Here’s your number one reason to go back to the pub
If you’ve been missing the social vibe of your local pub or small bar, just remember that by dropping in, you’re likely to be supporting another family business, says AHA|SA’s David Basheer.
David Basheer grew up in Kalangadoo, a small town roughly halfway between Mount Gambier and the Coonawarra.
“Until I was 12 or 13 years old, that’s where I lived, in the country pub,” he said.
“Dad and his family ran it and I’d be the kid in the short pants running around in a pub that was my backyard as well as my home.”
While Basheer has had other successful careers, he said being a third-generation publican was something he loved and was in his veins.
Basheer’s father, Fred, and uncles Max and Sam, purchased the Strathmore Hotel opposite the Adelaide Railway Station in 1972, and it is now run by Basheer, his sister Sonia, and brother Rick.
“We’ve got another generation coming in behind me, so it’s pretty nice to have that family connection with the business.”
Basheer’s passion for the industry has seen him also take on the role as president of the Australian Hotels Association (SA) (AHA|SA).
It is estimated that 88 per cent of Australia’s small bars, clubs and pubs, including those providing accommodation, are independent or family owned.
“Some pubs have been in families for generations – like the Brien family at the Alberton Hotel, they’ve owned that hotel for almost 90 years, but more importantly, it’s been their home for 90 years,” Basheer said.
Victory Hotel owner Doug with Matt and Hayden
Social hubs, supporting our communities
Pubs tend to have strong connections within their communities.
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“As an industry, we give $11 million a year to local charities, community clubs and sporting organisations in cash and goods in kind,” Basheer said.
“But beyond that, it’s where many of them meet…Rotary Club, Lions Club, a lot of organisations have their AGMs at local pubs.”
Gen Z, a generation known to drink less alcohol, is also finding a new reason to go to the pub, thanks to a resurgence in quiz nights that bring out the competitive Millennials and Gen Xers.
Driving jobs and economy
Pubs are also where many young people in the regions get their first jobs and career starts.
“Getting an apprenticeship if you’re living 300k out of Adelaide, is not simple,” Basheer said.
“Working in the industry gives kids in the country a chance for their first job and to get a start without having to pack up and leave home.”
Mikaela is one of the team at the Lonsdale Hotel
Across the state, he estimates between 400 and 450 people start an apprenticeship or traineeship in the industry each year – from 4-year cooking apprenticeships to 12-month food and beverage traineeships, to traineeships in administration or event management.
The AHA|SA has commissioned an independent report into the economic contribution of the hotel industry in the state, which is due early next year.
The previous report, released in 2016, found the industry directly generated $1.468 billion to the gross state product and directly employed 26,250 people (or 16,465 FTE), with women representing around 60 per cent of the workforce.
Supporting local producers
The indirect contribution of the sector was reported to be a further $2.557 billion.
“The industry spends about $1.2 billion a year on food and beverages and overwhelming that is locally sourced,” Basheer said.
The Strathmore Hotel uses the State Brand on its menu, reflecting its support for and use of local products.
“We’re from the wine state, so straight away, all our wine lists have a heavy bias towards locals.
“And if you walk to any into any pub, the menus lean on the fantastic local produce – be it from Kangaroo Island, Adelaide Hills, Clare Valley, down the South East, the West Coast.
“Between our wines, spirits and beers and our fresh produce, it’s not hard for our members to support South Australia.”
This was evident when Big Shed Brewing went into voluntary administration earlier this year before a wave of community, creditor and industry support pulled it back out.
“A lot of our publicans actively went out of their way to make sure they were ordering extra supply through Big Shed, helping them out,” Basheer said.
Minister for Trade & Investment Joe Szakacs said it is “crucial South Australians support our local pubs”.
“South Australian producers make some of the world’s best beer, wine and spirits, and what better way to enjoy them than down at the pub surrounded by our mates and our families,” Szakacs said.
He added that Buying SA is not just about buying great local produce or products.
“It’s just as much about the brilliant local services we can experience at pubs and other establishments.
“And when you Buy SA, you’re backing in local jobs, local families and local communities.”
Feeling the pinch from cost of living pressures
This year’s June quarter figures for the National Accounts recorded a 0.3 per cent fall in SA’s household consumption, led by hotels, cafés and restaurant (down 2.3 per cent) and alcoholic beverages (down 4.9 per cent).
Given two-thirds of the industry’s income is generated by food and alcohol sales, even a small dip is felt in margins.
“The cost of doing business has skyrocketed in the last 15 to 18 months,” Basheer said about the increases in the cost of power, insurance and fresh produce.
“The margins have tightened because you can’t pass those increases on to the consumer, as their household budgets are under exactly the same pressure as our business budgets.
The Strath hosts a variety of events to promote sociability and community
It was a double whammy, he said, for businesses carrying “a bit of debt” in the face of higher interest rates.
“But at the of the day, you’ve got to back yourself in and hope that if you create a good enough environment and get enough customers, that will compensate for it.”
Strathmore Hotel Family Owned counter on Monday 2 December 2024
Basheer expects the forthcoming industry report to show growth in the number of people employed in the industry.
“Since the last report, there’s been many new accommodation assets, and they’re the ones that tend to have the most labour-intensive part of our business, with housekeepers and breakfast cooks, et cetera,” he said.
“Also, a lot of our members have spent on redevelopment and, well, that means pubs are bigger and need to hire more people.”
Basheer pointed out that the money earned by staff then gets spent in other businesses and industries across the state, “benefitting everyone”.
“I reckon that’s a great reason to stop in for a meal or drink at your local,” he said.
It is a call echoed by Brand South Australia, our state’s champion of all things local, with the organisation encouraging patrons to also look for South Australian beer, wine and spirits when they head out.
Its Buy SA. For SA. campaign, released last year, highlights the benefits that buying local will bring for all South Australians.
