OnTrade Scotland Magazine - March Edition 2023

Welcome to the March edition of OnTrade Scotland

Well who knew that we would be responsible for the First Minister bringing forward her announcement….

We are not a political title and have absolutely no political bias (contrary to what some tin foil hat wearers may suggest on Twitter or LinkedIn) we simply believe in facts and informing the industry, connecting the industry & supporting everyone in the industry as much as we possibly can.

I believe that the trade and everyone in it should have a voice, and a right to challenge anything & anyone that can potentially cause the industry, or those in it harm regardless of size, age or standing as a company.

Last month we heard from a number of individuals from across the industry sharing the views and concerns surrounding the DRS in its current state. So this month we gave the organisation tasked with implementing the scheme the opportunity to address the concerns head on.

We put the key points to David Harris Chief Executive of Circularity Scotland who gave the organisation’s responses. We also gave members of the industry the chance to respond to his comments and standpoint and we would love to hear from you.

If you have an opinion of David’s responses, or have a point you would like to put to ourselves please feel free to get in touch on info@topgunmedia.co.uk

We also continue to expand The Growth Program to give emerging brands the opportunity to engage the venues and collaborate on an equal footing with the bigger boys to help drive growth and offer more variety.

Oh and yeah ….

We officially announce the date of THE PARTY OF THE YEAR FOR THE HOSPITALITY INDUSTRY

3rd BIRTHDAY BASH

IN ASSOCIATION WITH THE BEN.

Which if you just move your eyes to your left ….. TA DA!

We are all very excited to share more in the coming months, and tables will be available from April. As always, thank you to everyone involved in this month’s edition, and thank you to all of our commercial partners … without all of you we could not do what we do. Thank you for your support and collaboration. Stay

Justin Wingate Director at TopGunMedia

For press enquires or advertising opportunists please call or email: Email: info@topgunmedia.co.uk Telephone: 0141 556 4111

Little by Name Big on Reputation

David Harris Answers the Industries Concerns on The

Industry News

EDINBURGH NAPIER UNIVERSITY ANNOUNCE HOSPITALITY GRADUATE PATH

Edinburgh Napier University is excited to announce the launch of a new Hospitality & Tourism Path on the Graduate Apprenticeship in Business Management.

This exciting new program provides students with the opportunity to develop their skills in the hospitality and tourism industries while earning a fully funded Graduate Apprenticeship in BA (Hons) Business Management.

The Hospitality & Tourism industries are experiencing an exceptional demand for workers, but supply of talent is in decline. By offering a specialist fully-funded degree qualification in the sector, Edinburgh Napier University’s Graduate Apprenticeship can play an important role in responding to these skills

SWA COMMENTS ON TODAY’S ANNOUNCEMENT ON DRS

shortages, improve retention, build resilience and drive growth.

If you would like to hear more, join an online information session on March 9th, from 11 am until 12 pm, as part of Scottish Apprenticeship Week. Hosting the event will be Scott Killen, Employer Liaison and Recruitment Manager, who will provide an overview of Graduate Apprenticeships, and the opportunities for employers and applicants.

Fellow speakers will be Lynn Minnaert, Professor and Head of Subject, Tourism and Languages at Edinburgh Napier University, and Lawrence Durden, Sector Manager - Tourism at Skills Development Scotland.

SLTA WELCOMES TODAY’S DRS CHANGES BUT CALLS FOR CLARITY

The (SLTA) Scottish Licensed Trade has welcomed today’s confirmation by Circularity Scotland that upfront charges for drinks producers with lower sales volumes have been removed from the forthcoming deposit return scheme (DRS).

The SWA (Scottish Wholesale Association) welcomes Circularity Scotland’s announcement on the removal of upfront charges and retrospective payment terms for small producers and importers, including wholesalers.

“We’re pleased Circularity Scotland and the Scottish Government have listened to our concerns about the cash flow issues facing businesses. However, many concerns remain unanswered around price-marked packs, GS1 compliant barcodes, bonded warehouses and other issues.

“SWA will continue to push for an 18-month grace period to allow those small producers/importers to prepare for DRS as well as for a de minimis exemption for low volume products.

“There are still too many unanswered questions for producers and importers to sign up to the DRS in a week’s time. The 28th February deadline must be shelved in writing by the Scottish Government so businesses across the supply chain still have the confidence to keep trading in Scotland.”

Circularity Scotland, the scheme administrator, also confirmed that there will be improved payment terms for lower sales volumes and a much more simple labelling option for niche products.

Colin Wilkinson, SLTA managing director, commented: “We very much welcome the fact that Circularity Scotland has announced what it says is £22 million of cash flow support measures to help Scotland’s brewers, distillers, importers and drinks manufacturers prepare for the introduction of Scotland’s deposit return scheme.

“However, we still have serious concerns that the scheme currently being proposed will increase costs for the consumer and reduce the amount of choice available. Many key questions remain unanswered and Minister for Green Skills, Circular Economy and Biodiversity, has been unable to tell us how many producers – so far –have signed up for the scheme. The level of producer registration is crucial to the scheme’s success.

Brand News

SCOTLANDS ULTRA PREMIUM VODKA LAUNCHES - BLUR 69

locations including bars, clubs, hotels and pubs across the west of Scotland.

Five employees work for the brand which is expecting substantial growth throughout 2023 from event hosting and additional sponsorships.

Part of drinks group Clyde Whisky Ltd, established by William in 2018, Blur 69 vodka is triple distilled in Scotland combining quality grain and water before a bespoke filtration system purifies it to the highest degree. Working closely with one of the best-known drinks chemical engineering groups, Blur 69’s flavoured vodkas combine natural ingredients to create bursts of flavours.

