Australian Hotelier February 2023

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HAPPY NEW Year! I hope you enjoyed some busy, year-making trade in your venues over the holidays, and that you were also able to take some time off to recuperate after a busy 12 months. Most publicans I’ve spoken to were able to breathe a sigh of relief last year as trade restrictions became a thing of the past. I know many of you have spent the last year rebuilding your businesses, welcoming the return of loyal patrons, and planning bigger and better things to reflect the changes in patron behaviour after a few interrupted years.

I’m hopeful that 2023 will continue on that upward trajectory, and will be another year of

innovation and evolution. As such, we always like to kick off the year by reflecting on the last twelve months with some of the most esteemed operators and industry partners across the country, as well getting a sneak peek into their plans for the year ahead. We also take a look at some of the growth opportunities the year will bring. We hope you find some inspiration in this issue for 2023.

Cheers!

Editor’s Note Next Month

Vanessa Cavasinni, Editor E: vcavasinni@intermedia.com.au

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2022 in review

January

The year began with visa rebates for working holiday makers and international students in a bid to entice them back into the country and back into hospitality jobs. This was followed by the ATO extending excise relief for takeaway, repackaged beer (such as growlers). Nevertheless, the Australian Hotels Association called for draught beer tax relief as the impact of the pandemic continued to be felt.

February

The AHA Awards For Excellence were held in Hobart, with Comiskey Group and EDP Hotels winning big. Sand Hill Road announced the appointment of Bianca Dawson as its new CEO.

March

Comiskey Group revealed details of its new $6m Sunshine Coast venue, The Doonan. Meanwhile, the industry also saw key appointments, with Mary Collier named as the new CEO of Women in Gaming & Hospitality Australasia, and Justin Tynan becoming the new COO of Laundy Hotels.

April

After floods ravaged venues in Northern NSW and Queensland, Australian Venue Co (AVC) and Solotel both raised over $150,000 each for charity. And a new national record pub sale was set by the Crossroads Hotel in Casula, which sold for a reported $160m.

May

Major pub sales kept rolling in May too, with Redcape divesting

Minksy Hotel for $39m, while Oscars Hotels acquired the WestWaters complex for $85m.

June

The Fair Work Commission announced a rise in the national minimum wage of 5.2 per cent, bringing it to $21.38 per hour. The increase was initially delayed for the hospitality industry until October, but Endeavour Group and Solotel introduced it early. Meanwhile, AVC were active in the market, buying nine WA venues and announcing a partnership with BrewDog.

July

The new Albanese Government moved to ease the hospitality staffing crisis by establishing the Jobs and Skills Australia agency. There were more pub sales, with Iris Capital buying three venues in the NT, and the Lord Roberts Hotel in Sydney selling for $22.5m for the first time in a century.

August

The Federal Government hosted a Jobs and Skills Summit, with the AHA representing the hospitality industry. The Oaks Hotel was listed for sale with a price tag of around $175m, while AVC purchased eight Sand Hill Road venues. ALH publicans scored access to Endeavour’s share recognition plan.

September

The Tasmanian State Government surprised the industry when it announced that cashless gaming would be introduced for all EGMs by the close

of 2024. Varsity Group was acquired by Signature Hospitality Group.

October

Dan Brady stepped down as CEO of Redcape, as did Scott Leach as the AHA’s National president. Victorian David Canny has since taken up the national helm. The industry sadly bid farewell to Ward Matthews, the codirector of Matthews Hospitality, who died suddenly.

The Australian Liquor Industry Awards, hosted by Australian Hotelier, celebrated the nation’s top pubs with Byron Bay’s Beach Hotel being named Pub of the Year. There was more cashless gaming news, with the NSW Crime Commission recommending a mandatory cashless system, as a cashless technology trial began in the state.

November

AHA hosted its National Awards at Campbell’s Cove in Sydney, with Eatons Hill Hotel in Queensland and Treendale Farm Hotel in Western Australia named as the Hotels of the Year. Flower Hotels took out Hotel Group Operator of the Year.

December

Longstanding AHA NSW executive and publican, Phillip Webster, died aged 62. Entain and Momento Hospitality announced a partnership on a new in-hotel Ladbrokes Lounge, at the group’s The Star Hotel in Seven Hills. Solotel opened the highly anticipated Abercrombie Hotel in Sydney.

As the first full year of ‘normal’ trade for pubs across the country, 2022 was largely a welcome relief for publicans after a tough couple of years. Here are the major headlines of the last 12 months.

PUB OPERATORS

Some of the most respected and forward-thinking publicans across Australia reflect on the highlights and challenges of 2022, while outlining what they have planned for the year ahead.

The Old Synagogue in Perth typifies Nokturnl’s love of large venues with multiple offerings

“2022 WAS a year of lollipops and rainbows compared to the previous two years,” Paul Waterson, CEO of Australian Venue Co (AVC) tells Australian Hotelier

“It was just wonderful to be able to have clear air, have a really sensible regulatory environment, and be able to get on with running the business in a great sector.”

While any challenges will have paled in comparison to the previous years’ difficulties, there were significant highlights for the company, most prominent among them being the acquisition of the majority of Sand Hill Road’s venues. Waterson commented on the early performance of these pubs in the AVC stable.

“They’ve been really great. Obviously, we’ve known the Sand Hill Road team and had really strong alignment with them over many years,” Waterson said.

“We’ve really admired the way they’ve developed their venues over time, particularly the two big ones, Garden State and the Espy.

“Our focus now is really ensuring that the legacy of those venues lives on - so

we’ve made very few changes.”

In this regard, the Sand Hill Road acquisitions reflect the standard business practice employed by AVC.

“We don’t tend to buy a business that we need to get into and immediately fix. Our model’s always been about buying really high-quality businesses and continuing their performance,” Waterson explained.

The Pass app passes muster

One highlight of 2022 was the launch of the company’s The Pass app loyalty program in August of last year. Waterson provided the key figures behind the app’s successful introduction.

“We’re averaging about $600,000 in per week sales through The Pass, and it’s growing at about 10 to 15 per cent weekon-week.”

The CEO also outlined how the loyalty program was impacting consumer behaviour.

“We’re seeing really large uptakes with people who are transacting over multiple venues now – so the number of people who have been to five or more of our

venues this year [2022] has doubled from the comparative time last year.”

For AVC, the app allows venues to subtly change offers for different kinds of customer.

“To give you an example, we want to be sure that the locals in say Yarrawonga, Robe or Apollo Bay are getting sharp, all-year-round pricing, whereas if you’re in town for a quick holiday, you might be prepared to spend a bit more.

“So it allows us to provide that differentiation to each consumer in an individual market, which is probably where I think it’s got the most power and upside.”

Queensland in the crosshairs

In 2019, AVC made the significant purchase of a portfolio of 87 Queensland pubs from Coles, which divested its Spirits Hotels in the state. Since then, refreshing the Sunshine State portfolio has been a big focus of the national group.

“From a more practical perspective, those venues had been under invested in, as Coles had chosen to allocate more capital to other parts of their business

Australian Venue Co. may be one of the largest pub groups in the country, but it has no plans to stop growing any time soon.

Paul Waterson CEO Australian Venue Co

BrewDog Pentridge

prior to divestment, but many of them were real icons in their day,” says Waterson.

“So we’re really focused on returning them back to what was their past glories. They’re really great size, large footprint, multidimensional offerings.”

In particular, Waterson highlighted the recent success stories of Burleigh Town Hotel and Coomera Lodge Hotel in the Gold Coast.

“The revenues are well over double what [they were] prior to the refurbishment, because we’ve been able to keep what was good about the venue prior to acquisition, but really enhance it.”

“There hasn’t been one that has been unsuccessful.”

And more generally, the company is seeing significant ROI on its Sunshine State brownfield and greenfield sites.

“We get, on average, about 34 per cent return on the brownfield, and 42 per cent on the greenfield. If you look at where you deploy your capital, we think brownfields in particular are the best use of capital,” states the CEO.

“Fortunately for us, we’ve got quite a lot of venues that we can still apply this strategy to.”

Partnering with BrewDog

A particularly interesting greenfield development in 2022 was AVC’s partnership with Scottish beer and venue giants, BrewDog, which saw the opening of a pair of venues in Sydney and Melbourne.

Australian Hotelier asked Waterson what attracted the company to this collaboration.

“I’ve been keeping an eye out for more of a potential greenfield model that we could be able to roll out at scale, and BrewDog met a lot of that criteria. It was a really fast-growing challenger brand and they’ve been really great partners.”

And the early performance has been very promising.

“Sydney and Melbourne so far look on track to do well over $6 million of annualised sales each – so it’s certainly a model that I want to explore further.”

Targets for 2023

There’s little doubt, then, that 2022 was a year of success and expansion for AVC. Nevertheless, the company will be looking to maintain this momentum into the new year.

“We’ve got a pretty well-defined growth strategy,” Waterson comments.

“Purchase at least 25 venues per year, renovate another 25 through brownfields, and build around five greenfields per year.

“Most importantly we want to consistently deliver at least four per cent plus organic growth, and that will be primarily through what I think is our best-in-class marketing and digital team,” Waterson continues.

“So it’s a mix of that inorganic growth through acquisitions… But really, what’s most important is to be able to deliver on organic growth, topline growth within venues. And that’s where we’re really focused.”

AVC in numbers

Waterson gave Australian Hotelier a snapshot of the key 2022 numbers defining the business, heading into 2023.

AVC now has:

209 venues

38 venues acquired in 2022

16 brownfield sites purchased

Four new venues constructed from scratch

23 venues refurbished

BrewDog South Eveleigh

The refurbished Burleigh Town Hotel

AT FIVE years old and with seven pubs, a café bar and an accommodation hotel, Flower Hotels is a young pub group compared to some of the bigger pub behemoths that have been around for generations. But thanks to its dynamism, its complete entrenchment in the Mid North Coast region and a genuine focus on transparency, the group has been acknowledged on a national level.

“We are not yet the most polished pub group, but we own our mistakes and we are as genuine as you can get,” states managing director Alistair Flower.

“And we can be as dynamic as we need to because we live and breathe our pubs. We are concentrating on being good, traditional publicans, and making sure we do the basics as well as we can, while owning the changes we need and the challenges we face.”

That dynamism has caught the attention of industry stalwarts Laundy Hotels, who partnered with Flower Hotels last year to acquire both the Tacking Point Tavern and Mercure Centro in Port Macquarie.

