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EP Business in Hospitality Issue 48 - January 2014

EP magazine provides a reference point for executives on topical issues which may impact business growth, industry structure, professional and skill development, and broader economic and political changes. The magazine reports on all sectors of the industry, including hotels, restaurants, events and foodservice (contract catering).

EP magazine provides a reference point for executives on topical issues which may impact business growth, industry structure, professional and skill development, and broader economic and political changes. The magazine reports on all sectors of the industry, including hotels, restaurants, events and foodservice (contract catering).

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<strong>Issue</strong> <strong>48</strong> <strong>January</strong> <strong>2014</strong> £5.00<br />

<strong>EP</strong><strong>Bus<strong>in</strong>ess</strong> <strong>in</strong> <strong>Hospitality</strong><br />

The bus<strong>in</strong>ess<br />

of Lucknam<br />

A conversation with Harry Murray MBE


WELCOME<br />

<strong>EP</strong><strong>Bus<strong>in</strong>ess</strong> <strong>in</strong> <strong>Hospitality</strong><br />

Front cover<br />

From left to right Harry Murray<br />

Photography Nick Dawe<br />

Editor<br />

<strong>in</strong>fo@epmagaz<strong>in</strong>e.co.uk<br />

<strong>EP</strong>, 26 Carnaby Street, London W1F 7DF UK<br />

www.epmagaz<strong>in</strong>e.co.uk<br />

Design and Production<br />

Archant Dialogue Ltd<br />

Prospect House, Rouen Road, Norwich,<br />

Norfolk NR1 1RE<br />

01603 664242<br />

mail@archantdialogue.co.uk<br />

www.archantdialogue.co.uk<br />

Group Editor Joanne S<strong>in</strong>dall<br />

Editorial Assistant Jess Phillipson<br />

Art Editor Nicola Preston<br />

Client Services Director Richard Woolliams<br />

Account Director Cather<strong>in</strong>e Goad<br />

Advertis<strong>in</strong>g Alex Crawley, 01603 772582<br />

alexander.crawley@archantdialogue.co.uk<br />

Pr<strong>in</strong>t<br />

William Gibbons & Sons<br />

www.williamgibbons.co.uk<br />

Photography<br />

Nick Dawe email@nickdawe.co.uk<br />

© <strong>2014</strong> <strong>EP</strong> magaz<strong>in</strong>e is owned by Chess<br />

Executive Ltd. Every effort is made to ensure<br />

the accuracy of the <strong>in</strong>formation conta<strong>in</strong>ed <strong>in</strong><br />

the publication.<br />

Reproduction or use of this material without<br />

permission of Chess Executive Ltd is prohibited.<br />

The op<strong>in</strong>ions expressed here<strong>in</strong> are not<br />

necessarily those of the editor/publisher.<br />

<strong>EP</strong> ONLINE<br />

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@En_Passant_<br />

Spread<strong>in</strong>g<br />

our w<strong>in</strong>gs<br />

The editorial team are four months<br />

<strong>in</strong>to our new remits and what an<br />

amaz<strong>in</strong>g journey it has already<br />

been. There are so many great<br />

stories, opportunities and debat<strong>in</strong>g<br />

topics. No one could ever doubt just<br />

how vibrant the <strong>in</strong>dustry is. As we<br />

look ahead, one of our objectives is<br />

to broaden the breadth of features<br />

and issues that we cover, to ask new<br />

questions and look at bus<strong>in</strong>esses<br />

that we have not done <strong>in</strong> the past.<br />

We believe this issue will show the<br />

first signs of this change.<br />

We talk to three lead<strong>in</strong>g female<br />

entrepreneurs, from Amelia Harvey<br />

of The Collective Diary, to Donna<br />

Ida Thornton, the creator of Donna<br />

Ida denim boutiques, and Emma<br />

Little of ExecSpace. All are market leaders <strong>in</strong> their own fields. We also listen to<br />

Jason Oakley, Commercial Director at Metro Bank, about their new bank<strong>in</strong>g<br />

concept, which br<strong>in</strong>gs a culture of hospitality <strong>in</strong>to their world.<br />

Return<strong>in</strong>g to the <strong>in</strong>dustry, we met with Harry Murray MBE, Chairman of<br />

Lucknam Park Hotel and Spa and recipient of The AA Lifetime Achievement<br />

Award 2013-<strong>2014</strong>. Harry discusses his goal of mak<strong>in</strong>g Lucknam Park the best<br />

country house hotel <strong>in</strong> the land. We talked to the founders of Creativevents,<br />

Adrian and Ian Willson, about their growth and recent JV with MITIE PLC.<br />

Along with our regular features, we are also pleased to welcome Graeme<br />

Smith, Partner at Zolfo Cooper. Graeme discusses the latest report published<br />

by Zolfo Cooper on the fastest grow<strong>in</strong>g <strong>in</strong>dependent foodservice providers and<br />

its implications for the sector. The f<strong>in</strong>d<strong>in</strong>gs are both surpris<strong>in</strong>g and <strong>in</strong>terest<strong>in</strong>g.<br />

We also seek to discuss <strong>in</strong>terest<strong>in</strong>g questions such as why, as modern<br />

communications become faster and faster, is there a desire for more personal<br />

contact and old-fashioned values? We look at the expansion of UK bus<strong>in</strong>ess <strong>in</strong>to<br />

Ireland and why the likes of JD Wetherspoon are plann<strong>in</strong>g to open 30 pubs <strong>in</strong> the<br />

Republic. And we discuss the return to the fore of the English afternoon tea.<br />

How has it evolved?<br />

The evolution of <strong>EP</strong> has certa<strong>in</strong>ly picked up pace and, as we emerge from the<br />

recession, the stories for <strong>2014</strong> are too.<br />

JAZ NOTAY<br />

Editor<br />

MEET THE TEAM<br />

CHRIS SH<strong>EP</strong>PARDSON SARA STEWART NICK SH<strong>EP</strong>PARDSON NICOLE THOMPSON MIRIAM STALEY ARLENE MCCAFFREY LINN VISLIE<br />

<strong>EP</strong> | <strong>January</strong> 14 | 3


“Afternoon tea for most<br />

is synonymous with<br />

decadence and a decent<br />

portion of <strong>in</strong>dulgence”<br />

ANYONE FOR TEA? P26<br />

REGULARS.<br />

40 Entrepreneurs lead<strong>in</strong>g the way<br />

Champion <strong>in</strong> the chiller: we speak to Amelia Harvey and<br />

Mike Hodgson, directors, The Dairy Collective<br />

OPINION.<br />

11 The Enterprise Investment Scheme<br />

By Peter Davies, WMT Accountants<br />

18 Zero-hours contracts<br />

By Adam Taylor, Joelson Wilson LLP<br />

31 The chang<strong>in</strong>g face of foodservice<br />

By Graeme Smith, Zolfo Cooper Corporate F<strong>in</strong>ance<br />

36 Social video 101<br />

By Ben Hayes, BORN SOCIAL<br />

43 Technical Determ<strong>in</strong>ation and Expansion for <strong>2014</strong><br />

By Mike Day, CEO, IndiCater<br />

50 The old ways … still <strong>in</strong> vogue<br />

By Chris Sheppardson, <strong>EP</strong> magaz<strong>in</strong>e<br />

BUSINESS.<br />

6 The British Bank<strong>in</strong>g Revolution<br />

Jason Oakley, Metro Bank’s Commercial Director<br />

8 UK <strong>Hospitality</strong> Confidence Monitor<br />

A quarterly survey of bus<strong>in</strong>ess op<strong>in</strong>ion <strong>in</strong> the<br />

hospitality <strong>in</strong>dustry<br />

13 Never a dull moment<br />

Adrian and Ian Willson, founders and directors<br />

of Creativevents<br />

16 UK bus<strong>in</strong>ess <strong>in</strong> Ireland<br />

A discussion of trade l<strong>in</strong>ks between the UK and Ireland<br />

and the opportunities for <strong>in</strong>vestors <strong>in</strong> hospitality on both<br />

sides of the Irish Sea<br />

4 | <strong>January</strong> 14 | <strong>EP</strong>


CONTENTS<br />

20 A better k<strong>in</strong>d of different<br />

Peter Davies, COO, Harris & Hoole<br />

25 Check<strong>in</strong>g On<br />

George Craig and Terry Edwards, founders, Check On<br />

28 From Denmark with love<br />

Rasmus Bo Bojesen, Founder, Oialla<br />

34 A grand revival<br />

Jeremy Robson, owner-operator, The Great Northern Hotel<br />

37 Employ<strong>in</strong>g the best<br />

Talk<strong>in</strong>g about diversity with Andy Kemp, group sales<br />

director, 3663<br />

38 Aga<strong>in</strong>st the odds<br />

Emma Little, founder, ExecSpace<br />

44 A tall order<br />

Stefan Cord<strong>in</strong>er, co-founder, Lime&Tonic<br />

<strong>48</strong> Jeans genie<br />

Donna Ida, founder, IDA Jeans<br />

PEOPLE.<br />

22 The bus<strong>in</strong>ess of Lucknam<br />

Harry Murray MBE, Chairman, Lucknam Park<br />

MANAGEMENT.<br />

10 Master of my own dest<strong>in</strong>y<br />

By Oliver Brown, Flem<strong>in</strong>g’s<br />

32 Mak<strong>in</strong>g the right impression<br />

By Carla Cr<strong>in</strong>gle, Fizz Pop Bang<br />

47 Th<strong>in</strong>k before you lead<br />

By Miriam Staley, founder, Make Waves<br />

SPECIAL FEATURE<br />

26 Anyone for tea?<br />

<strong>EP</strong> explores the tea revival occurr<strong>in</strong>g across London<br />

<strong>EP</strong> | <strong>January</strong> 14 | 5


Metro Bank sees itself<br />

as different from<br />

traditional banks<br />

through its “unique<br />

customer-focused<br />

retail bus<strong>in</strong>ess model, re<strong>in</strong>vent<strong>in</strong>g the<br />

rules of retail bank<strong>in</strong>g, mak<strong>in</strong>g every<br />

effort to offer simpler and more<br />

convenient bank<strong>in</strong>g”. With stores<br />

operat<strong>in</strong>g longer hours, seven days a<br />

week, Metro Bank’s customer service<br />

can rival any good hospitality<br />

establishment. The bank’s strategy is<br />

about creat<strong>in</strong>g colour and experience.<br />

As you enter a store you are welcomed<br />

by a customer service representative,<br />

who shakes your hand and takes you<br />

to a seat<strong>in</strong>g area. They even have<br />

lollipops for children and water<br />

and biscuits for dogs.<br />

Metro Bank was founded by an<br />

American, Vernon Hill, who is also<br />

the Chairman. Vernon knows and<br />

understands retail bank<strong>in</strong>g. He<br />

founded American bank Commerce<br />

Bancorp (known as Commerce Bank)<br />

<strong>in</strong> 1973, which he sold for $8.5 billion<br />

<strong>in</strong> 2007. Prior to Commerce Bank,<br />

Vernon worked with McDonald’s,<br />

sourc<strong>in</strong>g and develop<strong>in</strong>g new sites.<br />

Commerce Bank has won numerous<br />

retail bank<strong>in</strong>g awards and Vernon has<br />

been credited with revolutionis<strong>in</strong>g<br />

American Bank<strong>in</strong>g. Can he repeat the<br />

same success with Metro Bank <strong>in</strong> the<br />

UK? Vernon certa<strong>in</strong>ly feels “the<br />

appetite for a new bank <strong>in</strong> the UK is<br />

far greater than that <strong>in</strong> America”.<br />

5 March 2010 was the day that<br />

Metro Bank PLC was granted its<br />

licence by the FSA. Four months later,<br />

on 29 July, Metro Bank opened its first<br />

store <strong>in</strong> Holborn. S<strong>in</strong>ce then the<br />

bus<strong>in</strong>ess has grown to 22 stores, with<br />

plans to <strong>in</strong>crease to 24 by the end of<br />

2013 and 200 by 2020. By mid-2013,<br />

Metro Bank had 200,000 customers,<br />

<strong>in</strong>clud<strong>in</strong>g 15,000 bus<strong>in</strong>ess accounts<br />

and 850 employees. Transactions at<br />

the Holborn store have reached<br />

40,000 a month, which annualised<br />

are equivalent to a mature bank<br />

<strong>in</strong> the US. The UK appetite is<br />

certa<strong>in</strong>ly there!<br />

So what are the factors that have<br />

contributed to Metro Bank’s success?<br />

Jason believes it’s the bank’s<br />

“relationship-led approach, face-toface<br />

contact, direct l<strong>in</strong>e <strong>in</strong>to your<br />

branch and our commitment to<br />

customer service all the way through<br />

to the end, not just the front end- and<br />

longer-term committed f<strong>in</strong>ance. When<br />

customers require significant<br />

<strong>in</strong>vestment, you need cont<strong>in</strong>uity of<br />

fund<strong>in</strong>g; you need a longer-term<br />

THE BRITISH<br />

BANKING<br />

REVOLUTION<br />

Metro Bank is the first new high street bank <strong>in</strong> over<br />

100 years and is the new patron of British bank<strong>in</strong>g.<br />

However, with losses of around £100 million to date,<br />

is it really chang<strong>in</strong>g the market? JAZ NOTAY met with<br />

Metro Bank’s Commercial Director, JASON OAKLEY<br />

6 |<strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

horizon to get the return on your<br />

<strong>in</strong>vestment. We see ourselves as<br />

the entrepreneur’s bank and our<br />

customers have built up their bus<strong>in</strong>ess<br />

from <strong>in</strong>ception, but are still very much<br />

the decision-makers and what they<br />

want from their bank is someone with<br />

the same level of decision-mak<strong>in</strong>g,<br />

proactivity and responsiveness.”<br />

Jason says he “spends a significant<br />

part of his week with customers as it is<br />

a core part of our model to spend time<br />

with the entrepreneurs and really<br />

understand their objectives and their<br />

bus<strong>in</strong>ess and build a jo<strong>in</strong>t approach.<br />

It makes such a difference and<br />

customers really like that <strong>in</strong>timacy.”<br />

Tim<strong>in</strong>g of entry <strong>in</strong>to the UK market<br />

has also contributed to Metro Bank’s<br />

successes. The British public had lost<br />

faith <strong>in</strong> the traditional banks due to<br />

a series of scandals, PPI, derivative<br />

mis-sell<strong>in</strong>g, government bailouts<br />

and money launder<strong>in</strong>g. But s<strong>in</strong>ce<br />

there were so few players, and all<br />

have been tarnished, Metro Bank was<br />

almost seen as a breath of fresh air.<br />

“Our model is a clean model; we<br />

offer loans, make deposits and<br />

traditional bank<strong>in</strong>g services. Some<br />

of our competitors, <strong>in</strong> their desire to<br />

broaden their offer<strong>in</strong>g, have gone <strong>in</strong>to<br />

pensions, <strong>in</strong>vestments, life cover, etc.<br />

and this has its own set of issues. We<br />

have a simple range of products and<br />

we don’t have any product sales<br />

targets – it’s all service led. What you<br />

tend to f<strong>in</strong>d is if you offer great<br />

service, customers trust you and<br />

you build a good relationship. You<br />

look after your customers and they<br />

will keep bank<strong>in</strong>g with you.” Metro<br />

Bank has no desire to diversify <strong>in</strong>to<br />

offer<strong>in</strong>g products such as pensions,<br />

<strong>in</strong>surance and <strong>in</strong>vestment funds,<br />

due to the risk associated with<br />

misalignment of customer<br />

<strong>in</strong>terests and the bank.<br />

See<strong>in</strong>g an opportunity to offer<br />

more traditional services the company<br />

“The appetite for<br />

a new bank <strong>in</strong> the<br />

UK is far greater<br />

than <strong>in</strong> America”<br />

has begun offer<strong>in</strong>g Safety Deposit<br />

boxes – the uptake for which has been<br />

phenomenal, with almost all boxes<br />

hav<strong>in</strong>g been sold already. While HSBC<br />

have disbanded their Asian bus<strong>in</strong>ess<br />

unit and diverted customers back<br />

<strong>in</strong>to normal portfolios, Metro Bank is<br />

about to launch their Asian bus<strong>in</strong>ess<br />

unit for Indian, Pakistani and<br />

Bangladeshi customers. They want to<br />

get closer to the community and add<br />

value. In July, the bank acquired SME<br />

Invoice F<strong>in</strong>ance, a provider of<br />

alternative forms of f<strong>in</strong>ance and<br />

work<strong>in</strong>g capital to small and mediumsized<br />

bus<strong>in</strong>esses. SME was a “great<br />

cultural fit”, and has meant the bank is<br />

able to offer an enhanced proposition<br />

to their SME customers by provid<strong>in</strong>g<br />

additional services such as asset<br />

f<strong>in</strong>ance and debt f<strong>in</strong>ance.<br />

Customer service is a key part of<br />

Metro Bank’s strategic proposition.<br />

This commences <strong>in</strong> the recruitment<br />

process, where the selection criteria<br />

requires all potential employees to be<br />

genu<strong>in</strong>ely customer orientated and<br />

have a real desire to want to help<br />

customers. Every experience is seen<br />

as an opportunity to enhance the<br />

relationship. “There are tra<strong>in</strong><strong>in</strong>g<br />

programmes to foster and nurture<br />

customer service, which is important<br />

for every employee. It’s about<br />

provid<strong>in</strong>g excellent customer service<br />

externally as well as <strong>in</strong>ternally. I’ve<br />

worked <strong>in</strong> this <strong>in</strong>dustry for over 30<br />

years, and this is the most positive<br />

culture I have experienced. I know a<br />

lot of banks talk about be<strong>in</strong>g customer<br />

orientated, but it’s <strong>in</strong> our DNA. We<br />

want to provide a retail-led experience<br />

and we measure ourselves aga<strong>in</strong>st<br />

the likes of John Lewis and Apple, we<br />

don’t measure ourselves aga<strong>in</strong>st the<br />

likes of other banks, as they are not<br />

sufficiently challeng<strong>in</strong>g enough for the<br />

service experience. We want to be the<br />

best <strong>in</strong> the <strong>in</strong>dustry for service, not<br />

just bank<strong>in</strong>g.”<br />

What have been the biggest<br />

challenges to break <strong>in</strong>to the British<br />

market? “You need to get to a certa<strong>in</strong><br />

size and scale to get visibility. We can<br />

relate to entrepreneurs because four<br />

years ago we didn’t exist and had the<br />

same grow<strong>in</strong>g pa<strong>in</strong>s when build<strong>in</strong>g<br />

our bus<strong>in</strong>ess from scratch. What’s<br />

really encourag<strong>in</strong>g is the level of brand<br />

awareness – we are gett<strong>in</strong>g a lot of<br />

customers through word of mouth.<br />

There’s a level of momentum and<br />

growth, which gives us a real sense<br />

of confidence.”<br />

Many grow<strong>in</strong>g bus<strong>in</strong>esses tend<br />

to suffer due to <strong>in</strong>sufficient resources,<br />

funds, manpower, etc. or they do not<br />

have the <strong>in</strong>frastructure <strong>in</strong> place to<br />

cope. Metro Bank have taken steps<br />

to avoid this risk by roll<strong>in</strong>g out <strong>in</strong><br />

phases – slower at the beg<strong>in</strong>n<strong>in</strong>g<br />

and accelerat<strong>in</strong>g over time.<br />

“It is a geared model, as the first<br />

stores have become profitable and<br />

that allows <strong>in</strong>creased <strong>in</strong>vestment.”<br />

Store open<strong>in</strong>gs have been<br />

concentrated <strong>in</strong> London and the<br />

South East, as the store network<br />

supports each other, which<br />

facilitates the growth.<br />

The Metro Bank concept is new<br />

and refresh<strong>in</strong>g, but it comes at a<br />

cost. The bank has reported losses<br />

of £100 million <strong>in</strong> the three years to<br />

July 2013. So when does the bank<br />

envisage mak<strong>in</strong>g a profit and br<strong>in</strong>g<strong>in</strong>g<br />

value to its shareholders? “Our<br />

growth is ahead of plan and there<br />

is an appetite to cont<strong>in</strong>ue to support<br />

the brand and its growth.”<br />

With aggressive expansion plans,<br />

can Metro Bank cont<strong>in</strong>ue to provide<br />

customers an unrivalled service and<br />

give shareholders a lucrative return<br />

on their <strong>in</strong>vestment? Only time will<br />

tell, but it will no doubt be an<br />

<strong>in</strong>terest<strong>in</strong>g journey. •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 7


