Coinslot: You’ve been in the job for 100-days – what are your reflections on the business and the sector?
Mark Jepp: I’m delighted that I have joined what is a great business operating in what is a thriving and highly competitive sector of the industry. Focussing on the business, I’ve met with a team of really talented people with a great outlook and fantastic energy.
What the business needs is a bit of direction in terms of the next steps and help navigating the next stage in its journey. I’ve visited every venue, many on multiple times, and sat down with all department heads. I’ve also spent time simply chatting with our consumer-facing members of the team and listening to their feed-back on what we do well, where we can improve and where the opportunities are.
In my experience talking to the people who are responsible for delivering the entertainment proposition – which, after all, is what we are all about – provides an authentic ‘warts and all’ style insight which is what I need to know.
My task is to harness the many very good bits that exist and address those that require some attention.
Coinslot: It’s early days but have you made any changes to the business so far?
Mark Jepp: Obviously, I undertook a large amount of research ahead of being offered this wonderful opportunity, so I knew a fair amount about the business. Despite having those foundations or building blocks it would have been foolish to parachute in and start making wholesale changes from Day 1.
To get a snapshot of where we are, I introduced a very simple easy to complete three question survey to identify any consistent themes which ran across the business. That initiative helped identify some immediate issues that we prioritised. For example, the team will have a new, smart uniform in time for Christmas, the quality of the seating is being improved as we address the comfort of the customer experience and we are working with Novo, Blueprint and Light and Wonder to begin the roll-out of the latest gaming equipment.
We’ve reviewed and improved the F&B offering and enhanced our communications with the launch of the Cherry News team newsletter. Simple initiatives such as ensuring that the team is aware of all of the great things that we are and will be doing, recognising the many examples that exist of outstanding service and providing a uniform that they like and can feel proud of are all baby steps, but they can and do make a significant difference.
Coinslot: What objectives have you set to achieve in Year 1?
Mark Jepp: I want to be in a position where we are optimising the business on a venue level. That means having the right floorplan, the right mix of product and the right promotional calendar to address the specific needs of our customers. It also means getting the very best out of our App and having best practices in place.
I want to set new standards of retailing excellence not just in our sector but for us to be among the very best retailers on the high street. Part of this process involves a shift in the way in which we perceive ourselves. I want the team to be immersed in hospitality and to recognise that we are providing an entertainment experience set in a safe, welcoming environment.
If we fail to do this the people that we rely on, our customers, may as well stay at home.
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Coinslot: Your background is in bingo – do you plan to bring any of that insight and experience to the AGC sector?
Mark Jepp: Whilst people will know me for my time working in bingo, I started my career working in arcades for the Thomas organisation. In fact, one of the phrases I use to describe my background is that I’m ‘Thomas trained and plc polished’. The arcade business is in my DNA and I see the Nobles and the Shipleys as the standard bearers of the business. As well as bingo and arcades I’ve also worked in casinos and betting offices – so I have a wealth of experience to draw on. Obviously, bingo has been an important part of my professional life and there are numerous aspects of what is a unique experience that I will be drawing on – both consciously and sub-consciously.
Coinslot: What in your opinion are the biggest challenges facing the AGC sector?
Mark Jepp: Ours is an industry that’s powered by technology and controlled by regulation. The challenges are defined by the delay in implementing the land-based gambling reforms recommended by the white paper, the absence of a review of stake and prize and the dangers posed by the changes to Technical Standards which have been proposed by the Gambling Commission and which could be a disaster for the industry.
Added to that we have the burden of increased business costs set out in Rachel Reeves Autumn Budget. Of the £40bn of additional tax income over half is from business.
The difference between our sector and the rest of the economy is that we cannot pass on costs to our customers. The last stake and prize increase was over a decade ago: no other business sector could sustain that, and I can’t think of any sector that would be expected to. The demise of the high street is a huge threat.
We need the restaurants, the coffee shops, the pubs and the businesses that comprise both the day-time and the night-time economy to continue to trade and stimulate footfall. Every business on the high street is interrelated and we rely on each other.
I have been delighted to sit on the board of the Gambling Business Group and experience at first hand the excellent work that it does under the leadership of Peter Hannibal to represent the industry and draw attention to the incidents of how curated research and statistics are used to justify policies and arguments which undermine and damage the industry. All of those incidents need to be called out and the GBG has shown itself to be up to the task.
Coinslot: The majority of your sites are located within the M25 – what are the main differences that you’ve noticed between operating in London and the East Midlands or South Wales?
Mark Jepp: In my career I’ve operated throughout the country and with Mecca I was responsible for businesses from Barrow to Canvey Island. We have 60 percent of our venues within the M25 and I think one of the stand-out differences with the rest of the country is the turnover of staff.
In Scotland, for example, it’s not unusual to have people with over a decade’s continuous service. Whilst our staff churn in London is not as extreme as some it’s important to try and get a consistency of service and build relationships between the team and their customers. From a venue perspective being in London demonstrates the importance of localisation especially in terms of marketing and promotions.
The demographics are so unique it’s simply not possible to adopt a blanket approach to the way in which we engage with machine players.
Coinslot: Where do you want the brand to be in the next three years and are you planning to grow it?
Mark Jepp: Game Nation is an incredibly strong brand. It resonates with machine players, it’s immediately recognisable and the design is simplistic but powerful. My objectives are to harness those core credentials and ensure that Game Nation is recognised for being a credible, legitimate, top end operator which has hospitality running through each and every venue.
We will be pursuing every opportunity to optimise and grow the business through greenfield/brownfield development and acquisition. We’ve got exciting, ambitious but deliverable plans for the business.
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