The statistics are grim: fewer than 30% of family-operated businesses in Canada make it beyond the second generation. But those numbers aren’t stopping some of BC’s publicans from handing off the torch to their adult children.
For entrepreneurs, the family business is an ideal setup. As senior worker bees approach retirement, they want to know that the business they’ve toiled so hard to build over the years will continue to grow and prosper in the future. As a pleasant spinoff, they know their children’s futures will be relatively secure. And who better to look after the family’s interests than the kids?
A few BC families have taken up the challenge of making the pub or liquor store a cross-generational venture — and so far, they’re making it work. “I grew up with my father saying I’d never work for him,” says Joey Gibbons, president of Gibbons Hospitality Group. “He didn’t want to limit my opportunities. But when I went away to school, I was the guy who threw all the parties. I was a natural host,” he laughs. “After I became the general manager of a huge 1000-seat club in Quebec, my dad realized I was in it for the right reasons.” For Joey, the rest is history. After working his way through the ranks at the family’s Longhorn Bar and Grill, he eventually took over as head of the company, encompassing two additional Whistler venues, a hotel in Port Alberni, and projects in the works in Ontario and downtown Vancouver. Joey works closely with his father to make decisions. “We’re on the same page with giving our staff and customers a good experience,” he explains. As his father, Dick, edges away from the business, Joey acknowledges that his own job is to find and lead the company through future growth opportunities.
In John Kavanagh’s family, it became apparent early on that his children would follow in their parents’ footsteps to be business owners themselves. “When the girls finished college, they wanted their own business,” he says. “We bought the Troller Pub in Horseshoe Bay with the idea that they would end up running it.” Now, John’s daughter, Kelly Greenfield, operates the Troller in addition to Queen’s Cross, which she runs with her husband. Two years ago, the family opened the 25th Street Liquor Store, which is overseen by Kelly’s sister, Kim Kavanagh. “We just had to teach them how to do it, and now they run the businesses,” describes John. “I just do what I’m told. They’re in charge. They decide what product we’re selling, prices, staffing, and scheduling.” John and his wife, who works part-time as the bookkeeper, have scaled back their work hours and involvement. “We’ve got one foot out the door,” he says. “I have no fears about their ability to run the pub and liquor store.”
Some kids are involved in the family business right from the start. “Todd worked alongside me at 14, pounding dough at the Boston Pizza we owned in Whistler,” recalls publican Al Arbuthnot, owner of several pubs and liquor stores in the Lower Mainland. Now all grown up and managing Fox’s Reach Pub in Maple Ridge as well as Tidewaters in Delta, Todd Arbuthnot acknowledges that he suspected all along that he’d make his career in the pub industry. After completing the hospitality program at the Southern Alberta Institute of Technology (SAIT) in Calgary, Todd returned to Vancouver and, after working a couple of industry-related jobs, eventually took over the role of manager of Fox’s Reach, literally building the place from the ground up. He points out that his father’s decision to build a new pub and liquor store was a direct result of Todd’s own commitment to the business. “If I was just on my own,” said Al, “I wouldn’t be considering buying any more places right now. Instead, we’d be looking to sell everything off. You have to know that someone’s there to take it to the next level.” Both men point out that there’s a deep level of trust between family members in a business — and though it’s not always sunshine and roses (beer and wings?) between the generations, the benefits usually outweigh the drawbacks.
“You have to watch that you keep work and family separate,” notes Kim Kavanagh, who oversees her family’s 25th Street Liquor Store. However, she admits that it’s not always easy. “Some of our family dinners end up like business meetings,” she chuckles.
Joey Gibbons acknowledges that he sometimes has differences in opinion with his father, “But that’s healthy,” he adds. “I might want to grow faster than he’s willing to grow. But it’s not a big issue; that trust has been given to me.” On the upside, everyone agrees that the benefits of greater flexibility, seeing family members more often, and the peace of mind in knowing that the business is in good hands are the true gifts of a cross-generational venture.
“There’s a mixture of emotions on my part sometimes,” says Dick Gibbons. “I’m very proud of what Joey has done. But it does take a little bit of reflection on my part to accept a lesser role when you’re used to being ‘the boss’.” As senior publicans step away from the front lines, they trust that the younger generation will continue to grow the business in a stable way. And with growth often comes change. “Our pubs used to be very individualized operations with separate menus, separate suppliers, and separate beer,” says Todd Arbuthnot. “I’ve worked to centralize everything, and to create a head office concept so that we’re buying as a group, and not as individuals.” This lends the family’s 3 pubs and liquor stores greater purchasing power to ensure they can access benefits from certain suppliers. It’s all in the name of keeping the business moving forward.
It may be that these families have struck a winning formula for carrying their pubs into the future. “I used to work really hard,” says Dick Gibbons. “Now, at 63, I can take a little more time away, and I’m quite enjoying it. It really is special having a family member who’s running the show, keeping an eye on things, and doing the best job.”
Written by by Alex Van Tol. Reprinted from The Publican magazine with permission from EMC Publications.
