The Coronavirus pandemic has impacted businesses across the UK, with those in hospitality among the worst hit. In this exclusive Q&A series, we talk to industry leaders about how their companies are adapting, their thoughts on the challenges ahead, and what they are doing to support their teams and local communities through these difficult times. First up is BrewDog’s chief operating officer David McDowall:
Tell us more about how your business is adapting to the challenges of these uncertain times?
We believe in radical honestly at BrewDog and there is no sugar coating the impact COVID-19 has had on our business. Our International business was the first to be hit, with orders all over the world halting as each, in turn, went into lockdown. As soon as the impacts of the virus were felt in the UK, all on-trade premises ceased to operate almost instantly. Overnight over 70% of our revenue had gone, including 100% of our revenue from our bars (the part of our business where we employ the majority of our people). We reacted quickly, reshaping our business, cutting out overheads, changing behaviours, driving efficiency and fighting tooth and nail for every sale, in order to attempt to stay afloat.
In Summary, we have had two very simple, overarching priorities:
1) Make sure we survive as a business
2) Protect as many jobs as we can
Please tell us more about how you are supporting your local communities?
Despite all of the adversity and challenges faced, we have done what we can to give back, in a small way, to people who are worst impacted by this pandemic. For example, we are using our distillery to make ethanol which in turn is being made into hand sanitiser. To date we have donated over £1 million worth of sanitiser to the NHS and charities across the country. We are also donating hand sanitiser produced in our US brewery in Columbus, Ohio, to key workers in that area. We will continue to do this for as long as there is a need for it.
We also launched the BrewDog Open Arms, our virtual pub, where thousands of people have come together to enjoy a beer, a regular pub quiz, tastings and tours, and some awesome live music.
We have also used our delivery vans near our brewery in Ellon to help deliver school meals to families at home, and we have just launched our ‘Help NHS Heroes’ 12 Pack. All profits from this will go to the Help NHS Heroes charity, supporting NHS workers nationwide.
What’s the best business advice that you’ve heard recently?
I think it’s extremely dangerous in this environment to focus too much on advice. It’s so important for leaders to take on board as much info and feedback as possible and to get a diverse range of views and opinions. BUT, in this type of crisis, we must remember that we know our businesses better than anyone else, and have to make very difficult decisions, which stay true to the ethos and culture of those businesses. Leaders need to be prepared to make the tough call.
What’s your top tip for staying in touch with your team(s)?
Teams can be efficient and successful working remotely, there is no doubt about that. We have used video conferencing more than ever, just like everyone else, but also there is so much value in just picking up the phone to touch base, and not always with an agenda. Asking “how are you?”, or saying “well done”, has even more value now than ever.
How can we collectively help the foodservice and hospitality industry?
Our businesses have a very uncertain future. 50% of hospitality businesses will fail and millions in the sector and its supply chain will lose their jobs, if we have a situation where we re-open, with aggressive social distancing measures in place, and with no extension of the JRS and no support for tenants AND landlords.
We need to use our collective voice to lobby and campaign for support in both of these areas as much as we possibly can, at all levels.
BrewDog is a strong supporter of Jonathon Downey and Hospitality Union’s campaign for a National Time Out. This offers a solution for tenants and landlords that doesn’t impact the taxpayer. This is a very well thought through proposal, which gives hospitality companies the chance to survive this and protect jobs and, crucially, gives landlords some hope that they may still have tenants for their properties in the months and years ahead.
What do you think are the main challenges ahead?
We are sleepwalking into disaster if we think that things are going to return to normal any time within the next 18 months. Great businesses are fighting for their lives, but at the same time are fighting to adapt their businesses to find a way that they can work in the future. Hopefully, the true spirit of innovation and ingenuity in hospitality will shine through and as many as possible can survive.
Anything you’d like to add?
I do hope that customers will crave the type of social interaction, the type of meaningful and unique experience, the theatre and the thrill of visiting a bar, pub, restaurant, food market and all of the other awesome parts of our hospitality landscape in the UK, a little sooner than we might think.
We will have to fight even harder to differentiate. And to create reasons to visit. HOWEVER — if there’s one thing that our sector can do amazingly well, then it is create, be flexible, innovate and find new ways to connect with people. People are going to need the moments of joy, of relaxation, of escapism that the hospitality industry can create, even more than ever before.
We all just have to find a way to survive long enough to still be in the game!