“The Laundy family are industry legends and fantastic to work with in this partnership. There’s a vast amount of experience among the family, which has been a great support and soundboard

for us in our group’s development, as we evolve and grow.”

our venues across the board tourism destinations as well. And a lot of that is through collaboration,” states the MD.

Banking

on the Mid

North

Coast Hospitality isn’t the sole focus for Flower Hotels, with the long-term strategy to leverage the business of both tourism and hospitality – hence the acquisition of the Mercure Centro.

“We have a real vision and confidence in our local Mid North Coast area. There are clear synergies between hospitality and tourism, and I want to explore more business opportunities where the two meet, creating experiences for tourists and locals alike,” says Flower.

Already, the group has introduced kayaking and camping at the Long Flat Pub, situated on the banks of the Hastings River. There are also horseriding pub crawls between venues, as well as collaborations with local helicopter services to fly tourists between the pubs and local wineries. The group is looking for other ways it can collaborate with local businesses to put on more of these experiences.

“We see ourselves as a real, competitive tourism operator. We know we’re good with community and hospitality, but we’re really now exploring how we can make

While the tourism market is a new focus, the local community has always been the heart of the group’s success, something Flower sees as a real obligation of regional pub groups.

“We understand that we are custodians of these hotels and they make up the social fabric of regional communities, and we’re not shying away from any of those responsibilities. These pubs are bigger than us – a lot of them have been in the community since the 1800s – so that obligation is felt keenly.”

A big capex year

Within the venues themselves, 2023 will see a robust capex program get underway. The beer garden at Tacking Point Tavern will be overhauled to be used in all weather, plus the completion of an extensive renovation at Lake Cathie Tavern. Both Hastings Hotel and Settlers Inn will also get an upgrade. Across the group, there will be a consolidation of systems focused on digital loyalty technology.

“It’s certainly going to be a very busy year,” says Flower. “I’m excited.”

Flower Hotels was named 2022 Hotel Group Operator of the Year at the AHA NSW and National awards, thanks to attentiveness to both the local community and tourists to the Mid North Coast.

Alistair Flower Managing Director Flower Hotels

Flower Hotels acquired the Tacking Point Tavern in 2022 in partnership with Laundy Hotels

A year of triumph

FOR ANNETTE Vogt, owner and licensee of the Grand Junction Hotel in Traralgon, the best part of 2022 was just to return to some sense of normalcy.

“I would say the highlight would be having the hotel fully open with no restrictions – having all our locals and regular customers back, which has been really good, because we have a lot of loyal customers, being a country town.”

This commitment has been matched by the pub’s team too, who have stuck with the venue through thick and thin.

“We’re lucky to have many loyal staff who have been with us through the ups and downs,” Vogt explains.

A gilded 2022

In May 2022, the AHA (Vic) awarded the Grand Junction: the Best Regional PubTAB Award; the Best Regional Gaming Venue with 50 Machines or Less; Best Regional Sports Bar; and the coveted title of Overall Regional Hotel of the Year.

“It felt amazing. We’re just so proud of all our team. The way in which they

communicate with patrons obviously paid off, as did the training we give,” states Vogt.

“We were hoping that maybe we might win one award, but we never really felt confident about winning all the awards –so that was just fantastic.”

Vogt identified friendly hospitality, in addition to a 2019 makeover of the venue, as key factors in securing the award.

“We’ve made our hotel a lot more modern – a nice fresh look,” she said.

“Making our customers feel special and happy too. We have a great meet and greet at the door, so they’re always greeted and taken to their seats, and just that little bit of special, personalised service that you probably don’t get in a lot of hotels.”

Vogt also outlined why the pub has been acknowledged as a stellar location for sports.

“We have a dedicated area for the TAB, and includes a sound system, which doesn’t interfere with other areas of the sports bar. So you can be watching the footy, and the punters can still be having a bet on the races and they can hear the races, while the other

people can hear the football.”

This commitment to being an outstanding sports venue is also reflected in some high-profile events the Grand Junction has hosted, including a leg of the Essendon Football Club’s Country Tour.

“We were very privileged to have that event. It brought excitement amongst the locals, it was a very busy night and they crossed to a broadcast live segment of the front bar.”

Maintaining momentum in 2023

Unsurprisingly, the main objective for the Grand Junction Hotel in 2023 is to continue the formula that has brought it success in the previous year.

“We’re focusing on extra training for new and existing staff. We’re doing some minor renovations, we like to keep up with current trends, we’ll try to do something to enhance the hotel. We’re looking at celebrating large sporting events in 2023,” Vogt says.

“I think the hospitality industry has a bright future – we’re seeing more and more people come into the hotel.”

The Grand Junction Hotel in Traralgon won Regional Hotel of the Year at the 2022 AHA (Vic) Awards for Excellence. For Annette Vogt, this was the reward for years of hard work.

Annette Vogt Owner and licensee Grand Junction Hotel

Key openings have made for a prosperous 2022 for the Kickon Group, which is now looking to further expand its holdings over the next 12 months.

IT WAS a landmark year for Kickon Group, which opened a brand new venue in Victoria, and completed the purchase of another two in Queensland.

“We had a huge year of growth, opening the Continental Sorrento, as well as [purchasing] both the Watermark Townsville and Grand View Cleveland,” says Craig Shearer, founder and director of the Kickon Group.

And early performance, particularly at the Continental, has been sterling.

“We’ve had no shortage of demand, from the second we opened the doors. All of our revenue and patronage expectations were well and truly exceeded… It’s been enormously successful.”

Nevertheless, the construction and opening of the Continental was not without its challenges.

“The launch of the Continental combined with industry-wide labour shortages have been our biggest challenges of 2022,” Shearer details.

“We had challenges primarily around attracting the right labour force to the

venue, and being able to grow a team down there, and the venue’s culture.

“But I’m pleased to say that we’re well and truly on the way and can see some real light at the end of the tunnel.”

Kickon Group also has a real affinity for the Queensland market, as shown by the two recent pub acquisitions of Watermark and Grand View.

“They are different assets, but both have a heavy focus on food and elevated customer experiences. We really love operating in Queensland which can be seen by our growth over the past few years.

“The Queensland regional market is above all else very genuine. Great food paired with friendly service usually hits the mark,” the director adds.

Future expansion

The group has no intentions to rest on its laurels, and Shearer revealed exciting plans for the next 12 months.

“Our plan to renovate and relaunch the Grand View is a huge project for us in 2023,” Shearer comments.

Craig Shearer Founder and Managing Director Kickon Group

“There’s a lot of pressure to get this right, because it’s not a new build – it’s Queensland’s oldest licensed premises.

“It’s such a beautiful old building that just oozes culture and history – so the renovation will certainly grab hold of all that history and pay tribute to it, but also open up the external areas of the venue, looking out over Moreton Bay, to provide what we think is going to be Queensland’s most iconic beer garden.”

Moreover, the group has plans for a new bar-restaurant concept in Melbourne (slated to open mid-2023), and is “actively seeking additional assets to grow our portfolio,” according to Shearer.

Currently, Kickon’s venues are entirely found within Queensland and Victoria, but the group is happy to look at pubs further afield.

“We’d look anywhere. We’re open to any and all opportunities, we’ve just found the greatest amount of success, and been able to unlock those opportunities in those two markets.”

The Continental Hotel, Sorrento

NEW PUB projects were a key focus for Laundy Hotels in 2022. The esteemed hotel group opened the rebuilt Log Cabin Hotel in Sydney’s south-west; the greenfield pub Plough & Ale in the Illawarra region; and completed the multi-million dollar renovation of Woolly Bay Hotel in Sydney’s eastern suburbs. The group also elevated its food offering in that time, opening its first two restaurants – Sinclair’s at Log Cabin Hotel, and Arturo’s at Woolly Bay Hotel.

Community favourites

Both the Log Cabin Hotel and Plough & Ale have been new builds, with the former being a rebuild of a popular pub that had burnt down, and the latter a greenfields pub constructed within a new residential development. These community-focused pubs have been well received since opening

“Both venues have exceeded expectations and have been embraced by the local communities. Especially Plough & Ale which was constructed in a brand new suburb has become a real hub in the community. We have put in place plenty of community-based events which have been well received,” explains COO Justin Tynan.

At Woolly Bay Hotel, Laundy Hotels spent over $14 million to overhaul the pub’s offering to make it a more comprehensive offer. The refurbed pub now includes a first-floor restaurant

focused on Mediterranean dishes, as well as a rooftop cocktail bar overlooking both the city skyline and Cowper Wharf.

“The renovation of Woolly Bay is exceptional. I think the old Woolly Bay was a destination for patrons of the finger wharf after lunch or dinner. It has now become a one-stop shop where people are dining in our restaurant and staying in the venue, on the rooftop or in the bar downstairs,” states Tynan.

“We are booking plenty of events which was not happening in the old Woolly Bay. The venue is becoming a destination rather than a final-drink kind of venue.”

Opportunities and challenges

Outside of new openings, the group also acquired Hunts Hotel Motel in Casula in 2022, a mammoth and underutilised site that brings the business plenty of development opportunity in the new year. Hunts Hotel features 140 guest rooms and apartments together with a restaurant, lounge and bar, conference and meeting spaces, and various outdoor amenities including a swimming pool and tennis courts.

Laundy Hotels also acquired the Mercure Port Macquarie last year in partnership with Flower Hotels. It joins the Laundys’ stable of accommodation hotels acquired in partnership with other operators. Tynan says the group is always on the hunt for diverse opportunities and

is willing to partner with proven operators.

“This acquisition made sense. Alistair Flower is a fantastic operator who has just been awarded Group Operator of the Year at the National AHA awards. The family often partner up with other operators which makes our portfolio so diverse, keeping us fresh and innovative. This is not the first partnership and I dare say won’t be the last.”

It hasn’t all been smooth sailing though, with the group hit with the same staffing woes affecting the entire industry. The group currently employs 1400 people and requires at least another 350 to fill its rosters. The team is making do with what it’s got.

“We have had a few pubs under no management for six months, but the staff in those hotels have been exceptional at keeping the doors open. We have some superstars in those venues.”

This year, Laundy Hotels already has another two pub builds on the go, with another Jordan Springs venue to join Log Cabin Hotel, as well as a pub for the expanding suburb of Oran Park. Renovations for a few more venues are also slated. Tynan – who joined Laundy Hotels a year ago - says it’s “a very exciting time” for the group.

