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Pubtic A4 Mag January 2015.Indd Volume 1 No.1 – JANUARY 2015 2014 In Review Justin Hemmes exclusive on pubs and the future Real Estate Rising – where’s the boom headed? Quick, easy money-maker cocktails January 2015 PubTIC | 1 Contents JANUARY 2015 6 14 12 FEATURES COLUMNS REGULARS 6. 2014-The Year That Was 24. Where’s the Money? 4. Editor’s rant Taking a big-picture look at the Manager of Perth’s Luxe Bar and 10. Brand News: product news for major pub events of the last year. former liquor mag editor Sacha pubs. Delfosse talks pub summer 14. View To The Future cocktails. 12. The Flutter: news and trends Hospitality legends Justin from the world of gaming. Hemmes and Andy Freeman speak exclusively to PubTIC about ideas, industry and innovation. 20. Pub Values An in-depth look at influences on pub real estate in the current market. January 2015 PubTIC | 3 Editor’s Rant I was born in a pub. By that, I don’t mean that is the ‘pub’ represents more in our hostile, metaphorically I have spent too much time sprawling environment than any other country haunting public houses. After entering the world in I have encountered. Typically the centre of Mona Vale hospital, my parents brought me home towns, frequently the shelter in crisis or the hub to the Frenchs Forest Hotel, where they worked as of community change, from tin shacks to multi- recovery managers for Tooths. One of my earliest million dollar creations, the pub is one of the most memories is sitting outside in the courtyard, aged 3, ubiquitous and socially significant industries in watching the enormous drive-in movie screen next Australia. door, with no sound. I have begun this publication in honour of our Going on to spend the customary years attempting beloved pub culture, and hope to become the to sneak into licensed venues as a teenager, I industry bible for the highs and lows of something began like so many in this industry, picking up none of us would ever want to have to do without. glasses and pulling beers behind soggy bar mats. We are The Information Collective (TIC) and will Spending uncountable nights on both sides of the use the power of digital and information analysis to bar somehow qualified me later in life to operate bring better-than-ever perspective to the roughly the hotel of an old family friend in the Southern 5,000 pubs and tens of thousands of people California party town of San Diego. employed by them. The American pub scene is somewhat different to Cheers – to the Aussie pub. Australia, with most staff working predominantly for tips. This has created a highly service-driven environment that sees a lot of hungry young people eager for employment. San Diego also has the lowest average age in the country, with several major universities and America’s largest naval base, Miramar, only a short distance from party central, Pacific Beach. Located in the heart of ‘PB’, The Australian Pub focused on some of the elements that make us such a great pub nation (plus a sickening amount of boomerang-style paraphernalia) and allowed me to enjoy the best of both cultures in the one location. For the past four years or so I have lived, breathed and written about the subject of operating pubs in the wide brown land. The institution PUBLISHED BY: PUBLISHING EDITOR: SALES & CIRCULATION: The Information Collective Clyde Mooney Dave Kenna 24 Albert St, [email protected] GRAPHIC DESIGN: Granville, NSW Therese Lloyd Australia 2142 PRODUCTION: Clyde Mooney DISCLAIMER: This publication is published by The Information Collective Pty Ltd (theYour “Publisher”). thoughts The Publisher accepts no onliability, theto the extent matter permitted by law, are for materials welcome appearing in this publication supplied by outside parties. All material is protected by Australian intellectual property laws. Duplication of anyClyde part of theMooney publication is – prohibited pub media without the die-hardwritten consent of the Publisher. Reference to products or services in the publication does not amount to the Publisher’s endorsement. Views expressed in the publication do not necessarily represent those of the Publisher, its agents or employees. Use of the information contained within this publication is the sole risk of the person using the information. All terms, conditions, warranties, assurances, state- ments and representations in relation to the Publisher, its publications and its services, whether express or implied, are expressly excluded, save for those which must be implied under the laws of any State of Australia, or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any subsequent statutory modification or re-enactment thereof. The Publisher will not be liable, to the extent permitted by law, for any damages including special, exemplary, punitive or consequential (including but not limited to economic loss, or loss of profit, revenue or opportunity) or and indirect loss or damage, even if advised of the possibility of such loss of profits or damages. While every attempt is made to ensure accuracy, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. 