A Glasgow scaffolding & building contractor has swapped hard hats for bottle caps, launching an ultrapremium vodka and flavoured vodka brand.

Blur 69, already snapped up by MTV as the official MTV Europe Music Awards Green Room sponsor in Düsseldorf in November last year.

OnTrade Scotland is proud to welcome the brand to our Growth Program for 2023 to support and drive new offerings across the industry giving the venues more solutions to be creative and provide the customer with more of an experience.

William Woodburn founded the business in 2021 after he noticed the shortage of labour within the scaffolding industry, driving him to set up a business in a growth sector. Revenue in the Vodka segment amounts to £2.7bn in 2022 in the UK, with the market expected to grow annually by 17.57 per cent.

With a target market of 18–28 year-olds, Blur 69 has secured partnerships with over 40 retail outlets and 20 on-trade

Founder William Woodburn left the army in 2012 to start his own company while undertaking a modern adult apprenticeship as a plumber and gas engineer. By 2021 he managed over 80 people, handling scaffolding and trades contracts for a number of building suppliers.

William said: “I really enjoyed the industry but rising costs alongside labour shortages were becoming increasingly challenging and so the time felt right to try my hand at something completely new.

“Before I set up Clyde Whisky, I knew nothing about the drinks industry but once I’ve made up my mind I want to master something, I won’t quit until I’ve perfected it. Whisky was my first foray into the market but I saw an opportunity to create something different with Blur69.

“People are looking for variety and innovation in flavours which is exactly what we aim to deliver. Pineapple, blue raspberry and watermelon flavoured vodkas are available now, with new expressions coming over the next few months.”

Flavoured vodkas sales in the UK are forecast to have a steady increase over the next few years and a 25 per cent increase by 2025.

THE ABSENT EAR NAMED ONE OF THE TOP 25 COCKTAIL BARS IN THE UK

The unique cocktail bar operates under a veil of secrecy, its mystery location only revealed when guests book, together with the password to gain entry.

And the sense of theatre continues with a frankly dazzling interactive multimedia menu, together with finishing flourishes to the elaborate, stunning drinks themselves at the table.

The Absent Ear is part of the group behind Saint Luke’s and the Winged Ox and iconic dive bar The Amsterdam, and the luxurious, decadent-feeling cocktail lounge has climbed a spot from No26 in last year’s rankings.

Group Operations Manager Alex Riches said: “The Absent Ear is a real passion project for all of us, there’s nothing quite like it in the city or indeed in Scotland. Or anywhere, we hope!

“It’s indulgent, decadent and luxurious but with a gritty edge. We pour our heart and soul into the place and into making the drinks exciting, theatrical and about as far from simple as it’s possible to be.

“This national recognition for what we work so hard on means the world, especially at a time when so many bars and businesses are struggling to keep the lights on, literally.

Little by Name Big on Reputation

Vibrant, welcoming, friendly, gorgeous looks and tastes amazing … no we are not talking about our owner Justin as hard as that is to believe we are talking about how customers describe the venue, staff and food at LITTLE SOHO JORDANHILL. After meeting Nicola the owner and sampling the food and meeting the staff we couldn’t agree more. We spoke to Nicola to find out more about what makes the venue so loved by customers and what makes it tick.

Little Soho is a small family run restaurant in the heart of Jordanhill which offers a mixture of Italian food with some Scottish twists and also plenty of other options like burgers, small plates and sides. It was previously owned by my family Michelle and Michael Bergson and I took over during lockdown as at that time they had decided to close Little Soho down. The restaurant had become a huge part of my life as I had been a manager for them and

I had formed many relationships with our amazing local customers, so during lockdown I made the decision to take it on, which was daunting as who knew what was going to happen when things opened back up again. Anyway, I took the leap and have never looked back. What a place this has become!

What I think makes us stand out are the two most importants things, our food and our staff. To me serving

customers is not a job, it’s a pleasure and the same goes with all the staff. We love to go above and beyond to make people feel welcome and also get to know customers, old and new, and form a friendship with them. As we are a small family business I also think people appreciate the love and hard work that goes into it. Next our food is amazing, we try to cater for all tastes and dietary preferences. We have a great team of chefs who have been with us from the start, who know how the kitchen works and how to produce amazing fresh food all day every day. What I think also adds to the experience is our decor and music. We are constantly carrying out improvements (with many more to come) to the decor and the place is looking fabulous, so cosy and welcoming, we have recently installed new neons that have really changed the look of the place and I think customers really appreciate that we are always trying to improve the look. And finally our music - the amount of customers that comment on our soundtracks is great as we have such a mixture of age groups and everyone always loves the music. We are always faced with challenges but manage to get through them whatever is thrown at us. When we were closed down again after the first lockdown we turned the restaurant into a successful takeaway and I think that also was a huge turning point for us. People who had never tried us before soon became regular customers and with the way things were, when they were coming to collect orders we would have a wee chat and often we were the only people they had contact with, so that formed more relationships and in return when we opened up, more support, more new customers and more business. The

local community has been incredibly supporting us. Customer experience is extremely important to us, there would be no point in doing what we do unless we wanted the best experience for our customers. From the minute they walk into the restaurant we want customers to feel welcome and special and we want that to continue throughout their time in the restaurant . We want every customer to be leaving the restaurant having had the best experience possible. Some customers don’t like a chat, other customers love a chat and that is something the staff have to gauge. We are by no means perfect and mistakes can happen but we always try to deal with things with the best possible outcome and everyone is happy. The proposed Deposit Return Scheme is something we will need to deal with if it comes to fruition. We will maybe be looking at changing a lot of our bottles especially our soft drinks to cans or draught. This is something I will be looking into more in the near future.

