When it comes to machines, Punch Taverns licensees have more choice than ever before.
Economic changes and legislative pressure being placed on the fruit machine market means retailers should diversify their machines offer and use creative thinking to develop new income streams, according to Punch.
Mark Bowen, machines manager for the leased and tenanted pubco, said: “We want to challenge the perception that pubs are just about fruit machines and nothing else.
“Our pub operators can access a broad range of machines designed to appeal to their customers – quiz terminals, music, games and even vending equipment.
“Punch’s focus over the last 12 months has been getting the right product mix in all pubs so retailers aren’t reliant on any one machine type for their income.
“And when machines are in place, we’ll monitor usage, check the placement and encourage retailers to seek customer feedback to ensure everything is working to the pub’s best advantage.”
Advances in technology mean licensees can get far more usage out of a single machine – multi-terminals offering anything up to 15 different games, or MP3 based jukeboxes, which store considerably more music than CD systems.
Mark said: “Just as our retailers have more choice, so now do the pub going customers they are trying to please. It opens up the market to a whole new audience and with extended opening hours on the horizon the opportunity to drive alternative machine income must be seized.”
Keeping An Eye On The (Cue) Ball
Twelve months ago, Punch Taverns was confident it could revive interest in traditional pub pastimes – including pool.
Since then, the number of tables appearing in the pubco’s estate has increased by around 20 per cent.
But this isn’t purely a numbers game. Punch also wants retailers to make better use of their tables and has been working with suppliers to help spread the word.
Mark Bowen said: “There’s much more to pool tables than running a local league or offering teams a place to practice. After all, how many customers have the space or money for a table of their own at home?
“The pool table definitely draws customers to a pub so the landlord should make a proper feature out of it. We’ve asked Punch’s suppliers and machines managers to discuss this with our retailers when they’re out in the estate.
“Do they ever run customer competitions, speed or killer pool matches, invite experts along to do trick shot demonstrations, or stage big prize pool ‘lottery’ events?
“Most ideas like this require very little financial outlay, but can generate big returns from pool players and their friends and family who come along to offer support.”
Punch recently staged a massive inter-pub pool contest in association with Holsten Pils and Greene King IPA.
It involved 960 teams from 700 pubs and more than 7,600 individual pool players all competing for a share of a £7,600 prize fund.
All participating pubs received a special tournament kit including cues, chalk and promotional posters and were encouraged to stage their own additional in-outlet competitions.
Mark said: “From round one through to the grand final, we estimate pubs created 5,000 transaction evenings. We held eight regional finals, which attracted 2,000 customers and generated over £10,000 worth of bar takings.
“It’s a fantastic illustration of the added value a well organised competition can bring to a pub.”
The event was eventually won by the Old Crown in Coventry in a close fought final which was refereed by professionals from the English Pool Association.
Cashing In On New ATM Deals
Two new supply deals in conjunction with Hanco are encouraging Punch Taverns licensees to install convenience cash machines.
Fifty-seven new machines have been placed since the deals first became available just a few weeks ago.
The first is a free placement offer where the retailer pays nothing in exchange for a slightly lower rate of commission. Both the ATM delivery and BT line installation are free – Punch also covers all ongoing telephone line costs.
Retailers earn 10p for every successful cash withdrawal, rising to 30p after 100 transactions per month.
Deal two is a low weekly rental agreement that offers a basic return of 45p per transaction, rising to 70p after more than 260 transactions per month.
Mark Bowen said: “It’s simple – in the right pub and used correctly, a cash machine will enhance the retailer’s business. Our new free placement deal eliminates any risk and the licensee can switch between deals if they change their mind.”
According to Mark, the benefits of having a cash machine in your pub are extensive – not least, the convenience for customers and money saved on banking fees.
“Then, of course, there is the commission earned but actually we tell retailers not to get too hung up on this,” he said.
“It’s a useful additional income to have but far more significant is what happens to the cash that customers withdraw. In our experience, up to 40 per cent is spent over the bar.
“If you can’t offer the customer instant access to their cash, that additional spend goes out of the door with them.”
Besides new supply deals, Punch retailers can also enjoy access to new ATM technology. Now available are cash machines with built in mobile phone top up facilities and ones that can allow withdrawals from a credit card.
Mark said: “Credit card withdrawal is a particularly exciting development, particularly for pubs in tourist locations. They will be able to access cash in a safe environment and, of course, use some of it on the premises.”
Punch Taverns currently has approximately 350 cash machines installed in its UK pub estate.
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