UK <strong>Hospitality</strong><br />

Confidence<br />

The UK <strong>Hospitality</strong> Confidence Monitor<br />

is a quarterly survey for bus<strong>in</strong>esses to<br />

report their experience of the market<br />

and their outlook for the future.<br />

Commentary<br />

This survey cont<strong>in</strong>ued to show the<br />

optimistic trend first seen <strong>in</strong> the Q2<br />

survey. The most upbeat responses<br />

were <strong>in</strong> regard to <strong>in</strong>creas<strong>in</strong>g like-for-like<br />

turnover (3.9 compared with Q3 3.7)<br />

and look<strong>in</strong>g to expand your bus<strong>in</strong>ess<br />

(4.0, which is the same as Q3).<br />

Gross marg<strong>in</strong>s cont<strong>in</strong>ued to improve<br />

(3.5 compared with Q3 3.3), as did spend<br />

per customer (3.3 compared with Q3 3.1),<br />

Supplementary<br />

Questions<br />

Are you see<strong>in</strong>g clear signs of the long<br />

promised recovery?<br />

Yes 83%<br />

No 17%<br />

In your experience, are banks more<br />

will<strong>in</strong>g to lend to bus<strong>in</strong>esses than a<br />

year ago?<br />

Yes 76%<br />

No 24%<br />

Should the government be do<strong>in</strong>g more<br />

to address the cont<strong>in</strong>ued squeeze on<br />

liv<strong>in</strong>g standards (e.g. the recent 10%<br />

<strong>in</strong>crease <strong>in</strong> energy bills) or should it<br />

leave well alone?<br />

Do more 69%<br />

Leave alone 31%<br />

which tentatively suggests that customers<br />

are at last prepared to spend a little more<br />

each visit.<br />

This view is re<strong>in</strong>forced by cost pressures<br />

eas<strong>in</strong>g slightly (3.2 compared with Q3<br />

2.8). This survey question has usually<br />

drawn the most negative responses and<br />

so for even this to become mildly positive<br />

is good news.<br />

Are you see<strong>in</strong>g clear signs of the longpromised<br />

recovery?<br />

Eighty-three percent of respondents said<br />

that they saw signs of the recovery, but<br />

many were guarded <strong>in</strong> their optimism.<br />

One wrote:<br />

“Th<strong>in</strong>gs feel better, but there are so<br />

many unknowns that haven’t been sorted<br />

out economically. One hopes it’s not a<br />

mirage.” Another commented:<br />

“Still early to believe that it is recover<strong>in</strong>g.<br />

The short-term forecasts for Q1 <strong>2014</strong> are<br />

still soft. <strong>Issue</strong>s such as the shutdown <strong>in</strong><br />

the US have not helped long-term<br />

confidence. This may just be a blip.”<br />

And a couple of caveats were made on<br />

this general optimism. One commented<br />

that while the recovery was real it was<br />

somewhat concentrated: “ma<strong>in</strong>ly <strong>in</strong> the<br />

south and south east of England”, while<br />

another noted that: “October hasn’t<br />

performed well.”<br />

Should the government be do<strong>in</strong>g more<br />

to address the cont<strong>in</strong>ued squeeze on<br />

liv<strong>in</strong>g standards (e.g. the recent 10%<br />

<strong>in</strong>crease <strong>in</strong> energy bills) or should it<br />

leave well alone?<br />

Sixty-n<strong>in</strong>e percent of respondents did<br />

th<strong>in</strong>k that the government should do<br />

more to address liv<strong>in</strong>g standards.<br />

However, there was some nervousness<br />

about politicians gett<strong>in</strong>g <strong>in</strong>volved <strong>in</strong><br />

energy prices, other than to reduce<br />

the burden of green taxes. One<br />

respondent commented:<br />

“We are a free market economy and<br />

chose to privatise utilities two decades ago.”<br />

And another agreed with the idea of<br />

the government help<strong>in</strong>g hard-pressed<br />

consumers on energy prices, “but not<br />

a price freeze”.<br />

Several comments felt that the<br />

burden of taxation, both energy<br />

related and elsewhere, needed<br />

to be reduced:<br />

“Green energy taxes should not<br />

be pursued any further. The nuclear<br />

option provides us with energy security.<br />

There’s grow<strong>in</strong>g concern also with the<br />

transfer of costs to the private sector<br />

through <strong>in</strong>creased S106 contributions,<br />

CIL and EMRO’s [Construction and<br />

licens<strong>in</strong>g taxes] among others.”<br />

Another wrote succ<strong>in</strong>ctly: “Reduce<br />

Taxes, Reduce Rates.”<br />

In your experience, are banks more<br />

will<strong>in</strong>g to lend to bus<strong>in</strong>esses than a<br />

year ago?<br />

Seventy-six percent of respondents<br />

agreed that bank f<strong>in</strong>ance was easier to<br />

obta<strong>in</strong>, but there were dissent<strong>in</strong>g voices,<br />

<strong>in</strong>clud<strong>in</strong>g one respondent who wrote:<br />

“You are jok<strong>in</strong>g surely.”<br />

And f<strong>in</strong>ally one respondent talked<br />

about the strength of the Central London<br />

hotel market: “Demand <strong>in</strong> London<br />

cont<strong>in</strong>ues to be very buoyant. The<br />

predictions of a post Olympic slump <strong>in</strong><br />

demand have proved to be <strong>in</strong>correct and<br />

the <strong>in</strong>crease <strong>in</strong> supply <strong>in</strong> Central London<br />

has not impacted on overall revpar.” •<br />

8 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

Core bus<strong>in</strong>ess trends and op<strong>in</strong>ion<br />

from hospitality leaders dur<strong>in</strong>g<br />

the fourth quarter of 2013<br />

Monitor Q3<br />

THE SURVEY RESULTS BY QUESTION<br />

Respondents were asked to respond to questions as to their current trad<strong>in</strong>g conditions and future<br />

prospects and these were collated <strong>in</strong> numerical form, with very good results/outlook=5, good=4, the<br />

same/average=3, poor=2 and very poor=1. The collated average results to each question are given below,<br />

with any result above 3 be<strong>in</strong>g positive and under 3 negative.<br />

Current trad<strong>in</strong>g conditions<br />

Future prospects<br />

3.7<br />

Q4 2013<br />

VS Q3 2013<br />

3.8<br />

Q4 2013<br />

VS Q4 2012<br />

3.2<br />

PASSING ON COST<br />

TO CUSTOMERS<br />

4.0<br />

LOOKING TO EXPAND<br />

NEXT QUARTER<br />

1) How does bus<strong>in</strong>ess performance <strong>in</strong> Q4 2013<br />

compare with:<br />

a) the last quarter, Q3 2013? 3.7 (previous 3.7)<br />

b) the same time last year, Q4 2012? 3.8<br />

(previous 3.8)<br />

2) How is your like-for-like turnover perform<strong>in</strong>g?<br />

3.9 (previous 3.7)<br />

3) How is your spend per customer? 3.3 (previous 3.1)<br />

4) How is your gross profit marg<strong>in</strong>? 3.5 (previous 3.3)<br />

5) How are staff<strong>in</strong>g levels? 3.3 (previous 3.1)<br />

6) Are you more optimistic than three months ago?<br />

3.6 (previous 3.9)<br />

7) Are you look<strong>in</strong>g to expand your bus<strong>in</strong>ess <strong>in</strong> the<br />

next quarter? 4.0 (previous 4.0)<br />

8) To what extent are you able to pass on cost<br />

<strong>in</strong>creases to your customers? 3.2 (previous 2.8)<br />

9) Future staff<strong>in</strong>g levels? 3.8 (previous 3.5)<br />

<strong>EP</strong> | <strong>January</strong> 14 | 9


MANAGEMENT<br />

In 1997, the Worshipful Company<br />

of Innholders with the Savoy<br />

Educational Trust launched<br />

the Master Innholders<br />

Scholarship programme to aid<br />

the development of hotel managers.<br />

Those who are lucky enough to be<br />

awarded a scholarship are then <strong>in</strong>vited<br />

to jo<strong>in</strong> the alumni, which are known as<br />

the St Julian Scholars. There are now<br />

approximately 200 scholars.<br />

One becomes a St Julian Scholar once<br />

one graduates from the programme and<br />

the alumni has become a lead<strong>in</strong>g, though<br />

specialised, network of many great role<br />

models. Enormous credit is due to both<br />

the Worshipful Company of Innholders<br />

and the Savoy Educational Trust for their<br />

cont<strong>in</strong>ued commitment, as well as the<br />

Master Innholders Charitable Trust and<br />

the Rocco Forte Foundation.<br />

The goal of the scholarships is to grow<br />

and open our doors far wider and attract<br />

an <strong>in</strong>creas<strong>in</strong>g number to go through the<br />

programme. The commitment to<br />

develop<strong>in</strong>g the talent that sits with<strong>in</strong><br />

our ranks is as strong as ever and the<br />

question is: how can we open our doors<br />

and encourage those with the talent to<br />

go through the programme?<br />

What does the programme offer?<br />

The programmes are built round short<br />

courses developed with three of the<br />

lead<strong>in</strong>g management schools: Cranfield<br />

University, Cornell University and Ecole<br />

hôtelière de Lausanne. Once a scholar<br />

jo<strong>in</strong>s the St Julian Scholars alumni, the<br />

support does not stop there as there is a<br />

mentor<strong>in</strong>g scheme <strong>in</strong> place whereby a<br />

scholar is paired with a Master Innholder,<br />

who will provide guidance and advice.<br />

As we seek to broaden our horizons,<br />

maybe one of the drawbacks is that we<br />

are seen as a club and there is noth<strong>in</strong>g<br />

wrong with that – but we would like to<br />

ensure that we are <strong>in</strong>clusive and<br />

encourag<strong>in</strong>g the talent of tomorrow.<br />

We want to give back. We want to support<br />

the pr<strong>in</strong>ciple of cont<strong>in</strong>uous professional<br />

development and we would like to<br />

actively engage to <strong>in</strong>crease our support<br />

to those that are <strong>in</strong>terested.<br />

If I look at how it has benefited me,<br />

it is hard to say where I would be now if<br />

I had not received a scholarship. Without<br />

giv<strong>in</strong>g away too many secrets, Cranfield<br />

made me look at myself as a person as<br />

well as a hotel manager, ensured that<br />

Master<br />

of my own<br />

dest<strong>in</strong>y<br />

OLIVER BROWN tells <strong>EP</strong> about the St Julian<br />

Scholarship programme, <strong>in</strong>clud<strong>in</strong>g how<br />

it developed his own career<br />

I understood how I was perceived and<br />

enabled me to act and improve.<br />

Be<strong>in</strong>g the son of a successful and<br />

well-known hotel manager had its<br />

advantages at the start of my career; it<br />

helped to open doors for me at the Ritz,<br />

then the Dorchester, Blooms Townhouse<br />

(my first hotel management role) and<br />

then the Colonnade <strong>in</strong> Maida Vale. It was<br />

at this time <strong>in</strong> my career I realised that<br />

I did not have a mentor to rely on for<br />

advice and that I needed some proper<br />

management tra<strong>in</strong><strong>in</strong>g and the<br />

scholarships were <strong>in</strong>troduced to me.<br />

It was the scholarships and then the<br />

alumni that kick-started my development,<br />

giv<strong>in</strong>g me the professional development<br />

I had been lack<strong>in</strong>g, but also <strong>in</strong>troduc<strong>in</strong>g<br />

me to a network that until then I had not<br />

been a part of.<br />

After a few years on the Committee<br />

I am now the Chairman of the alumni<br />

and I am excited to take over an alumni<br />

that is flourish<strong>in</strong>g. Network<strong>in</strong>g and<br />

cont<strong>in</strong>ued personal development is<br />

at the heart of what we do.<br />

We want to build both the scholarship<br />

and the alumni. We are all passionate<br />

and committed to the <strong>in</strong>dustry and<br />

we are work<strong>in</strong>g to expand our reach. •<br />

10 | <strong>January</strong> 14 | <strong>EP</strong>


PETER DAVIES OPINION<br />

The Enterprise<br />

Investment Scheme<br />

… provid<strong>in</strong>g very tax-efficient fund<strong>in</strong>g<br />

The UK economy cont<strong>in</strong>ues to show positive<br />

signs of recovery, however traditional bank<br />

lend<strong>in</strong>g is lagg<strong>in</strong>g beh<strong>in</strong>d fast-paced commercial<br />

activity. In this difficult market, hospitality<br />

operators are tak<strong>in</strong>g advantage of the Enterprise<br />

Investment Scheme (EIS) to raise funds and<br />

attract <strong>in</strong>vestment. As much as 12 percent of all EIS<br />

fund<strong>in</strong>g is thought to have been secured by the sector.<br />

What is EIS?<br />

EIS is a government-sponsored scheme provid<strong>in</strong>g<br />

generous tax reliefs for <strong>in</strong>vestors mak<strong>in</strong>g equity<br />

<strong>in</strong>vestments <strong>in</strong> small and medium-sized companies.<br />

Tax relief<br />

Income tax relief is available to <strong>in</strong>vestors at a rate of 30<br />

percent offset aga<strong>in</strong>st <strong>in</strong>come tax liabilities. While there<br />

is no m<strong>in</strong>imum <strong>in</strong>vestment amount the maximum<br />

annual allowance is £1 million. If an <strong>in</strong>vestor qualifies<br />

for <strong>in</strong>come tax relief, future ga<strong>in</strong>s on the shares are tax<br />

free. Capital ga<strong>in</strong>s tax deferral on exist<strong>in</strong>g ga<strong>in</strong>s can also<br />

be available if funds are re<strong>in</strong>vested <strong>in</strong>to the EIS.<br />

“As much as 12% of all EIS<br />

fund<strong>in</strong>g [has] been secured<br />

by the hospitality sector”<br />

Qualify<strong>in</strong>g for EIS<br />

To qualify for EIS the company must either be carry<strong>in</strong>g<br />

on a qualify<strong>in</strong>g trade or be prepar<strong>in</strong>g to do so. Some<br />

trades or activities don’t qualify, but the operation of<br />

restaurants, bars, pubs or hotels can, potentially. The<br />

ma<strong>in</strong> rules and restrictions are:<br />

• The company must be unquoted and the shares<br />

must be issued for genu<strong>in</strong>e commercial purposes.<br />

• The company’s gross assets must not exceed<br />

£15 million prior to any EIS shares issued and<br />

£16 million thereafter.<br />

• The company cannot employ more than 250 people<br />

and no more than £5 million of fund<strong>in</strong>g can be raised<br />

by the company per year.<br />

• The EIS company cannot be a subsidiary of another<br />

company and should not have any subsidiary that<br />

undertakes non-qualify<strong>in</strong>g activities.<br />

How EIS can work for you – a case study<br />

A London-based restaurant used EIS for start-up<br />

fund<strong>in</strong>g. The concern has been so successful that<br />

a further round of fund<strong>in</strong>g is be<strong>in</strong>g considered to establish<br />

a second outlet and prepare for a franchise model.<br />

Us<strong>in</strong>g equity f<strong>in</strong>ance has strengthened the balance<br />

sheet and elim<strong>in</strong>ated <strong>in</strong>terest costs.<br />

The success of the orig<strong>in</strong>al venture has been<br />

such that <strong>in</strong> the second fund<strong>in</strong>g round shares <strong>in</strong><br />

the company will be issued at a premium so that<br />

the proprietors will have to dilute less of their equity.<br />

The rules regard<strong>in</strong>g the EIS regime are strict<br />

and advice should be sought before any fund<strong>in</strong>g<br />

is arranged.<br />

Your <strong>in</strong>vestor<br />

Your <strong>in</strong>vestor must meet the follow<strong>in</strong>g key conditions<br />

to be able to claim EIS tax relief:<br />

• They must not be connected with the company.<br />

• They must hold shares for at least three years.<br />

• They must not be an employee or director of the<br />

company (with the exception of bus<strong>in</strong>ess ‘Angels’,<br />

who may be appo<strong>in</strong>ted to the board of directors<br />

after <strong>in</strong>vestment).<br />

• They cannot own more than 30 percent of<br />

the shares or loan capital of the company.<br />

• They must not have more than 30 percent<br />

vot<strong>in</strong>g control.<br />

• There are strict rules attached to <strong>in</strong>vestors and their<br />

associates, for example the <strong>in</strong>vestor’s family members<br />

cannot be named as a bus<strong>in</strong>ess partner.<br />

• The shares issued must be paid <strong>in</strong> full and correctly<br />

recorded <strong>in</strong> the share register of the company.<br />

A carefully considered ‘no bra<strong>in</strong>er’<br />

The potential tax subsidies associated with EIS are<br />

very attractive to potential <strong>in</strong>vestors. The prospect<br />

of mak<strong>in</strong>g tax-free ga<strong>in</strong>s on future disposals mean<br />

the right <strong>in</strong>vestment opportunity is far more attractive<br />

than other securities-based <strong>in</strong>vestments, subject to<br />

the requisite due diligence and forward plann<strong>in</strong>g.<br />

The <strong>in</strong>vestment decision <strong>in</strong> the ‘right’ EIS company<br />

should be a ‘no bra<strong>in</strong>er’, but of course there will be no<br />

substitute for due diligence enquiries <strong>in</strong>to the company.<br />

For wealthy <strong>in</strong>vestors, what’s not to like about<br />

EIS? For the company, the attraction of us<strong>in</strong>g<br />

equity f<strong>in</strong>ance, the cost of which does not impact<br />

profitability, is clear. •<br />

Peter Davies is the Employment Tax Director & Head of <strong>Hospitality</strong> Services for WMT Accountants<br />

<strong>EP</strong> | <strong>January</strong> 14 | 11


<strong>in</strong>side<br />

luxury<br />

LIFESTYLE unplugged is a new and<br />

dist<strong>in</strong>ctly different lifestyle magaz<strong>in</strong>e to<br />

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this magaz<strong>in</strong>e is set to break the mould<br />

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LIFESTYLE unplugged will highlight the<br />

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It will look to promote the many exceptional<br />

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Interested and would like to discuss<br />