I would just like to say how lucky and blessed we are to have made the business so successful and busy. We have one of the best ratings on Opentable and we are getting busier every week, It is hard work and sometimes I could run a mile, but it is a pleasure to be in this industry and to make people’s experience of visiting our restaurant a great one. We are continuing to try to grow and have recently opened a takeaway in Yoker, Little Soho To Go which is also looking to turn into a great success. We are extremely lucky to have had this opportunity and so thankful to Michelle and Michael to have been given this start with the business. I love Little Soho, it is such a special wee place!

INDULGENTLY REFRESHING

AWARD WINNING SMALL BATCH GIN

We are distillers of premium Scottish spirits, our Honeyberry Gin is something new and different with a target of 40%abv, made with gin and Scottish fruit and nothing else added, making a unique product, witch is fantastic served with ginger ale.

Our core range of gins have won a prestigious range of international awards of which we are extremely proud, lots more information on our website, any questions please get in touch.

David Harris Answers the industries Concerns on The DRS

Head of OnTrade Scotland Justin Wingate puts the questions supplied by the industry to Circularity Scotland Chief Executive David Harris

Why has the date of 16th August been so “set in stone” as a go live date for the scheme when not only Lorna Slater MSP but CSL & it’s partners admit they are not yet ready but every venue ,operator & supplier is expected to be ready.

The “go live” date for the Deposit Return Scheme is set by the DRS regulations, which were passed by the Scottish Parliament. We’re fully confident that the scheme will be ready on that date.

We’re already seeing major investment from producers and retailers to prepare for the scheme, with work underway to install reverse vending machines at many sites across

Scotland. Together with our partners we are investing £100m to develop the infrastructure to deliver the cheme and have recently seen confirmation of the first counting centre in Aberdeen, with many more counting and sorting centres on the way. This will create more than 500 jobs.

Circularity Scotland was set up by industry to deliver their obligations under the deposit return scheme regulations as efficiently and cost-effectively as possible and we have always said that we will continue to identify new and innovative ways to mitigate the pressure on business and ensure that the scheme works for Scotland.

We’ve already been able to reduce producer fees by up to 40% while still providing the highest return handling fee (the amount paid to those businesses that act as a return point for containers) anywhere in the world. We’ve also just announced further measures to help smaller producers, who we know have been concerned about the cashflow impacts of the scheme. To address these concerns, we have introduced a £22m package of measures, which will provide two-month credit terms and removing the day one and month one charges for producers.

Of course, we recognise that there are still challenges for businesses, and we’re here to help them work through these - it’s by working together that we will ensure the scheme is a success.

Given the fact that the UKG are looking to start their DRS in 2025, would it not have been beneficial and more sensible, to have a joint scheme, which would have cleared many fraud issues, producer issues, stopped consumer on the borders going across for cheaper DRS free purchases, and also more importantly, to allow an already fragile hospitality sector in Scotland time to heal after the pandemic.

[On background – this is a question for the UK government and the Scottish government. Circularity Scotland’s role is to enable business to meet their obligations under the DRS regulations in Scotland, which

set the scope and timescales for the scheme]

What problems do you see with the scheme in its current form given the time pressures that not only CSL & it’s partners have been put under but also industry to implement the scheme which is more complex than any scheme of its kind anywhere in the world.

We don’t underestimate the scale of the challenge in introducing a scheme of this nature and are working with those involved to help them meet their obligations and address their concerns. But we also know from the experience of other countries that DRS has enormously positive impacts and we can’t lose sight of the opportunity DRS provides, both for society and the environment. By ensuring that the billions of drinks containers imported, produced and sold each year do not end up as waste, the scheme will transform how Scotland recycles and protect our environment for generations to come.

Why was there no consultation from Scottish Government & Lorna Slater MSP or CSL with authorities in the countries who have put in place schemes already to learn from mistakes and challenges they experienced?

This just isn’t accurate. We’ve engaged widely with those running schemes across the world to understand how they overcame challenges and we have been able to learn from them what worked well and what didn’t. Indeed, I am in regular contact with the people who lead successful schemes in other countries, and we will continue to learn the lessons from others as we prepare for the scheme now and when it goes live.

Why do CSL think the best way of engaging the entire industry across Scotland to maximise awareness is Roadshow events with limited numbers invited or attending and webinars?

The workshops we held throughout Scotland and online in February were attended by more than 1,000 people and the two-day conference we held in November was attended by another 600 of Scotland’s drinks producers, retailers and hospitality businesses. These were designed to give businesses an in-person opportunity to ask questions, gather information, better understand their obligations and help them prepare for the scheme.

At the same time, we are also engaging with businesses large and small in every corner of Scotland daily through our dedicated customer services team as well as working closely with trade associations and industry groups –including those working with many of your readers – to give them the information they need to help their members get ready for the scheme.

There is a huge amount of information on our website about how the scheme will work, but we’d also encourage any business that will be impacted by DRS to get in touch with us directly so that we can answer their questions and give them the information they need. If they haven’t already, we would urge businesses to contact us on 0141 401 0899 or via our contact form so that we can support them in getting ready for DRS.