“The direction that the group is taking is definitely the correct path. There are some brand new and exciting venues and renovations [up ahead], with more to come.”

The Laundy Hotels portfolio may be diverse, but all of its venues are driven by the need to centre the local community at the heart of every pub.

Justin Tynan Chief Operating Officer Laundy Hotels

WE’RE RAISING THE GAME AT THE 2023 AHG EXPO

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Plan your visit and secure a booking with us today via MYTAB or max.com.au/ahg

Stand 71 | AHG Expo

22 and 23 March 2023

Brisbane Convention and Exhibition Centre

WHAT ENDED up being a great year for Nokturnl started out quite rocky. What should have been a great start to 2022 at The Old Synagogue in Fremantle was hampered by a covid wave, tough restrictions and uncertainty around when state borders would re-open. At the same time, the group was dealing with construction delays, material shortages and cost blow outs at their latest build, The Beaufort. But despite these challenges, Nokturnl was able to get The Beaufort open in March, and the public flocked to both venues as soon as mask mandates and restrictions were lifted.

“Both our venues have experienced strong trade throughout the year and forward bookings over the Christmas and New Year period are at record levels,” states Ross Drennan, director and cofounder of Nokturnl.

In what is becoming the group’s signature, both venues are massive complexes that house an array of offerings: from laid-back beer gardens to award-winning restaurants, from rooftop cocktail bars to traditional sports bars, and much more.

At both venues, the restaurants have overperformed. For The Old Synagogue this is Tonic + Ginger, a south-east Asian fusion restaurant seating 120 guests over two levels. At The Beaufort, it’s Lotus, led by executive chef Sundoo Kim, who

had moved to Perth after heading up a restaurant in Melbourne for the Lucas Group. Drennan says moving to a focus on food was new for himself and co-founder Drew Flanagan, after having previously focused on beverage offerings.

“Restaurants take up a significant amount of the footprint of our venues and as such, they’re something we had to get right. Prior to opening these two venues, our experience had only been on the bar side and food was a little terrifying. We have been fortunate to attract some incredible chefs who have not only taught Drew and I a hell of a lot, but they’ve also catapulted our business success through delivering great menus across our venues.”

It’s a move that’s worked out well for the pair, with both venues having amassed multiple awards in 2022. With less than a full year of operations under its belt, The Beaufort was named Perth’s Best Venue at the 2022 AHA WA Awards, as well as taking out the New Venue Award and Lion Bar Presentation and Service Award, and the Best Restaurant Award for Lotus. Jenny Purdy, restaurant manager at Tonic + Ginger, was awarded the Excellence in Service Award. Drennan puts the wins down to the staff at both venues.

“I’m pretty wrapped with the team of people we have working at our venues. Everyone has really bought in to our vision

for the venues and the hard work and talent is what brings the awards.”

New projects

This year, Nokturnl has two other venues in the works. The group won a tender with the WA Government to transform the Market Hall at Yagan Square in Perth’s CBD – a space that will exceed The Old Synagogue and The Beaufort in both size and capacity. The project will span five levels and will include numerous indoor and outdoor bars, as well as two restaurants.

“We’re excited to have kicked off this project. It’s the largest project we’ve done to date and should be complete in summer 2023. It’s an ambitious project, but one that has the potential to turn the fortunes of Yagan Square around and inject some life back into that part of the city,” states Drennan.

The group is also set to start construction on a fourth project, the conversion of a heritage-listed police station in South Perth. The existing police station and alfresco area will be turned into a sophisticated beer and wine bar, while an underground restaurant is also being constructed. The venue is set to open in early to mid-2024, coinciding with the completion of the adjoining Civic Heart residential development.

There’s a lot of big things to come from Nokturnl this year – literally.

Nokturnl has built a reputation for creating esteemed Perth mega-venues that house multiple offerings, and there’s more to come in 2023.

Ross Drennan and Drew Flanagan Directors Nokturnl

FOR SOLOTEL, 2022 was a year that got better as it went along. At the start of the year people began returning to venues without restrictions, and staff had to re-learn how to service the crowds with fewer staff, as well as handling personnel getting covid as part of the ‘new normal’. But as we all adjusted, Solotel CEO Elliot Solomon says the year continued on an upward trajectory of trade and goodwill towards the industry.

“As every month passed, it was the first year in three years that felt very positive. And that’s very exciting.”

Solotel’s list of achievements in 2022 is dizzying, with highlights early in the year including the opening of Rekōdo restaurant and bar at Barangaroo House, as well as re-winning the tender to operate dining on the grounds of the Sydney Opera House, and subsequently opening House Canteen on the old site of Opera Kitchen. An unused level at The Edinburgh Castle Hotel in Sydney’s CBD was also turned into the Dusk Club which offers late-night jazz and cocktails. Solomon is particularly pleased

with that achievement, saying the team within the venue led that project from start to finish.

“It was really good to see that we could deliver a project that was driven by the team in venue.”

With a well-publicised focus on improving Sydney’s late-night landscape, multivenue night-time activations were also a massive success for the group, pulling off events such as ‘The Longest Night’ and ‘The Sydney All-Nighter’ across more than a dozen pubs around greater Sydney. The other big win for the group was being named the exclusive hospitality partner for the upcoming WorldPride festival running from 18 February to 5 March this year.

“It’s a great thing for a lot of our regulars that come to our venues that are key pillars of the LGBTQIA+ community –also for a lot of our staff as well. It’s a big win for us and something that we’re very proud of,” states Solomon.

But it wasn’t all good news in 2022, with the group’s only Queensland venue, Riverbar & Kitchen in Brisbane, being submerged and destroyed by the floods in

March. The venue suffered catastrophic damage and had to be rebuilt almost completely. Thankfully, with the venue reopened in September, trade has returned to the venue at pre-disaster levels.

“We’d never lost a venue in a natural disaster. I imagine it would be similar for publicans that lost venues in the bushfires in 2019/2020. It was pretty devastating, but we are open again and trade has gone back to what it was before we closed, which is really great.”

Nightlife and The Abercrombie

Australian Hotelier spoke to Solomon in early December, two weeks before The Abercrombie Hotel was set to re-open on the fringes of Sydney’s CBD after having been closed for years. The Solotel boss already knew that the opening would be the biggest highlight for the group in 2022.

Solomon describes the Abercrombie as “three venues in one”, meaning that all demographics and nightlife experiences are catered for. The ground floor houses the venue’s nightclub space, as well as it’s courtyard beer garden. This mostly

When it comes to the revitalisation of Sydney’s nightlife, Solotel is putting its money where its mouth is and investing big in late-night propositions.

Elliot Solomon CEO Solotel

The opening of Abercrombie Hotel is a welcome addition to Sydney’s clubbing landscape

targets the 18-25 year-old crowd, looking to party into the early hours of the morning. Casa Rosa is the rooftop bar, catering to those in the 25-35 yearold bracket, who want cocktails and somewhere to sit with friends, while still enjoying a DJ playing in the space. And lastly there’s Lil Sis, a wine bar and shop, for those who want to enjoy a sommelier-chosen bottle of wine and share plates in a quieter space.

“By having the three different concepts, which are related but hit you at different points of your life, it just means there are more points of interest for you to keep coming to the venue,” suggests Solomon.

Since it’s opening in late December, the venue has cemented its position in Sydney’s clubbing scene, with lines out the door to get into the venue on Friday and Saturday nights – something rarely seen in Sydney since the pre-lockouts era.

Revitalising Sydney’s nightlife is a key driver for Solomon and his group, with the CEO on the board of the State Government’s 24-Hour Advisory Committee. He sees the industry and government’s collaboration on the broader facilitation of everything that nightlife entails as the key to its success.

“The partnership between public and private is really key. Whether that’s through financial grants or liberalising outdoor drinking spaces, it all helps to facilitate us to do what we do best.

“The work that the government has done in terms of getting everyone involved in late-night to be in the room and work together has just made such a big difference. And when we work together as precincts or on large events, we all benefit.”

Up next

Solotel is already gearing up for one of the largest cultural events in Sydney this year – WorldPride, a global LGBTQIA+ festival. It’s something that the group felt it was already naturally aligned with.

“A lot of our venues are based in the heartlands of LGBTQIA+ communities, and a key group of our customers and our teams have always identified with those communities, so it’s second nature to us. They are our communities, friends, lovers, partners and customers. They’ve also been such an incredible support for us, so its really about reciprocating that support,” explains Solomon.

As the exclusive hospitality partner for the festival, Solotel is planning events at all of its pubs across Sydney, partnering with a different LGBTQIA+ tastemaker for each venue to host DJs, parties, karaoke, drag shows and more throughout the two-week festival.

After WorldPride, Solotel will be kicking off a big capex program for the year, starting with a complete renovation of the Kings Cross Hotel for the first time in a decade.

“Kings Cross has been so challenging for so many years, but since the last lockdown the area has come back, and the numbers we’re seeing – we haven’t been this busy since before lockouts,” states the CEO.

Works are also planned in various parts of The Golden Sheaf, and renovation planning of the group’s most recent buy, The Carousel Hotel in Rooty Hill, will get under way, with the DA almost ready to be lodged. Elsewhere in western Sydney, Solotel will be relocating the Albion Hotel on Parramatta’s outskirts to a new site the group has acquired in the heart of the CBD.

There’s a lot going on, but for Solotel, it’s all about putting the fun back into Sydney’s night-time economy.

When we work together as precincts or on large events, we all benefit.

The Abercombie Hotel has various offerings to attract different demographics

LAST YEAR saw the Watervale Hotel pick up a series of titles, including the W. T. Spurr AO Award for Tourism and Regional Promotion at the AHA SA Awards for Excellence. In the same competition, the Watervale also retained its Best Restaurant – General Division Country title for the third year running.

Hotel co-owner and executive chef, Nicola Palmer, told Australian Hotelier what she thought gave the hotel such a cutting edge.

“A lot of hard work!” Palmer quips.

“But really, our ethics, the excellent and uncompromising ethics that we have for how we run the business.

“We’re trying to run a business in the way that we think it should be – for the sustainability of the earth. And the good product being on the plate. I’m a strong believer that just because we trade under a hotel license, and not a restaurant license, there shouldn’t be a cap on the quality of the food that goes out,” Palmer continues.

“We’re tourism-focused and we’ve made decisions to help build the brand, not reducing our product to be focused on cost and profit, over building the brand.