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LIFESTYLEunplugged<br />

A BESPOKE MAGAZINE FOR DISCERNING READERS


BUSINESS<br />

SIX YEARS AGO, <strong>EP</strong> PUBLISHED A FEATURE ON TWO BROTHERS, ADRIAN AND IAN WILLSON,<br />

WHO FOUNDED AND BUILT CREATIVEVENTS. AT THE TIME, THEY HAD JUST BEEN ANNOUNCED<br />

AS ONE OF THE FAST TRACK 100 COMPANIES FOR A SECOND YEAR RUNNING AND THEY<br />

SHARED THEIR AMBITIONS AND HOPES FOR THE FUTURE. SO, WHERE ARE THEY NOW?<br />

Never a dull<br />

moment<br />

<strong>EP</strong> | <strong>January</strong> 14 | 13


Fast forward six years and<br />

Creativevents has come<br />

a long way. They were one<br />

of the lead caterers at the<br />

2012 London Olympic<br />

Games; they have broken <strong>in</strong>to new<br />

markets with the launch of Creative<br />

Taste <strong>in</strong>to the culture and heritage<br />

sector; and MITIE plc acquired a<br />

majority stake of the bus<strong>in</strong>ess.<br />

The company has been, and is still,<br />

on a journey of grow<strong>in</strong>g success.<br />

We met <strong>in</strong> their café at The Dulwich<br />

Picture Gallery, a recent addition to their<br />

cultural and heritage portfolio, where<br />

Adrian and Ian talked candidly about how<br />

both they and the bus<strong>in</strong>ess have evolved.<br />

I asked Adrian how far he felt Creativevents<br />

had come s<strong>in</strong>ce its first pop-up<br />

Champagne and Seafood Bar <strong>in</strong> 1997:<br />

“We have evolved beyond all<br />

recognition, although we still reta<strong>in</strong> the<br />

same pr<strong>in</strong>ciples. We have succeeded <strong>in</strong><br />

creat<strong>in</strong>g a company that is fresh, forward<br />

th<strong>in</strong>k<strong>in</strong>g and not frightened to challenge<br />

the norm.”<br />

In the six years s<strong>in</strong>ce <strong>EP</strong> last<br />

<strong>in</strong>terviewed them they have built a<br />

bus<strong>in</strong>ess that is a competitive force <strong>in</strong><br />

three markets:<br />

• Exhibitions, where they cater at ExCel,<br />

Olympia and Earls Court, Glow <strong>in</strong><br />

Bluewater, Old Bill<strong>in</strong>gsgate and 5<br />

at Farnborough.<br />

• Cultural and heritage sites at<br />

Brooklands Motor Museum, The<br />

National Army Museum, Dulwich<br />

Picture Gallery and a recent w<strong>in</strong> at<br />

the Royal Parks, Greenwich.<br />

• Outdoor events, concerts and festivals,<br />

<strong>in</strong>clud<strong>in</strong>g RHS Chelsea and Hampton<br />

Court Flower Shows, Live Nations<br />

Concerts at the Olympic Park, Magic<br />

Summertime Festival and W<strong>in</strong>ter<br />

Wonderland <strong>in</strong> Hyde Park.<br />

Adrian speaks with pride as he notes:<br />

“One day we can be deliver<strong>in</strong>g a f<strong>in</strong>e<br />

d<strong>in</strong><strong>in</strong>g experience or a canapé reception<br />

at a heritage site, the next we could be<br />

wear<strong>in</strong>g well<strong>in</strong>gton boots work<strong>in</strong>g<br />

beh<strong>in</strong>d a bar at a festival, the next<br />

provid<strong>in</strong>g pop-up Victorian tea rooms for<br />

the Ideal Home Show or a Gu<strong>in</strong>ness Bar<br />

for the International Boat Show, and the<br />

next provid<strong>in</strong>g artist cater<strong>in</strong>g, guest areas<br />

and VIP hospitality for Jay Z and Just<strong>in</strong><br />

Timberlake <strong>in</strong> concert at the Olympic<br />

Park. The variety of venues and events<br />

we work at is stagger<strong>in</strong>g and the bus<strong>in</strong>ess<br />

just keeps grow<strong>in</strong>g year on year – so we<br />

must be do<strong>in</strong>g someth<strong>in</strong>g well.”<br />

Adrian Willson<br />

Given that they started with a small<br />

start-up backed by a loan <strong>in</strong> 1997, it is<br />

almost a classic story to hear how Adrian<br />

and Ian have built the bus<strong>in</strong>ess to become<br />

one of only two <strong>in</strong>dependent companies,<br />

and one of 11 cater<strong>in</strong>g companies <strong>in</strong> total,<br />

to be awarded a Level 1 caterer for the<br />

2012 Olympics.<br />

Dur<strong>in</strong>g the Olympic Games<br />

Creativevents delivered to more than<br />

1.4 million people over the three-week<br />

period. At the same time, on day two<br />

of the Olympic Games, they signed<br />

an agreement with MITIE plc, under<br />

which MITIE acquired a majority<br />

sharehold<strong>in</strong>g <strong>in</strong> the company. One<br />

year on and they have built on their<br />

extremely successful reputation and have<br />

established a firm foothold <strong>in</strong> the culture<br />

and heritage sector by w<strong>in</strong>n<strong>in</strong>g two more<br />

competitive tenders – Greenwich Park<br />

and Dulwich Picture Gallery.<br />

These new contracts are worth<br />

an estimated £10.8 million <strong>in</strong> total.<br />

Adrian says: “Creative Taste is one<br />

of a few caterers <strong>in</strong> this market to have<br />

grown from a highly successful retail<br />

food and dr<strong>in</strong>k bus<strong>in</strong>ess. Not only are our<br />

customers assured of delicious food and<br />

engag<strong>in</strong>g service, but the clients can also<br />

enjoy consistently higher returns from<br />

their commercial cater<strong>in</strong>g spaces. At<br />

Brooklands, we have <strong>in</strong>creased sales<br />

by 272 percent s<strong>in</strong>ce 2010.”<br />

The Dulwich Picture Gallery café<br />

contract announced <strong>in</strong> summer 2013<br />

has already reported a significant<br />

<strong>in</strong>crease <strong>in</strong> public cater<strong>in</strong>g revenue<br />

s<strong>in</strong>ce its June relaunch, follow<strong>in</strong>g<br />

a complete refurbishment and the<br />

<strong>in</strong>troduction of a new pop-up café<br />

to cope with the extra demand.<br />

“What Creative Taste is able to<br />

do,” adds Ian, “is demonstrate an<br />

understand<strong>in</strong>g of what our customers<br />

want to eat <strong>in</strong> surround<strong>in</strong>gs that are<br />

<strong>in</strong>vit<strong>in</strong>g and bespoke to the venue. In<br />

general, a visitor to Brooklands Motor<br />

Museum is very different to a visitor to<br />

The RHS Chelsea Flower Show, so why<br />

expect them to eat the same k<strong>in</strong>d of food<br />

<strong>in</strong> the same k<strong>in</strong>d of surround<strong>in</strong>gs? This<br />

philosophy runs throughout our entire<br />

bus<strong>in</strong>ess, so whether you are at one of<br />

our fixed cater<strong>in</strong>g outlets or at an<br />

outdoor pop-up site, you will experience<br />

someth<strong>in</strong>g designed specifically for that<br />

audience and occasion – someth<strong>in</strong>g that<br />

is very personal.<br />

“We have huge plans for Greenwich<br />

14 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

Park, which <strong>in</strong>cludes a complete <strong>in</strong>ternal<br />

make-over so that the spaces are more<br />

attractive. What we do very well is to use<br />

retail expertise to identify these cater<strong>in</strong>g<br />

opportunities. Then we maximise them<br />

by develop<strong>in</strong>g the way food is presented<br />

and delivered on site. We hope to achieve<br />

a very healthy uplift <strong>in</strong> sales at Greenwich<br />

by stimulat<strong>in</strong>g greater loyalty from<br />

exist<strong>in</strong>g customers, while also proactively<br />

generat<strong>in</strong>g new ones.”<br />

Adrian smiles: “Our bus<strong>in</strong>ess life has<br />

never been dull. S<strong>in</strong>ce the last time we<br />

spoke, we have expanded the outdoor<br />

events bus<strong>in</strong>ess with many new<br />

contracts, <strong>in</strong>clud<strong>in</strong>g work<strong>in</strong>g with the<br />

RHS on their Flower Shows, a six-year<br />

contract to provide major cafés for<br />

Farnborough International Air Show<br />

and a now firmly established British<br />

Food Village at W<strong>in</strong>ter Wonderland <strong>in</strong><br />

Hyde Park, with a new site this Christmas<br />

called the Apres Bar featur<strong>in</strong>g street food<br />

and festive dr<strong>in</strong>ks along with music<br />

enterta<strong>in</strong>ment throughout the day.<br />

“The real catalyst for change for us<br />

came with the UK’s f<strong>in</strong>ancial crisis. Up to<br />

that po<strong>in</strong>t we had grown our bus<strong>in</strong>ess by<br />

work<strong>in</strong>g <strong>in</strong> partnership with the banks.<br />

The partnership did not change but, as<br />

we all know, the rules of lend<strong>in</strong>g money<br />

changed and it meant that we had<br />

constra<strong>in</strong>ts on how much we could<br />

borrow to grow our bus<strong>in</strong>ess.”<br />

Ian <strong>in</strong>terjected: “The marketplace<br />

was very different and noth<strong>in</strong>g could<br />

be taken for granted. It was a strange<br />

reality for us because at that time we<br />

were really ga<strong>in</strong><strong>in</strong>g traction <strong>in</strong> the<br />

culture and heritage sector and were<br />

<strong>in</strong> a position to compete for some major<br />

contracts. We had to be careful how we<br />

approached the borrow<strong>in</strong>g requirements<br />

with the bank where one or more<br />

contracts were concerned.<br />

“Let’s not forget we were still a very<br />

successful bus<strong>in</strong>ess. We have a great<br />

team and we wanted to see them grow<br />

and they wanted to grow, so we had to<br />

work out just how we could change this<br />

new dynamic <strong>in</strong> a new environment.”<br />

“We were advised to seek external<br />

<strong>in</strong>vestment by our bank,” noted Adrian.<br />

“So, never be<strong>in</strong>g the type to stick our<br />

heads <strong>in</strong> the sand with the hope that<br />

these new economic challenges would<br />

get better sooner rather than later, we<br />

looked at what our options were and<br />

quickly pursued them.<br />

“Our objectives were simply to ensure<br />

that we had the back<strong>in</strong>g and strength to<br />

be competitive and grow, as well as<br />

mak<strong>in</strong>g sure that any company we<br />

aligned with held the same ideals and<br />

cultural values as we have. Hav<strong>in</strong>g met<br />

with some good companies over several<br />

months we were then <strong>in</strong>troduced to<br />

Allister Richards from MITIE and we<br />

soon realised that this was a partnership<br />

well worth pursu<strong>in</strong>g.<br />

“From the first moment, the cultural<br />

fit with Allister and with MITIE was<br />

very good. They possessed the same<br />

entrepreneurial spirit as we did and<br />

they have some great talent with<strong>in</strong><br />

the organisation.<br />

“S<strong>in</strong>ce we signed the deal, MITIE have<br />

been noth<strong>in</strong>g but supportive and they<br />

can’t do enough to help – it is a really<br />

strong partnership. We wanted to<br />

complete the deal before the Olympics<br />

began, so we could just concentrate on<br />

that, but of course, the two had to<br />

co<strong>in</strong>cide and it was pretty <strong>in</strong>tense. We<br />

were conclud<strong>in</strong>g the deal as we opened<br />

at the Olympics.<br />

“You will experience<br />

someth<strong>in</strong>g designed<br />

specifically for<br />

that audience<br />

and occasion”<br />

“To make matters more challeng<strong>in</strong>g,<br />

on the very first day of the Olympics we<br />

realised that the customers, buy<strong>in</strong>g patterns<br />

were very different to our projections. The<br />

percentage splits between hot and cold<br />

were very different from our prior<br />

experience, which meant that we had<br />

<strong>in</strong>sufficient stocks of some foods and too<br />

much of others.”<br />

“One of our great<br />

strengths,” commented<br />

Adrian, “is that we are at<br />

our best under<br />

pressure. At the end of<br />

the first day, we had<br />

an action plan. ExCel<br />

was the secondbiggest<br />

venue at the<br />

Olympics and, with a<br />

year of plann<strong>in</strong>g<br />

under our belt, it<br />

wasn’t easy to just<br />

change course and<br />

still arrive on<br />

time for the<br />

next day, but we pulled it off without<br />

anyone else notic<strong>in</strong>g from outside of our<br />

company. Our team was exceptional –<br />

they worked throughout the night. It was<br />

quite an <strong>in</strong>tense few days, but the results<br />

speak for themselves.”<br />

The obvious question to ask was are<br />

they as hungry to succeed today as they<br />

were? Has the deal with MITIE<br />

dampened their hunger or enthusiasm?<br />

Adrian laughed. “You know us far<br />

better than that. We love this bus<strong>in</strong>ess<br />

and the deal with MITIE has given us<br />

f<strong>in</strong>ancial security, but critically it has<br />

also set <strong>in</strong> place a platform for growth.<br />

If anyth<strong>in</strong>g, we are hungrier than ever<br />

because we feel so much more confident<br />

<strong>in</strong> deliver<strong>in</strong>g on our promises with MITIE<br />

stand<strong>in</strong>g beside us. All that has really<br />

happened is that the company has<br />

entered a new phase of development.<br />

“MITIE has encouraged us to flourish<br />

and to go out and <strong>in</strong>novate. We can now<br />

look at new opportunities and the results<br />

are already there for all to see. We are<br />

enjoy<strong>in</strong>g bus<strong>in</strong>ess as much as ever. When<br />

we started together we were relatively<br />

young and <strong>in</strong>experienced, but we have<br />

worked extremely hard to build this<br />

bus<strong>in</strong>ess. Over the last six years, we have<br />

built up an <strong>in</strong>credible team, we have<br />

faced many challenges and we have<br />

found the solutions together. You may<br />

write about Adrian and Ian, but that is<br />

not the true picture – it really is a story<br />

about the whole team, past and present,<br />

who have worked so hard to get us to<br />

where we are today.”<br />

Ian adds: “One of the reasons we are<br />

still hungry is that we want to see how<br />

far this team of ours can go. We have come<br />

a long way, but we have the capacity to<br />

listen, learn, adapt, compete and grow.<br />

In many ways, just as the bus<strong>in</strong>ess is<br />

enter<strong>in</strong>g a new stage of development, so<br />

are we – the team – and there are no<br />

boundaries <strong>in</strong> our m<strong>in</strong>ds as to<br />

what we can achieve.”<br />

A great secret to the success<br />

of this company sh<strong>in</strong>es<br />

through <strong>in</strong> the relaxed<br />

openness and s<strong>in</strong>cerity of<br />

Adrian and Ian. There is no<br />

false pretence – these<br />

brothers are genu<strong>in</strong>e,<br />

straightforward and very<br />

loyal. You might say a reflection<br />

of their Yorkshire heritage,<br />

but also great attributes of<br />

genu<strong>in</strong>e entrepreneurs<br />

that live their<br />

bus<strong>in</strong>ess. •


The Irish<br />

connection<br />

Relations between Ireland<br />

and the United K<strong>in</strong>gdom<br />

are probably at their best<br />

compared with any period<br />

<strong>in</strong> the past. For anyone<br />

with even a cursory knowledge of<br />

historical relations between the two<br />

islands, it is fair to say that the last 20<br />

years have arguably been the most<br />

WELDON MATHER DISCUSSES THE TRADE LINKS BETWEEN<br />

THE UK AND IRELAND AND THE OPPORTUNITIES FOR<br />

INVESTORS IN HOSPITALITY ON BOTH SIDES OF IRISH SEA<br />

prosperous for both sides. At the start<br />

of the recession, it was stated that Brita<strong>in</strong><br />

did too much trade with Ireland and that<br />

there was a need to look at the new<br />

emerg<strong>in</strong>g nations. As we come out of<br />

recession, five years on, the trad<strong>in</strong>g<br />

relationship is still as strong as ever.<br />

Few th<strong>in</strong>gs change too much and it is<br />

an important relationship and picture<br />

to understand.<br />

on the UK market for exports.<br />

Tourism<br />

Tourism is Ireland’s largest <strong>in</strong>digenous<br />

<strong>in</strong>dustry, contribut<strong>in</strong>g almost four<br />

percent of GNP and employ<strong>in</strong>g more than<br />

200,000 people <strong>in</strong> every community on<br />

the island. Overseas tourism bus<strong>in</strong>ess<br />

accounts for 59 percent (approximately<br />

Northern Ireland. Brands have had a<br />

presence on the island, <strong>in</strong>clud<strong>in</strong>g THF,<br />

Hilton, Marriott and Premier Inn, among<br />

several others. S<strong>in</strong>ce the well-documented<br />

effects of the recession <strong>in</strong> Ireland, many<br />

of the flags have high tailed it out of the<br />

Emerald Isle, leav<strong>in</strong>g a trail of unbranded<br />

properties, some <strong>in</strong> receivership<br />

€3.5 billion) of all tourism revenue and (adm<strong>in</strong>istration) and teeter<strong>in</strong>g on the<br />

is critical to future growth. The Irish edge of liquidation and/or closure. Even<br />

dependence on the UK market cannot Ritz Carlton has departed after the hotel<br />

be overstated and is hugely valuable to<br />

the tourism and hospitality <strong>in</strong>dustry.<br />

Close air and sea l<strong>in</strong>ks, the same<br />

language and similar legal frameworks,<br />

coupled with strong tourism l<strong>in</strong>ks,<br />

re<strong>in</strong>forces the symbiotic relationship<br />

between the two islands. The London-<br />

Dubl<strong>in</strong> air route carries circa 1.5 million<br />

passengers per year and is one of busiest<br />

<strong>in</strong> Europe. While the number of UK<br />

visitors to Ireland has halved <strong>in</strong> the last<br />

10 years, it is still the largest overseas<br />

market, deliver<strong>in</strong>g more than 50 percent<br />

of the approximate 6.5 million visitors to<br />

the ROI <strong>in</strong> 2012.<br />

Exports<br />

Accord<strong>in</strong>g to the British/Ireland<br />

Chamber, Ireland is Brita<strong>in</strong>’s fifth-largest<br />

export partner. British bus<strong>in</strong>esses have<br />

<strong>in</strong>vested heavily <strong>in</strong> Ireland and the shared<br />

cultural, language and legal system l<strong>in</strong>ks<br />

have ensured that the <strong>in</strong>tra-island trade<br />

space will cont<strong>in</strong>ue to grow exponentially.<br />

• A third of all Irish imports come from<br />

Brita<strong>in</strong>, or €19 billion worth of goods<br />

<strong>in</strong> 2010.<br />

• The top five British exports to Ireland <strong>in</strong><br />

2011 were: energy, electronics,<br />

mach<strong>in</strong>ery, pharmaceuticals and<br />

plastics (source: CSO, OECD).<br />

• Brita<strong>in</strong>’s largest export to Ireland <strong>in</strong><br />

2011 was fuel, worth an estimated<br />

£3.1/€3.6 billion.<br />

• Ireland is the UK’s largest export market<br />

<strong>in</strong> sectors such as food and dr<strong>in</strong>k (UK<br />

Trade and Investment) and two-way<br />

trade stands at €1bn per week. Irish<br />

food and dr<strong>in</strong>k producers rely heavily<br />

Hotels<br />

The hotel landscape <strong>in</strong> Ireland is still<br />

dom<strong>in</strong>ated by smaller owner-operated<br />

properties, although this trend is<br />

chang<strong>in</strong>g. The <strong>in</strong>dustry has taken an<br />

absolute hammer<strong>in</strong>g s<strong>in</strong>ce 2008 and<br />

RevPAR dropped by 33 percent over 18<br />

months. There are around 850 hotels <strong>in</strong><br />

the ROI and approximately 130 <strong>in</strong><br />

16 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

company was liquidated. So much for<br />

cast iron management agreements.<br />

Hotel-related debt stands at circa €2.9bn,<br />

which is clearly unsusta<strong>in</strong>able.<br />

Fundamentally, many hotels <strong>in</strong> Ireland<br />

have solid trad<strong>in</strong>g bus<strong>in</strong>esses and it was<br />

the only debt associated with the loans<br />

(not the ability to trade) that forced a<br />

change <strong>in</strong> ownership. This has created<br />

opportunities for <strong>in</strong>digenous management<br />

companies (Dalata & Tifco) to asset<br />

manage circa 50 properties for banks,<br />

while the hotels are prepared for sale.<br />

Indeed, there has been a flood of sales<br />

<strong>in</strong> 2013, and Savills expects total hotel<br />

salesto exceed €300m <strong>in</strong> 2013 with more<br />

than 30 properties forecasted to sell.<br />

Investors <strong>in</strong> these distressed properties<br />

are mostly <strong>in</strong>ternational and are ma<strong>in</strong>ly<br />

cash buyers or <strong>in</strong>stitutional buyers, such<br />

as Blackstone and Patron Capital.<br />

Private-equity buyers are also <strong>in</strong> the mix,<br />

<strong>in</strong>clud<strong>in</strong>g Ch<strong>in</strong>ese and American<br />

