Very often the success of a pub company depends on how well they buy. This month we take a look at some of the people making buying decisions at Scotland’s key companies. Between them they account for millions of pounds worth of spend every year.
How long have you been doing this role with the company, and what were you doing immediately prior to assuming the role?
1) Don Lawson: Johnny Foxes, Inverness: “I have owned the company for 15 years and prior to that I was the Chief Executive for Aviemore Mountain Resort.
2) Tracey McRorie, Castle Leisure, Stirling: “I have been in the buying role for my entire career in the family business. Before this I was at school!”
3) Billy Lowe, Saltire Taverns, Edinburgh: “I’ve had Saltire Taverns for 14 years now, and prior to that I was at Thistle Inns with one year out in between companies.”
4) Peter Ross, Navan Taverns, Motherwell: “I have had Navan Taverns for just over 10 years now. Prior to that, except from a short spell working for a health board, I have been involved in the pub trade for over 30 years.”
5) Euan Bain, EMB Leisure, Glasgow: “I have been buying for this group for two years and have been involved in operations for many years.”
6) Malcolm Binnie, Townhouse Restaurants, Falkirk: “I have had Townhouse Restaurants for about six years, and before that I was at Whitbreads, for just over 20 years.”
7) Gary Thomson, Fuller Thomson, Dundee, Edinburgh, Glasgow: I’ve been doing this for the last 13 years when I started my own business, but for FullerThomson for the last six years. I do this as one of many other jobs.”
8) Senga Love, CPL, Glasgow: “There was an opening within our company and as I had already been working for the company for a number of years, they thought I was suitable for the role. I enjoy this role as it gives me a good insight into the goings on within the licensed trade, and it is also good to ensure I get the best deals that benefit CPL.”
9) Fraser McIlwraith, Buzzworks, Ayrshire: “I have been the liquor purchasing manager for two years now. Prior to this I was (and still am) the company bar manager.”
10) Nic Wood, Signature Pubs, Edinburgh: “I have been doing this since I became a Director of the company, which is nine years now. Prior to that I worked for S&N.”
11) Martin Luney/Colin Church, Big Red Teapot (Treacle/Hamilton’s, Edinburgh): A BRT was launched in 2008. Previously we were both working as general managers with Montpeliers (Edinburgh) Ltd.”
What do you look for when choosing a supplier?
Don: “What I look for is something that is very important to me, and that is the people you are working with and establishing a good relationship with them. I have been involved in the licensed trade for the last 30 years, so I remember the days of the Bell’s reps and these guys were real characters. Sometimes reps become good friends and when that happens, there is a good chance that I would move with them.”
Tracey: “Price. Recommendation.”
Billy: “For me it is all about the relationship you have with a supplier and the individual you are dealing with. Obviously pricing is important, but loyalty is a big thing for us, which is why we very rarely change suppliers. Having a good working relationship is vital and it is a fundamental, personable part of the business.”
Malcolm: “The most important factor for me is the quality of the product. We could always cut the price by using other companies but I wouldn’t get the same service, energy or enthusiasm. I prefer working with a supplier who brings something extra to the table, other than just good price rates. I enjoy working with reps who are happy to discuss ideas, and are willing to support the restaurants by way of bringing some enthusiasm to the role.”
Peter: “Well first and foremost would need to be reliability! Delivery times, and delivering on promises is also up there. Price is of course important, and I always shop around to get the best possible deal.”
Euan: “Transparency and honesty and of course a level of hands on service that suits the demands of your business. I want to be able to have a frank discussion on difficult issues with a dedicated handler, face to face. I need a company that shows a hunger for my business.”
Gary: “Quality, service and good value but not necessarily in that order.
Senga: “Pricing and flexibility.”
Fraser: “The supplier must provide a good product, top quality service, great staff and be willing to work with us in order to help sell their product.”