“You can be focused on cost and profit

straight away and you may never build a good brand; but if you build a good brand, the profit will come.”

A major element of the way the Watervale is run is its symbiotic relationship with the nearby Penobscot Farm, which is also owned by Palmer and her husband and business partner,

Palmer highlighted an event the pub hosted last year as an example of the Watervale Hotel’s commitment to working with its community.

“It was a women’s only event, where we invited 50 women living on Ngadjuri land to come and partake in a lunch, and buy a ticket, and their ticket paved the way for a Ngadjuri woman to attend,” Palmer says.

The event was held to celebrate Esther Greenslade, a licensee at the hotel over 150 years ago, who also owned a flour mill and shared bread with local Ngadjuri women and children at a time when the community suffered greatly as a result of European settlement.

Warrick Duthy. Palmer explains how this improves the pub’s offer and fits with the venue’s ethos.

“Using the farm and the farm experience to help educate both our staff and our visitors to regenerative farming practices, how important that is, and how that relates to what they’re tasting on the plate.”

At the event, Ngadjuri woman Aunty Angelena Harradine and Palmer symbolically broke bread together, before Aunty Angelena held an earth healing ceremony.

“Lots of the women were too scared to come to the event, but the talk around it since has created a lot more trust and interest – lots of Ngadjuri women are too scared to come back to this land, and so this was a wonderful stepping stone to open the door for conversation,” Palmer adds.

Located in the Clare Valley, the Watervale Hotel demonstrated its commitment to grassroots reconciliation, sustainable practices and good food in 2022.

Nicola Palmer Creative Licensee and Executive Chef

You can be focused on cost and profit straight away and you may never build a good brand; but if you build a good brand, the profit will come.

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REFLECTING ON the year just past,

Australian Hotels Association (AHA) CEO Stephen Ferguson says: “Pubs have kicked back remarkably, especially given an about 30 per cent workforce shortfall.”

“Most importantly, Aussies showed that they want to get back out and socialise.”

And for Ferguson, the rude health of the hospitality sector is reflected in on-going market confidence in pubs.

“I think even banks now really recognise that pubs are a very sound and solid investment, because of what they provide in terms of social gathering.”

“When you look at it commercially, the prices still being paid for pubs are very much holding their ground, so that’s probably the best indicator of the strength of the industry at the moment.”

Energy an ongoing challenge

Aside from the well-known staffing issues facing pubs, Ferguson cites energy provision as a key concern, both in the past year and heading into 2023. He also explains what the association is doing to help support pubs struggling with their power bills.

“The AHA is playing its part. New South Wales already has one power purchase agreement up and running at 260 hotels,” Ferguson outlines.

“Queensland is looking at doing one, and I think other states are as well, so that’s a way that the AHA is helping pubs to try and control their costs.”

The CEO also outlined what he felt the major successes of the summit were for the pub trade.

“First of all, the commitment from the federal government to spend $36 million in funding 500 new staff members to process visas.

“That backlog was left for us by the previous government when Scott Morrison kicked all our skilled workers including chefs out of the country back in April 2020. And we’ve been struggling ever since.

“The new government was faced with a million visas when they came in, and they’re working at getting that down, but it’s a big job, and that was a big push from us. [Immigration] Minister Andrew Giles is doing a great job.”

Jobs and Skills Summit a ‘feather in the cap’

One of the standout moments of 2022 for the AHA came in September, when the association attended the Federal Government’s Jobs and Skills Summit.

“We were the only representative of the hospitality industry there, so that was a big feather in the cap of the AHA,” Ferguson comments.

Ferguson also highlighted amendments to the Industrial Relations Bill secured as another significant victory from the summit.

Looking ahead, Ferguson told Australian Hotelier that the AHA will be focused on advocating for the industry during 2023’s root and branch review of the visa system’s structure.

“Visas for the next year will be probably the biggest issue we’ll be working on.”

economic turbulence, staff shortages and the lingering impact of the COVID-19 pandemic, the Australian Hotels Association is pleased by the performance of the industry over the past year.

Stephen Ferguson National CEO Australian Hotels Association

Pubs have kicked back remarkably, especially given an about 30 per cent workforce shortfall.

BEVERAGES

The biggest movers behind the bar in 2023? Craft beer, NOLO and entry-level spirits.

Kickon Group’s The Collective Palm Beach has an extensive drinks list to match every beverage preference

“THE EXPLOSION of local craft spirits is one of Australia’s great success stories of the past five years and this will continue over the next 12 months,” says Will Edwards, Archie Rose founder.

And indeed, the last year has seen Archie Rose expand its own offering, with “the launch of a new Lemon Scented Gum Gin Harvest 2021, a handful of limited edition whiskies including Red Gum and Stringybark Smoked Single Malt Whiskies and White Cane, our Australian take on white rum,” as Edwards explains.

The new products and expanded range have been enabled by increased operations and production at Archie Rose’s Botany distillery, which began production in 2021.

“With our Botany distillery now fully operational, we have been able to focus on innovation without sacrificing production capacity, and better utilise our cold distillation techniques,” the founder adds.

“These contemporary techniques help drive improved spirit quality, showcase local and native ingredients, and bring Archie Rose spirits to more venues both across Australia and other places in the world.”

On-premise return

Given Archie Rose’s increased exposure to the on-premise, uncertainty around reopening at the start of 2022, and

prolonged staffing issues in the hospitality sector, the last 12 months have brought some hurdles to be cleared.

“Like all businesses we’ve been navigating people’s return to venues, events and other channels that were closed or restricted this year, including our own venue as well as the challenges around staffing,” Edwards says.

“At the front end of the year it was all still a bit uncertain which impacted how people were going out, but now we’re seeing more consistent habits in both on and off premise once again with all channels fully re-opened.”

New spirits for the on-premise

Most significant of the distillery’s achievements in 2022 is the recent introduction of Archie Rose’s Fundamental Spirits series of entry level products, as Edwards illustrates.

“In October we launched a new product range called Fundamental Spirits, comprising Straight Dry Gin, True Cut Vodka, and Double Malt Whisky (coming 2023), it was created as a high quality, sustainably sourced, yet accessibly priced, local range of spirits,” Edwards says.

“Our goal with this range is to provide more Australians with the option to finally drink local instead of international spirits

at a lower price point across our three major spirits categories.

“It’s a huge milestone for Archie Rose as a business to be bringing a more accessible and equally high quality range of spirits to a market that is still dominated by international brands across all categories.

“So it’s been really exciting to see some of Australia’s best pubs and bars such as PS40, NOMAD, Shady Pines, Shell House, Bistecca, Gin Palace, Bad Frankie, Caretakers Cottage, Foxtrot Unicorn, Haines & Co., Maybe Mae, Arkhe and NOLA now featuring Straight Dry Gin and True Cut Vodka as Australian spirit first pours in the rail.”

And heading into 2023, Edwards is anticipating increased whisky production, which should ease the burden of supply issues.

“Next year we’ll see the first whisky that was produced at our new distillery in Botany begin to reach maturity, which will allow us to remove it from strict ‘allocation only’ sales, and provide more venues with access to the highest quality Australian spirits as an alternative to international brands,” Edwards predicts.

“We can’t wait to continue educating venues about our spirits and the ingredients behind them as a baseline for producing people’s favourite cocktails and mixed drinks.”

Having

enjoyed on-premise success with its Signature range of premium spirits, Archie Rose broke new ground in 2022, producing a new collection of accessible products, designed for on-premise venues.

Will Edwards Founder Archie Rose

CUB worked alongside its pub partners in 2022 as trade regained ground, while strengthening its presence with some of Australia’s most popular beers and RTDs.

FOR DANNY Celoni, CEO of Carlton & United Breweries, the main highlight of 2022 was seeing the industry emerge from the challenges of previous years in a stronger position than it was going in.

“We witnessed the passion for our industry and played a key role in making the bounce back as big and as impactful as possible for all our industry partners. We saw a resilient industry committed to creating a future where we grow together and contribute to the broader economy and communities in a sustainable way.”

Last year, CUB focussed on continuing to drive its core business, drive a multibeverage agenda and scale innovation. “Our focus on the core saw brands like VB, Great Northern, Carlton Draught, Asahi Super Dry and Peroni build momentum,” he says.

“In RTD, Vodka Cruiser, Brookvale Union, and Good Tides continued creating incremental value for our customers and CUB.”

In 2022, CUB relaunched the Ode to the Pub campaign, encouraging people to return to their local. It highlighted how the pub is many different things to different people but, above all, is a meeting spot that brings people together and is often at the heart of local communities.

“The campaign was a small token of our appreciation for Australia’s hotels,” states Celoni.

Another highlight was Carlton Draught’s Beer Drop, designed to get consumers into new venues - particularly in CBDs - via a virtual scavenger hunt for a free beer.

More

Craft portfolio booming

While CUB Beer and CUB Premium Beverages’s portfolio is vast, its craft beers performed exceptionally well last year.

“Balter continues to be a shining star – it’s now the leading craft masterbrand on tap, while Balter XPA is the leading individual craft brand by tap. Balter XPA sells the equivalent of around 15 million schooners or over 20 million pots a year,” Celoni says.

4 Pines Pacific Ale again demonstrated its popularity. It’s the fourth most popular craft beer by tap count nationally and sold the equivalent of 4 million+ schooners in 2022 or 6 million pots.

Meanwhile, Pirate Life South Coast is now Australia’s fifth most popular craft beer on tap, growing tap count by more than 40 per cent last year.

“All three brews tick several boxes to make them smash hits. They deliver interesting, tropical flavours and floral aromatic notes, while still being approachable and easy drinking. This is how they’ve helped beer lovers overcome key barriers that previously kept them away from craft beer.”

But you can’t mention CUB’s onprem success without referencing Great Northern. It’s Australia’s biggest masterbrand on tap and grew again in 2022. It now serves up the equivalent

of around 110 million schooners or 160 million+ pots annually and contributes $1 billion+ to pubs and clubs.

“We’re proud of this and we’ll continue to fuel this great brand’s momentum so that it continues to be enjoyed in venues nation-wide,” the CEO says.

No-, low- and mid-strength beers continued establishing themselves as credible consumer propositions in 2022. Almost 30 per cent of CUB’s beer sales are from this segment, including leading no-alc beer Great Northern Zero, and Australia’s favourite beer, Great Norther Super Crisp

“We also recently launched Peroni Nastro Azzuro 3.5%, 4 Pines Ultra Low and Asahi Super Dry 3.5%,” Celoni says. “We’ll keep growing this segment.”