<strong>in</strong>dividuals. Examples <strong>in</strong>clude Red<br />

Carnation’s purchase of Ashford Castle<br />

and Palladian’s purchase of Sheen Falls<br />

Lodge <strong>in</strong> Kerry.<br />

Private buyers sometimes require<br />

asset management companies to<br />

represent them and recently it was<br />

announced that Michels and Taylor<br />

(M&T)were advis<strong>in</strong>g Swiss Fund BSQ,<br />

which bought Citywest, Ireland’s largest<br />

hotel, with 774 bedrooms for around<br />

€38k per key. M&T expect to take on the<br />

runn<strong>in</strong>g of this hotel and the tim<strong>in</strong>g is<br />

fortuitous, given M&T’s recent<br />

Temple Bar, Dubl<strong>in</strong>, Ireland<br />

appo<strong>in</strong>tment to market and manage 25<br />

hotels owned by RBS (Ulster Bank).<br />

This represents a significant shift <strong>in</strong><br />

the ROI hotel sector, but also presents<br />

opportunities for other asset<br />

management companies. Of course,<br />

BDL/Redef<strong>in</strong>e are already <strong>in</strong> Ireland<br />

manag<strong>in</strong>g 17 properties on behalf of<br />

the now departed Bank of Scotland<br />

(Ireland) and Lloyds.<br />

This po<strong>in</strong>ts to an overlap of expertise<br />

between the UK and Ireland and the<br />

arrival of non-domestic management<br />

companies will br<strong>in</strong>g significant<br />

economies of scale to these operations,<br />

not to mention access to large UK<br />

market<strong>in</strong>g databases and a much wider<br />

target audience. How successful these<br />

these jo<strong>in</strong>t ventures will be will be<br />

rema<strong>in</strong>s to be seen, however it does<br />

represent a significant change <strong>in</strong><br />

direction for bank-controlled distressed<br />

hotels (of which there are about 200).<br />

Some hoteliers are <strong>in</strong> for a rude<br />

awaken<strong>in</strong>g when the above players<br />

arrive to check <strong>in</strong> and play hard ball.<br />

“A third of all Irish<br />

imports come<br />

from Brita<strong>in</strong>, or<br />

€19 billion worth<br />

of goods”<br />

Pubs<br />

The licensed sector is also go<strong>in</strong>g<br />

through a period of change and pubrelated<br />

debt is around €2.2bn. There are<br />

approximately 4,000 pubs <strong>in</strong> the ROI,<br />

nearly all privately owned, but nearly one<br />

per week is clos<strong>in</strong>g (26 per week <strong>in</strong> the<br />

UK). With a population of only 4.58<br />

million <strong>in</strong> ROI (6.9 million all island) there<br />

are too many pubs and the off-trade<br />

(supermarkets) are sell<strong>in</strong>g often below<br />

cost, thus further erod<strong>in</strong>g sales. Diageo<br />

and He<strong>in</strong>eken operate a duopoly on<br />

draught beer distribution, which many of<br />

the UK brewers would love to break up, as<br />

there are rich pick<strong>in</strong>gs (profitable pubs) to<br />

be snapped up <strong>in</strong> larger cities.<br />

Recent moves by JD Wetherspoons<br />

and Greene K<strong>in</strong>g have alarmed the<br />

domestic trade as scouts have been<br />

look<strong>in</strong>g for suitable pubs to buy. JDW<br />

has n<strong>in</strong>e pubs <strong>in</strong> NI, but the ROI market<br />

is look<strong>in</strong>g frothy aga<strong>in</strong> now that property<br />

values have collapsed and are more<br />

realistic – they are plann<strong>in</strong>g to open over<br />

30 pubs south of the border. Aga<strong>in</strong> the<br />

trad<strong>in</strong>g bus<strong>in</strong>esses are good <strong>in</strong> urban<br />

areas, but level of debt associated with<br />

the property is unsusta<strong>in</strong>able. Imag<strong>in</strong>e<br />

the aforementioned companies lick<strong>in</strong>g<br />

their lips at the chance to not only get a<br />

foothold <strong>in</strong> Ireland, but also<br />

to supply new products <strong>in</strong> an untapped<br />

(excuse the pun) market, where<br />

beverage cost of sales are north of 30<br />

percent partly because of the duopoly’s<br />

stranglehold on the market.<br />

Heavily <strong>in</strong>debted Irish pubs are<br />

vulnerable and banks would be more<br />

than happy to take a haircut on their<br />

loans if the quantum of euros or sterl<strong>in</strong>g<br />

is right. Expect to see more foreclosures<br />

on profitable pubs as JDW and GK seek<br />

out pubs on high streets with floorplates<br />

<strong>in</strong> excess of 4,000 sq ft (of which there<br />

are plenty) and park<strong>in</strong>g spaces.<br />

Interest<strong>in</strong>gly, when news of the UK<br />

companies’ <strong>in</strong>terest broke, a Facebook<br />

campaign named “feckoffwetherspoons”<br />

(yes, seriously!) went viral with 2,395<br />

likes at the time of writ<strong>in</strong>g! While<br />

some are clearly exercised by this<br />

development the dye has been cast<br />

and capitalism, not nationalism, will be<br />

the ultimate arbiter. But caveat emptor<br />

when pick<strong>in</strong>g out sites as certa<strong>in</strong> local<br />

sensitivities have to be understood by<br />

any new owner, particularly where<br />

alcohol is served.<br />

Opportunities<br />

If you are <strong>in</strong>terested <strong>in</strong> gett<strong>in</strong>g <strong>in</strong>to<br />

Ireland a word of warn<strong>in</strong>g: do your<br />

research. Despite the legendary and<br />

genu<strong>in</strong>ely warm Irish welcome for all<br />

visitors, cultural sensitivities must be<br />

understood <strong>in</strong> light of over 800 years of<br />

shared history between the two islands.<br />

It’s fair to say that the vast majority of<br />

the population have embraced the<br />

much improved relations between the<br />

UK and Ireland, but despite the recession<br />

and six successive slash and burn<br />

budgets, the Irish spirit is <strong>in</strong>domitable<br />

and can be a force of nature for good or<br />

ill – it just depends on what the proposition<br />

is. If the promise of well run, clean and<br />

good value hotels and pubs is delivered,<br />

then it won’t matter who or what<br />

company is deliver<strong>in</strong>g it. Price and<br />

service are the new currency <strong>in</strong> hospitality<br />

and Ireland is no different <strong>in</strong> embrac<strong>in</strong>g<br />

this new reality. Just remember that the<br />

Irish still expect pub table service and<br />

that ice and lemon is mandatory <strong>in</strong> all<br />

spirit dr<strong>in</strong>ks! •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 17


ADAM TAYLOR OPINION<br />

Zero-hours contracts<br />

What are the issues for the hospitality <strong>in</strong>dustry?<br />

In the last few months zero-hours contracts<br />

have become a major political issue, with<br />

politicians l<strong>in</strong><strong>in</strong>g up to criticise allegedly<br />

unscrupulous employers. But stepp<strong>in</strong>g<br />

back from all the political hot air, what<br />

are the real issues?<br />

On one hand, zero-hours contracts have many<br />

positives: they can be used by bus<strong>in</strong>esses to deal with<br />

high demand dur<strong>in</strong>g busy periods, but ensure that<br />

employers aren’t left with excess staff <strong>in</strong> the quieter<br />

times. They can also provide helpful flexibility for<br />

students, retirees and other workers who wish to<br />

work from time to time, without the commitment<br />

of a full-time job.<br />

On the other hand, due to the economic downturn<br />

many workers are be<strong>in</strong>g employed under zero-hours<br />

contracts because they are unable to f<strong>in</strong>d permanent<br />

work. Estimates vary, but there<br />

may now be more than a million<br />

workers on zero-hours contracts<br />

<strong>in</strong> the UK, and a significant<br />

number of these are engaged<br />

<strong>in</strong> the hospitality sector.<br />

The government’s view<br />

One of the key issues that has<br />

stirred up political debate is that<br />

employers often require workers on zero-hours contracts<br />

to be available for work at all times, but not take<br />

employment elsewhere while simultaneously reta<strong>in</strong><strong>in</strong>g<br />

the flexibility to reduce those workers’ hours. The use of<br />

such exclusivity clauses is one of the key reasons beh<strong>in</strong>d<br />

<strong>Bus<strong>in</strong>ess</strong> Secretary, V<strong>in</strong>ce Cable, recently announc<strong>in</strong>g a<br />

consultation on zero-hours contracts by the Department<br />

for <strong>Bus<strong>in</strong>ess</strong>, Innovation & Skills (BIS).<br />

What is a zero-hours contract?<br />

Despite all the debate, there is actually no formal legal<br />

def<strong>in</strong>ition of what amounts to a zero-hours contract<br />

and no specific regulation that applies to their use.<br />

Usually, a zero-hours contract means a contract of<br />

employment under which an employee has no def<strong>in</strong>ed<br />

hours and receives payment only for the hours they<br />

work. Such contracts don’t oblige the employer to<br />

provide any work to the <strong>in</strong>dividual. In <strong>in</strong>dustries such as<br />

hospitality and retail, this flexibility is a huge advantage<br />

where the requirement for staff can be unpredictable<br />

and vary significantly throughout the year.<br />

“Such contracts don’t<br />

oblige the employer<br />

to provide any work<br />

to the <strong>in</strong>dividual”<br />

Key issues for employers<br />

Given the <strong>in</strong>tense focus on zero-hours contracts by<br />

politicians and the media it is important that employers<br />

take care that they are not tripped up by legislation that<br />

applies to zero-hours workers.<br />

Every contract will be different and should be carefully<br />

checked to ensure that it is appropriate. However, the<br />

follow<strong>in</strong>g issues are some of those most frequently<br />

encountered by employers <strong>in</strong> the hospitality sector:<br />

• Employees or workers? Employers should consider<br />

the employment status of zero-hours workers from the<br />

beg<strong>in</strong>n<strong>in</strong>g. Employees benefit from more employment<br />

rights than workers (e.g. unfair dismissal rights and<br />

statutory redundancy payments). If an <strong>in</strong>dividual is not<br />

obliged to accept work, this may mean that there isn’t<br />

the necessary “mutuality of obligation” between the<br />

parties. However, if the<br />

employer reta<strong>in</strong>s a strong<br />

element of control over the<br />

<strong>in</strong>dividual then they are<br />

more likely to be an employee.<br />

It is important to remember<br />

that courts and tribunals<br />

will look at both the written<br />

contract and how it has been<br />

performed <strong>in</strong> practice.<br />

• Holiday. It can be an adm<strong>in</strong>istrative challenge for<br />

employers to calculate the statutory holiday pay for<br />

zero-hours workers due to their unpredictable hours.<br />

For irregular workers, holiday pay is calculated by<br />

tak<strong>in</strong>g an average of all the amounts paid over the<br />

previous 12 work<strong>in</strong>g weeks (any weeks when the worker<br />

received no pay cannot be used <strong>in</strong> this calculation).<br />

• Pensions/auto-enrolment. Employers now have<br />

to automatically enrol workers whose earn<strong>in</strong>gs reach<br />

a certa<strong>in</strong> level <strong>in</strong>to a company pension scheme. This<br />

can be difficult <strong>in</strong> regards to zero-hours workers where<br />

their earn<strong>in</strong>gs may fluctuate above and below this<br />

threshold. Employers will need to monitor their<br />

workers’ earn<strong>in</strong>gs carefully and ensure they have<br />

contractual permission to make deductions if they<br />

cont<strong>in</strong>ue to do so after earn<strong>in</strong>gs drop beneath<br />

the threshold.<br />

• Discrim<strong>in</strong>ation There is no special discrim<strong>in</strong>ation<br />

protection for zero-hours workers, but they might be<br />

covered by legislation protect<strong>in</strong>g part-time workers. •<br />

Adam Taylor is a solicitor specialis<strong>in</strong>g <strong>in</strong> Employment Law at Joelson Wilson LLP<br />

18 | <strong>January</strong> 14 | <strong>EP</strong>


By all accounts, the<br />

hospitality sector <strong>in</strong><br />

the UK is only go<strong>in</strong>g one<br />

way – up. This statement<br />

is based on more than<br />

just hopeful conjecture – <strong>in</strong>dustry<br />

research, such as The Q3 2013 <strong>Hospitality</strong><br />

Hir<strong>in</strong>g Report, predicts 20 percent job<br />

growth and The Market Research f<strong>in</strong>d<strong>in</strong>gs<br />

show the services sector <strong>in</strong> the UK is<br />

grow<strong>in</strong>g at the fastest rate s<strong>in</strong>ce 1997.<br />

With such positive trends and<br />

development of new <strong>in</strong>itiatives, it is<br />

perhaps no surprise that companies<br />

not traditionally l<strong>in</strong>ked to the sector<br />

can see the commercial advantage of<br />

branch<strong>in</strong>g out.<br />

One company to seize on just<br />

such an opportunity was Tesco, who,<br />

<strong>in</strong> early 2012, <strong>in</strong>vested <strong>in</strong> a cha<strong>in</strong> of<br />

coffee houses <strong>in</strong> partnership with<br />

The Tolley sibl<strong>in</strong>gs – Nick, Andrew<br />

and Laura. The Tolleys are well<br />

established on the UK coffee shop<br />

market with Taylor Street Baristas,<br />

which has been trad<strong>in</strong>g successfully<br />

s<strong>in</strong>ce 2006. Not content with the n<strong>in</strong>e<br />

locations already up and runn<strong>in</strong>g <strong>in</strong><br />

London and Brighton, the <strong>in</strong>trepid<br />

trio were look<strong>in</strong>g to develop another<br />

coffee concept offer<strong>in</strong>g high-quality,<br />

ethically sourced coffee <strong>in</strong> a unique<br />

artisan surround<strong>in</strong>g. As with many<br />

entrepreneurs and new bus<strong>in</strong>esses,<br />

there were stumbl<strong>in</strong>g blocks to<br />

overcome before the <strong>in</strong>itiative<br />

could be launched, not least of<br />

which was access to start-up capital.<br />

The Tolleys knew they had a great<br />

concept and there was a space <strong>in</strong> the<br />

market for the idea, but cash and<br />

resources were the first issue. “Look<strong>in</strong>g<br />

for an <strong>in</strong>vestment partner, we could<br />

see the natural l<strong>in</strong>k between a retail<br />

company like Tesco and a high street<br />

coffee company with a quality offer<strong>in</strong>g,<br />

so we approached them with the idea<br />

and gave a presentation on what we<br />

wanted to achieve.”<br />

There is no question that the coffee<br />

market <strong>in</strong> the UK is well-populated and<br />

competitive, but Peter believes the<br />

everyday offer<strong>in</strong>g on the high street was<br />

still lack<strong>in</strong>g a real quality option, a place<br />

where the coffee is as important as the<br />

atmosphere, and where customers are<br />

served by knowledgeable, friendly,<br />

passionate and efficient staff.<br />

“Tesco have been a really great<br />

partner throughout. The <strong>in</strong>vestment<br />

they made is non-controll<strong>in</strong>g, mean<strong>in</strong>g<br />

we, as the executive team, are free to run<br />

the bus<strong>in</strong>ess as we see fit without hav<strong>in</strong>g<br />

to make decisions by committee. The<br />

core knowledge and advice based on<br />

experience that Tesco can share about<br />

A better<br />

k<strong>in</strong>d of<br />

different<br />

THE FIRST HARRIS & HOOLE VENUE BEGAN TRADING IN<br />

AMERSHAM, BUCKINGHAMSHIRE IN 2012. SINCE THEN,<br />

THE COMPANY HAS GROWN TO 23 SITES, WITH PLANS FOR<br />

ANOTHER 10 IN THE NEAR FUTURE. WITH SUCH VORACIOUS<br />

AMBITION FOR RAPID GROWTH AND A LOYAL CUSTOMER<br />

BASE, IN TANDEM WITH INVESTMENT BY TESCO, IT’S A<br />

CONC<strong>EP</strong>T THAT HAS ATTRACTED GREAT INTEREST.<br />

ARLENE MCCAFFREY MET PETER DAVIES, COO, TO LEARN<br />

MORE ABOUT THE JOURNEY AND PLANS FOR THE FUTURE<br />

logistics, operat<strong>in</strong>g a bus<strong>in</strong>ess<br />

on the high street, adapt<strong>in</strong>g the<br />

offer<strong>in</strong>g dependent on location and<br />

neighbourhood is <strong>in</strong>valuable. We<br />

have big plans for Harris & Hoole, while<br />

simultaneously Tesco are on a journey<br />

of mak<strong>in</strong>g better use of their properties,<br />

with a unique offer<strong>in</strong>g to attract and<br />

reta<strong>in</strong> customers. It’s a more perfect<br />

match than people have possibly given<br />

credence to.”<br />

While Peter is pla<strong>in</strong>ly happy with the<br />

way <strong>in</strong> which the two entities are work<strong>in</strong>g<br />

together to achieve success, not everyone<br />

has been so impressed by the<br />

“The bus<strong>in</strong>ess is<br />

one of the first <strong>in</strong><br />

the coffee house<br />

market to design<br />

and <strong>in</strong>troduce<br />

a mobile app”<br />

partnership. There have been comments<br />

on social media from members of the<br />

general public and negative reports<br />

from news outlets that the company<br />

is mislead<strong>in</strong>g the public with its “family<br />

bus<strong>in</strong>ess” image, given the fact that 49<br />

percent is owned by a conglomerate the<br />

size of Tesco. Peter says those with<strong>in</strong> the<br />

bus<strong>in</strong>ess have taken the denigration<br />

<strong>in</strong> their stride.<br />

“Actually, I’m not sure it hasn’t<br />

helped us attract custom through<br />

the door – people will come <strong>in</strong> for the<br />

first visit out of curiosity. It’s up to the<br />

team to make sure they come back aga<strong>in</strong><br />

hav<strong>in</strong>g enjoyed the experience and the<br />

product. So far they have been do<strong>in</strong>g<br />

exactly that.”<br />

The ethos of the company is relatively<br />

straightforward: to provide the<br />

British high street with excellent<br />

quality speciality coffee. By Peter’s<br />

def<strong>in</strong>ition this means “fantastic tast<strong>in</strong>g,<br />

professionally crafted, speciality<br />

grade and directly sourced coffee<br />

<strong>in</strong> a comfortable and welcom<strong>in</strong>g<br />

atmosphere”. Given the plethora of<br />

cha<strong>in</strong>s and <strong>in</strong>dependent operators<br />

20 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

already operat<strong>in</strong>g <strong>in</strong> the sector, it was<br />

never go<strong>in</strong>g to be easy to set Harris &<br />

Hoole apart. All the same, the concept<br />

seems to have hit the mark with<br />

their customers.<br />

“We are really push<strong>in</strong>g the boat<br />

out when it comes to turn<strong>in</strong>g walk-<strong>in</strong><br />

customers <strong>in</strong>to Harris & Hoole devotees.<br />

We want people to come back time and<br />

aga<strong>in</strong> because they enjoy what we’re<br />

offer<strong>in</strong>g. It’s important to stay ahead<br />

of the curve <strong>in</strong> this sector, so we have<br />

proactively been look<strong>in</strong>g at ways to<br />

make the customer experience unique<br />

and welcom<strong>in</strong>g at every turn.”<br />

The word “cha<strong>in</strong>”, when used <strong>in</strong><br />

reference to coffee houses, can conjure<br />

up an image of identical menu offer<strong>in</strong>gs,<br />

<strong>in</strong>stantly recognisable take-away cup<br />

design and venues <strong>in</strong>dist<strong>in</strong>guishable<br />

from each other <strong>in</strong> terms of furniture,<br />

layout and employee uniforms. This<br />

visual, comb<strong>in</strong>ed with speculation that<br />

the agreement with Tesco <strong>in</strong>cludes a<br />

clause demand<strong>in</strong>g that a venue be<br />

opened <strong>in</strong> each Tesco Superstore is,<br />

for Peter, the antithesis of what<br />

Harris & Hoole is all about.<br />

NICK DAWE<br />

“Each shop is unique to its location.<br />

Yes we have opened <strong>in</strong> some Tesco<br />

stores, but each of those came about<br />

after careful consideration about what<br />

worked <strong>in</strong> that particular situation.<br />

It doesn’t mean we’ll open <strong>in</strong> every<br />

superstore or that we’re <strong>in</strong> any way<br />

obliged to. It’s important for us to<br />

stay true to our ideals. What works<br />

on Cannon Street would be out of place<br />

<strong>in</strong> Crowborough, and workers <strong>in</strong> Canary<br />

Wharf are look<strong>in</strong>g for someth<strong>in</strong>g<br />

different to residents <strong>in</strong> Uxbridge.<br />

So we adapt our venues and what<br />

we offer accord<strong>in</strong>gly.<br />

“All employees <strong>in</strong> the bus<strong>in</strong>ess, from<br />

barista to store managers, are given<br />

extensive tra<strong>in</strong><strong>in</strong>g <strong>in</strong> coffee, <strong>in</strong>clud<strong>in</strong>g<br />

trips abroad to meet the suppliers. It’s<br />

important that everyone knows what<br />

they’re do<strong>in</strong>g and importantly why they’re<br />

do<strong>in</strong>g it. Extraction time for brew<strong>in</strong>g, the<br />

temperature of the coffee, the weight of<br />

the basket – it all matters. Added to that<br />

we have given our team freedom to<br />

express themselves. They are encouraged<br />

to come up with new comb<strong>in</strong>ations,<br />

tastes and flavours. In the end this is<br />

feel-good for our employees, but also<br />

good commercial sense. The baristas<br />

work<strong>in</strong>g for us are some of the best<br />

<strong>in</strong> the UK – we’d be foolish not to use<br />

their expertise.”<br />

Peter is confident that critics of the<br />

venture have, for the most part, been<br />

silenced by the excellent service, quality<br />

of product and loyalty schemes on offer.<br />

The bus<strong>in</strong>ess is one of the first <strong>in</strong> the<br />

coffee house market to design and<br />

<strong>in</strong>troduce a mobile app for customers,<br />

which recognises the <strong>in</strong>dividual’s<br />

preferred order, frequency of visit, store<br />

locator and more.<br />

“In the not too distant future<br />

customers will also be able to pre-order<br />

their coffee from home or from the tra<strong>in</strong><br />

platform as they arrive to work, so when<br />

they enter the shop they can bypass the<br />

queue and go straight to the collection<br />

po<strong>in</strong>t. It’s all about mak<strong>in</strong>g it easier and<br />

more accessible for the customer.”<br />

Peter’s career has <strong>in</strong>cluded time at<br />

director level <strong>in</strong> both Millie’s Cookies<br />

and McDonald’s, so <strong>in</strong> theory his<br />

background, comb<strong>in</strong>ed with the Tolleys’<br />

<strong>in</strong>herent love of all th<strong>in</strong>gs coffee, mean<br />

the team <strong>in</strong> charge of driv<strong>in</strong>g the<br />

company forward are well placed to<br />

make their mark on the sector. With the<br />

backup and support of a mult<strong>in</strong>ational<br />

brand like Tesco, this start-up has<br />

real potential to grow <strong>in</strong>to someth<strong>in</strong>g<br />

very special, perhaps even sett<strong>in</strong>g the<br />

bar for what a successful partnership<br />

between two very different entities<br />

looks like. •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 21


PEOPLE<br />

The bus<strong>in</strong>ess of<br />

Lucknam<br />

Lucknam Park is a beautiful manor house deep <strong>in</strong> the Wiltshire countryside.<br />

