Sunday 12 May 2013

Keeping in high spirits - a recession lesson: Rugby Tap


Keeping in high spirits - a recession lesson: Rugby Tap

 

According to the Small Business Association, one third of all business start-ups fail in the first two years, and more than half (56%) fail within 5 years. So why would anyone launch a new business in the depths of a recession when the odds against success are even higher? We talked to Colin Arthur, founder of Rugby Tap, a specialist off-licence on St Matthews Street, to find out why he took up the challenge, and to assess his chances of success.

Established by Colin Arthur in July 2012, ‘Rugby Tap’ is a specialist off-licence selling a range of competitively-priced real ales that are held in firkins and drawn off into containers for customers to take home. He also stocks a wide range of imported bottled beers, together with wines and spirits. In addition, he has established a website to showcase his range and generate online orders. Although this only accounts for 10% of his turnover currently, Arthur told us that, for him, ‘a website is essential as a shop window 24/7 and not just for direct sales.’ When informing us about the website, Arthur said that he had a  ‘cloud based, multi-channel epos and website system that allows me to compete and even offer more than the multiples with features such as gift cards, loyalty cards, reserve and collect, click and collect’. Surely these various options distinguish ‘Rugby Tap’ from any other competition?

Arthur’s reasons for starting the business and for locating in Rugby are as much personal as commercial. He has lived and worked in the Rugby area for over twenty years, and has many years of experience in the drinks trade, having worked locally in a brewery, an off-licence, and managed a pub. He always wanted to run his own business, but decided that running a pub and trying to enjoy a happy family life would not mix: ‘It’s about getting the work/life balance right’, he told us. Working from the premise that in starting a business you are most likely to succeed if you ‘do what you know’, he decided to open a niche off-licence in Rugby town centre, catering for a market he knows and understands very well.

An in-depth knowledge of your target market is a key component of success for any business, and Arthur clearly has the trade experience necessary for success. But what else is required? Typically, new businesses fail for the same reasons: they have no real understanding of their target market; they lack a clear business plan; they are underfunded; they lack clear goals and fail to measure progress towards them; they mismanage cash flow; they have no unique selling proposition (USP); and they underestimate the competition. Any one of these mistakes can undermine a new business: a combination is likely to be fatal. So does Arthur feel he is getting it right?

Planning

In January 2012Arthur left his previous job and devoted seven months to preparing the launch of his new business. He approached the task in a professional and systematic way: 

·      He prepared a business plan and asked people whose opinion he respected to comment on it.

·      He located a site close to Rugby town centre, but outside of the premium rent area.

·      He applied forand received a license to sell alcohol.

·      He began discussions with suppliers – local breweries and wine merchants – to source a range of quality ales, beers, wines and spirits.

·      He prepared a marketing campaign to launch the business.

Funding

Conscious of the economic climate and the banks’ reluctance to lend to small businesses, Arthur decided to fund the enterprise from personal savings. Whilst this may have limited the scope of his plans, it means that he is not accountable to any third party, and gives him complete freedom of action to follow his commercial instincts.

Arthur decided to allocate half his funds to setting up the business – legal costs, fitting out the shop, buying stock, setting up a sophisticated electronic point of sale and stock system – while retaining the other half to cover his income while the business was being established. All too often start-ups are over-optimistic about sales, assume the business will rapidly become self-financing, and incur high costsbelieving sales will more than cover them. When the projected sales fail to materialize, the company has a cash-flow crisis. Arthur has been far more prudent. He has kept his costs down wherever possible – for example, by not taking a High Street location – and he has not made decisions based on unrealistic sales projections – such as hiring staff.

Goals

To date, Arthur’s approach has paid off. After trading for seven months, he is close to reaching his first target – to break even (excluding his salary). He now aims to generate enough revenue to cover his full costs within the next six months.