Nic: “I would say there are three main things that instantly spring to mind – Convenience, good delivery times and price are also a major factors. I also favour a good rep who get backs to you quickly, and who is willing to work with you on ideas and pricing.”
Martin/Colin: “There are different things to consider, depending on the product. As an overview, we choose products that are financially viable with regard to current pricing structure and margins, commercial, when we consider current buying trends, readily available and sustainable. Ultimately, whatever we choose – whether it be food, drinks or disposables – it must fit our customer dynamic and ethos.”
Obviously price is important, but is it the defining reason when making a decision?
Don: “No.”
Tracey: “No. The quality of the product is paramount, as is a proven track record and being able to meet the commitments that are given.”
Billy: “No. It is important but other characteristics like the working relationship you can have with a company are just as important.”
Peter: “In all our units we have good quality brands, so I wouldn’t choose a cheaper product just based on price alone. I would always try and get the best price on premium brands. So what I would say is the defining factor for me is value for money.”
Euan: “In this economic climate cash is king, however, I’m a bit old fashioned. If I can do business with someone I like then that will cement a longer term supply agreement, and often allows you to iron out future price issues.”
Malcolm: “No, not when choosing a supplier. If something was overpriced then that would be an issue, but for me it’s all about the quality of the product.”
Gary: “In my opinion it mainly is, as the other issues you can work with a supplier to improve things, but generally all three points I mentioned in the last question are key.”
Senga: “Yes but it’s also good to have a good working relationship.”
Fraser: “At the top level, we take it for granted that the supplier is good at all the above, the relationship is important, but very often the decision will come down to best price.”
Nic: “It is important but not the defining reason. I would say what a supplier has to offer by the way of good products and quality is just as important to me.”
Martin/Colin: “It is not the most important thing. It is more important that the product is commercially viable – in terms of buying trends or sustainability.”
Have you found that since the recession suppliers are working harder and are more likely to work with you on certain promotions/training?
Don: “Yes they are. There are more tasting events happening, we have the whole Whisky ambassador concept now and I have definitely noticed that there is more contact from suppliers.”
Tracey: “Most definitely. I now enjoy a closer relationship with my suppliers and I find that they go that extra mile to meet the needs of individual businesses instead of a one-size-fits-all approach.
Billy: “Yes I think they have been extremely helpful, and as a result the bond we have is even stronger.”
Peter: “Yes, absolutely! Suppliers are definitely working harder, and they have all sharpened their pencils. There seems to be more available now in terms of what’s on offer, and what they are willing to do for you. They also seem to be working harder to deliver on their promises too.”
Euan: “There is a willingness to develop a more “all encompassing” approach to service. Many are now keen to explore how they can deliver added value to the product. This has given rise to innovative ways of hitting the figures required. It would be fair to say that many reps have been given a little more ‘rope’.”
Malcolm: “Yes in general they are, just like everyone else has to. Most of my suppliers will always look to offer me better value for money, but our whole business is based on quality service and products.”
Gary: ”Yes. In virtually all cases companies are trying harder and adding value where possible with the likes of product training and sales initiatives.”
Senga: “No, I find it harder as most of the suppliers budgets have been cut due to these hard times.”
Fraser: “I’ve only been doing this since the recession started, however that would be my perception yes.”
Nic: “I think suppliers are certainly bringing more to the table now in terms of encouraging you to go with them, explaining what they can do for you, and why you should choose them. “
Martin/Colin: “We have always had good relations with all our suppliers the recession hasn’t changed that.”
How important is it to see a rep?
Don: “Very Important. In fact I had an incident with a past supplier when my sales rep went off sick, and then I didn’t see a rep for months after, despite calling them. I felt a bit neglected so I moved.”
Tracey: “Very important. Good customer/client relations are essential, and you have to develop a personal relationship so that you feel comfortable calling them up when you have an issue or query without being made to feel it’s bothersome to them.”
Billy: “Quite important, yes. I like to see reps popping round the units and taking an interest, and giving support to our senior management. I have been pleased on the whole with the visability of the reps we see.”