A timeless British classic. SARA STEWART met with HARRY MURRAY MBE, Chairman<br />

of Lucknam Park, to talk about how he has led the hotel’s evolution to<br />

become one of the UK’s lead<strong>in</strong>g operations PHOTOGRAPHS: Nick Dawe<br />

On occasion, you come<br />

across a partnership<br />

so natural it is as though<br />

it was fated to be.<br />

Lucknam Park and<br />

Chairman Harry Murray MBE is one such<br />

example. It is easy to be superficial and<br />

note their many accolades, but it is<br />

important to understand both their<br />

stories and how the partnership came<br />

together. Great hotels are often run by<br />

hoteliers with their own great stories.<br />

Harry is one of three sons, is father to<br />

three sons and proud grandfather to ten<br />

grandchildren – n<strong>in</strong>e of which are boys.<br />

Harry was headhunted by the Greek<br />

bus<strong>in</strong>ess owner of Lucknam Park from<br />

his role as manag<strong>in</strong>g director at the Cape<br />

Sun Intercont<strong>in</strong>ental. He had moved to<br />

South Africa with his wife and family<br />

after many years runn<strong>in</strong>g the Imperial<br />

<strong>in</strong> Torquay. Dur<strong>in</strong>g his tenure at the<br />

Imperial, the hotel prospered and thrived<br />

just as the Majestic <strong>in</strong> Harrogate had<br />

when he managed that. Harry’s<br />

reputation was already secure before he<br />

accepted the challenge of Lucknam Park.<br />

Lucknam Park was built <strong>in</strong> 1720 and<br />

has been owned by six families. It first<br />

belonged to a Bristolian merchant who<br />

traded <strong>in</strong> wool. One such transaction<br />

resulted <strong>in</strong> him buy<strong>in</strong>g tobacco, a highly<br />

profitable sale, which afforded him the<br />

purchase of Lucknam. Decades after the<br />

wool merchant and subsequent owner<br />

families, Lucknam was bought and<br />

turned <strong>in</strong>to a hotel <strong>in</strong> 1987. Sport<strong>in</strong>g four<br />

Black Stars, 42 bedrooms and beautiful<br />

acreage, when presented with the option<br />

to take on Lucknam Park <strong>in</strong> 1997, Harry<br />

stated his vision was “to be the best hotel<br />

of its k<strong>in</strong>d <strong>in</strong> the country” and to that end<br />

Harry set about mould<strong>in</strong>g the bus<strong>in</strong>ess<br />

and its development.<br />

“Lucknam Park’s<br />

highly motivated<br />

and skilled team<br />

are passionate about<br />

quality standards”<br />

The rooms and public areas were<br />

all refurbished. All the work was <strong>in</strong><br />

keep<strong>in</strong>g with the old build<strong>in</strong>g and<br />

centres around a delightful courtyard.<br />

Lucknam is traditional both <strong>in</strong> its decor<br />

and qu<strong>in</strong>tessentially British service<br />

and attention to detail.<br />

In 2008, a magnificent spa and<br />

brasserie were added. The brasserie<br />

complemented the ma<strong>in</strong> restaurant that<br />

now boasts a Michel<strong>in</strong> star, but before<br />

the brasserie was built, guests would look<br />

for someth<strong>in</strong>g a little lighter for lunch<br />

and, although there was an agreement<br />

with the local pub, the feel<strong>in</strong>g was that<br />

the hotel was miss<strong>in</strong>g a trick by not<br />

cater<strong>in</strong>g fully for the needs of their<br />

customers. Today, the brasserie is fully<br />

utilised by guests stay<strong>in</strong>g at Lucknam<br />

and by the members of the spa and<br />

general public.<br />

So how does it all work together? For<br />

Harry, there is a simple answer to this<br />

question and <strong>in</strong>deed one he has been<br />

asked on many occasions – the staff<br />

all have to work as a team, each feel<strong>in</strong>g<br />

that their job is important and hav<strong>in</strong>g<br />

a leader who listens to their comments,<br />

from the young housekeeper to the head<br />

chef and general manager.<br />

It is also imperative that the guests are<br />

listened to. There are endless po<strong>in</strong>ters<br />

and <strong>in</strong>dications of improvements that<br />

can be gleaned from a conversation<br />

with guests and, above all, service is key.<br />

The staff at Lucknam Park all have their<br />

own copy of ‘The Vision’ and ‘Mission<br />

Statement’, conta<strong>in</strong>ed on a small card<br />

and carried by every s<strong>in</strong>gle member of<br />

the household.<br />

The Vision – to develop Lucknam Park<br />

as the best country house hotel and spa<br />

<strong>in</strong> Brita<strong>in</strong>.<br />

The Mission Statement – Lucknam<br />

Park’s highly motivated and skilled team<br />

are passionate about quality standards<br />

and service excellence and consistently<br />

aim to exceed customer expectations<br />

with cont<strong>in</strong>uous improvements.<br />

<strong>EP</strong> | <strong>January</strong> 14 | 23


PEOPLE<br />

Harry recalls his time manag<strong>in</strong>g the<br />

Imperial <strong>in</strong> Torquay and how a successful<br />

establishment affects the whole<br />

neighbourhood. He knew the local Rolls<br />

Royce dealership down the road and<br />

thought that his guests would love to be<br />

driven around <strong>in</strong> a Rolls Royce provided<br />

by the hotel, so the local dealership<br />

would park their cars outside the hotel,<br />

the guests enjoyed the luxury and the<br />

dealership owner enjoyed the <strong>in</strong>crease<br />

<strong>in</strong> sales!<br />

Adapt<strong>in</strong>g the environment to the<br />

need is essential <strong>in</strong> develop<strong>in</strong>g a hotel<br />

bus<strong>in</strong>ess. At Lucknam the <strong>in</strong>troduction<br />

of the spa and brasserie, although<br />

modern additions to an ancient ‘old<br />

lady’, are built <strong>in</strong> keep<strong>in</strong>g with the<br />

orig<strong>in</strong>al build<strong>in</strong>g, which has benefitted<br />

from a 10 percent <strong>in</strong>crease <strong>in</strong> occupancy<br />

s<strong>in</strong>ce it was built. This has added to the<br />

local community, with memberships<br />

be<strong>in</strong>g offered, thereby produc<strong>in</strong>g more<br />

<strong>in</strong>come and pampered locals.<br />

Wedd<strong>in</strong>gs too are a great affair, with<br />

exclusive occupancy be<strong>in</strong>g offered<br />

over a Friday and Saturday night for the<br />

wedd<strong>in</strong>g party, walled gardens, blankets<br />

of lavender and even a turreted smok<strong>in</strong>g<br />

house with under-floor heat<strong>in</strong>g to be<br />

certa<strong>in</strong> that all are catered for.<br />

The further addition of the equestrian<br />

centre lends itself to the countryside and<br />

is well used by guests and locals alike<br />

– events, hack<strong>in</strong>g and even an all-weather<br />

arena add to the depth of the experience<br />

and bus<strong>in</strong>ess drive of the hotel.<br />

Lucknam Park is like the Rolls Royces<br />

that were parked outside the Imperial all<br />

those years ago – the bus<strong>in</strong>ess is well<br />

oiled, runs smoothly and with the right<br />

grade of petrol poured <strong>in</strong>to it, generates<br />

great performance and looks to run for<br />

many miles yet.<br />

Lucknam Park (a member of Relais<br />

& Châteaux and Pride of Brita<strong>in</strong>) is now<br />

the proud owner of five AA Red Stars<br />

and a Michel<strong>in</strong> star and its service and<br />

attention to detail, attended by every<br />

member of the team, is exemplary. Prior<br />

to his appo<strong>in</strong>tment as Chairman <strong>in</strong> 2010<br />

Lucknam Park was awarded “AA Hotel of<br />

the Year” and the “Cateys Independent<br />

Hotel of the Year” – Harry’s vision had<br />

become a reality. Claire Randall, who<br />

succeeded Harry as MD, cont<strong>in</strong>ues the<br />

vision, but I am assured that she does<br />

this <strong>in</strong> her own manner. Dur<strong>in</strong>g the past<br />

year Claire has added a cookery school<br />

and a well-be<strong>in</strong>g centre to enhance<br />

Lucknam Park’s public offer<strong>in</strong>g.<br />

Harry’s latest award, the AA’s<br />

Ultimate Lifetime Achievement<br />

Award 2013-<strong>2014</strong>, recognises a lifetime<br />

commitment to the <strong>in</strong>dustry deliver<strong>in</strong>g<br />

the highest quality of service and<br />

standards. Alongside these recognitions,<br />

will Harry ever feel that he has achieved<br />

his goal of Lucknam be<strong>in</strong>g the best<br />

country house hotel? Someth<strong>in</strong>g tells<br />

me that he will always feel there is<br />

someth<strong>in</strong>g that could be improved or<br />

tweaked – a little more oil <strong>in</strong> the eng<strong>in</strong>e<br />

and a polish of the dashboard. •<br />

“Adapt<strong>in</strong>g the<br />

environment<br />

to the need is<br />

essential <strong>in</strong><br />

develop<strong>in</strong>g<br />

a hotel bus<strong>in</strong>ess”<br />

24 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

NICK DAWE<br />

Set up by a talented young<br />

chef and a model/pop star,<br />

this events bus<strong>in</strong>ess also<br />

does pop-up restaurants.<br />

<strong>EP</strong> went to discover more.<br />

“We were friends that really grew closer<br />

through our love of food”, noted George<br />

Craig, while they told their unconventional<br />

start up story.<br />

Terry Edwards is the more traditionally<br />

tra<strong>in</strong>ed member of the team, work<strong>in</strong>g<br />

first as a chef for Paul Heathcote before<br />

com<strong>in</strong>g to London to work at Le Gavroche<br />

for Michel Roux and then for Mark Hix,<br />

becom<strong>in</strong>g the Head Chef with<strong>in</strong> Hix’s<br />

events team.<br />

George, by contrast, has modelled<br />

Check<strong>in</strong>g<br />

for Burberry among others and <strong>in</strong> 2003<br />

founded his own band One Night<br />

Only, which can boast a top ten UK<br />

s<strong>in</strong>gle Just for tonight, as well as<br />

on<br />

multiple albums and tours.<br />

Terry and George have known one<br />

another s<strong>in</strong>ce Terry went on tour with<br />

the band five years ago and gradually the THE PRESENT MARKET HAS CREATED<br />

two became close. “We became proper<br />

friends as Terry took me out to the best<br />

AN ENVIRONMENT WHERE THERE IS A<br />

restaurants and we just talked food,” CONSTANT INFLUX OF NEW BUSINESS<br />

commented George.<br />

There is someth<strong>in</strong>g about this<br />

TEAMS COMING THROUGH, FULL OF ENTHUSIASM, WHICH<br />

duo which is clearly captur<strong>in</strong>g the<br />

BRINGS A SMILE TO THE FACE AND ADDS SOMETHING NEW.<br />

imag<strong>in</strong>ation. Though they have only<br />

been established for a relatively short ONE SUCH BUSINESS, BASED IN SHOREDITCH, IS CHECK ON<br />

time they have already been featured <strong>in</strong><br />

both Vogue and a two-page spread <strong>in</strong> The<br />

Times. Part of the charm, it is easy to see,<br />

is that they’re both hav<strong>in</strong>g fun and<br />

enjoy<strong>in</strong>g the challenge.<br />

“Yes, th<strong>in</strong>gs are go<strong>in</strong>g really well. We<br />

have run a few private d<strong>in</strong>ners for some<br />

major celebrities. We are work<strong>in</strong>g on a<br />

cookery book with a well-known agent<br />

and we are talk<strong>in</strong>g about some TV work,”<br />

stated Terry. “We have not used anyone<br />

to help us on PR and sales, we are just<br />

do<strong>in</strong>g it ourselves us<strong>in</strong>g contacts that<br />

we have. Most of our work is com<strong>in</strong>g<br />

through recommendation and we have<br />

some momentum with us. We have done<br />

quite a bit with the fashion brands.<br />

“I love work<strong>in</strong>g for myself. We are<br />

hav<strong>in</strong>g fun and I th<strong>in</strong>k our enjoyment and<br />

people come to us. We are different, but<br />

you need to be <strong>in</strong> this bus<strong>in</strong>ess. You need<br />

to stand out from the crowd and we let<br />

our personality come across.<br />

“We have hosted events at such diverse<br />

venues as The Sanderson Hotel to private<br />

houses and even some pubs. We even<br />

won a cook off aga<strong>in</strong>st one of the lead<strong>in</strong>g<br />

London cul<strong>in</strong>ary legends – that was a<br />

highlight. You just never know what is<br />

go<strong>in</strong>g to happen. At the moment it does<br />

not feel like hard work because so much<br />

is happen<strong>in</strong>g and it is a journey that we<br />

are on and one we are really enjoy<strong>in</strong>g.”<br />

It is refresh<strong>in</strong>g to see the enthusiasm<br />

and clear sense of enjoyment that Terry<br />

and George radiate. They will face greater<br />

the bus<strong>in</strong>ess, George has just completed<br />

his third album and you can see that he<br />

will, at some po<strong>in</strong>t, have to make a hard<br />

choice between music and food. The test<br />

for this duo will come as they face such<br />

moments and how they pull through, but<br />

for now, they are enjoy<strong>in</strong>g their time and<br />

they are br<strong>in</strong>g<strong>in</strong>g a smile and no little<br />

flair and skill to their work.<br />

It will be <strong>in</strong>terest<strong>in</strong>g to revisit Check<br />

On after their first year of trad<strong>in</strong>g and<br />

after they have experienced the different<br />

seasons and fluctuations that come with<br />

a year runn<strong>in</strong>g events and pop-ups. But<br />

do not bet aga<strong>in</strong>st them be<strong>in</strong>g successful.<br />

They have had a far better start than most,<br />

they stand out from the crowd and their<br />

friendship is just show<strong>in</strong>g and rubb<strong>in</strong>g off challenges <strong>in</strong> the time ahead and they food is clearly up there with the best<br />

as we seem to be gett<strong>in</strong>g more and more have some difficult choices. As they build – this may be a story worth follow<strong>in</strong>g. •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 25


If the never-end<strong>in</strong>g march of<br />

coffee shop cha<strong>in</strong>s across our<br />

nation’s high streets has not<br />

escaped your notice, you could<br />

well be forgiven for th<strong>in</strong>k<strong>in</strong>g that<br />

our rich tea heritage is on the wane. Yet<br />

despite our love of a latte, it would<br />

appear that we are loyally committed<br />

to a cuppa, with evidence of a tea revival<br />

brew<strong>in</strong>g across the land. Because, of<br />

course, tea is not just a dr<strong>in</strong>k. It’s a<br />

wonderful, magical mystery to any<br />

visitors who arrive on our shores.<br />

Personally, whenever we have<br />

foreign friends stay<strong>in</strong>g, an out<strong>in</strong>g for a<br />

traditional afternoon tea is always high<br />

on the it<strong>in</strong>erary. I love the confusion that<br />

<strong>in</strong>evitably ensues, with mistaken beliefs<br />

that a ‘cream tea’ is a cup of tea <strong>in</strong>to<br />

which cream is poured and the need to<br />

expla<strong>in</strong> the subtle differences between<br />

‘high tea’ and a classic ‘afternoon tea’.<br />

The frowns soon give way to smiles,<br />

however, when the experience beg<strong>in</strong>s.<br />

Because afternoon tea most def<strong>in</strong>itely is<br />

an experience, <strong>in</strong> whatever form it takes.<br />

Widely credited as the bra<strong>in</strong>child of<br />

Anna, the seventh Duchess of Bedford,<br />

this tradition first appeared <strong>in</strong> the 1830s<br />

to ease the hunger pangs that afflicted<br />

the bellies of the upper classes between<br />

lunch and d<strong>in</strong>ner.<br />

Now, it is more an excuse to enjoy a<br />

refresh<strong>in</strong>g brew and some yummy treats,<br />

and plays a significant contribut<strong>in</strong>g factor<br />

<strong>in</strong> mak<strong>in</strong>g the UK the largest consumer of<br />

tea – at nearly two-and-a-half kilos per<br />

person, per year – <strong>in</strong> the world.<br />

It is curious, however, that a dr<strong>in</strong>k<br />

<strong>in</strong>vented more than 5,000 years ago that<br />

became a mid-afternoon snack <strong>in</strong> the<br />

1800s should still be so popular today,<br />

and <strong>in</strong>deed is becom<strong>in</strong>g an <strong>in</strong>creas<strong>in</strong>gly<br />

fashionable trend.<br />

Whether it’s a desire to take time out<br />

from the hustle and bustle of modern<br />

day liv<strong>in</strong>g or whether this resurgence<br />

is a nod towards the recent spate of<br />

thoroughly British, iconic celebrations<br />

from the Diamond Jubilee to the Royal<br />

Wedd<strong>in</strong>g and recent christen<strong>in</strong>g,<br />

everyone seems to want a little slice<br />

of this particular pie. Or, more fitt<strong>in</strong>gly,<br />

this cake – particularly if it’s a Victoria<br />

sandwich laden with cream and<br />

fresh raspberries.<br />

At a recent discussion forum with Ewan<br />

Venters, CEO of Fortnum & Mason, he<br />

spoke about the pr<strong>in</strong>ciple of relevance,<br />

ensur<strong>in</strong>g that, as a brand, they are<br />

provid<strong>in</strong>g products and experiences that<br />

rema<strong>in</strong> relevant to their customer base.<br />

Fortnum and Mason are one of the many<br />

establishments rid<strong>in</strong>g the afternoon tea<br />

wave. Last summer’s hit offer<strong>in</strong>g the<br />

‘Hamperl<strong>in</strong>g’ – which took the afternoon<br />

tea experience from their Piccadilly base<br />

and made tea for two available via the<br />

Serpent<strong>in</strong>e Pavilion – provided an alfresco<br />

alternative for those want<strong>in</strong>g to gulp some<br />

fresh air down with their tea.<br />

The new Fortnum and Mason store<br />

open<strong>in</strong>g <strong>in</strong> November at St Pancras<br />

would not be complete without its allimportant<br />

tea salon. Stick<strong>in</strong>g closely to<br />

old-style convention, the relevance they<br />

seek here – like The Ritz, Dorchester,<br />

Claridges and other ach<strong>in</strong>gly British<br />

venues – is one of timeless tradition.<br />

A taste of the glory days, classically<br />

embodied by a crustless cucumber<br />

sandwich and the safety and security<br />

of a warm scone, smeared with jam<br />

and clotted cream.<br />

Brown’s Tea-Tox<br />

Anyone<br />

for tea?<br />

MIRIAM STALEY<br />

explores the resurgence<br />

of a qu<strong>in</strong>tessentially British<br />

tradition: the afternoon tea<br />

Traditional afternoon<br />

tea at The Dorchester<br />

26 | <strong>January</strong> 14 | <strong>EP</strong>


SPECIAL FEATURE<br />

Yet afternoon tea is appeal<strong>in</strong>g to a<br />

wider audience than those seek<strong>in</strong>g the<br />

qua<strong>in</strong>t charm of a stereotypically British<br />

experience. Themed afternoon teas are<br />

f<strong>in</strong>d<strong>in</strong>g appeal to a discern<strong>in</strong>g audience,<br />

who are look<strong>in</strong>g for someth<strong>in</strong>g surreal<br />

with their sandwiches and who are more<br />

<strong>in</strong>terested <strong>in</strong> quirky than qua<strong>in</strong>t.<br />

