In last week’s issue of the Spectator, there was an interesting article (registration may be required) by Rory Sutherland in which he argued that the development of well-known chains of service businesses such as coffee shops and budget hotels, while we may not think much of them, had served to raise standards overall by creating what he calls a “threshold of crappiness”.
It is worth remembering that many unfashionable large businesses create value in ways that are often under-appreciated. No one will ever write gushingly about McDonald’s or Starbucks or PremierLodgeExpress. But what these large chains do is valuable, even if you never use them. They effectively raise what I call the ‘threshold of crappiness’ in the sectors in which they operate. To operate successfully as a coffee shop or a sandwich bar or hotel (or a minicab firm), you have to be at least as good as a chain or else you fail. This raises the bar for everyone. You can get better coffee in a truckstop now than at Claridge’s in 1990.Surely much the same is true of Wetherspoon’s in the pub industry. They are often derided for their cheap and cheerful menus and customers and lack of atmosphere, but they have had a salutary effect in raising the bar of what people expect from a pub. Most notably this is true in terms of all-day opening and food service. It is largely forgotten now that, in the early years after all-day opening was introduced in 1988, it was often hard to find a pub that was actually open in the afternoon. But, if the Wetherspoon’s down the street is open all day, a competing pub may well lose customers if they’re not. Even if you scarcely ever go in the pub in mid-afternoon, it’s reassuring to know you can.
Back in the early 1980s, there were some truly terrible pubs with a slapdash, take-it-or-leave it approach to customer service, especially in London, which is where Wetherspoon’s started off. Today, while they’ve not entirely disappeared, they’re much less common. If you run a pub in a town or city centre with a Spoons, you have to do at least one thing better, or you’re not going to survive.