Growing on-premise

Celoni says CUB is focused on helping its venue partners continue their growth.

“We are laser-point focused on ensuring recent growth continues in the on-prem throughout 2023. Together, I know our industry can retain momentum and overcome current headwinds as we’ve done many times before.

“I am absolutely committed to partnering with our industry to drive occasionality and frequency of on-prem visitation by giving consumers exciting reasons to get out of the house and into our pubs and clubs. We’ll do this through innovative activations, event creation and driving loyalty and return visits, and will have more announcements soon.”

Danny Celoni CEO Carlton & United Breweries

Around 250 Melbourne venues and over 2,000 patrons participated.

campaigns like this are planned for 2023 at scale.

JOHN HOEDEMAKER, Good Drinks

Australia managing director has hailed 2022 as “an amazing year” for his company.

“Jimmy [Whiteford, Good Drinks head of on-premise] and his team have already had some amazing wins, significantly increasing our distributions, but also lifting our volume per outlet too,” Hoedemaker says.

“Good Drinks has established strong partnerships with venue owners and groups, that have led to great results for all involved.”

Nevertheless, the MD has identified a key challenge over this past year, and one that he wants to target coming into 2023.

“The traditional big brewer tap deals that are still prevalent in pockets of NSW & VIC can be a challenge. While we understand why some venues utilise rotational taps, they can train consumers to try something different each day, and don’t provide the publican a point of difference, or consistency of service,” Hoedemaker says.

“We want to create a strategic relationship with publicans, provide real incentives, and add value to each other’s businesses, and you can’t unlock that value as well with rotational taps.”

Hoedemaker explains how tap share is firmly in the sights of the business over the next year.

“That’s our main target this year, to provide our customers with similar, if not better deals than the multinationals, but for a much smaller ask. The reason this works is typically once we work to activate the venue, our 20 per cent of tap banks do more volume per tap and at better margin, than the remaining 80 per cent.

“I’d say changing up the traditional 70 to 90 per cent tap share model is the biggest way for our customers to unlock value in their businesses in FY23.”

A holistic offering

A major milestone for Good Drinks this year was inking a distribution deal with Molson Coors, and the acquisition of Stomping Ground Brewing Co. Hoedemaker believes this illustrates how the business has diversified to meet customer need.

“Good Drinks is becoming a full solution provider for our customers, with a stable of high value, meaningful brands across multiple categories, that allow us to convert supplier-vendor relationships into

strategic partnerships,” the MD says.

And in 2023, Good Drinks will be looking to back up this expansion with further new product development.

“Our NPD will continue to push forward in 2023, and our ability to recognise trends early and produce them at speed, will be an advantage,” Hoedemaker says.

“We saw that in 2022 with Matso’s Nightlife, a higher-ABV range product that sits in the growing ginger beer market. Gage Roads Hazy As Hazy Pale Ale is another example. Launching in late 2022, it will continue to grow.”

Finally, Hoedemaker tipped his hat to the pub and hospitality industries, which have shown their resilience over the last few years.

“Just like hospitality, Good Drinks is built on a social experience. We’re excited to keep the foot down and build off the national momentum we’ve experienced over the last few years.

“Good Drinks is here to work with our customers, and build long-standing and strategic relationships, so we both benefit. We’ve got the team, production scale, and experience in place for a truly epic 2023,” the Managing Director concluded.

John Hoedemaker Managing Director Good Drinks Australia

Good Drinks is anticipating a year of maintained momentum, as the company seeks greater penetration into the pub space.

“IT’S MY conviction that our category is going to continue to outgrow every other spirits category for the next 20 years, simply because humanity is fundamentally changing its relationship to alcohol,” says Lyre’s Spirits Co. cofounder and CEO Mark Livings.

And if Lyre’s recent performance is any indicator, Livings could well be right. The CEO told Australian Hotelier that his company is seeing listings grow across the on-premise in the anglosphere.

“We saw some data dropped by NielsenIQ a couple of weeks ago showing that 89 per cent of on-trade providers in Englishspeaking markets – UK, US, Australia etc – are all considered extending the category or listing the category if they don’t have any options at the moment,” Livings says.

“The category is still in incredibly significant growth globally.”

Consolidating the Lyre’s range

Since Lyre’s Spirits Co launched in 2019, the company has rapidly undertaken a raft of new product development. Livings suggests this period may now be concluding.

“For us, I would say our NPD focus is now coming to a close - it won’t be an extension of available serves or options,” Livings explains.

This does not mean that the company is resting on its laurels, rather it is turning its focus to reformulating existing products.

“One of the things we’ll be doing is significantly improving our range of alternatives. A lot of those products that are out there, whilst they’re awardwinning and class-leading, they’re still a six-year-old product and our technology has improved significantly since we launched,” Livings says.

Working with venues

Livings notes that his company are leaders in the non-alcoholic category, and that with this position comes a requirement to help train and educate the on-premise.

“For us it’s all about assisting venues with menu development, making sure there’s cocktails and mixed drinks available to consumers or patrons that they want to drink. The training is of course an ongoing investment that we need to make,” Livings explains.

“Non-alcoholic spirits behave slightly differently to traditional spirits, so making sure that as the hospitality service staff refresh, that those resources and the like are available to our hospitality partners to ensure people are treating these things [seriously] and getting the best possible result in the glass is important.”

During this process, Livings says he and his company have detected certain onpremise trends that he expects to continue into 2023.

“One of the things we’re seeing in the

on-trade that will probably spill into the off-trade over time is the rise of low-ABV drinks-making,” the CEO outlines.

“[It’s] becoming very clear is that it’s not low-ABV spirits that are driving that, it’s the combination of a traditional spirit plus zero-ABV options like Lyre’s, that are creating the low-ABV serves.”

At the Australian Liquor Industry Awards (ALIA), held in October 2022, Lyre’s served a ‘Low-groni’, a cocktail of the sort described by Livings, that paired Lyre’s products with an alcoholic spirit. The CEO states he is open to this sort of partnership again in the future.

“The people who are going to be setting the pace on this – it will be first and foremost the consumers and the patrons coming in.

“And then the mixology community, if they can enable that, that’s where products like Lyre’s will help create those low-ABV serves along the way as well.

“So whilst I’m unsure that we would do anything formally with a traditional alcohol spirit, I’m not putting a line through it,” Livings adds.

“It’s not something we object to, we’re certainly not sanctimonious and anti-alcohol, we’re simply about providing choices.”

Whether patrons are looking for lowor no-alcohol options, Lyre’s has almost every drinks category covered to support pub partners in creating an enjoyable experience for any type of drinker.

Lyre’s Spirits Co co-founder and CEO Mark Livings reflected on the organisation’s wins in 2022, and expressed his optimism about the non-alcoholic category.

Mark Livings

Co-founder and CEO Lyre’s Spirits Co.

SPORTS, GAMING AND WAGERING

Match post-covid punter preferences in your sports bars and gaming rooms with the latest products and services.

The revamped sports bar at Burleigh Town Hotel by AVC includes a suspended cylindrical screen for sportsviewing at any angle

THE CLEAR highlight of 2022 for the Gaming Technologies Association (GTA) was the return of its flagship event, the AGE. After two years of postponements, the association was eager to bring exhibitors, venue operators and other industry stakeholders back together.

“Being able to proceed in 2022 was undoubtedly the highlight of the year for the GTA, its members, and many others in our industry,” states GTA chairman Anthony Ball.

Ball’s assessment of last year’s expo is glowing, citing the eagerness by everyone involved to get back to some semblance of normalcy within the industry.

“Leading up to the AGE, we knew exhibitors were seriously excited about getting back in front of clients, or anyone in the industry, to be part of something again.

“The AGE was the first opportunity many had to return to something more ‘normal’. The feedback from exhibitors was extremely positive, evidenced by the healthy commitment to this year’s event in August.”

Over the three days of the event, more than 8000 people attended, visiting 223 exhibitors ranging in size from 4-880 square metres. The only difference from years past was a lack of foreign visitors, due to travel restrictions.

Recovery and reform

Recovery was the topic that pervaded every part of the exhibition, with the industry looking for various ways to get back to pre-covid levels of trade. The hot topic of the seminar portion of the AGE was cashless gaming, with a presentation and panel session being at capacity.

Gaming regulation has since been a hot button topic, with governments conducting policy reviews and responding to the results of various inquiries into casino, club and hotel operations. Mandatory carded play, including time and spend limits and the introduction of cashless technology, have been features of these proposals, and the industry is concerned about the effect these measures will have on customers and financial viability.

“GTA is committed to supporting operators and governments to work through the complexity of these issues,” states Ball.

“There is no silver bullet when it comes to addressing concerns relating to problem gaming or money laundering, and while the introduction of new technology can play a role, an effective outcome requires cooperation between operators and government, careful consideration of options, and, if possible, the testing of solutions before widespread deployment.

GTA members are in a position to help with that.”

With gaming reforms a question that the entire industry is waiting to be answered, the GTA is looking to bolster the industry in any way it can.

“Our association has a well-thought-out plan for how it can contribute to the longterm well-being of gaming technology and supplier companies, venues and operators, and all that have a stake in our industry,” says Ball.

The GTA’s agenda includes: increasing stakeholder understanding of our industry; supporting efficient, balanced, and effective rules and regulations; promoting technology as an enabler of responsible gameplay; encouraging innovation to meet the player and venue needs; and representing the interests of technology companies while contributing to gaming industry advocacy more broadly.

“We want to see our industry continue its bounce-back from the disruption caused by the COVID-19 pandemic, and we will redouble our efforts to support venues/our customers and establish the conditions for growth.”

After a two-year hiatus, the Australasian Gaming Expo (AGE) flung open its doors in 2022, welcoming back venue operators looking to improve their gaming offer.

Anthony Ball Chairman Gaming Technologies Association

ENTAIN AUSTRALIA has made its presence known among punters in the last few years, growing market share in 2022 to be the second-biggest digital wagering provider in the country (by turnover). In the last year, the wagering and gaming entertainment company has also launched four new racing channels, built out its content team, and expanded its longterm partnerships with racing clubs and associations all over Australia. Its most recent focus has been working with the nation’s pubs and clubs, providing choice and a fair go for venues to commercialise their investment in Sports and Racing.