Do you feel enough is being done by Scottish Government, Lorna Slater MSP, & CSL to recognise and address the concerns of the industry as a whole in Scotland given the comments of Fergus Ewing MSP

which clearly & publicly voiced displaying what the vast majority of people across the hospitality sector and drinks industry in Scotland feel that it is putting thousands of jobs & hundreds of businesses at risk? How do you as Chief Executive of CSL and the wider CSL organisation propose to address these concerns in a proactive way?

As I said earlier, we’ve been formed by industry – and by that, I mean producers, retailers, and trade associations representing hospitality – in order to meet their obligations under the scheme as efficiently and cost-effectively as possible. At the heart of this is making sure that the scheme works for business, because only then will it be effective. Circularity Scotland is not part of government – we are a private company, and we all come from a business background. That means we fully recognise the challenges that this scheme poses, and that we’re actively working to address these. We’ve already seen this through the reduction in producer fees, the increase in return handling fees, the pragmatic approach to exemptions for businesses that don’t want to act as return points and the indication that online takeback will only apply to the largest supermarkets and won’t be introduced until 2025. And, most recently, we’ve seen it in the cashflow support we’ve announced for smaller producers.

This all demonstrates that we are listening to industry and working with them to identify innovative ways to make the scheme as effective as we can. We’ll continue to do this right up to August and on an ongoing basis once the scheme is in operation, and where we can make improvements, we won’t hesitate to act.

Will there be an extension of the exemptions criteria to allow pubs, bars, restaurants etc. that provide a takeaway or delivery service and also include the occasional bottle of wine or beer with the order, (therefore an off-sales transaction) to remain in the closed loop scheme? As you know many started this during Covid and continue with this service.

Last year the Scottish Government announced a streamlined exemption process, which in practice means that many businesses who don’t believe it is appropriate for them to act as return points will largely be able to secure an exemption. Ultimately, the decision on whether to grant an exemption lies with Zero Waste Scotland, not us, but the principle behind the streamlined exemption process was to allow businesses like pubs, bars and restaurants selling takeaway or delivery drinks to secure an exemption. Circularity Scotland are able to assist these businesses with applying for an exemption.

What would you like to say directly to the hospitality industry and the drinks industry in Scotland who are clearly and understandably confused, frustrated & becoming more angry at present?

I fully understand that many businesses are concerned by the DRS and it’s potential impact on their businesses. Some of these come from misunderstandings about how the scheme will affect them, but many are legitimate concerns. That’s why we’ve introduced a range of measures to address these – and where issues still exist, we’re working hard to identify new solutions. Ultimately, all successful deposit return schemes across the world have improved and become more efficient over time and Scotland’s will be no different.

I would also stress that we’re here to help – where we can answer questions we will, and where we can make improvements, we will take action. We’re absolutely committed to ensuring DRS is a success for Scotland and by continuing to work together we know that we can have an incredible impact in protecting the landscape and environment that makes this country so special. Our customer service team are ready to assist any business needing support with the DRS, please contact us in order that we can provide you with the correct information and assistance.

For more information please contact: circularityscotland@citypress.co.uk

Industry leaders respond to Circularity Scotland Chief David Harris

We appreciate what David Harris is saying, but he says the “principle” is that an exemption would likely be granted, but nothing in black and white, plus each operatror would have to apply for one. Surely far more streamlined and efficient if an exemption is “automatic” if you are on-trade, but on occasion carry out an off-trade transaction, perhaps up to a certain amount/level.

Colin Wilkinson, Chief Executive of SLTA

Why are we not trialling this scheme in a region of Scotland and ironing out all the issues that the trade & associations are highlighting?

We know there are going to be stumbles – how can there not be with a scheme this size and a contained trial with amendments at the conclusion of the trial would have given consumers, producers and the public confidence that the DRS was ready to national launch to the benefit of the country and the environment.

Why are we launching this in the middle of the Edinburgh Fringe. August is chaotic enough with deliveries, uplifts and refuse collection due to the huge rise in footfall for the city. It brings me out in hives at the thought of what mid to late August might be like for the bars and the city!

Super challenging times ahead of producers, I fear some will say, no, this is a regulation too many and shut up shop – I desperately hope not though. We have such a fantastic range drinks from small, artisan producers and to see this entrepreneurial spirit snuffed out due to DRS, would be desperately sad.

No one is at odds with the principles of the scheme and no one is denying we must all play our part in supporting the environment but yet again, the hospitality trade isn’t being listened too, our professional and experienced views aren’t given any credence.

Is it any wonder we all feel so personally blighted by the ongoing kicking the sector seems to be receiving?

Louise Mclean Business Development Director of Signature Group

I’ve just finished watching yesterday’s Scottish Parliament debate on DRS and Lorna Slater cut a sorry, lone figure. None of her Green or SNP MSP’s bothered to show support in defence of the scheme. Clearly even they know it’s a disaster.

All due respect to Circulatory Scotland, they are at least trying to engage with industry.

The fact of the matter is that this shambles is all of the government’s own making. The scheme isn’t ready and hasn’t been thought through.

Yesterday Lorna Slater was repeatedly asked for explanations in Parliament.

Why haven’t we created a level playing field for small businesses by developing a reverse vending machine procurement framework?

Why hasn’t a plastic recycling plant been constructed to retain collected materials in our own economy?

If the scheme is ready then why does the latest Gateway report published last December say that we’re not? (Slater seemed unaware of said report). Consistently these questions and many others were deflected, remained unanswered or were blamed on someone else.

The Scotgov/Green coalition knows this is an exceptionally complicated business. Their own 2013 recycling targets have still not been met.