4Copyright | January © 2015 - 2015The Information PubTIC Collective Pty Ltd January 2015 PubTIC | 5 Feature 2014 - The Year That Was Clyde Mooney takes a look at the year that was 2014. 2013 closed brutally for the hospitality industry as Briefly, the State Government (under Barry O’Farrell), a second teenager was struck down by a coward Hospitality Minister (then George Souris) and Police punch on the streets of Kings Cross. The random Commander Mark Murdoch all rejected ideas of New Year’s Eve incident cast a shadow over the implementing the so-called ‘Newcastle solution’ of coming year, as the public reacted to media seizing lockouts and cut-offs, citing its potential damage to on the disturbingly similar events to paint a picture Sydney’s international image. of a trend and culture that was out of control. Poignant cries by the likes of the AHA for Whilst there may be more than just anecdotal mandatory drug-testing for offenders were attacked evidence of ‘escalating violence’ in youth, the raft in the media as merely the scape-goating of a of measures already imposed on Australia’s most privileged pack of wealthy business owners with notorious entertainment district – and the increases politicians in pockets. Failure to even publicly to those measures that would follow in coming address the issue of offenders coupling the legal months – put onus on venue restrictions and consumption of alcohol with unknown catalysts for entry times, despite the fact that the twin incidents violence such as ‘ice’ and anabolic steroids, not only occurred on the streets, early in the evening. places an unfair burden on the liquor industry but risks merely shifting the problem to less controlled environments. Despite the mounting evidence against heavy- handed measures, the O’Farrell Government back- flipped the following month and blanketed the CBD and Kings Cross with harsh and ill-conceived regulations that would shape the year to come. Amazingly, the new laws were scheduled to come into effect on the weekend of one of the world’s great street parties, Sydney’s gay & lesbian mardi gras. On the cusp of February, Iris Group confirmed its acquisition of the Coles-leased gaming mecca the Palms Hotel in Sydney’s golden Bankstown district, for around $23m. The first of a busy year for Iris, which touts its strategy of acquisitions upon which it can add value – historically through structural expansion – the site is on 12,000 square metres and already had established DA potential for development. American gaming giant Bally Technologies, fresh from its takeover of SHFL Entertainment in 2013, cemented its foothold into Australian pubs inking a 6 | January 2015 PubTIC The Year That Was deal with Australian Leisure & Hospitality (ALH) to leasehold on the heritage-linked Plough Inn Tavern. roll out a suite of applications, featuring amongst The same week, Queensland’s Fox Group fell victim other things voluntary commitment, across 270 to echoes of the crisis years, losing the Surfair venues. ALH announced that the measure was at Tavern to administrators. least partially motivated by the Woolworths-backed Coles continued its freehold divestment strategy, group receiving consistent negative publicity testing the markets in Queensland and for the around its gaming interests. first time in Western Australia, with the Old Bundy Another finance-backed new player to pubs, Tavern and Victoria Park Hotel (respectively). Halcyon Hotel Group (HHG), charged Perth institution the Paddo Ale House, into another expansive year by operated for over two decades by AHA securing the coveted Buena Visata, in President and former league great Neil the rich and almost pub-less suburb Randall, also came up for sale. The of Mosman. “heart and soul of Mt Hawthorn” lease Justin Hemmes kicked off what was successfully bought (again) by would be busy yet another year for Randall. Merivale with the purchase of the Recognising issues with scale, Paddington Arms from high-profile particularly after the Brisbane foodie pub operator Joe Saleh, who acquisitions, Riversdale sold its beloved had found the Oxford Street pub Bellevue Hotel in Paddington for north didn’t quite fit between his Colin of $5m to the Steven Speed and Peter Fasnidge-fronted Four in Hand and Walker operation WDS Group. 4Fourteen fine-dining venues. In April Merivale struck again, consolidating its Riversdale re-opened the enormous Elephant & move into the Eastern suburbs with that of the Wheelbarrow Hotel it had bought for upward of massive but de-crowned Coogee Palace.
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