The Eat Out to Help Out scheme has succeeded in getting some people at least back out into the on-trade, but it has not necessarily helped sales of wine, which is where Hallgarten & Novum Wines hopes it can make a difference now the government scheme is coming to an end.
Can you talk us through this new 100,000 glasses of wine promotion – how is it going to work?
Whilst there have been a number of promotions and initiatives helping the hospitality industry, there was nothing specific to wine that helped our partners in the on-trade drive footfall. With the government’s highly successful Eat Out to Help Out scheme – which we have seen really benefit the sector – concluding at the end of August, we felt it was an ideal time to weigh in and do our bit to bolster the industry.
Some restaurants have been able to get back on their feet again thanks to the Eat Out to Help Out scheme that ends this week
In the third week of August we invited over 1,500 of our customers to take part, as well as publicising the offer to the wider sector through a social media and PR campaign. Since then we are delighted to say we have seen a huge demand to register and get involved in the initiative, as well as receiving some great feedback.
The closing date for entries is Friday August 28, following which the team will sort through all the entrance forms and allocate the 100,000 glasses to hospitality businesses.
Here are some of the responses we have had from our customers:
Andrew Overstone, operations director at Dakota Hotel Group, said: “Confidence is building in the hospitality sector and we are delighted to see guests returning to us. The 100,000 glasses initiative from Hallgarten Wines will go a long way to help develop that confidence and give something back to our guests as a thank you for staying loyal.”
Graham Suttle, co-founder of Kained Holdings added: “Hallgarten Wines’ 100,000 glasses initiative is a fantastic way to help restaurants bolster their wines sales and entice customers through the door as we approach the festive period.”
Philip Newman, owner of Oak Bistro, said it would help “Keep the momentum going after the Eat Out to Help Out scheme has finished”.
How will you determine which restaurants and outlets can take part?
On-trade outlets have until August 28 to apply for Hallgarten’s free wine offer
Participating outlets will be determined on a first come, first served basis, and subject is to our simple criteria which includes ensuring that our customers will use the glasses to either reward or incentivise their guests. We are doing this to ensure the glasses of wine go to the places that would have the most benefit to guests.
Is it limited to a set number of free glasses per outlet?
We have factored in an average of 240 glasses per site, based on a £7 (approximately) selling price to the consumer.
How will you work with the restaurants in terms of which wines by the glass they are able to offer free?
Thanks to the government’s flexi-furlough scheme, we have been able to bring the entirety of our sales teams back to work on a part-time basis allowing them to work directly with each venue to determine how their glasses of wine will be used.
There is no defined way in which the glasses can be used; they could help businesses to incentivise guests to book tables, as a wine pairing on a food menu or just to reward loyal guests. These could be wines that are currently on their wine list or ones they are looking to introduce to their venue.
The £700,000 allocated for this promotion is a big investment to making in these difficult times – how are you funding it?
The £700,000 figure is the estimated retail value of the 100k glasses which includes VAT and the restaurant’s normal margin. This initiative is being funded largely by our premium suppliers who have been fantastic during the last few months in their understanding of the state of the hospitality industry – and we are extremely grateful of their support. They are all well aware what we need to do to get the sector moving once again, and that is by doing all we can to drive footfall to help reinvigorate the sector and install confidence in guests
Because of their support, all of the wines in our portfolio are included in the promotion apart from our own-label range. This opens up around 750 different wines for operators to choose from.
Andrew Bewes says what the on-trade needs is sustained support to help them re-gain the confidence of their customers
What impact do you hope this major initiative will have on the on-trade sector/ individual outlets?
Confidence has been low in the hospitality sector and July saw many outlets not re-open. The Government’s Eat Out to Help Out scheme has done a huge job in raising this confidence, and we are building on this in September. We hope this initiative will help to fuel wine sales across participating businesses and build loyalty with customers that will encourage return visits as we approach the festive period.
What other steps have you been taking to support your customers during Covid-19?
Throughout the last few months we have been working closely with our restaurant customers, communicating regularly with them, and providing as much flexibility as possible. Whether that has been through providing alternative solutions and support on home delivery or takeaway ventures, providing virtual experiences, or a flexible approach to credit as we help them through these challenging times. We have found that communication has been the key to ensuring relationships remained strong, and we were all clear about the short-term future.
As has been often spoken about in the press, the independent and multiple off-trade has seen a welcome boost to sales which has been beneficial to our business.
What impact has it had on Hallgarten and what you have done to respond internally with furloughing your own staff?
We entered the situation in a position of financial strength so were able to manage the immediate implications of the reduced demand for wine from the hospitality industry. We are 75% geared to the on-trade, however, so there was no doubt of the seriousness of the situation.
In a similar way to our partner customers, regular communication with the team has been vital. He have held winemaker masterclasses, wine-focused quizzes and other training focused team building activities for our furloughed team which has helped to feed our passion for wine.
The challenge for restaurants is to find ways to get around social distancing rules and attract customers back in greater numbers
Some 65% of our team were furloughed between March and July, following which we have been able to utilise flexi-furlough and gradually reintroduce team members back into the business. Some departments are back full-time, others are returning gradually as business builds up again. The government’s relief packages, most particularly the furlough scheme, have been remarkable and, most recently, bringing forward a more flexible version of the scheme from July 1 a genuine life-line for many businesses.
What percentage of staff do you now have on furlough and how are you handling people coming back to work?
We now only have a small percentage of the team on full furlough – those that work in business areas that are less in demand – and around 65% of the company on flexi furlough. This allows us to manage the team at work based on demand. We understand how uncertain this time is for everybody within the business, so are doing out utmost to be transparent and communicate any changes that are taking place with regard to working hours as swiftly as possible.
What are your thoughts on the next six months on how the on-trade is likely to recover – what steps are you taking to prepare for that?
The past eight weeks have exceeded our initial expectations. However, we still hold a cautious view on recovery and wait to see it the festive period will be as successful in the hospitality industry as it has been in previous years.
Hallgarten has been hit by the ban on spectators at sporting events and theatres such as its contracts to supply the Ascot Racecourse and the Royal Opera House.
Customers like Ascot, Royal Opera House and Goodwood are all unlikely to be back in full operation until a vaccine has been found, so we are not anticipating a full recovery until the middle of 2021. In the meantime we are doing all we can now to assist our partners in the on-trade whilst they build up to the festive period and help them maximise sales.
Do you think Covid-19 will have a long term impact on the way national drinks distributors work – a need for a tighter focus on channel management and your on and off-trade mix?
Without a doubt, yes, it is inevitable Covid-19 will have a long term impact on the way everybody in the drinks industry works. From our perspective, we will continue to monitor consumer behaviour closely, which is a constantly evolving picture, to help us determine what the end consumer is demanding. Which will, in-turn, help us work better with all parts of the industry.
Hallgarten is heavily geared towards the on-trade, and hospitality is in our DNA, so we will continue to focus our efforts on being the best supplier partner we can be. We are also working closer than ever before with the independent retail sector, increasing sales and working more creatively with them. We are placing a real focus on customers who are able to make a difference at the point of sale – independent merchants and premium restaurants particularly – where the diversity of range is a key feature of their offer.