Meanwhile small businesses and producers are being pressured to commit to a 24 step process over 3 years that could see them put out of business.

One rule for us, another for them. The only DRS this Government should be adhering to is to Desist Ruining Scotland.

Michael Bergson Owner of Buck’s Bar & Thundercat Group

Unresolved operational issues identified by hospitality businesses

This is a list of business-critical issues that have been highlighted by hospitality venues in relation to the implementation of the Deposit Return Scheme (DRS).

These are focused on operational matters that need to be resolved very quickly, if businesses are to be compliant with DRS on 16 April.

Over and above these, businesses report concerns in the lack of, or poor quality of, information and advice being given to them by Circularity Scotland and a general lack of direction on how businesses should be preparing for DRS.

These operational matters, which require resolution by lead stakeholders, are also in addition to the other challenges that DRS will bring to hospitality through time pressures on teams and finance. This is not a cost neutral scheme where only deposits are paid and returned, but will result in increased costs for products impacting cashflow and potentially credit terms for some smaller businesses, who may already struggling with their finances.

Producers also plan to pass their increased costs onto suppliers and then hospitality businesses – who will have no choice but to pass on to customers.

ISSUE - GLASS COLLECTION FROM HOSPITALITY

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

Still no agreed method of collection of glass from venues. Assumption is that it will be weighed and reconciled against purchase/sales records or scanned by businesses.

CURRENT STATUS

Waiting for confirmation and understand the issue is sitting with the CSL Board for approval.

TO BE RESOLVED

ISSUE - NIGHTCLUBS

LEAD STAKEHOLDER - CSL

DETAILS OF ISSUE

Impossible for venues to ensure cans are left uncrushed by customers in a nightclub setting.

CURRENT STATUS

Raised with CSL to offer a view on how cans could be accounted for and deposits not lost to the business.

TO BE RESOLVED

ISSUE - MAJOR SPORTING EVENTS AND FESTIVALS

LEAD STAKEHOLDER - CSL

DETAILS OF ISSUE

So far no consideration given to how large scale events will manage DRS.

CURRENT STATUS

Issue of Murrayfield highlighted to CSL and site visit undertaken at 6 Nations. Waiting for feedback from CSL on solutions that do not leave the contractor covering costs of large numbers of lost deposits. Operating open loop not an option given volume of customers and no ability to give cash deposits back.

TO BE RESOLVED

ISSUE - FREQUENCY AND TIMINGS OF COLLECTION.

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

No KPIs in place for collections, only an outline timeframe for venues e.g. twice a week, but all subject to experience at go live.

Risk is that hospitality businesses with limited storage will quickly be overwhelmed by bags and bins of valuable scheme items. Also increases risk of theft.

Businesses looking to build secure storage need to know frequency of collections in order to specify dimensions. Also, may need to involve landlords and planning authorities.

Access for collection may be a challenge – city centre access

/ restricted access times / no early morning or late-night collections at hotels disturbing guests.

As 80% of scheme articles are expected to be returned via supermarkets there is a risk the closed- loop businesses (hospitality) will not be prioritised.

CURRENT STATUS

Until all return points are known unlikely any further assurances can be given by CSL or Biffa on this. Until all return points are known unlikely any further assurances can be given by CSL or Biffa on this.

RPO registration goes live on 1 March.

Businesses cannot plan until details are confirmed and they need guaranteed schedules to plan.

TO BE RESOLVED

ISSUE - COSTS OF BAGS AND TAGS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

These items need to be purchased from Biffa and no prices have yet been provided.

CURRENT STATUS

CSL committed at a recent information event to update on this asap.

TO BE ADVISED

ISSUE - COMPLAINTS / ESCALATION PROCESS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

Businesses concerned that no process has been shared for raising queries or complaints at go live date. This is needed quickly so businesses can build into business operational plans.

CURRENT STATUS

Assume CSL and Biffa will create this, but no timescale has been given. In fact no sight of Biffa operational plan has been provided.

TO BE RESOLVED

ISSUE - PROCESS FOR DEPOSIT RETURNS AND MONITORING / ACCOUNTING PROCESS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

No clarity on how or when deposits will be returned to the businesses or how these will be monitored.

CURRENT STATUS

Waiting for operational procedure information.

TO BE RESOLVED

ISSUE - FINANCE AND ACCOUNTING SYSTEMS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

Impacts all business, and for larger operators between 5-7 IT systems may be impacted in some way across sales, supply chain, reporting, finance and change is not simple. Until there is accurate and comprehensive scheme requirements, they cannot complete effective discovery to make sensible business process changes and understand the time it will take to

implement change, including staff training.

CURRENT STATUS

Unknown when this detailed information will be made available.

TO BE RESOLVED

ISSUE - BIFFA OPERATIONAL PRACTICE AND KPIS

LEAD STAKEHOLDER - BIFFA

DETAILS OF ISSUE

Businesses need to understand these so they can build operational policies, process and practice to then build communication and training to engage teams in the scheme.

CURRENT STATUS

Unknown

TO BE RESOLVED

ISSUE - CLARITY OF EXEMPTION PROCESS FOR NON-CORE OPERATIONS. (CONCESSIONS)

LEAD STAKEHOLDER - ZERO WASTE SCOTLAND

DETAILS OF ISSUE

Relates to hotels with third party onsite hospitality outlets and outlets at airports and train stations.

CURRENT STATUS

Issue raised with Zero Waste Scotland.