USP and the competition

Rugby Tap is positioned in a clear market niche. Arthur identified a gap in the market left by the departure of off-licences, such as Threshers, and wine merchants, such as Victoria Wines. Despite this, competition still comes from supermarkets and corner stores, as well as pubs serving real ales. However, by offering a wide range of local real ales and foreign bottled beer, and the option to ‘carry out’ ale in customers own containers, Arthur is able to offer range, quality, expertise and a competitive price – a highly attractive package. Arthur believes that ‘a sound Business should be viable despite what is happening in the wider economic climate’, and it looks like a sound business is exactly what we are dealing with.

There have been mistakes along the way – money wasted on advertising in the wrong place, for example – but Arthur has avoided the major errors that so many start-ups make. His carefully-planned, prudent approach is surely the right way to take on the challenges of launching a new business in the depths of a recessionand we expect to see him thrive as the economy returns to growth. In two or three years time he should be in the position to raise the money to open further outlets. Watch out for a Tap near you.

We’ll drink to that! Shandy, of course.  Harry Cross   Rugby School   student.

Monday 24 December 2012

T'was the night before Christmas Eve

Greetings

We made a vow sometime ago not to blog until the Website was up and running, Little did we know at that time it would be Christmas time. The website is looking nice we think? www.rugbytap.co.uk . The draught element still needs some work before we can courier bright beer next day, nationwide. We will keep the beers available instore to take-home updated. Click and collect is up and running, 'reserve and collect' i.e for those that prefer to pay in-store will follow shortly. It has been noted that a scrolling banner on a touch screen device is not good and any other feedback would be greatly appreciated.






In the last four weeks we have sold over 2,000 bottles of locally brewed (within 30 miles of us)
Ales and in the last two weeks have sold 20 Firkins of Craft Ale, All local except a few sneaky ones from Oakham Ales. A big thank you to all our customers, it's been a cracking solid 5 month start. Thanks.


All are welcome for Christmas Eve shopping we are open 10-6 for Eclectic Wines, Speciality Spirits and over 150 different bottled beers (plus gift cards and gift receipts available). We are however due to higher than hoped for demand pretty well out of draught Ale (plenty of still Cider though(tried Mulling it?)). those of you that had the foresight to pre-order don't fret all is well, you know who you are ! For those of you that didn't, our apologies, We did stress, when asked, that after only 5 months trading under our belts we would do our best to manage stock versus sales of this Artisan product that undertakes it's final fermentation in our chiller (or temperature controlled environment, as we have taken to calling it lately). Alas much like a weary soul wending there way home via the Butchers shop in the vain hope of there being a Turkey left on Christmas Eve!
We are now taking orders for New Years Eve, contact us now.


Seasons Greetings

Thursday 4 October 2012

11 weeks trading-done


Thought would share a few photos we recently had done (Thanks leemartin.co.uk)
 
 
 
Our chiller from which we have sold over 2000 Litres (k3.6 pints)of draught 'bright beer' since we opened ! The vast majority of which had been brewed within 30 miles of our store. Plus Cider is now picking up, over 300 Litres to date.
 
 

Some of our bottles, We have sold 1200 bottles of Ale (You guessed it,brewed within 30 miles)!

Thanks to all our customers for your support so far, If you haven't been down yet what are you waiting for ? We are open every day (till 19.00 thur-sat) so no excuses.

Favourite comments from customers
Are you part of a chain ?
Is this a franchise ?
Great not to see any (insert name of any mass produced Lager with a pseudo continental heritage)
Wow !
This is just what Rugby needs!
This is like a sweet shop for adults!

Least favourite comments from customers
When is your website going live*?
Do you take cards?


Had some great roadworks on Lawrence Sheriff street this last week, gives car drivers a great opportunity to have a good look at us. Also means I can give my kids a rest from continually pressing the button at the crossing.

*Website should be live 'soon' looks lovely but as we all know, looks aren't everything there needs to be some substance behind it so will be worth waiting for to get it right. Has felt a bit like handing out flyers with one arm tied behind your back!

cheers
Arthur



Wednesday 15 August 2012

28 DAYS LATER !

Today we are celebrating 4 weeks of trading, We are getting new customers every day and already have some 'regulars'. Heartening to hear 'WOW' as new customers step inside and to hear such things as 'This is what Rugby has been missing'.
Draught ale is gaining new drink at home converts every day and we are picking up more party/BBQ/ Wedding orders all the time. Bottled Beer count now stands at 77 British and 87 Imported.