Digital wagering in the pub

While Ladbrokes and Neds – Entain Australia’s two main wagering brands –provide wagering opportunities via digital apps, the company does not see the apps and wagering in pubs as mutually exclusive. In fact, with all stakeholders focused on entertainment, Entain Australia’s General Manager – Retail, Mark Sturdy, says venues and digital wagering apps can have a symbiotic relationship.

“I don’t think it would be a surprise to many venue operators, [that] from a wagering perspective, there has been rapid change in how customers wager in venue.

“As recently as seven years ago, the Australian wagering market was predominately made up of traditional cash

bets in retail. Today, our analysis indicates that same channel is as little as 15 per cent of [a] $6bn+ Australian wagering market,” suggests Sturdy.

“What is very obvious to us is that customers haven’t stopped going to venues, in fact our estimates suggest a rapid increase in patronage, particularly post-covid. Instead, customers are benefiting from choice in the market which is something we want to unlock for venue operators.”

As part of this strategy, Entain Australia capped off 2022 with the announcement of a five-year sponsorship agreement with AHA NSW, creating choice for venues and unlocking new commercial value for pubs. According to Entain, more than 800 of the state’s hotels had reached out to Entain Australia about the marketing opportunity.

“The partnership with AHA NSW has opened a conversation with NSW hotels about the options that exist to commercialise the investment they make in entertainment experiences focussed on racing and sports. It is a real credit to AHA NSW President Scott Leach, AHA NSW CEO John Whelan and the leadership team at AHA NSW to be the first association to really understand this dynamic and put in place a framework that allows their members to monetise the investment they are making,” states Sturdy.

“For Ladbrokes and Neds, we value the ability to be able to engage with customers

within a venue under a completely flexible proposition that reflects how venues want to work with our brands.”

A venue entertainment partner

Collaborating with venues is a big goal for Entain Australia this year.

“Our ambition is to be Australia’s leading venue entertainment partner, 2023 is the start for us to earn that right, with the introduction of Ladbrokes and Neds to venues, and our first venues due to open in March.”

The first venue sponsorship to be announced is with Momento Hospitality on the Ladbrokes Lounge in the new Star Hotel in Sydney’s Hills District.

“Our core objective is to link our customers with venue operators to mutually share in the benefit of the relationship, ultimately driving more reasons to get to their local,” explains Sturdy.

“Working with venues to revolutionise how sports and racing is presented to customers, while continuing to innovate the brands in our portfolio and explore other commercial opportunities that drive value for venues in an Entain sponsorship.”

Entain Australia comes to market with a diverse entertainment portfolio across poker, trivia and a tipping platform that allows the company to work with venues to maximise patronage throughout the entire week, instead of just key racing periods.

Entain Australia has continued to grow its presence within the national wagering market, and is focused on partnering with venues to reflect how punters want to wager.

Mark Sturdy General Manager –Retail Entain Australia

G A M I N G T E C H N O L O G Y H O S P I T A L I T Y

T h e b e s t n e w a n d i n n o v a t i v e g a m i n g m a c h i n e s , c o m m e r c i a l k i t c h e n e q u i p m e n t , p o i n t - o f - s a l e s y s t e m s , p a g i n g a n d c o m m u n i c a t i o n d e v i c e s , w a s t e m a n a g e m e n t s o l u t i o n s , v e n u e d e s i g n a n d c o n s t r u c t i o n p r o v i d e r s , f u r n i t u r e a n d f l o o r i n g , f o o d a n d b e v e r a g e , e n t e r t a i n m e n t , u n i f o r m s a n d m o r e , a r e f o u n d a t t h e A u s t r a l a s i a n G a m i n g E x p o ( A G E ) .

A G E i s t h e c o r n e r s t o n e o f t h e A u s t r a l i a n g a m i n g a n d h o s p i t a l i t y i n d u s t r y . I t ' s w h e r e g a m i n g , t e c h n o l o g y , a n d h o s p i t a l i t y m e e t .

1 5 - 1 7 A U G U S T 2 0 2 3

I C C S Y D N E Y

w w w . a u s t g a m i n g e x p o . c o m

AFTER TWO years of no, or limited access to venues, sport-loving Aussies have come out to support their locals in a big way, and have been enjoying the chance to watch the big matches communally.

“It was great to see an uninterrupted year where venues could get back to pre-Covid trading levels and also good to see people back in the city centres and heading to their local venues,” states Greg Bohlsen, National Licensed Venues Manager at Foxtel Business.

Growth opportunities

2022 was a big year for sport as the world returned to some normalcy, and the local codes once more proved popular in-venue. AFL and NRL remain the most popular sports but cricket has also been getting some great traction within pubs. Other sports have also been growing in popularity, with the homegrown NBL league enjoying a bump in viewing, and with the American NBA gaining traction for hotels as a lunchtime drawcard.

“Women’s sport is also on the up with a lot of support for both women’s NRL and AFL. Women’s cricket is also

becoming much more popular with stars like Alyssa Healy setting cricketing records and commentating on Big Bash Live,” states Bohlsen.

A big addition to the Foxtel Business subscription offer that has been welcomed by publicans is a new 24/7 WWE channel.

“[It’s] great news for venues as it’s great content to have on during the day, and also contains live events such as Royal Rumble and Wrestlemania that were previously only available via pay-perview,now included as part of a venue’s subscription,” explains Bohlsen.

Foxtel has also extended its partnership with No Limit Boxing which will see No Limit fighters’ bouts shown exclusively on Foxtel, including rising star and brother of Tim, Nikita Tszyu; Olympic medal winner and Australian Lightweight Champion, Harry Garside; Former Olympian Paulo Aokuso; along with world rated prospects Liam Wilson and Sam Goodman. Foxtel will be the home of boxing with live events across Main Event pay-per-view and some live events on Fox Sports included as part of a venue’s subscription.

2023’s lineup

This year, Foxtel Business is focused on a smoother experience to launch 4K in venues. This was originally scheduled to take place in 2022, but a change in how 4K sports were distributed delayed the process.

“The fix we’re currently developing for this will mean that it’s a much smoother experience for venues, so we’re even more excited to launch 4K to the industry later this year,” states Bohlsen.

Meanwhile, Foxtel Business has an impressive lineup of sports broadcasting for pubs this year, starting with the Australian women’s cricket team kicking off their campaign to defend their ICC Women’s T20 World Cup title on Sunday 12 February against New Zealand, as well as extensive coverage of the Super Bowl on Monday 13 February. In March, there’s the return of the NRL and AFL seasons, and venues should be thinking about promoting this to their customers well in advance of the first fixture. Plus Wrestlemania is in early April and will be available on the WWE Channel to venues as part of their subscription.

Now more than ever live sports are a massive drawcard for getting people into the pub, and Foxtel Business’s sporting line-up is essential for any pub serious about sport.

Greg Bohlsen National Licensed Venues Manager Foxtel Business

AN UNCOMMONLY EASY FOUNDATION FOR YOUR FAVOURITE DRINKS

THERE ARE great years and then there are historic years. For Paul Carew, chief operating officer, 2022 was a historic year for Tabcorp.

“We successfully completed the demerger of Lotteries and Keno. This was critically important because it frees us up to focus on our core business.

‘We’ve really hit the ground running.”

In the last year, the company launched a new TAB app, making it simpler to place a bet, and have recently launched two new products – a social betting function and a same game multi function.

“The app is a real game changer for us. It’s fair to say our app hasn’t been up to scratch – now we’ve changed that, and it will continue to evolve in 2023,” states Carew.

From a retail perspective Tabcorp has introduced TAB Turf – a rebrand of many of its retail venues as well as the creation of digital-only venues that provide a cashless option for pubs. Meanwhile, MAX has begun a pivot to integrity services, with a major coup of securing the contract to monitor all electronic gaming machines in pubs and clubs in Tasmania. And from a SKY perspective, the company successfully secured the rights to distribute the Melbourne Cup Carnival globally.

A line in the sand

The company’s transformation strategy

is well underway, and the demerger was the demarcation between the old and the new Tabcorp.

“We’re more aggressive, innovative and customer focused then we have ever been before. We’re free to chart our own course,” states the COO.

“We’ve shown as a new company what we can achieve. We launched a new app on time – and it’s performing really well. You can see our retail venues are looking different. We’re moving at pace.”

The company has had some legislative wins as well. The nature of the business means it can pay up to double the fees and taxes of its competitors. But legislative changes lobbied for in Queensland, Tasmania and the ACT have levelled the playing field in those jurisdictions, and Carew expects more states to follow.

“That’s critically important because it allows us to invest more back into our customers and it means a better funded industry.”

Opportunities in venue

Tabcorp’s partnership with pubs is a huge focus of 2023, using a couple of key products to enhance the in-venue wagering experience.

“We’re so focused on innovating the experience at pubs. Venue Mode is a critical part of that – only TAB can offer this

fully integrated digital experience within pubs. That really encourages punters to come into your venue and we’ll continue to grow Venue Mode in 2023, and we’ll continue to refresh and innovate the look and feel of TAB in pubs,” states Carew.

Tabcorp has also given venues the option to become a TAB Digital Retail venue. It’s a cashless retail format that integrates Venue Mode via the TAB app and comes with SKY Racing vision. It’s a big change in its venue offering. With SKY in the mix, Tabcorp is also able to help its partners provide customers with a holistic entertainment experience.

“TAB is the only wagering company with the complete betting ecosystem. We have the digital app, the retail option, SKY Racing and in venue offers. No other company has that.”

Carew sees plenty of opportunity for Tabcorp to work with its pub partners this year to maximise growth, including the optimisation of Venue Mode.

“One thing we really want to work closely with pubs on over the next year is enhancing our presence in venues. Fresh branding, a new TAB look. That’s important for us. You’ll see more TAB digital venues too with a more streamlined design aesthetic.”

2023 is gearing up to be another historic year for Tabcorp and its pub partners.

Tabcorp reinvented itself in 2022, and venues are going to reap the benefits of a sleeker, bolder company this year and beyond.

Paul Carew COO Tabcorp

OPERATIONS

Staff, data and software systems will prove crucial this year in increasing the revenue and value of your business.

Casa Rosa is the rooftop cocktail bar housed within Solotel’s Abercrombie Hotel

New investment products and a successful, significant merger defined 2022 for hospitality specialist superannuation fund Hostplus.

MAINTAINING POSITIVE returns for balanced option members amid difficult economic headwinds was the standout of 2022 for Hostplus CEO David Elia.

