the world in 1959 and consider its population at that point, the number of cars and carbon eating computers/phones. Not to mention air travel. The world today cannot survive as we know it on energy production as it was in 1959 - at least not all of us, together.

Either timescale impacts your children and your grandchildren - everything we do today shapes the immediate future of our families. Which is why it matters today.

The new laws should not be seen as a hindrance but as an opportunity. An opportunity to leave a true legacy. Measure what you achieve and celebrate it every day because it is the most important thing you will ever do for everyone - even if that seems a bit of leap of the imagination right now.

FOOD WASTE BY NUMBERS: 30-50% of food produced never reaches a human stomach. The Institution of Mechanical Engineers

£166m cost of food waste in the Scottish Hospitality and Service Sector (GreenHotelier)

6 number of meals thrown away by UK households

6 months how long a city the size of Dundee could be powered for by using Scotland's food waster (The Scottish Government) 45% waste in food preparation

£250-£400 estimated cost of that wasted food (not including cost of disposal). £3.5 billion the food waste cost in the UK hospitality and catering sector (WRAP the Waste and Resources Action Programme])

34% plate waste

1 in 5 meals that are wasted in the industry

1 burger equivalent of 4 baths. Taking the amount of energy used to create one beef burger (beef being the largest consumer of carbon on the planet).

If everyone in the world stopped driving cars tomorrow it still wouldn't balance the cost of meat production.

£17,000 the amount of food wasted in average across restaurants/pubs/hotels (GreenHotelier) £0.52 cost per meal attributed to food waste (GreenHotelier).

21% spoilage

Top Tips q Buy seasonal food (ones that don’t need refrigeration and energy-guzzing plastic fields to grow out of season), q Try and buy local (a big energy saver as well as creating jobs locally), q Try and buy less beef (even just once a month) or buy local beef instead.

It all matters.

22 DRAM BUSINESS & FINANCE SUPPLEMENT

Your Path to Success See it unfold with Punch

Reap the rewards of being your own boss, have the scope to develop exactly the business you want.

It’s not an impossible dream, it’s YOUR future.

Our philosophy is based on supporting publicans to build and develop their own business which is the cornerstone of all our partnership relations.

That starts with you and us and understanding exactly what you require from a business opportunity.

Together, we can identify a support package which will help you fulfil your aspirations.

Did you know you could earn yourself £3,000* T&Cs apply Contact Sandi – Resourcing Consultant for Scotland on 01283 523 642 to discuss opportunities available in your area

PUBS | HOTELS | RESTAURANTS

Punch has pubs in every location to suit potential publicans. www.punchtaverns.com