Wines and Spirits sales to date have been slow growers, Opened a couple of bottles of wine last Saturday afternoon which helped and believe that in time the imbibers who appreciate quality will find us, especially the ones prepared to pay over a tenner for a bottle who can benefit from our 'fixed margin mark up'. Wine and Whisky clubs are in the planning for pre Christmas (Beer also, of course).

Why do so many customers ask 'do you take cards?' yes we are small, yes we are independent, yes there are lots of wooden boxes around and yes the counter is made from old wine barriques but on top of it is an up to the minute multi channel, cloud based epos system (with integrated chip and pin!) that most Grocers would envy. Speaking of technology Website launch has been put back (something to do with code?), Bet alot of you have heard that old chestnut before? Will be the dogs when it arrives!

To summise, a solid start, lots of positive customers and a positive proprietor. Thanks for all the support so far.
 
p.s. We are open Mon-Weds 10-6, Thurs-Sat 10-7 and Sunday 11-4 (inc Bank holidays).
come on down.

Cheers

Sunday 5 August 2012

END DAY 19

Bottles Local Ale sold so far
Nobbys (10.9 miles)                85 (8 lines)
Purity (26 miles)                      64 (3 lines)
Church End (17.9 miles)          50 (3 lines)
Hoggleys (15.2 miles)              48 (5 lines)
Dowbridge (6.3 miles)             36 (5 lines)
Byatts (10.8 miles)                   35 (3 lines)
Frog Island (26 miles)              26 (4 lines)
Everards (15.9 miles)               15 (3 lines)
Total 359 bottles















New breweries we will be approaching soon (again!) watch this space...
Slaughterhouse (13.8 miles)
Tunnel (16 miles)
Warwickshire (12.2 miles)
Hook Norton (27.6 miles)
North Cotswold (27.6 miles)
Beer Geek (28 miles)
Any other suggestions welcomed.


Draught Ale sold so far 548 Litres (986 Pints in old money)
Purity Pure Gold out in front, Everards Tiger not far behind, Dowbridge Mild picking up converts every day once tasted.
Lots of customers returning clutching their 2 Litre glass flagons, a beautiful sight.















Foreign Bottles sold
USA                  159
Germany           122 (figure boosted by Duff beer !) Fab new authentic beers now in stock, so expect this figure to rise.
Belgium            111

 USA












 GERMANY














 BELGIAN CORNER


Wines starting to shift, Message about the fixed margin mark-up filtering out, I know from 10 years with Oddbins (RIP) that there are clued up Oenophiles out there ?
I believe 'BEER IS THE NEW WINE !' but on certain occasions grape wins out over grain.








Twitter followers   101
Facebook likes       82
Website being built 10th August, Training the week after, so should be up and running by the end of this month ?

 Thanks for the support so far, we couldn't do it without you and if you keep meaning to call into the new Specialist in Rugby, DO IT TODAY !? (open 7 days a week (til 6 p.m. mon-weds(til 7 p.m thur-Sat(Plenty of parking at Asda (50 yards away))))).

p.s The Apprentice back from a Beer festival today so expect a few Norfolk beauties as 'guests' in the near future.
Cheers

Friday 27 July 2012

Thanks @rugbyadv for feature in Flair magazine. Let you know when digital version available if you don't get one through your letterbox.

Monday 23 July 2012

END DAY 5

Sold
Draught Ales   (Minicask and 2lt glass Flagon most popular)
Purity Pure Gold 61 Litres
Everards Tiger 46 Litres
Dowbridge Mild 35 Litres
Bottles  Local
Nobbys Brewery 31
Church End 27
Hoggleys Brewery 21 bottles
Frog Island 18
Purity Brewing 18
Byatts Brewery 16
Dowbridge 13
Everards 12
Total 156
U.S.A Craft
Total 59
Belgium
Total 45
Plus a few wines, Malts and Liquers

80% of break-even achieved with the support of the folk of Rugby and surrounding areas, without exception a great bunch of discerning imbibers.
Thanks
Cheers