“We were one of only a few funds that returned a positive result for our MySuper Balanced option over the 12 months to 30 June, beating all other balanced options, according to SuperRatings.”1

Another highlight for Elia came in the form of further SuperRatings acknowledgement, with Hostplus deemed the 2023 Fund of the Year.

“This accolade was great recognition for our ongoing commitment to improving the retirement outcomes for our 1.6 million members,” the CEO adds.

Hostplus supported this performance with the addition of three new investment options, the addition of green ETFs to the fund’s Choiceplus platform, and the announcement of its commitment to net zero by 2030.

Also notable was the addition of a further 140,000 members, 24,000 employers and $11 billion in funds through a merger with South Australian fund, Statewide Super, in April 2022.

“This [merger] has really cemented our position as a truly national, multi-sector industry fund, and one of Australia’s ten largest super funds by funds under management,” Elia says.

The absorption of Statewide Super came on the back of Hostplus’s merger with Intrust Super in 2021. Australian Hotelier asked Elia for his evaluation of this move.

“We were proud to welcome Intrust Super’s 90,000 members, 25,000 employers and $3 billion in funds under management.

“We’ve now fully integrated all former Intrust Super members, providing continuity of service through that transition.”

And there’s likely to be more to come for Hostplus in 2023, with Elia identifying a merger with Maritime Super as part of the fund’s immediate growth plans.

Super bolstered by hospitality revival

The pandemic years were bruising for most businesses connected to the on-premise and hospitality industries, but 2022’s return to ‘normalcy’ has been recorded in contributions to Hostplus funds.

“We’ve seen strong ongoing super contributions through hospitality sector employers into Hostplus, and significant new member joins through our wholesale channel.”

2022 dealt one major change in superannuation regulation that had a major impact for the hospitality industry, as Elia illustrates.

“One positive development this year

was the removal of the $450 threshold for super contributions.

“This move supports lower paid workers to build their super for a better retirement –especially casual and part time workers.”

Partly as a result of this threshold removal, the Hostplus fund has increased to 1.6 million members, with 220,000 new members joining in FY22 (in addition to those joined via merger).

“This is a great indication that our core sector of hospitality is faring well.”

Digital key in 2023

Providing a high quality of accessible online service is a priority for Hostplus across the next 12 months.

“We’ll continue to focus on uplifting our digital member services such as our mobile app, website and member portal,” Elia explains.

But ultimately, the ambition remains the same as ever for the super fund.

“It goes without saying that our number one priority is always to aim to continue to deliver the best possible investment returns to our members, while keeping our admin fee low,” the CEO says.

“This is our core focus and we’ve proven we can deliver on it.”

David Elia CEO Hostplus

1. Source: SuperRatings Accumulation Fund Crediting Rate Survey – SR50 Balanced (60–76) Index, June 2022.

2022 was a strong year for JLL Hotels & Hospitality, with the pub brokers averaging 1.5 deals per week – a massive result for the pub market, and a vote of confidence in the JLL team.

WHILE THE Australian economy was dealt multiple challenges in 2022, one asset class that did not see diminishing interest were pubs. Hotel cashflows continued to be a magnet for investor capital.

“In 2022 we saw the majority of transactions driven by long-term private hoteliers and groups taking advantage of the relative low cost of debt to grow existing portfolios. Buyers with long term investment horizons continued to seek out pubs offering tangible value-add opportunities and/or those displaying value-accretive characteristics for existing portfolios,” states JLL senior vice president Ben McDonald.

The demand for pubs was reflected in JLL’s massive year, facilitating 80 transactions nationally for its clients, as well as assisting some of the industry’s most respected and longest standing stakeholders in the divestment of often their largest single asset.

“The magnitude of such mandates is not lost on the team at JLL and we are grateful for the trust placed in the team by our clients and to have been able to repay that trust by maximising sale outcomes, often setting record results in the process,” states McDonald.

“Whether that’s selling the Apollo Bay Hotel on the breathtaking Great Ocean Road in Victoria or the Pendle Inn Hotel in Western Sydney for the first time ever by the family stakeholders, there was no shortage of highlights for the team in 2022.”

Standout sales by the JLL team in the last twelve months include Victoria’s largest ever pub deal, WestWaters Hotel and Entertainment Complex, sold to Sydney-based Oscars Hotels for $85m; Longueville Hotel in Sydney, sold for the first time in history after 100 years of ownership by the private family stakeholders for circa $50m; and the sale of Stradbroke Island Beach Hotel, located in one of Queensland’s premier tourism locations attracting over 400,000 visitors per year.

The market in 2023

This year, the pub sales market offers both challenges and opportunities for investors and operators. The first key challenge is the debt market. Where is it heading? Aggressive rate hikes in 2022 did somewhat affect the ability of some potential buyers to pursue acquisitions.

“I think the market will be carefully watching the Fed to understand where the

domestic cash rate will land and what the flow on will be for existing portfolio debt,” states the senior VP.

Proposed legislative changes around gaming will also affect acquisition strategy early this year, but the major challenge will be stock levels. The sheer volume of transactions over the last two years may mean that opportunities are harder to come by in 2023 as many long-standing owners have now exited. However this presents an opportunity for publicans looking to sell their assets.

“The positive here for owners is that the buyer pool for each asset may in turn swell due to a lack of alternate options, therefore leading to increased competition and heightened sale outcomes. My advice to those seeking to acquire is to get ready and be in a position to move quickly if the right opportunity arises,” suggests McDonald.

2023 is set to be another big year for the JLL Hotels team, with expansion plans under way and the team set to grow in New South Wales and Victoria with two key new hires. The team also has a multitude of new listings set to launch both on- and off-market so if you’re actively seeking to acquire, reach out to the JLL Hotels national team today.

Ben McDonald Senior Vice President JLL Hotels & Hospitality

The WestWaters Hotel and Entertainment Complex is Victoria’s largest ever pub deal at $85m

GROWTH IS the word that best sums up 2022 for Quantaco. The hospitality financial experts and business advisory grew its team, its goals and the list of services and products it provides to its clientele.

Its significant jump in personnel was a big sign of the business’ increased success. In the last twelve months, Quantaco has added more than 20 new hires to its team.

“All these new people are there to support our clients and provide the best service we possibly can,” states Quantaco founder and CEO Anthony Sullivan.

The team is backed up by the latest feats in technology, which helps drive business outcomes for publicans.

“We have a fantastic suite of technology that helps our team deliver our service. It enables them to provide actionable insights that create immediate value.”

This two-pronged strategy has seen Quantaco awarded 8th place in the Australian Financial Review’s Fast100 list for 2022.

“This is testament to the hard work invested by our team along with the trust and support of our ever-expanding customer base,” states Sullivan.

Real-time responses

The big lesson for publicans of the last two years has been that their businesses need to be able to respond and adapt to changing circumstances seamlessly and with as little downtime as possible.

“I think the biggest lesson is to ensure

you maintain a stable team that knows your business and can quickly react to the fast-changing environment. That’s easier said than done, however it’s not impossible,” suggests Sullivan.

Using data-driven software to respond to changes and trends within a venue is one of Quantaco’s key services, which has manifested in its burgeoning product, Salesline.

“Our service team is currently using our proprietary software we call Salesline to analyse daily wage costs, determine the targeted sales per man hour and then set forecasts to achieve the desired outcome. We have seen great success. Our clients could be saving thousands of dollars per venue.”

Quantaco launched other products in 2022 that also facilitate financial and administrative tasks within a hospitality business. One such product, Cash Up, automates the daily taking sheet. Quantaco also acquired Star Compliance which is an incident reporting, task listing and learning app. And most excitingly it continues to build out its automations and use of robotics, which will ultimately fully automate the production of financial statements.

2022 also saw the first full calendar year of operations for Quantaco’s insurance broking service and discretionary mutual fund, with both enjoying plenty of success.

“We could not be happier. The success of this service is in line with our philosophy of creating value for clients that didn’t otherwise exist. We identified the problem

of irrational premium increases, and substandard broking service and have solved it. Our clients get better risk cover, increased service and more value than they did before,” explains the CEO.

Quantaco now has a team of five working on Insurance & Risk, and it continues to grow to meet the high level of demand.

Diversification and expansion

Quantaco has a lot of things in the pipeline to execute this year, including the launch of its sustainability offer, which aims to help venues move to being carbon neutral through the analysis of a venue’s operational data.

“Being carbon neutral starts with understanding your data. If you understand the carbon you create then you can effectively reduce it or offset it. Collation of the right data enables you to understand your starting point. Quantaco is ensuring we can measure the carbon for our venues. Watch this space,” explains Sullivan.

The business will also continue to build out its software solutions to both increase its services to existing clients, while expanding its accessibility to more publicans.

“We are also looking to expand our offer across existing service lines so our value can be accessed by a broader cross section of the market. We want to be able to help the single venue operator as much as we help our large groups.”

Hospitality may be all about people, but data-driven tech is making all the difference for the running of pub businesses in 2023.

Quantaco continues its push into more responsive data-driven solutions for its pub clients, using a bigger team, new technology and a more holistic suite of services.

Anthony Sullivan Founder & CEO Quantaco

DATA CONFIRMS that on-premise trade picked up last year as consumer confidence returned and restrictions lifted. Reservation data in particular showed Australians returning to pubs for a meal.

“We know that more diners are making bookings, but we can also see that diner bookings for smaller, independent venues increased by over 30 per cent in 2022,” states Rebecca Zeitunian, regional head of growth – APAC for ResDiary.

Locking in trade

In the last twelve months, more F&B venues have been adopting reservation management systems, as a way of better securing diners after some turbulent times of last-minute cancellations and no-shows.

Some venues also require a deposit for large group bookings, or have included a last-minute cancellation fee in their RMS. While the public is getting better at committing to its bookings, Zeitunian says there’s a clear correlation between better booking systems and policies, and the decline in cancellations.

“It’s very pleasing to see that cancellations still continue to decline. We believe this is due to the diner making a financial commitment when making a reservation. It’s great to see diners aren’t deterred from making this commitment and becoming more understanding of the impact of no-shows on our venues.”

At a more fundamental level, having a booking system is essential for most venues as a reflection of current consumer trends. Gone are the days of waltzing over to your favourite pub to see if you can snag a table – most people want to know with certainty that they have a spot before they venture out. ResDiary data backs up that behaviour.

“Diners make plans on average four days in advance, and having a few drinks at your establishment is likely already planned as part of their going-out experience. Especially on weekends,” explains Zeitunian.