“Afternoon tea for<br />

most is synonymous<br />

with decadence<br />

and a decent portion<br />

of <strong>in</strong>dulgence”<br />

The Sanderson Hotel’s ‘Mad Hatter’s<br />

Afternoon Tea’ is unapologetically<br />

eccentric and you certa<strong>in</strong>ly won’t f<strong>in</strong>d<br />

an egg and cress sarnie here. This is an<br />

immersive experience fus<strong>in</strong>g one of our<br />

most successful literary works, Lewis<br />

Carroll’s Alice <strong>in</strong> Wonderland, with a<br />

real-life expression of the tradition it<br />

immortalised. An unashamedly British<br />

affair for a modern guest.<br />

The world of adult enterta<strong>in</strong>ment has<br />

also got <strong>in</strong> on the act, creat<strong>in</strong>g someth<strong>in</strong>g<br />

relevant for their particular audience. Held<br />

on the first Saturday of the month at The<br />

Paradise <strong>in</strong> Kensal Green, this is cabaret<br />

with a cuppa. Burlesque over a brew. Like<br />

an effortless dance duo, ‘Afternoon Tease’<br />

partners the ref<strong>in</strong>ed sophistication of our<br />

favourite afternoon activity with<br />

someth<strong>in</strong>g a little saucier to create the<br />

ultimate afternoon revue. I can’t imag<strong>in</strong>e<br />

what the seventh Duchess of Bedford<br />

would make of this particular twist …<br />

While afternoon tea for most is<br />

synonymous with decadence and a<br />

decent portion of <strong>in</strong>dulgence on the side,<br />

ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g relevance <strong>in</strong> a society where<br />

food fads and fashions rise and fall faster<br />

than a cheese soufflé has also created an<br />

<strong>in</strong>terest<strong>in</strong>g niche.<br />

The Met Bar at the Metropolitan Hotel<br />

jumped on this trend with their<br />

‘Afternoon De-Light’ tea (now ‘Brit Rocks<br />

and Tea Pots’), which featured a healthy<br />

dose of … healthy. No-bread sandwiches,<br />

low-fat crème fraîche, flour substitutes,<br />

olive oil and fruit purées replaced the<br />

normal calorie-rich and cholesterolladen<br />

fare.<br />

The ‘Tea-Tox’ offer<strong>in</strong>g at Brown’s<br />

Hotel takes the health properties of tea<br />

to a new level, with a menu that lists<br />

spelt, xylitol, rye, yoghurt and fruit<br />

among its pr<strong>in</strong>cipal <strong>in</strong>gredients. And no<br />

cream. Def<strong>in</strong>itely no cream. This is nice<br />

without the naughty and the ‘bespoke<br />

jogg<strong>in</strong>g tour’ option is the sugar-free<br />

ic<strong>in</strong>g on the gluten-free cake.<br />

In addition, thanks to the Oxo Tower,<br />

it is now possible to <strong>in</strong>dulge <strong>in</strong> the<br />

ultimate oxymoron – an afternoon tea<br />

without tea. Their ‘Not Afternoon Tea’,<br />

with nary a teapot <strong>in</strong> sight, takes the<br />

concept of our 3pm treat and <strong>in</strong>stead<br />

pairs cocktails with a tast<strong>in</strong>g plate of<br />

decadent desserts. Although, as this<br />

isn’t a total antithesis to the orig<strong>in</strong>al,<br />

maybe they should have just called<br />

it ‘Afternoon’.<br />

So, <strong>in</strong> whatever way you choose to<br />

enjoy it, and however it is most relevant<br />

for you, I believe that the words of Ray<br />

Davies’ song will be r<strong>in</strong>g<strong>in</strong>g true for<br />

many years to come. •<br />

Sanderson’s Mad Hatter<br />

<strong>in</strong>spired afternoon tea<br />

Have a cuppa tea<br />

Ray Davies<br />

“Whatever the situation, whatever the race or creed<br />

Tea knows no segregation, no class nor pedigree<br />

It knows no motivations, no sector organisation<br />

It knows no one religion nor political belief<br />

Have a cuppa tea, have a cuppa tea<br />

Hallelujah, hallelujah, hallelujah, Rosie Lee.”<br />

<strong>EP</strong> | <strong>January</strong> 14 | 27


From Denmark<br />

RASMUS BO BOJESEN, A LEADING DANISH CHEF, HAS A PASSION FOR CHOCOLATE. AS<br />

RASMUS DEVELOPS HIS OIALLA CHOCOLATE BRAND, HE SPOKE TO <strong>EP</strong> ABOUT HIS LOVE<br />

FOR CHOCOLATE, HOW HE DEVELOPED HIS CRAFT AND HOW HIS STORY AFFECTED<br />

A SMALL COMMUNITY IN BOLIVIA<br />

NICK DAWE<br />

Rasmus is one of life’s<br />

natural enthusiasts<br />

– he speaks <strong>in</strong> a way that<br />

is engag<strong>in</strong>g because his<br />

care and love is so<br />

evident. As with all the lead<strong>in</strong>g cul<strong>in</strong>ary<br />

exponents, he is engrossed <strong>in</strong> his craft.<br />

He has an eye for the smallest detail and<br />

he is <strong>in</strong>volved <strong>in</strong> every aspect of<br />

produc<strong>in</strong>g chocolate. It is easy to imag<strong>in</strong>e<br />

him speak<strong>in</strong>g, enthusiastically about<br />

chocolate from morn<strong>in</strong>g till night.<br />

“It is 30 years s<strong>in</strong>ce I ‘fell <strong>in</strong>to the<br />

chocolate pot’, thanks to the legendary<br />

Monsieur Bernachon,” expla<strong>in</strong>s Rasmus.<br />

“My life took me along w<strong>in</strong>d<strong>in</strong>g roads<br />

through hotels and restaurant kitchens<br />

<strong>in</strong> Denmark, Japan, and France, via the<br />

family Troigros to Lyon, straight<br />

<strong>in</strong>to the back room of one of the<br />

most prestigious Chocolatiers<br />

– Monsieur Bernachon – whose<br />

family still runs the chocolate<br />

shop <strong>in</strong> Lyon today.”<br />

As Rasmus talks it is clear<br />

that he really has enjoyed the<br />

journey his career has taken<br />

him on. It may not have<br />

always been easy, but it<br />

has always been rich <strong>in</strong><br />

experience and of<br />

<strong>in</strong>terest. His eyes are<br />

so full of life that they<br />

almost speak before<br />

he does. As he talks<br />

it is also clear that he<br />

possesses the same<br />

qualities that many of<br />

the great chefs do – an<br />

understand<strong>in</strong>g and<br />

respect for others<br />

<strong>in</strong> his profession,<br />

a respect for food<br />

and the natural<br />

products he uses,<br />

and a desire to<br />

excel. Rasmus<br />

is still on his<br />

journey and there are still miles to travel.<br />

“I really felt that I had been granted<br />

access to a sacred place. Suddenly I stood<br />

<strong>in</strong> front of Bernachon, who had a handful<br />

of cocoa beans <strong>in</strong> his big, rough hands,<br />

while he told me about the bean varieties,<br />

acidity, orig<strong>in</strong>, sort<strong>in</strong>g, roast<strong>in</strong>g, gr<strong>in</strong>d<strong>in</strong>g,<br />

roll<strong>in</strong>g and heat<strong>in</strong>g. For months I worked<br />

hard as a sorcerer’s apprentice. I began<br />

by sort<strong>in</strong>g the beans – for two months<br />

– before I was gradually allowed to help<br />

Bernachon with more and more tasks.<br />

“At first I thought it was unbelievable<br />

that I, as a tra<strong>in</strong>ed chef and with several<br />

years’ experience from f<strong>in</strong>e d<strong>in</strong><strong>in</strong>g, was<br />

be<strong>in</strong>g made to sit and sort beans.<br />

Gradually it dawned on me that<br />

Bernachon wanted me to understand<br />

every aspect of the careful and<br />

precise process that is <strong>in</strong>volved<br />

<strong>in</strong> mak<strong>in</strong>g chocolate.<br />

“I learned how big a role each and<br />

every bean and its quality has on the<br />

f<strong>in</strong>ished product. Like the grapes <strong>in</strong> the<br />

bountiful v<strong>in</strong>eyards, cocoa beans are<br />

also dependent on nature’s bounty. The<br />

beans were no better than the variety,<br />

soil, climate, ra<strong>in</strong> or sun, and the care<br />

they had received. It was possible to see<br />

and feel this <strong>in</strong> the beans as I sorted them<br />

by colour and size.<br />

“After nature had done its part, it was<br />

our turn to unfold the chocolate flavour<br />

through roast<strong>in</strong>g, mill<strong>in</strong>g and conch<strong>in</strong>g,<br />

and f<strong>in</strong>ally mak<strong>in</strong>g paper-th<strong>in</strong> coat<strong>in</strong>g<br />

chocolate and truffle paste.<br />

“This world of chocolate was completely<br />

new to me and very different from hectic<br />

kitchens at the busy restaurants, where<br />

there was shout<strong>in</strong>g and scream<strong>in</strong>g,<br />

improvisation and sweat<strong>in</strong>g, almost like<br />

military tra<strong>in</strong><strong>in</strong>g. I decided that I wanted<br />

to have both. I would be both a talented<br />

chef and chocolatier, and I would try to<br />

comb<strong>in</strong>e the two kitchens – the savoury<br />

and the sweet.<br />

“Chocolate is basically a spice and<br />

I th<strong>in</strong>k it’s wonderful that it is not just


BUSINESS<br />

with love<br />

sweet. So, ever s<strong>in</strong>ce I started mak<strong>in</strong>g<br />

my own chocolate, I have tried mix<strong>in</strong>g<br />

it with flavours such as chilli, g<strong>in</strong>ger,<br />

star anise and other spices. I was also<br />

challenged to create a small chocolate<br />

for the restaurant Umami. The chocolate<br />

conta<strong>in</strong>ed miso, a fermented soy bean<br />

paste, which is an essential condiment<br />

<strong>in</strong> Japanese cuis<strong>in</strong>e.”<br />

While Rasmus may have led<br />

chocolatiers with his creative mixes<br />

before, he is now concentrat<strong>in</strong>g on<br />

a back-to-basics approach through<br />

“Oialla is an organic<br />

chocolate … derived<br />

only on wild Beniano<br />

beans found <strong>in</strong><br />

the Amazon”<br />

Oialla, his chocolate brand, which<br />

celebrates the purity of the cacao bean.<br />

Ris<strong>in</strong>g through the percentages of Oialla,<br />

when one tastes the dark chocolate that<br />

is 72% or 78% there is no residual taste<br />

of acidity usually found <strong>in</strong> other brands.<br />

There is just a rich taste that cont<strong>in</strong>ues<br />

even after the chocolate is f<strong>in</strong>ished.<br />

“Ak<strong>in</strong> to w<strong>in</strong>es be<strong>in</strong>g related to<br />

the variety of grape and the region<br />

they come from, if<br />

chocolate is made<br />

properly, one<br />

doesn’t discuss<br />

the percentage<br />

of cocoa to<br />

describe its taste<br />

– one describes<br />

the bean and the<br />

earth it comes from.”<br />

So beg<strong>in</strong>s the story of Oialla<br />

– the chocolate you can trace<br />

from bean to bar.<br />

Rasmus sitt<strong>in</strong>g<br />

on yellow sacks<br />

of beans for<br />

his chocolate<br />

“Oialla is an organic<br />

chocolate that is derived only from wild<br />

Beniano beans found <strong>in</strong> the Amazon<br />

jungle. The beans come from trees<br />

that date back to the Incas and have a<br />

strong social mean<strong>in</strong>g to the community.<br />

Through the close partnership developed<br />

with local communities <strong>in</strong> Bolivia to<br />

work on Oialla, the Danish Foreign<br />

M<strong>in</strong>istry has also <strong>in</strong>vested <strong>in</strong> the country<br />

– pledg<strong>in</strong>g to help with the education<br />

and <strong>in</strong>frastructure of the village.<br />

The harvest<strong>in</strong>g of beans takes place<br />

far away from the village of Baures on<br />

islets most often several hours by boat<br />

and miles of walk<strong>in</strong>g. After collect<strong>in</strong>g<br />

them <strong>in</strong> a method that promotes<br />

susta<strong>in</strong>ability for the area, the beans<br />

are then fermented <strong>in</strong> handmade<br />

palm leaf baskets. The fermentation<br />

and process<strong>in</strong>g of the cacao beans<br />

is knowledge that has been passed<br />

on by Oialla to the local community.<br />

Cocoa<br />

beans<br />

About 3,000 people<br />

live <strong>in</strong> Baures and<br />

approximately 1,000 of<br />

these are children under the age of 16.<br />

There are currently three schools <strong>in</strong><br />

Baures. Two of the schools are primary<br />

schools for children aged from eight to<br />

14. The third school is a secondary school<br />

that teaches children from the age of 14<br />

to 18. Another secondary school is under<br />

construction right now. Our hope is that<br />

our active <strong>in</strong>volvement helps this<br />

community grow and prosper.”<br />

One can only smile at Rasmus’<br />

commitment to both Oialla and to<br />

the Bolivian community <strong>in</strong> Baures. In so<br />

many ways, this is a heartwarm<strong>in</strong>g story.<br />

We turned our attention to his<br />

aspirations:<br />

“I would like to br<strong>in</strong>g Oialla <strong>in</strong>to the<br />

UK and develop a base here. I am already<br />

sell<strong>in</strong>g chocolate <strong>in</strong> Denmark, France,<br />

Germany and <strong>in</strong> the US The UK is a<br />

natural and important market to develop.<br />

The Danes have always possessed a<br />

strong relationship with the British and<br />

I believe that my chocolate will be well<br />

received and understood. The British<br />

have become exceptional food<br />

connoisseurs and I look forward to<br />

work<strong>in</strong>g <strong>in</strong> this market.”<br />

Will Oialla succeed <strong>in</strong> the UK? Time<br />

will tell, but hav<strong>in</strong>g found its way to the<br />

kitchens of Noma, Daniel Boulud (NY)<br />

and Vendôme (Cologne), one suspects it<br />

will as the product is clearly exceptional<br />

and the <strong>in</strong>dustry will warm to Rasmus’<br />

approach. It will w<strong>in</strong> hearts and m<strong>in</strong>ds. •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 29


GRAEME SMITH OPINION<br />

The chang<strong>in</strong>g<br />

face of foodservice<br />

New research reveals a surpris<strong>in</strong>g number<br />

of common themes among the top 20<br />

Stand<strong>in</strong>g outside a local Apostrophe one<br />

morn<strong>in</strong>g and look<strong>in</strong>g around at Leon, Pret a<br />

Manger, Eat, Subway and Crussh, I am taken<br />

aback by the range of choice available. It is clear<br />

the face of the foodservice <strong>in</strong>dustry has changed<br />

fundamentally <strong>in</strong> recent years as consumers’<br />

expectations have been heightened by the volume of<br />

choice and the shift <strong>in</strong> consumer eat<strong>in</strong>g patterns. Eat<strong>in</strong>g<br />

out through the day is a habit, not a trend, and it is not<br />

one which has just concentrated <strong>in</strong> the City of London or<br />

the South East. The recent launch of Tr<strong>in</strong>ity Kitchen <strong>in</strong><br />

Leeds demonstrates the value that retailers, landlords<br />

and consumers alike now place on foodservice options<br />

at every hour of the work<strong>in</strong>g or leisure day.<br />

There is little doubt that brand<strong>in</strong>g has become a<br />

more important element of the consumers’ outlook.<br />

Whitbread’s acquisition of Coffee Nation <strong>in</strong> 2011<br />

demonstrated that demand for the Costa seal <strong>in</strong> petrol<br />

stations, supermarkets or corner shops truly resonates.<br />

The <strong>in</strong>vestment market is catch<strong>in</strong>g up, as Tesco has<br />

proven with their acquisition of Giraffe, while ECI<br />

Partners have taken a m<strong>in</strong>ority stake <strong>in</strong> Rhubarb, the<br />

venue and event specialist. The d<strong>in</strong><strong>in</strong>g experience is<br />

very appeal<strong>in</strong>g for a variety of stakeholders, whether it<br />

is to secure additional footfall <strong>in</strong> a retail site, maximise<br />

efficiencies from a contented workforce or deliver<br />

options for an <strong>in</strong>creas<strong>in</strong>gly health-conscious public.<br />

Higher customer expectations and the use of<br />

<strong>in</strong>novative foodservice offer<strong>in</strong>gs to drive value for<br />

landlords, retailers and employers were the catalyst for<br />

the launch of the Zolfo Cooper Foodservice Growth<br />

Report. This report identifies <strong>in</strong>dependent foodservice<br />

operators <strong>in</strong> the UK with the fastest-grow<strong>in</strong>g profits.<br />

What was strik<strong>in</strong>g from our research was that, despite<br />

difficult economic times, the top 10 companies <strong>in</strong><br />

our list had average profit growth over the last three<br />

years <strong>in</strong> excess of 20 percent, demonstrat<strong>in</strong>g the<br />

The top five<br />

Rank Company Three-year<br />

profit CAGR* (%)<br />

1 Concerto Group 65.3<br />

2 Vacher<strong>in</strong> 58.1<br />

3 Harbour & Jones 55.2<br />

4 Peyton & Byrne 51.8<br />

5 Unique Cater<strong>in</strong>g <strong>48</strong>.7<br />

& Management Services<br />

*Note: Profit measured as earn<strong>in</strong>gs before <strong>in</strong>terest tax and<br />

depreciation with directors’ remuneration added back<br />

vitality of <strong>in</strong>dependent operators <strong>in</strong> this sector.<br />

What also became clear from our research is that while<br />

someth<strong>in</strong>g of a divergence between London and other<br />

cities still exists, successful operators have significantly<br />

raised the quality of their offer<strong>in</strong>g across the board.<br />

Consumers are attracted by <strong>in</strong>novative, energetic brands<br />

go<strong>in</strong>g the extra mile to enhance the customer experience.<br />

While price is still an important attribute <strong>in</strong> decisionmak<strong>in</strong>g,<br />

quality and flexibility have become genu<strong>in</strong>e<br />

<strong>in</strong>dustry watch words.<br />

A number of <strong>in</strong>dependent operators such as Harbour<br />

& Jones and Peyton & Byrne have achieved success by<br />

relentlessly focus<strong>in</strong>g on quality and best-<strong>in</strong>-class service.<br />

Clients view high quality foodservice as a differentiator<br />

and if the operator can demonstrate added value they<br />

can move away from hav<strong>in</strong>g to compete solely on price.<br />

The report also identified several other themes that<br />

are support<strong>in</strong>g the development of the top 20 fastestgrow<strong>in</strong>g<br />

