Samui bar manager speaks about the recession, the abnormally high Thai baht, the alcohol ban and other things that make the entertainment business tough.

RESTAURANTS, bars, pubs, watering holes, lounges and liquor stores are typically the first businesses to pop up when the economy is good and the first to go when it’s bad. With over a million visitors a year from various places and cultures, Samui is probably one of the most competitive restaurant and bar environments you’ll find anywhere.

Any holiday stay on Samui that lasts at least one month is bound to encounter a bewildering number of new openings and closings.

One place that has survived the test of time on Samui is Tropical Murphy’s Irish Pub on Chaweng Beach Road. Easily one of the most popular establishments on the island, it is filled with people at any reasonable hour -- proof that if you give people a good product, your long-term success is assured.

With literally hundreds of restaurants and other competing businesses along the beach road, how is it that Tropical Murphy’s has not only survived but even thrived while others are tightening their belts or even closing? Is it a simple formula or an acquired skill? We caught up with Paul McMaster, the general manager of Tropical Murphy’s and of Coyote Samui, to find out.

Samui Express: F&B is always one of the first expenses to be cut in a tight budget, yet Tropical Murphy’s seems busy all the time. How big an impact has the global recession had on your business?

Paul McMaster: It obviously had an impact, as it has on most people in the hospitality trade. However, Tropical Murphy’s is a well-established pub and restaurant, with many repeat customers; therefore, our losses have been minimal. Coyote Samui has only been around for eleven months, so it is slightly harder to judge.

SEx: You’ve been with Tropical Murphy’s for several years now. Looking back over the last two years, would you say you are seeing more repeat customers now than new customers -- or have you noticed any change?

PM: The fortunate thing about Tropical Murphy’s is that we have always had a great tradition of repeat customers, so I don’t think that has changed. However, we have noticed that less and less large groups of young people are visiting the island than before.  It’s got more of a family feel now.

SEx: Have you noticed any difference in spending habits — that is, dinner and drinks but not staying for entertainment?
PM: I feel that customers are on much more of a budget than in previous years. The value of the Thai baht is higher than before, so foreign customers are not getting the same value for their money. This has not affected the popularity of our entertainment, however. But you’re right, customers are certainly keeping a closer eye on their spending.

SEx: Have you noticed any difference in the average table turnover over time?

PM: No. This has not changed.

SEx: From your perspective as GM, have we seen the low point of this recession? If not, how much longer would you estimate until we have put the worst behind us?

PM: I think it is dangerous for everyone to assume that we have reached the market bottom and that the recession is over. Although economies are stabilizing, I feel it will be a year at least before banks start lending again in earnest, and only then can we really make a judgment.

SEx: Is there anything you wish you would have or could have added to either Tropical Murphy’s or Coyote that you haven’t? Is there anything you have done that exceeded your expectations?

PM: We already have Irish and Mexican management in Tropical Murphy’s and Coyote Samui, and in an ideal world I would like to have some traditional Irish and Mexican music to entertain customers in both restaurants. However, we are more than happy with the quality of live music on offer now. In fact, during my four years here it’s the best I have seen.

Another important ingredient in a successful Irish pub is being able to show live Gaelic football and hurling, which is something I have been trying to do for some time now.

Thankfully we have now found a way of doing this, to the delight of our customers.

SEx: Both Tropical Murphy’s and Coyote have excellent locations going for them, but so do other restaurants and entertainment venues. How have TM and Coyote succeeded when others were forced to close? Have you grown the business to the point where you believe you would be as successful franchising as you are in one location?

Have the seemingly constant strings of elections and holidays that prohibit the sale of alcohol had any noticeable impact? There are always complaints from expats and tourists who believe that since they have no right to participate in the electoral process, they should be excluded from these local and national mandates. Do you think we will ever see the day when these restrictions will be lifted?

PM: Although a good location is important, we pride ourselves in a number of factors that we believe work for us. Firstly, plain and simple hard work! From management right through our cleaning staff, we believe in working, and succeeding, as a team. Don’t be surprised to see managers cleaning ashtrays on a busy night, we work together.

Secondly, we work hard to provide quality products with quality service to our customers.

Our commitment to regular staff training, including weekly English lessons, provides our staff with all the tools they need to make our customers feel at home.

We are also committed to sending our chefs to other restaurants in the group in a constant effort to maintain high standards in our kitchens. Complacency is not an option. I think there is no secret to the success of either Tropical Murphy’s or Coyote Samui. It’s plain and simple: a commitment to high standards and hard work.

It has been extremely frustrating having to deal with the elections, which have prohibited the sales of alcohol and live music. Living and working in Thailand, I have respect for Thai laws. However, I feel it makes no sense whatsoever to ban alcohol and live music in tourist areas. Local tourism is suffering enough with the various events of the past year, and this is only adding to the negative impact.

In the near future I hope to work with other business owners and managers in an effort to get these bans lifted.

SEx: You’ve been able to capture the market in two restaurants with vastly different styles, Irish and Mexican. If you could isolate only one area that helped you accomplish this, what would it be?

PM: The answer is plain and simple, the staff. In Tropical Murphy’s for many years we have had a great team in place; starting from Paul Watson (the owner) to the management team and the staff on the floor and in the kitchen, we are one big family. This is something which I have tried to re-create in Coyote Samui, and so far it has proved successful.