TO BE RESOLVED

ISSUE - EXEMPTIONS –H&S AND PROXIMITY

LEAD STAKEHOLDER - ZERO WASTE SCOTLAND

DETAILS OF ISSUE

Businesses applying for exemptions to act as RPOs –delivery / click and collect / small volume of off-sales. Won’t know about proximity exemptions until much closer to the time. Businesses already considering changing sales models to be exempt – i.e. not selling drinks as part of food to go offer – impact on sales and consumer choice etc.

CURRENT STATUS

Exemptions all rest with Zero Waste Scotland.

TO BE RESOLVED

ISSUE - REDUCED OFFER OF DRINKS TO HOSPITALITY CUSTOMERS.

LEAD STAKEHOLDER - CSL / SEPA

DETAILS OF ISSUE

Businesses are reporting that some products will not be available on the Scottish market post 16 August. This will impact sales at venues unable to provide customers with the same range of products. For example, some larger bottles beers will not be available due to low volumes. These generally provide a better profit margin for restaurants.

CURRENT STATUS

Producer registration scheme live. It remains to be seen how the £22 million for producers alters the intentions of producers contemplates not registering.

WAITING FOR CLOSE OF PRODUCER REGISTRATION SCHEME TO ASSESS THE SITUATION WITH OUR OPERATOR AND PRODUCER MEMBERS.

Get to Bucking Work

Character building, social skills, life experience, lasting friendships, these are all things that are gained in anyone’s early years in any career and non more so than in the hospitality industry.

With over 60% of people having worked in the hospitality sector in some form in their career whether in waiting, bar work, admin or marketing. Whether as a full time employee or funding your way through college or uni, or training or as a back up to a role in the creative arts. The industry builds a backbone to many other careers and life skills.

As part of an ongoing feature I get my hands dirty and get to work in venues across the industry to speak to the people that make the industry tick ….. you!

We will talk to the staff in venues that have fantastic feedback from customers to find out what makes them such great places to work, we will speak to the owners to find out the challenges the industry is facing from a staffing point of view and I will try to get a first hand insight as to why the industry is so important to so many in their first steps into the employment world.

We start the series with the fantastic Buck’s Bar where I spent the day with GM Helen and her team in West George St in Glasgow.

A vibrant, lively and busy American style fried chicken bar diner chain which has become hugely popular for its generous portioned fantastic food as well as its friendly staff and atmosphere.

The group owned by Michael & Michelle Bergson, both of whom have vast experience in the industry spanning careers working with and for some of the most successful and well know brands and venues in Scotland and you can tell that experience is filtered through the whole business but not just in a professional capacity but in a personal one too.

Both Michael & Michelle believe strongly in their staff and they believe strongly that people matter and how you treat people matters and it shows in everything about the company values.

The key senior Management team Ashley O’Brien, Simone McGranahan & Yvonne Noon epitomise those values with hard work, a friendly approachable collaborative manner not to mention being as sharp as a razor when it comes to their roles.

It’s no wonder the staff love them and I do mean love them. I almost sound bias, but knowing the team as I do in a professional and personal capacity it’s hard not to be impressed by all of them so it is easy to understand that working for and with them you would not only learn a lot but also enjoy being around such passionate positive helpful people.

I started my shift with Helen greeting me on the stairs of the venue as she took some social media snaps sharing that days offering that already made me hungry… I’m not going to lie I was nervous.. Not something I’m normally known for. I was nervous because I didn’t want to let the team down or just be a fly on the wall I genuinely wanted contribute and understand the real day in a venue.

I didn’t need to be nervous as I was made to feel part of the team right away.

I was introduced to the whole team and every single one created me with a smile and a “ welcome “ even the chef dressed in a purple “ pimp” hat and Wonder Woman apron at that point I knew the day was going to be anything but boring.

I was walked through the ordering systems, the menu and the table layout and given my handheld and put to work. Trusted to get on with it but I had the feeling they had my back if I was struggling.

I was quickly in the groove as the venue began to hustle & bustle with hungry customers I was in at the deep end not time to panic Justin …..

All the customers I spoke with had great feedback on the staff and most commenting that the reasons they come back again and again is the atmosphere and the friendly

accommodating staff as well as the food obviously. When I got the chance to speak to the staff individually as we worked together I got the same feeling from each of them that they genuinely cared about what they were doing and the service they were providing.

Most had started with the company in part time roles, due to studies, uni, or other commitments but the full time staff had grown to love the roles and company and wanted to increase their hours and career paths and some had worked in the industry at other venues and heard about the company via friends of word of mouth and made the move. The one over riding thing I understood was they were a TEAM.

Each had the others back and supported each other and in a busy fast paced business dealing with the public that is a skill and value that matters.

Yes it’s hard work, yes it’s busy, yes there can be challenges but if you work for a company that from the top down each cares about the other that can only be a good thing for everyone including the customer.

The staff explained that flexibility in working hours was really good in being able to juggle student life and work but also that they felt valued.

One staff member told me “ I’ve never worked somewhere before that the owner comes in and makes a point in saying hi to you by name and asking how you are and genuinely listens to your answer, normally your just a number or minion I’ve never felt like that here .”

After my shift I was genuinely blown away by the friendliness of the team and how I was made to feel part of it from minute one and I can clearly see why any new team member joining a company that thinks that way would instantly feel valued.

I would like to say a massive thank you to Michael, Michelle, Ash, Simone, Yvonne, Helen and all of the team at Buck’s Bar for allowing me to be part of the team for the day and to experience what it’s like to work in your venue I was honoured to be a BUCKER for the day.