<strong>in</strong>dependent operators <strong>in</strong> the market:<br />

• The majority of the top 10 firms focus on event and<br />

B&I markets, and the most successful bus<strong>in</strong>esses, such<br />

as Concerto Group, have developed their offer<strong>in</strong>g <strong>in</strong>to<br />

cater<strong>in</strong>g services<br />

• The top 20 are predom<strong>in</strong>ately mid-market <strong>in</strong> scale,<br />

with 50 percent turn<strong>in</strong>g over between £15 million and<br />

£50 million<br />

• The highest growth companies are led by passionate<br />

people, many of whom have been runn<strong>in</strong>g their<br />

bus<strong>in</strong>ess for over 10 years.<br />

While the B&I and events market have cont<strong>in</strong>ued to<br />

support growth through the recession, it is noticeable<br />

that foodservice operators have cont<strong>in</strong>ued to stretch<br />

their offer<strong>in</strong>g to meet demands. Flexible operators such<br />

as Vacher<strong>in</strong> and Lex<strong>in</strong>gton Cater<strong>in</strong>g have responded by<br />

develop<strong>in</strong>g front-of-house services support<strong>in</strong>g a holistic<br />

client service offer<strong>in</strong>g. How you are perceived as a<br />

bus<strong>in</strong>ess is now very much about the service you deliver<br />

at reception, the work canteen experience, and the core<br />

product or service you deliver.<br />

It is unsurpris<strong>in</strong>g that those foodservice bus<strong>in</strong>esses<br />

that are consistently voted the ‘Best Companies to Work<br />

For’ <strong>in</strong> <strong>in</strong>dustry polls are the ones that ma<strong>in</strong>ta<strong>in</strong> excellent<br />

levels of contract retention. Staff development has always<br />

been an important element of the foodservice <strong>in</strong>dustry<br />

and it is the fresh, <strong>in</strong>novative brands that recognise the<br />

importance of <strong>in</strong>vestment <strong>in</strong> tra<strong>in</strong><strong>in</strong>g that will cont<strong>in</strong>ue<br />

to flourish <strong>in</strong> <strong>2014</strong>.<br />

The sector is constantly evolv<strong>in</strong>g and is well placed to<br />

enjoy cont<strong>in</strong>ued success and growth. •<br />

Graeme Smith is partner at Zolfo Cooper<br />

<strong>EP</strong> | <strong>January</strong> 14 | 31


LET’S GET<br />

EMOTIONAL...<br />

Yes, we said the e-word <strong>in</strong> bus<strong>in</strong>ess – all<br />

stiff upper-lipped Britons brace yourselves….<br />

They say it takes less than<br />

five seconds to create a<br />

first impression and it’s no<br />

different with culture. From<br />

the moment you step <strong>in</strong>to<br />

an organisation you can start to ‘feel’ it<br />

– the non-tangible signs and symbols you<br />

pick up will give you clues about what it’s<br />

like as a place to work. At first this will be<br />

just outward fac<strong>in</strong>g stuff, the physical<br />

environment, the types of people walk<strong>in</strong>g<br />

around … but the more time you spend<br />

there, the more you will get to<br />

understand what it’s really like. Nowhere<br />

is this first impression more important<br />

than <strong>in</strong> the hospitality <strong>in</strong>dustry, where<br />

your customers can feel it the moment<br />

they walk <strong>in</strong> your door.<br />

Many people th<strong>in</strong>k of a bus<strong>in</strong>ess<br />

‘culture’ as a fluffy, emotional subject<br />

that is best left to the ‘tea and sympathy’<br />

types, but they couldn’t be more wrong.<br />

Culture is about passion, trust, respect<br />

and empowerment, and it allows you<br />

to create an ongo<strong>in</strong>g, endur<strong>in</strong>g,<br />

psychological contact with your<br />

employees and, as a result, your<br />

customers. We know that if you get<br />

this right and align your brand with your<br />

people, your bus<strong>in</strong>ess productivity will<br />

soar (by as much as four times!) and your<br />

customer needs are 53 percent more<br />

likely to be met (MacLoed, 2009).<br />

Employees with an emotional<br />

connection to your company will<br />

not only want to achieve success<br />

for themselves, but crucially will<br />

strive for success for your bus<strong>in</strong>ess.<br />

Your cultural values must be authentic<br />

Cultural values should reflect what<br />

you are like as a place to work. Many<br />

companies spend lots of money<br />

develop<strong>in</strong>g grand values and plaster<strong>in</strong>g<br />

them over their office walls, only to f<strong>in</strong>d<br />

that they make little difference day to<br />

day and are no help <strong>in</strong> differentiat<strong>in</strong>g<br />

them from the competition.<br />

Th<strong>in</strong>k about your brand and your<br />

personality, the way you wish to be<br />

seen to do bus<strong>in</strong>ess, the DNA of your<br />

organisation. These are all good measures<br />

of creat<strong>in</strong>g, empower<strong>in</strong>g and successfully<br />

adopt<strong>in</strong>g values <strong>in</strong> your bus<strong>in</strong>ess that<br />

actually shape attitudes and behaviours.<br />

The key to creat<strong>in</strong>g a successful set of<br />

bus<strong>in</strong>ess values is to make sure they are<br />

authentic and unique, so they genu<strong>in</strong>ely<br />

reflect who you are and the culture you<br />

wish to live and breathe.<br />

Make sure your culture runs through<br />

everyth<strong>in</strong>g and everyone<br />

Culture is not someth<strong>in</strong>g you can<br />

control or enforce (even through a fancy<br />

set of values/objectives) … you have to<br />

encourage, guide and empower people<br />

to live and breathe it. It’s so important<br />

that your values run through every<br />

facet of your organisation, not just the<br />

market<strong>in</strong>g or HR departments. We spoke<br />

to our friends at Fuller’s Brewery, who<br />

are the perfect example of help<strong>in</strong>g their<br />

teams embody their customer service<br />

ethos through their values and culture.<br />

“Culture is about<br />

passion, trust, respect<br />

and empowerment,<br />

and it allows you<br />

to create an<br />

ongo<strong>in</strong>g, endur<strong>in</strong>g,<br />

psychological contact”<br />

32 | <strong>January</strong> 14 | <strong>EP</strong>


MANAGEMENT<br />

Dawn Browne, Fuller’s Group<br />

Development Manager, told us how<br />

fundamental it is to their bus<strong>in</strong>ess<br />

success: “Every year we hold an event for<br />

the people who work <strong>in</strong> our pubs, <strong>in</strong>ns<br />

and hotels. One person from each site<br />

is nom<strong>in</strong>ated to jo<strong>in</strong> us for an engag<strong>in</strong>g,<br />

excit<strong>in</strong>g, <strong>in</strong>teractive experience where<br />

they learn about a subject key to our<br />

bus<strong>in</strong>ess. They then go back to their<br />

venues and share the knowledge and<br />

passion with their teams. For us it is<br />

important not just to <strong>in</strong>volve the<br />

managers, but the team members<br />

themselves, as they hold the key to<br />

shar<strong>in</strong>g the passion and help<strong>in</strong>g their<br />

colleagues really live and breathe what<br />

is special about Fuller’s.”<br />

Lead by example<br />

‘Lead by example’ is undoubtedly an<br />

over-used phrase, but nowhere is this<br />

more relevant than when it comes to<br />

your company culture. Your leaders<br />

set the tone for the rest of the<br />

organisation, so they need to embody<br />

what you stand for and reward and<br />

challenge others on that basis. Others<br />

will take their cues of how to behave<br />

from this.<br />

Create purpose and passion<br />

F<strong>in</strong>ally, you need to create purpose and<br />

passion at all levels, <strong>in</strong> every role, around<br />

your cultural and organisation vision.<br />

Ensure you make clear the importance of<br />

each role and they can see their effect on<br />

the success of the company. While some<br />

bus<strong>in</strong>esses may question the effect and<br />

effort required for this type of programme,<br />

Fuller’s have a different view: “Our teams<br />

are creative, passionate, fun people who<br />

want to be <strong>in</strong>volved and know how their<br />

job contributes to what Fuller’s is try<strong>in</strong>g<br />

to achieve. Our people are absolutely<br />

crucial to our success and, as such, we<br />

want them to really feel part of the very<br />

special spirit and team that is Fuller’s.”<br />

If that isn’t enough to persuade you,<br />

build<strong>in</strong>g a strong culture and engag<strong>in</strong>g<br />

your people to your brand and bus<strong>in</strong>ess<br />

can reduce absence, <strong>in</strong>crease<br />

performance because your team work<br />

harder, produce more efficient ways of<br />

work<strong>in</strong>g, generate ideas to grow the<br />

bus<strong>in</strong>ess, stop leavers and keeps hold<br />

of your top talent (so you don’t have to<br />

waste time and money recruit<strong>in</strong>g new<br />

ones) – someth<strong>in</strong>g salaries and bonus<br />

schemes can never do. Don’t delay<br />

– it’s time to get emotional! •<br />

Top Tips To Build<br />

A Strong Authentic<br />

Culture<br />

1Do it! – too many companies th<strong>in</strong>k it isn’t<br />

important. If your bus<strong>in</strong>ess is to reach its<br />

real potential, it’s time to take action.<br />

2Decide who you are – what is your brand<br />

personality and values?<br />

3Work out what is unique about YOUR<br />

company culture – what makes it special<br />

and different from your competitors?<br />

4Br<strong>in</strong>g the right people <strong>in</strong>to the<br />

organisation – make sure they have the<br />

right attitude and m<strong>in</strong>dset to live and breathe<br />

your culture.<br />

5Make sure it flows through everyth<strong>in</strong>g<br />

you do as a company, from recruitment<br />

to decision-mak<strong>in</strong>g – don’t just pay lip<br />

service to it.<br />

6Create purpose and passion – surprise<br />

and excite your team.<br />

7Lead by example.<br />

<strong>EP</strong> | <strong>January</strong> 14 | 33


A grand revival<br />

Spr<strong>in</strong>g 2013 saw the reopen<strong>in</strong>g of the Great Northern<br />

Hotel <strong>in</strong> K<strong>in</strong>g’s Cross. Labelled as a luxury boutique<br />

hotel, many were sceptical that the hotel would ever<br />

take off. Add <strong>in</strong> JEREMY ROBSON, an unconventional<br />

owner-operator with no prior experience <strong>in</strong> hotel<br />

management, and the <strong>in</strong>dustry was eager for<br />

a story. NICOLE THOMPSON went to f<strong>in</strong>d out more<br />

34 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

Opened <strong>in</strong> 1854 and<br />

orig<strong>in</strong>ally designed by<br />

architect Lewis Cubitt,<br />

the Great Northern Hotel<br />

was London’s first<br />

railway hotel. It enjoyed the glamour<br />

of be<strong>in</strong>g the first of its k<strong>in</strong>d and drew <strong>in</strong><br />

wealthy travellers us<strong>in</strong>g the station at<br />

K<strong>in</strong>g’s Cross. When the St. Pancras Hotel<br />

opened directly opposite 20 years later,<br />

it seemed that the Great Northern Hotel<br />

was dest<strong>in</strong>ed to fall away. Whatever status<br />

the hotel had enjoyed before was eroded<br />

with the arrival of this Gothic neighbour.<br />

Later, the Great Northern Hotel’s<br />

owners tried to ga<strong>in</strong> occupancy by<br />

refurbish<strong>in</strong>g its <strong>in</strong>teriors for budget<br />

travellers, at which po<strong>in</strong>t the hotel lost<br />

all credence. It was shut down 12 years<br />

ago and was picked up from the real<br />

estate market by RAM, an asset<br />

management group, who gave it £42<br />

million worth of love and restoration.<br />

Jeremy Robson, the owner of RAM,<br />

has now become the owner-operator<br />

of the Great Northern Hotel. A former<br />

banker, Jeremy has been <strong>in</strong>terested <strong>in</strong><br />

architecture from an early age. He had<br />

studied architecture for the first year of<br />

university until a def<strong>in</strong><strong>in</strong>g meet<strong>in</strong>g with<br />

his university professor, who strongly<br />

suggested he change degrees. Jeremy<br />

went on to qualify as a chartered<br />

surveyor with Hilier Parker <strong>in</strong> 1992 after<br />

graduat<strong>in</strong>g with a first class honours<br />

degree <strong>in</strong> estate management <strong>in</strong> 1990.<br />

Later, he moved to <strong>in</strong>vestment bank<strong>in</strong>g,<br />

where he specialised <strong>in</strong> real estate<br />

f<strong>in</strong>ance and eventually became Senior<br />

Manag<strong>in</strong>g Director and Head of Pr<strong>in</strong>cipal<br />

F<strong>in</strong>ance at RBS, deliver<strong>in</strong>g a £330 million<br />

net <strong>in</strong>come return for the bank <strong>in</strong> his last<br />

year. He established RAM <strong>in</strong> 2007 to<br />

become more directly <strong>in</strong>volved with<br />

his property <strong>in</strong>vestments. Through the<br />

group he owns other hotels <strong>in</strong> Scotland,<br />

but the Great Northern Hotel was the<br />

first property he decided to operate.<br />

Despite hav<strong>in</strong>g no prior experience <strong>in</strong><br />

operat<strong>in</strong>g hotels, Jeremy seems to be <strong>in</strong><br />

his element. “I love hotels because all my<br />

<strong>in</strong>terests <strong>in</strong>tersect. There is an important<br />

component of design, work<strong>in</strong>g with<br />

people and be<strong>in</strong>g able to respect and<br />

challenge convention. When I took on<br />

the Great Northern Hotel, it was an<br />

honour to take a part of London’s hotel<br />

history that had failed for so long and<br />

completely turn it around. Alongside my<br />

management team, we asked ourselves<br />

what we were try<strong>in</strong>g to achieve and then<br />

worked out the most efficient way to do<br />

it. At the beg<strong>in</strong>n<strong>in</strong>g, many <strong>in</strong> the <strong>in</strong>dustry<br />

felt that my vision of convert<strong>in</strong>g GNH<br />

<strong>in</strong>to a luxury boutique hotel was unwise.<br />

They were strongly suggest<strong>in</strong>g I take<br />

the budget hotel route and not try and<br />

compete aga<strong>in</strong>st the Renaissance St.<br />

Pancras. I feel that I’ve got a good sense<br />

of trends and saw an opportunity<br />

to create someth<strong>in</strong>g truly special<br />

with the Great Northern Hotel.”<br />

Jeremy went on with his vision and<br />

surrounded himself with a management<br />

team that supported this view. Runn<strong>in</strong>g<br />

through the list of names work<strong>in</strong>g<br />

alongside him we encounter some<br />

experienced <strong>in</strong>dustry players.<br />

“I don’t have a general manager.<br />

Anthony Thwaites, who was the GM with<br />

Malmaison for 16 years, is my rooms’<br />

director. There is an important split here<br />

because I believe that <strong>in</strong> most cases,<br />

hoteliers are not good restaurateurs.<br />

Scott Sapot, former Director of the Ivy<br />

members club, is my Food and Beverage<br />

Director. F<strong>in</strong>ally, I wanted to establish<br />

a strong cul<strong>in</strong>ary presence <strong>in</strong> the area so<br />

it was excit<strong>in</strong>g to br<strong>in</strong>g on Mark Sargeant<br />

and Mike Denman (previous head chef<br />

at Hix Soho) as my executive chef team.<br />

I try to run the bus<strong>in</strong>ess with the guys<br />

act<strong>in</strong>g as entrepreneurs not heads of<br />

department. If the hotel does well they<br />

are rewarded accord<strong>in</strong>gly.<br />

“Follow<strong>in</strong>g my <strong>in</strong>st<strong>in</strong>ct and stay<strong>in</strong>g<br />

true to my vision has paid off. I’ve got<br />

four bus<strong>in</strong>ess offers here: Kiosk, the GNH<br />

bar, Plum + Spilt Milk and of course the<br />

rooms. There is a design ethic and a brand<br />

that runs all the way through and the<br />

environments that we have created are<br />

dist<strong>in</strong>ct. We focused on creat<strong>in</strong>g bus<strong>in</strong>ess<br />

offers that were outward look<strong>in</strong>g – most<br />

hotels have ancillary uses that are used by<br />

residents. Plum + Spilt Milk is 85 percent<br />

non-resident, GNH Bar is 90 percent nonresident<br />

and Kiosk is about the same. My<br />

food and beverage spend is about 50<br />

percent of my total revenue because I run<br />

that department as a separate bus<strong>in</strong>ess.<br />

We are able to offer unrivalled value to<br />

the discern<strong>in</strong>g customer.”<br />

Attention to detail is apparent<br />

throughout the hotel. The focus on the<br />

transient customer’s comfort is evident<br />

with sound-proof<strong>in</strong>g to detract from the<br />

noise levels of K<strong>in</strong>g’s Cross, <strong>in</strong>ternational<br />

power outlets to aid travellers and<br />

comfortable chairs to s<strong>in</strong>k <strong>in</strong>to <strong>in</strong> all<br />

the loung<strong>in</strong>g areas. Each guest floor<br />

has complimentary self-service pantries<br />

where guests can <strong>in</strong>dulge <strong>in</strong> freshly baked<br />

cakes and a selection of sweets. References<br />

to the hotel’s past as a railway hotel are<br />

discreet and present <strong>in</strong> features that add<br />

character and style to the rooms’ <strong>in</strong>teriors.<br />

“I’ve loved work<strong>in</strong>g as a hotel operator<br />

and sett<strong>in</strong>g up GNH has proven to be a<br />

reward<strong>in</strong>g challenge. I’m just focus<strong>in</strong>g on<br />

hotels and I can’t see myself chang<strong>in</strong>g for<br />

the next 10 years or so. My family own the<br />

hotels <strong>in</strong> Scotland and our plan is to grow<br />

that portfolio to 20-25 and then go for an<br />

IPO. Next plans for me are more boutique<br />

hotels – I’ve got a property I’m consider<strong>in</strong>g<br />

<strong>in</strong> the Caribbean and another <strong>in</strong> London.”<br />

At the time of this <strong>in</strong>terview, the Great<br />

Northern Hotel had been operat<strong>in</strong>g for<br />

19 weeks and had already made it on to<br />

The Sunday Times Ultimate 100 British<br />

Hotels. They were also shortlisted for the<br />

European Hotel Design Awards for the<br />

conversion of an exist<strong>in</strong>g hotel build<strong>in</strong>g.<br />

S<strong>in</strong>ce then they have gone on to w<strong>in</strong> the<br />

Best Hotel Interior from the International<br />

Hotel Awards, among other accolades.<br />

It is clear that they have established<br />

themselves as a competitive player <strong>in</strong> the<br />

London hotel scene and a grand revival<br />

has been completed. •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 35


BEN HAYES OPINION<br />

Social Video 101<br />

The chang<strong>in</strong>g landscape of communications promotes<br />

video as a contender for the shar<strong>in</strong>g of <strong>in</strong>formation<br />

The social landscape is aga<strong>in</strong> shift<strong>in</strong>g, but this<br />

time it’s not the platforms we are us<strong>in</strong>g, but the<br />

type of content we create. The social user has<br />

mastered the photo and now seems set on<br />

mak<strong>in</strong>g the social video part of what they<br />

create and consume. We’re not talk<strong>in</strong>g about<br />

YouTube or Vimeo here. Now is the era of the V<strong>in</strong>e or<br />

Instagram video, someth<strong>in</strong>g created <strong>in</strong> the spur of the<br />

moment, not polished and pressed, but a real product<br />

of an experience.<br />

Now, if you haven’t looked <strong>in</strong>to either V<strong>in</strong>e or<br />

Instagram then we would thoroughly recommend you<br />

do. They are go<strong>in</strong>g to do to video what Twitter’s 140-<br />

character limit did to blogg<strong>in</strong>g. Users and brands are<br />

suddenly be<strong>in</strong>g forced to get creative to generate<br />

compell<strong>in</strong>g content. Where V<strong>in</strong>e<br />

– with 40 million users – allows<br />

you to create a six-second video,<br />

Instagram – with 150 million<br />

users – promotes a longer and<br />

customised 15-second video that<br />

allows users to take advantage of<br />

13 different filters.<br />

The decision for the user is a<br />

tricky one: should I create videos<br />

on V<strong>in</strong>e or produce similar content on an app that I’m<br />

already us<strong>in</strong>g for my photos (Instagram)? The jury is still<br />

out. The latest figures show V<strong>in</strong>e as the fastest-grow<strong>in</strong>g<br />

app of 2013, however Instagram’s ready user base have<br />

adopted video almost as rapidly.<br />

But what of the marketer? Video can be a much richer<br />

form of content. Time limits on videos aside, when<br />

approached properly a brand can communicate<br />

someth<strong>in</strong>g <strong>in</strong> six seconds that can add huge value to<br />

their brand. But us<strong>in</strong>g both platforms can split resources,<br />

so which platform should be your focus? Clearly the<br />

extra footage that Instagram provides, and the ability<br />

to edit, would suggest that Instagram is the marketer’s<br />

best bet.<br />

If you look at the five most popular brands on<br />

Instagram (based on data collected by Nitrogram) they<br />

all possess a community of 1 million plus. The very same<br />

brands on V<strong>in</strong>e average a few hundred thousand<br />

“Hopefully your<br />

content provokes<br />

some form of<br />

emotional response”<br />

followers and some brands, such as the NBA, have<br />

seem<strong>in</strong>gly abandoned V<strong>in</strong>e all together.<br />

Given that Instagram offers longer videos to<br />

communicate your message and a larger user base with<br />

whom to communicate, the decision for the marketer<br />

seems a simple one: Instagram is where you should be<br />

plac<strong>in</strong>g your resource. At least for the time be<strong>in</strong>g.<br />