Peter: “Although we have been here a while, we will still make time to see our reps on a weeky basis. It’s important for me to have a strong relationship with a rep as it builds up loyalty, which results in a better service. Plus it means I will always be kept up to date on future offers and told in plenty of time if there will be a price increase on any of my products.”
Euan: “Essential. When you need to.”
Malcolm: “It really depends on what you are buying. I don’t see reps too often, usually on average once every three months. I only contact my reps more often if there is an issue, which usually means that when I call them the first question i get asked is “What’s wrong?”
Gary: “Personally I am not one for an overly regular rep visit, I would generally get in touch if I wanted something and I would expect the rep to do the same. Not everyone is the same however, so it’s more what suits the individual.”
Senga: “It’s good to catch up with them so we can put our ideas for events within our clubs to them and how best to push their products that benefits us both.
Fraser: “Very. A good relationship is key and Forth Wines is a great company. They work hard with us to help train our staff and run interactive wine tastings for our customers.”
Nic: “I don’t need to see a rep every month, but I do speak with them regularly. If I was changing things all the time in my units then perhaps I would need more meetings, but I’m not. On average I will probably see each of my reps four times a year. It is important to be able to have a good relationship with your rep, and with most of them I do look forward to meeting for a catch up. I have always used Forth Wines, and I have a very good relationship with John Robertson who has always done a great job for me. Depite the fact that John doesn’t look after Edinburgh now, he still takes the time to visit me and is still my main rep, which I really appreciate.”
Martin/Colin: “Depending on the situation. If we are launching a new product, it is very important, to discuss the brand, taste notes and service.”
Is there anything generally that you think suppliers could do better?
Don: “I think from my experience that maybe reps should be spending more time with the customers they don’t know, in order to build up a better relationship with them.”
Tracey: “I think that suppliers are working harder than they have ever worked. They are definitely in the business of providing the best possible service, even dealing with anything negative, like complaints. Gone are the days when things would have been brushed under the carpet. Customer expectations are also higher.”
Billy: “I might be going back a wee bit here, but keeping in touch more. Letting us know about new products and offers before we see them first. Delivery wise, things could be a bit better when it comes to flexibility on delivery dates and times. Forth Wines are one of my main suppliers! They have been phenomenal to work with and shown us great support by using my units for events. They have been very supportive and their involvement in the training side of things is second to none. From a visibilty point of view they are probably as good as anything I’ve witnessed in all my time working in the pub trade. In fact since moving to Forth Wines, I have noticed a huge increase in the time that personnel spend around the business, and they are always at the end of the phone if you need anything. The flexibility they offer is better than anyone else.”
Peter: “Price could always be better for sure, but I’m aware that suppliers will be working on reduced margins, and, with the cost of fuel increasing they need to take that into account when it comes to deliveries. As long as I maintain a good relationship with my suppliers, and feel that I am getting the best deals the can offer, then I’m happy.
Malcolm: Obviously price for sure! However, one thing that can be tedious is when you get your credits through every month which can be three pages long! This could be an easier process!”
Euan: “Two ears one mouth – use in those proportions. Pull a shift behind the bar or on the floor. That would be interesting for those that haven’t.”
Gary: Quicker credits for missing/damaged/returned goods and less out of stock/discontinued wines
Fraser: “No.”
Nic: “Price is something that could always be better. What I find frustrating is the extra work that is created for me every time prices go up. When prices increase they don’t give you an up to date price list, just a unit amount on what each brand has increased by. This means I need to sit and work out all the new prices which is time consuming when prices go up more than once a year.”
Martin/Colin: “The most important thing for us is to have constantly changing products to keep things current and interesting. As long as suppliers have an evolving portfolio, we will be happy. Adequate training for new products, ensuring that products are sustainable and priced at a level that reflects today’s customers’ changing financial situation are all vital.”