If you would like me to do some work experience in your venue and get my hands dirty email info@topgunmedia.co.uk and I will be happy to oblige.

Calling All Dog Owners! Doggy Coffee Morning & Yappy Hour at the Mercat Grill

All in Aid of the Edinburgh Dog & Cat Home

The award-winning, dog-friendly and family-owned bar & restaurant, The Mercat Grill in the village of Whitecraig near Musselburgh has its first charity doggy event for 2023 happening on Saturday 4th March and has released dates for the upcoming events for owners and their fourlegged friends throughout this year. All proceeds go to the Edinburgh Dog and Cat Home.

Yappy Hour will take place on Saturday 4th March, from 4-5:30pm. For £12.50pp&pp (per person and per pooch), there will be a drink (small glass of wine/bottle of beer or soft/hot drink) and a small tapa to enjoy! Plus of course, a dog treat! Going forward, Yappy Hour will take place every other month, on the first Saturday of the month (6 May, 1 July, 2 September & 4 November).

For those that prefer a morning get together, the Doggy Coffee Mornings, take place from (9:30-11:30am) and for £7.50 this includes a tea/coffee, breakfast roll and treat for the dog! The first one will be Saturday 1 April, then run every alternate month to Yappy Hour, as follows; 3 June, 5 August and 7 October. Then on the first weekend of December (Sat 2nd and Sun 3rd) – the hugely popular

festive doggy event – Santa Paws will take place (times, to be confirmed nearer the time).

Graham Blaikie, owner of the Mercat Grill in the village of Whitecraig, near Musselburgh said: “Our charity doggy events give people the chance to catch up with fellow fido owners, whether they meet up with old friends or come and meet new people.

“Everyone is welcome and it’s a great opportunity for the dogs and people to socialise! And gives us a great opportunity to raise vital funds for the Edinburgh Dog & Cat Home, for whom last year, through our events, we raised over £1400.”

To book a place, simply call 0800 124 4112 or email info@mercatgrill.com.

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In collaboration with Synergy Commercial Finance and Asset Finance Solutions

To say the last few years in the hospitality industry has been difficult would be an understatement and on the back of the economic fallout the need for funding for equipment, refurbishment and property has increased, whilst access to funding has tightened.

DMK Finance and commercial partners have been working in the hospitality finance sector for over 17 years. We have a breadth of knowledge and experience which we can put to good use to help your business find the right funding for you.

For some this may be your first time looking for finance, for others you may not have access to the funding you have had before. We have access to over 150 funders and can use our access and experience to find a solution that you may have struggled to secure on your own.

Whether you are a hotel, restaurant, pub or café (or all four) you will likely have been hit hard and need to have access to finance specialists who can work with you to find solutions from property loans to asset finance for equipment or spend more time to find bespoke solutions using multiple funders we have a team of experts on hand to help you.

Our minimum loan for asset finance is £25k and £150k for property however we can look at smaller amounts on a case by case basis if part of wider solutions.

If you would like to work with us or if you require further information, it couldn’t be easier to get in touch.

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Once Upon a time, there was a booming hospitality industry, times were good, cashflow was buoyant and people were out socialising. Then along came a little-known virus called Covid19, which changed the world completely. People stayed indoors, venues had to close and the outlook was very different and difficult. These were indeed dark times and just when things started to feel a bit more normal, along came Brexit, then the war in Ukraine, Truss economics, new industry legislation, high inflation, increases to bank rates and high street banks contracting their credit parameters.

The fairy tale has now taken a completely different path, the industry has had to evolve, adapt and adjust to these unprecedented times. The path ahead is perhaps not looking as clear and certain as it once was.

Questions on businesses surviving and thriving are being asked by everyone in the industry, but let us reassure you, multiple sectors are experiencing similar challenges, from high-street retailers to landlords who once had buoyant commercial office investments. We regularly hear concerns about keeping businesses running and the drastic changes in the landscape we are working in.

The pace of change and uncertainty ahead is indeed a worry for the sector and what is important to know is - it’s OK not to be OK! You are not alone and the impact of all of the above is hitting the boardrooms of both large and small businesses across various sectors.

Reaching out early to seek advice could have a positive impact and allow investigation into wider routes of finance via a trusted broker partner, who has full access to multiple funders, and can have meaningful conversations with Accountants about the strengths and weaknesses of the business or even engage Lawyers if an exit strategy is required.

Focusing on routes to funding for the sector, DMK Finance and commercial partners have extensive experience with industry experts and can offer potential solutions to the various routes available to raise cash to support your business. In addition, we can provide informal, open and honest advice on what options are possible.

We have recently supported hotel, pub and restaurant operators seeking new funder partners away from their incumbent banks, who have shown less of an appetite to continue support unless businesses can meet tighter credit paraments. Some of the key benefits we were able to secure included, 10-year interest-only options, longer payment profiles and equity release on both property and other asset types, which has reduced pressure on bank covenants, helped to ease cashflow or raise cash.

Other routes to finance have been achieved via equity release from investment portfolios, sometimes unrelated to the operating business and have allowed Director loan injection or 3rd party securities to be provided to support lending.

Questions you may be asking.

How do I get the extra cash needed for my business to get through the next few months?

How do I find the funds to be able to refurbish my property when I don’t have security but trade is good?

I want to buy the property I am currently operating from or buy a new property to run my business from, who can help me with this?

I need funding, but I just don’t know where to start or what to provide to ensure the best chance of obtaining the appropriate funding solution.

There is no such thing as a ‘daft question’ and by reaching out for an informal chat we could perhaps help guide you in the right direction for your situation. There are so many different possibilities can you afford not to reach out and discover these?