Saturday is still the most popular day for people to go out, followed by Friday and Sunday.

“Make it easy for them to reserve a spot at your venue by excepting online bookings.”

ResDiary saw a 17 per cent increase in pubs and bars adopting its software in 2022.

A better staffing strategy

The other benefit of using a diner booking portal, is that having a better picture of how busy each day or part of the day allows a venue to make more informed staffing decisions. By seeing bookings in advance, venue managers can roster on staff accordingly. This means you can reduce labour wastage.

“Pure historical sales dollar figures often don’t tell the whole story about how best to forecast a roster, structure a service, and optimise both labour spend and customer service. Having a reservation management system like ResDiary provides you with the data you need to spot trends, so you can forecast confidently and make future staffing adjustments,” suggests Zeitunian.

There’s clearly a lot of upside in utilising a reservations management system, for patrons and venues alike. Pubs have clearly been getting on the booking bandwagon, as ResDiary saw a 17 per cent increase in pubs and bars adopting its software in 2022.

ResDiary is expecting more global and local partners to get on board this year, and is busy working on software improvements to further optimise it use for venues.

A sure sign of returning trade is dining reservations, and ResDiary data shows that Aussies are returning for a pub feed in droves – particularly when they know a table is waiting for them.

Rebecca Zeitunian Regional Head of Growth, APAC ResDiary

Diners make plans on average four days in advance, and having a few drinks at your establishment is likely already planned as part of their going-out experience.

Training in-house

With staff shortages still an issue throughout hospitality, some pub groups have started looking internally for solutions to their personnel woes.

MAINTAINING IDEAL staff levels has been an issue for the industry at large for many years now, but this has been exacerbated by covid –both through migration and travel restrictions, as well as a portion of employees within venues leaving the industry altogether to start careers elsewhere.

The Albanese Federal Government has begun working on the backlog of working visa applications, committing more than 30 extra staff to tackle the awaiting applications. The industry is already starting to see approvals pick up the pace and the problem is not as dire as it once was, but there is still quite a way to go before pub venues get all their staffing requirements fulfilled.

While initially the problem was specific to chefs and other kitchen workers, the last two years has seen the staffing problem grow to include venue managers and other mid-level group positions.

Luke Butler, managing director of Hastings People, gives his assessment of the current staffing market within industry.

“While it’s clear that talent shortages persist within the hospitality sector, we can now see a light at the end of the tunnel in a few key areas.

Hostels across Australia’s East Coast are filling and the return of many foreign workers is beginning to remove a lot of pressure from front-of-house roles.

“Key challenges remain in leadership positions and specialist roles such as sommeliers where the market is still tight.

As there is no quick fix, some operators have begin looking internally to recruit - training up staff with potential to fulfill much-needed roles.

“The focus on building talent is still a key strategy being employed across the sector, as operators have succumb to the fact that talent is simply not going to walk through the door,” suggested Butler.

“Training at all levels is a priority, as is employee experience, ensuring that teams are well looked after to ensure retention is high.”

Looking inward

The staffing issue is even more pressing in regional areas. For Flower Hotels, located on NSW’s Mid North Coast, growing and improving an internal training program is an urgent focus for the year ahead.

“A priority is how we can bolster our staff through our internal training programs. We can’t just put out

The importance of internal development and leadership programs is at the forefront of how we’re evolving our business.

Alistair Flower, Flower Hotels

Hostplus is a top-performing super fund that puts members first. That’s why we’re proud to have been named the 2023 Fund of the Year by third-party ratings agency SuperRatings. Judged across three areas: strong performance, competitive fees, and an ongoing focus on members, we’re thrilled to receive this recognition.

The rating is issued by SuperRatings Pty Ltd ABN 95 100 192 283 AFSL 311880 (SuperRatings). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating and awards are not recommendation to purchase, sell or hold any product and are only one factor to be taken into account when choosing a super fund. Past performance information is not indicative of future performance. Ratings are subject to change without notice and SuperRatings assumes no obligation to update. SuperRatings uses objective criteria and receives a fee for publishing awards. Visit www.lonsec.com.au/superfund/ratings-and-awards/ for ratings information and to access the full report. © 2022 SuperRatings. All rights reserved. General advice only. Consider the relevant Hostplus PDS and TMD at hostplus.com.au and your objectives, financial situation and needs, which have not been accounted for. Awards and ratings are only one factor to consider. Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 trustee for Hostplus Superannuation Fund, ABN 68 657 495 890. HP1973

a job ad anymore, we need to build from within,” stated managing director Alistair Flower.

“So we want to be maximising our training and staff development platforms. The importance of internal development and leadership programs is at the forefront of how we’re evolving our business. And that’s a comment on scale as well.

“We employ over 300 people in the LGA now, we want to make sure that we’re bolstering the experience through internal programs.

Elsewhere, one novel external recruitment tactic led one of Australia’s largest pub groups to create more of an internal development program.

In preparation for the summer/holiday period, Australian Venue Co held ‘casting calls’ in October last year in Sydney, Melbourne and Perth to bolster front-of-house staff numbers. The casting calls would hire attendees on the spot, serve them up a free lunch, and give them a two-hour paid induction into the group.

“We recruited about 350, 400 people specifically from the casting calls,” stated Paul Waterson, CEO of Australian Venue Co.

“We recruited in total, 3,200 new members to the team between September and December. That included 2,700 people who were new to the sector.

As such, the pub group had to quickly develop an in-house training program to deal with a large number of new employees with no former experience.

“So what we had to do as a result of that is really develop a very significant front-of-house training team, which has been led by Bianca Dawson, previously CEO of Sand Hill Road,” explained Waterson.

Placing a job ad no longer cuts it when it comes to recruiting – venues have to sell themselves to potential hires, and having a training program that will foster their development is one way of attracting talent with a lot of potential. It also helps businesses hang on to rising stars who could end up being very important to your venues.

The staffing issue may not be as dire in 2023 as in past years, but pub operators can’t get complacent, ensuring that they are doing everything they can to attract the right talent.

Opportunities in 2023

With a new year comes new possibilities. What products, occasions and activations will provide pubs with the most opportunities for growth in 2023?

THE LONG LUNCH

After a frenetic year of being hustled and bustled in and out of venues in 90 minutes, this year catering for a longer, more leisurely lunch may be the way to go for many venues. Data from ResDiary shows that two-hour bookings are most popular, with 150-minute seatings gaining popularity.

Pubs with a second dining offer besides the bistro can use this to their advantage, targeting everything from the corporate lunch to small gatherings of friends and families for special occasions such as a birthday or anniversary. You might not be turning those tables over as quickly, but with increased stay comes increased F&B spend, which could then spill over into other areas of your venue.

NOLO

While the NOLO category has been growing for a few years now, it’s only just in the last 12-18 months that it’s begun to really be taken seriously within the on-premise market – and the category still has a lot of growing to do.

New data from IWSR is predicting consumption of the no and low alcohol (NOLO) category to increase by a third by 2026, with non-alcoholic products in particular driving this growth. Australia in particular is tipped for double-digit volume CAGR growth in the period leading to 2026.

The majority of this growth is likely to be spearheaded by non-alcoholic beer and cider, which the IWSR has specifically identified as providing nearly 70 per cent of the total growth in the NOLO category. Nonalcoholic wine is also expected to expand but in a more fragmented way, while non-alcoholic spirits will see ‘more dynamic growth’, with an emphasis on innovation in this sub-category. If you haven’t already, it’s time to give some serious thought to your NOLO offering, with the same sort of consideration you would with any other part of your drinks list.

Lunch at Cinder in the Terminus Hotel, Fitzroy North

Growing interest in NOLO has spurred on events like the Dry But Wet Discover Series

SOUND PLUS LIGHT

Whether it’s for your dancefloor or for a live music act playing, having the right audio set-up has always been a must. But to make your entertainment offer stand out, a good light show is also key. For Elliot Solomon, CEO of Solotel, including top-notch light show capabilities within the club space at the new Abercrombie Hotel was essential for a comprehensive entertainment experience.

“That’s a big difference now. It’s not just about going into a little dirty basement and having a dance, it’s about a multi-faceted experience through sound, the light, the food & beverage product.”

DISCO NIGHTS

Many people have taken the time over the last few tough years to put their lives in perspective, and for many people that means prioritising things that bring joy. And what’s more joyful than dancing?

Between compliance regulations and security woes, many pubs have moved away from a nightclub offer over the last decade. But with consumers focused on fun and entertainment in their late-night choices, it could very much be worth your while in taking the time to put together a well-executed, safe nightclub offer that brings the party back to your pub.

A light show accompanies DJs playing at Kings Cross Hotel

Having a club offer was a big focus of Solotel’s new Abercrombie Hotel

LARGE CULTURAL EVENTS

There are some major events happening across Australia this year, including WorldPride, SXSW Sydney and the FIFA Women’s World Cup, just to name a few. With these events comes an influx of overseas and domestic tourism, not to mention locals just generally being out and about more.

Venues can get directly involved with these festivals and tournaments, by hosting related side-events, after parties, viewings and more. Even if your pub doesn’t get involved directly, there are plenty of opportunities to market your venue to the crowds that come out for these big cultural and sporting festivals. Everyone’s got to eat!

CROSS-VENUE PROMOTION

For pub groups with more than one venue, using customer data to cross-promote your various pubs is a key way to grow your business – by providing your patrons with variety of place and offer. There are various ways to market other venues to your guests, whether its through something as simple as a social media post, or something as sophisticated as a company-wide app that promotes tailored deals to each user. The former has been employed by Australian Venue Company, who moved from a thirdparty app to one developed in-house – and the cross-venue sales have increased since.

“One of the key things that we really wanted to develop is a much better venue discovery experience. There’s a great map, you can see your favourite venues, and you can see what’s nearby at any point in time with location services switched on,” explains CXO Marianne Mewett.

“We do monitor that cross-shop data piece very closely so we know that loyalty customers are more likely to visit more than one AVC venue.”

Consolidating data across venues is a key priority for Flower Hotels in 2023 – particularly as the group has all of its venues in the one LGA.

“Loyalty is a big one for us. Because we’ve got all of our venues in the one location, how do we really take the digital and loyalty experiences to the next level through our scale in the region? We need to be able to use the data that’s provided to assist with our decisions,” suggests managing director Alistair Flower.

Left: AVC’s The Pass app

Tacking Point Tavern is one of several Flower Hotels pubs in the same LGA