It is important to note that ‘one size’ does not fit all and all funding proposals are subject to full credit assessment to allow funders to understand the strengths and weaknesses of your business, the ability to service debt and the experience or calibre of the operators.

Take action and reach out early to see if help could be available by simply scanning the Q code and answering a few basic questions to allow our experts to get in touch.

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We have the experience & partnership to position the right partners for your event to bring in not only funding but offer a great experience to your guests.

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We can provide filming and content creation for events, shows, advertising projects, music videos or bespoke plans due to the diverse crew experience.

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We have a talented and creative team that works with some of the biggest brands out there that can support your brand or event from a PR standpoint as a joined-up approach is key.

BEING PROACTIVE CAN HELP BUSINESSES COPE WITH THE NORMALITY OF ‘UNPRECEDENTED’ TIMES

Uncertainty has been a recurring theme over the last few years. From the global pandemic and conflict in Ukraine to the energy cost crisis and rampant inflation, businesses have faced their fair share of what many have labelled ‘once-in-a-lifetime’ challenges.

At what point, however, do we begin to accept the reality of the geopolitical and economic landscape around us? We need only look to history to see that we have been in similar situations before. In the 1970s the price of oil skyrocketed and, among other things, severely jolted the stock market, triggered soaring inflation and led to high unemployment. We also had the three-day week and widespread industrial action – the latter becoming increasingly familiar today.

There are valuable lessons to take from past experiences. In particular, the steps that companies took to boost resilience and secure their position. And, what history suggests is that the most important factor in these situations is to be proactive. So, whether or not you believe that times are ‘unprecedented’, the answer is not to bury your head in the sand.

The first area to concentrate on is people. Employee engagement and retention have never been more important in the current labour market and all businesses want to make sure that talented, skilled professionals stay where they are instead of moving over to a competitor.

Derek Hamill, Head of Corporate

Everyone is feeling the pinch, so while it may not be possible to increase salaries or offer bonuses, there are other ways to motivate your teams. Consider incentives such as an employee share options scheme, which could increase staff loyalty. Also look at your ways of working and company culture. A more formal hybrid or return-to-

work policy can be an attractive prospect, particularly for people who thrive on the opportunities for collaboration and learning that come with being based in an office. Second, consider your current costs of finance. Interest rates have gone from historic lows up to 15-year highs. While those who have been around longer may accept this as a return to normal, for others it is an entirely new prospect.

Either way, businesses will need to adjust. It could be a case of restructuring their finances or shopping around to find the best options. Switching is not just for consumers – another lender could offer a better rate. Should you take up a loan rather than operate in overdraft, or offer security get a better deal? Also consider whether you could re-finance and consolidate debts to manage costs. Third, look at any existing contracts you have with suppliers and customers. In cases where terms were agreed prior to recent events, these agreements may need to be renegotiated to reflect the reality of price pressure. Contracts from just a few years ago may have automatic price increases linked to inflation, or fixed costs that are simply unviable. While the automatic reaction might be to try and hold suppliers to the original prices as far as possible, you risk being left without materials or products

To

if they cannot deliver, as well as potentially damaging long-term relationships.

In most cases, changing contract terms is a commercial issue, which can be resolved with good communication. Contracts may be the starting point for negotiation, particularly force majeure clauses, but ultimately it’s about agreeing what still stands and what needs to change. Can a purchaser insist that a supplier honours the price originally agreed and, conversely, is a supplier obliged to accept the order under those terms?

For industries like manufacturing and engineering, companies of all sizes are involved in critical supply chains that are dependent on one another to ensure that projects are delivered as required. If one piece of that sequence breaks, it will have a knock-on effect for other firms involved and completion of the overall work. Everyone is in the same market, and sensible discussion is needed to avoid problems. The pressures businesses are facing are unlikely to disappear overnight. While they are affecting different sectors in different ways, there is a common need to do as much as possible to tackle them head-on. History shows that the companies which made it through tough periods are the ones that took the bull by the horns, even in a bear market.

The right advice has never been more important.

We’re honoured to have been chosen as the exclusive partner of OnTrade Magazine Scotland. As one of Scotland’s full-service law firms we’re able to offer specialist legal, property and financial services.

We’re here to help in a time when support and clarity are needed most – offering valuable advice and insight on everything from licensing, business financing, employment and real estate. Different people. Different approach. Different results.

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discuss any legal matters, contact the dedicated On Trade email - ontrade@gilsongray.co.uk.

UKHOSPITALITY RESPONDS TO ONS INFLATION FIGURES

UKHospitality Chief Executive Kate Nicholls said: “The rate of inflation decreasing for three months in a row is promising but it remains the case that price rises continue to significantly hinder hospitality businesses.

“A drop in the cost of visiting venues in January is a clear reflection of venues squeezing every drop out of their margins in a bid to attract custom, in order to stay afloat after a Christmas hit by rail strikes and amid the annual New Year drop in consumer spend.

“The cost of energy alone is enough to keep much of the sector teetering at the cliff edge. The substantial reduction in energy support in April, as well as continued labour shortages, will increase the sector’s vulnerability, constrain growth and likely add to further price rises.

“This can be avoided if the Chancellors takes action at the Budget, to tackle the root causes of inflation in hospitality, allowing the sector to help reduce inflation. Intervening in the energy market, reforming the Apprenticeship Levy and introducing a lower business rates multiplier for the sector are all

measures that can see the sector tackle immediate challenges and rapidly deliver economic growth for the UK.”

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