With the platform now chosen, you need to decide<br />

what to create and how your content needs to look ...<br />

For us it starts with the basics: provide value to your<br />

users. In the hospitality <strong>in</strong>dustry there are many ways<br />

of do<strong>in</strong>g this:<br />

• Give people relevant <strong>in</strong>formation that they haven’t seen<br />

before. The Lex<strong>in</strong>gton <strong>in</strong> New York has created <strong>in</strong>-room<br />

and hotel tours to give the user additional content that<br />

they otherwise could not get from<br />

the hotel’s website.<br />

• Educate users around one of<br />

their <strong>in</strong>terests. Food and<br />

beverage departments from<br />

Mayfair to 5th Avenue<br />

have been experiment<strong>in</strong>g<br />

with stop-motion creations<br />

that range from cocktail mak<strong>in</strong>g<br />

to creat<strong>in</strong>g the perfect canapé.<br />

• Create more beh<strong>in</strong>d-the-scenes content that <strong>in</strong>volves<br />

your staff. We all know that this <strong>in</strong>dustry runs on the<br />

quality of the experience and your staff form the basis<br />

of this. The result will be a more personable and<br />

approachable brand that users can actually<br />

engage with.<br />

• Enterta<strong>in</strong> your audience! Remember that social media<br />

is all about deliver<strong>in</strong>g content that adds value to the user<br />

experience and hopefully your content provokes some<br />

form of emotional response … noth<strong>in</strong>g beats a good<br />

old laugh.<br />

As we move towards <strong>2014</strong> there is little doubt that video<br />

content through apps will cont<strong>in</strong>ue to evolve and<br />

mature, just as photos have done <strong>in</strong> 2013. The benefits<br />

will be felt most by those who create a plan for this early<br />

and <strong>in</strong>tegrate it <strong>in</strong>to their strategy right from the get-go.<br />

As they say … lights, camera, action! •<br />

Ben Hayes is Manag<strong>in</strong>g Director of BORN SOCIAL


BUSINESS<br />

Employ<strong>in</strong>g the best<br />

We met up with Andy Kemp, Group Sales Director, to discuss the importance<br />

of diversity, both <strong>in</strong> his foodservice company 3663 and <strong>in</strong> society generally<br />

Icouldn’t work for any organisation<br />

that didn’t take diversity<br />

seriously,” said Andy. “That’s why<br />

we focus on recruit<strong>in</strong>g the best<br />

people for the organisation and<br />

all diverse backgrounds are treated with<br />

equal respect.” Recruit<strong>in</strong>g and reta<strong>in</strong><strong>in</strong>g<br />

the best is vital for a foodservice company<br />

as large as 3663, with 4,200 people, sales of<br />

£1.7 billion and 45,000 deliveries be<strong>in</strong>g<br />

made a week.<br />

Asked to give concrete examples of how<br />

3663 proactively encouraged diversity,<br />

Andy mentioned a diverse board,<br />

recognis<strong>in</strong>g success, flexible work<strong>in</strong>g,<br />

<strong>in</strong>ternal communications and<br />

benchmark<strong>in</strong>g, as well as support<strong>in</strong>g<br />

charities such as Spr<strong>in</strong>gboard and<br />

<strong>Hospitality</strong> Action that help those <strong>in</strong> need<br />

with<strong>in</strong> the <strong>in</strong>dustry without discrim<strong>in</strong>at<strong>in</strong>g.<br />

Diverse board<br />

The 3663 board has three female board<br />

members and Andy f<strong>in</strong>ds that hav<strong>in</strong>g<br />

a diverse board helps decision-mak<strong>in</strong>g.<br />

In his experience, a board must be<br />

diverse and take the views of many<br />

<strong>in</strong>to account <strong>in</strong> order to be as truly<br />

balanced as possible.<br />

Unfortunately <strong>in</strong> too many<br />

organisations diversity tends to be<br />

a tick-box affair with no real buy-<strong>in</strong> by<br />

management. Andy believes that it is<br />

vital that the board proactively pushes<br />

the diversity agenda as otherwise it won’t<br />

permeate throughout the organisation,<br />

but just rema<strong>in</strong> a preserve of HR.<br />

Recognis<strong>in</strong>g successful people from<br />

diverse backgrounds<br />

It is important to have role models<br />

with<strong>in</strong> the organisation who can show<br />

that people can overcome barriers and<br />

be successful. “Our people are at the<br />

heart of our bus<strong>in</strong>ess and it is their<br />

passion and commitment that drives<br />

3663’s success. F<strong>in</strong>d<strong>in</strong>g the best people<br />

and harness<strong>in</strong>g their talent is what will<br />

susta<strong>in</strong> our success for the future.”<br />

Flexible work<strong>in</strong>g<br />

3663 tries to be as flexible as possible<br />

<strong>in</strong> its work<strong>in</strong>g arrangements, subject<br />

to the requirements of the <strong>in</strong>dividual<br />

position. For <strong>in</strong>stance, work<strong>in</strong>g parents<br />

can chose a flexible or part-time work<strong>in</strong>g<br />

arrangement. Alternatively, work<strong>in</strong>g<br />

mothers may be able to work largely<br />

from home. Each decision on flexible<br />

work<strong>in</strong>g is decided between the<br />

employee and their l<strong>in</strong>e manager<br />

and is reviewed annually by HR<br />

and the manager to check that it<br />

is still appropriate.<br />

Internal Communications<br />

In order to ensure that the board is close<br />

to the workforce and that the company<br />

culture and policies, <strong>in</strong>clud<strong>in</strong>g diversity,<br />

permeate through the organisation,<br />

3663 has “Communications Champions”<br />

at every site and they have regular<br />

“In too many<br />

organisations<br />

diversity tends to<br />

be a tick-box affair<br />

with no real buy-<strong>in</strong>”<br />

meet<strong>in</strong>gs with the board. These meet<strong>in</strong>gs<br />

help ensure that the company’s<br />

communications are not experienc<strong>in</strong>g<br />

blockages and the board’s <strong>in</strong>tentions<br />

are not be<strong>in</strong>g filtered out. In addition,<br />

it allows the people who run the<br />

organisation at each site have<br />

real <strong>in</strong>put <strong>in</strong>to 3663’s decisionmak<strong>in</strong>g<br />

and as a result have a<br />

sense of ownership.<br />

Benchmark<strong>in</strong>g<br />

3663 believes <strong>in</strong> recruit<strong>in</strong>g<br />

and reta<strong>in</strong><strong>in</strong>g the best talent,<br />

irrespective of background,<br />

and HR regularly<br />

benchmarks 3663 aga<strong>in</strong>st<br />

the marketplace and its<br />

competitors, always look<strong>in</strong>g<br />

for examples of best practice.<br />

HR also carries out <strong>in</strong>ternal<br />

surveys on diversity, ensur<strong>in</strong>g<br />

success is celebrated and<br />

rewarded fairly and takes<br />

diversity <strong>in</strong>to account. Internal surveys<br />

also measure employee satisfaction and,<br />

<strong>in</strong>deed, part of Andy’s remuneration is<br />

dependent on this.<br />

Overall, 3663 has got much right with<br />

its approach to diversity, but as Andy says:<br />

“There are always ways we can improve,<br />

which is why we use benchmark<strong>in</strong>g and<br />

undertake a lot of research to learn from<br />

others <strong>in</strong> similar <strong>in</strong>dustries.”<br />

Diversity <strong>in</strong> the community<br />

Perhaps surpris<strong>in</strong>gly, as Andy had a<br />

traditional English upbr<strong>in</strong>g<strong>in</strong>g <strong>in</strong> East<br />

Anglia, it was only <strong>in</strong> his 20s that he<br />

became fully aware of the impact of<br />

the racial issues permeat<strong>in</strong>g throughout<br />

society as a result of new immigration<br />

policies and chang<strong>in</strong>g attitudes.<br />

Andy has worked with disadvantaged<br />

teenagers <strong>in</strong> Brixton and encouraged<br />

them to look at hospitality as a career.<br />

However, cultural attitudes and<br />

perceptions of self worth can make it<br />

difficult to persuade an alienated young<br />

man that work<strong>in</strong>g hard for little immediate<br />

reward is an attractive prospect. It is<br />

Andy’s view that the ma<strong>in</strong> answer to<br />

disadvantage is good school<strong>in</strong>g. Andy<br />

f<strong>in</strong>ishes by emphasis<strong>in</strong>g: “educate,<br />

educate, educate.” •


BUSINESS<br />

IT IS OFTEN SAID THAT RECESSIONARY MARKETS CREATE EXC<strong>EP</strong>TIONAL ENTR<strong>EP</strong>RENEURS<br />

AND EMMA LITTLE’S STORY COULD WELL ILLUSTRATE THE POINT. SINCE 2008, SHE HAS<br />

BUILT A £5M TURNOVER BUSINESS DESPITE INITIALLY HAVING NO KNOWLEDGE OF THE<br />

INDUSTRY, NO CONTACTS AND NO CLIENTS<br />

Aga<strong>in</strong>st<br />

the odds<br />

When you meet<br />

Emma, your first<br />

impression is of<br />

a very polite young<br />

woman with an<br />

easy charm. She does not impose herself;<br />

she listens and talks softly <strong>in</strong> a Scottish<br />

tone. However, this picture tells noth<strong>in</strong>g<br />

of the steely character and strong work<br />

ethic that lies with<strong>in</strong>. Emma is one of<br />

those characters that you just know will<br />

f<strong>in</strong>d success.<br />

So where does Emma’s story beg<strong>in</strong>?<br />

“I worked at Vodaphone <strong>in</strong> customer<br />

services. They wanted me to move south,<br />

but I wanted to rema<strong>in</strong> <strong>in</strong> Scotland, close<br />

to my family and friends. They are<br />

important to me. I love Ed<strong>in</strong>burgh too,<br />

so I decided to strike out alone.”<br />

Emma started her career sell<strong>in</strong>g<br />

vacuum cleaners door to door and<br />

then she spent more than five years<br />

with Vodafone UK as a Corporate Account<br />

Manager, oversee<strong>in</strong>g the relationship<br />

with their largest customer, The Royal<br />

Bank of Scotland. She was already on<br />

the upward curve before she decided<br />

to change tack.<br />

“I just decided to be bold. I am not an<br />

expert <strong>in</strong> anyth<strong>in</strong>g, but I loved customers<br />

and I knew that we struggled to f<strong>in</strong>d<br />

venues when we needed them, so I<br />

knew there must be an opportunity.”<br />

Emma founded ExecSpace <strong>in</strong> 2008.<br />

The company is a book<strong>in</strong>g service for<br />

bus<strong>in</strong>ess conferences and accommodation.<br />

This is noth<strong>in</strong>g new, but what makes this<br />

story stand out is that Emma is not<br />

a hospitality professional and had no<br />

real knowledge of the sector or bus<strong>in</strong>ess<br />

when she first founded the company.<br />

In fact, one could say that the odds were<br />

stacked aga<strong>in</strong>st Emma when she began,<br />

for who would have backed <strong>in</strong> 2008 (the<br />

start of the downturn) a young lady with<br />

no contacts and no experience? And yet<br />

despite all that, Emma has built a very<br />

successful bus<strong>in</strong>ess.<br />

“When I first thought of the idea for<br />

ExecSpace, I actually thought it was<br />

unique,” laughs Emma. “I just didn’t<br />

know that it was such an established<br />

sector. Yes, I accept I had no contacts, but<br />

what I did have was an understand<strong>in</strong>g of<br />

the customers. I used my naivety as an<br />

advantage and built the bus<strong>in</strong>ess not<br />

from an <strong>in</strong>dustry perspective, but from<br />

the customers’ expectations and desires.<br />

“It was a bit daunt<strong>in</strong>g at the start. 2008<br />

was the start of the recession. I had no<br />

contacts, no clients and no knowledge<br />

– so I trawled the newspapers and called<br />

25 clients every day. I just worked hard<br />

until the door would open.”<br />

As you listen to Emma, it is clear that<br />

she has a strong work ethic, but the other<br />

quality that strikes you is a real honest<br />

streak. Emma is not one for false words.<br />

She is straightforward, direct <strong>in</strong> a very<br />

pleasant way and honest about herself.<br />

It is not hard to understand why she<br />

builds good relationships with clients<br />

and reta<strong>in</strong>s them.<br />

“You can always compete if you deliver<br />

what the customer wants. We always ask<br />

ourselves how can we improve? How can<br />

we be the best we can be? We are open<br />

and transparent. In 2008, our turnover<br />

was £250k. 2013 will be £5m. We just<br />

focus on exceed<strong>in</strong>g our clients’<br />

expectations of what we can deliver.<br />

We work to reta<strong>in</strong> our clients – you<br />

have to <strong>in</strong> a market as tough as what<br />

we’ve just been through. It is a superb<br />

test<strong>in</strong>g ground for us. We have built the<br />

bus<strong>in</strong>ess <strong>in</strong> terms of adversity and we<br />

know no different. A client that spent<br />

£12,000 with us <strong>in</strong> 2008 this year<br />

translated to £70,000.<br />

“So many talk about customer<br />

service but, <strong>in</strong> truth, few really deliver.<br />

We monitor our service levels all the<br />

time to make sure we are walk<strong>in</strong>g the<br />

talk. Every one of our team is audited<br />

with clients. The average score out of<br />

10 <strong>in</strong> the last quarter’s audit was 9.7.<br />

“We just focus on gett<strong>in</strong>g the basics<br />

right. We are very sales driven. We are<br />

a sales bus<strong>in</strong>ess, but this can still be done<br />

<strong>in</strong> a way that engages. How often do you<br />

hear compla<strong>in</strong>ts about work<strong>in</strong>g with a<br />

client’s procurement team? We go<br />

out of our way to make sure we work<br />

closely, and I hope cleverly, with them,<br />

so we maximise every s<strong>in</strong>gle opportunity<br />

we can.<br />

“All I want to do is build this bus<strong>in</strong>ess,<br />

so we become a market leader and we<br />

rema<strong>in</strong> true to the value that the<br />

customer is k<strong>in</strong>g.”<br />

As you reflect on Emma, you cannot<br />

be anyth<strong>in</strong>g but impressed. The most<br />

last<strong>in</strong>g thought is that she has many<br />

qualities, but she does the simple<br />

th<strong>in</strong>gs so very well. She does not try to<br />

be anyth<strong>in</strong>g but herself. She will go the<br />

extra mile for clients and earns loyalty<br />

<strong>in</strong> return – so simple, yet so effective.<br />

Never underestimate how hard it is to<br />

do the simple th<strong>in</strong>gs really well. One<br />

famous sports coach said: “To be<br />

successful, you have to do 100 th<strong>in</strong>gs<br />

1 percent better than anyone else.”<br />

Maybe this is also Emma’s mantra<br />

– we will hear much more about her<br />

as time moves on. •<br />

NICK DAWE<br />

38 | <strong>January</strong> 14 | <strong>EP</strong>


“All I want to<br />

do is build this<br />

bus<strong>in</strong>ess, so we<br />

become a market<br />

leader and we<br />

rema<strong>in</strong> true to<br />

the value that the<br />

customer is k<strong>in</strong>g”


What is so different<br />

about this product<br />

that has appeared<br />

among the<br />

cornucopia of<br />

other options adorn<strong>in</strong>g the shelves of<br />

the fridge <strong>in</strong> the local supermarket or<br />

grocery store? Well, <strong>in</strong> simple terms, this<br />

product claims to be the UK’s first truly<br />

‘gourmet yoghurt’ – equally as apposite<br />

eaten straight from the tub or served at<br />

a d<strong>in</strong>ner party.<br />

Amelia Harvey and Michael Hodgson<br />

met while work<strong>in</strong>g on the launch of<br />

GÜ on to the UK market and are now<br />

bus<strong>in</strong>ess partners <strong>in</strong> this new endeavour.<br />

Hav<strong>in</strong>g studied market<strong>in</strong>g at university,<br />

Amelia has worked <strong>in</strong> a variety of roles,<br />

predom<strong>in</strong>antly <strong>in</strong> sales <strong>in</strong> such lead<strong>in</strong>g<br />

brands as Kellogg’s and L'Oréal.<br />

The storm<strong>in</strong>g success of GÜ led to its<br />

eventual sale and <strong>in</strong>tegration. Somewhat<br />

naturally this also led to the departure of<br />

some of the senior team, <strong>in</strong>clud<strong>in</strong>g<br />

Champion<br />

<strong>in</strong> the chiller<br />

Just when you thought there was no more room<br />

<strong>in</strong> the chiller cab<strong>in</strong>et and you knew you could<br />

name at least half a dozen yoghurt brands,<br />

or the very least recognise the plethora of pots,<br />

The Collective Dairy arrives on the scene<br />

40 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

Amelia and Michael, for pastures new.<br />

These new pastures came around<br />

quickly, and were <strong>in</strong> the dairy section<br />

and complimented fully the specialties<br />

that Amelia had come to love <strong>in</strong> build<strong>in</strong>g<br />

a bus<strong>in</strong>ess: brand<strong>in</strong>g and a strong<br />

knowledge of the premium chilled<br />

food market.<br />

The Collective Dairy, with its slogan<br />

of “All Dairy, No Bull” is a New Zealand<br />

based company that had been <strong>in</strong><br />

bus<strong>in</strong>ess for approximately 18 months.<br />

It was the bra<strong>in</strong>child of two very clever<br />

chefs with a very simple quest: to create<br />

an extraord<strong>in</strong>ary yoghurt with an<br />

unbeatable taste. Both had experienced<br />

bus<strong>in</strong>ess success, were hard work<strong>in</strong>g and<br />

were will<strong>in</strong>g to publicly make the claim<br />

that their “sheer determ<strong>in</strong>ation to<br />

achieve the unth<strong>in</strong>kable provided the<br />

fuel, their passion provided the key and<br />

their tenacity delivered the answer”. They<br />

have achieved enormous success with<br />

their gourmet yoghurt <strong>in</strong> its home<br />

market and Australia. An overnight<br />

sensation? Well, with<strong>in</strong> just 10 months<br />

their yoghurt was the best-sell<strong>in</strong>g<br />

yoghurt <strong>in</strong> the New Zealand chiller<br />

– “No Bull”, as they say at the Dairy!<br />

Sitt<strong>in</strong>g one even<strong>in</strong>g <strong>in</strong> a New Zealand<br />

<strong>in</strong>spired restaurant <strong>in</strong> London, the two<br />

aspir<strong>in</strong>g and devoted chefs decided to<br />

expand to the UK – after all, didn’t the<br />

whole world deserve The Collective<br />

experience? Amelia and Michael were<br />

<strong>in</strong>troduced and a jo<strong>in</strong>t venture was<br />

signed <strong>in</strong> 2011. They had been an<br />

<strong>in</strong>spir<strong>in</strong>g team before, how hard could<br />

it be aga<strong>in</strong>? “Damn hard,” Amelia will<br />

tell you. However, they created a world<br />

around the dairy theme and became<br />

known as Head Bull and Head Cow!<br />

Then they settled on a manufacturer<br />

<strong>in</strong> the West Country who could deliver<br />

the quality that they were look<strong>in</strong>g for<br />

to replicate the premium yoghurt they<br />

had tasted from New Zealand.<br />

When asked what drives them <strong>in</strong> such<br />

a seem<strong>in</strong>gly competitive market they will<br />

answer: “Our drive is aimed at flavour,<br />

quality, reliability and f<strong>in</strong>esse – the<br />

results are aimed at you, the customer.<br />

“Our passion, The Collective, is all<br />

about cutt<strong>in</strong>g through the cow pats to<br />

provide the greatest dairy imag<strong>in</strong>able<br />

– our promise to our customers is<br />

simple … No Bull.”<br />

The launch <strong>in</strong> the UK was fast and<br />

went directly to the heart of the yoghurt<br />

sell<strong>in</strong>g <strong>in</strong>stitutions – the UK supermarkets,<br />

namely Waitrose and Sa<strong>in</strong>sbury’s, along<br />

with onl<strong>in</strong>e supermarket leader Ocado.<br />

Yoghurt is a mass market, but The<br />

Collective Dairy have cleverly ma<strong>in</strong>ta<strong>in</strong>ed<br />

their premium position and product<br />

by adher<strong>in</strong>g to their cast iron bus<strong>in</strong>ess<br />

pr<strong>in</strong>ciples.<br />

What Amelia and Michael found was<br />

that dur<strong>in</strong>g the recession, people were<br />

eat<strong>in</strong>g out less and spend<strong>in</strong>g less on<br />

extravagances (hardly headl<strong>in</strong>e news!),<br />

but what they were do<strong>in</strong>g was spend<strong>in</strong>g<br />

more on ‘treat<strong>in</strong>g <strong>in</strong>’ – the practice of<br />

spend<strong>in</strong>g money on treats to have at<br />

home – and premium foods and treats<br />

were purchased at a greater rate than<br />

previously. Despite the lengthen<strong>in</strong>g<br />

recession, The Collective Dairy found<br />

a great uptake <strong>in</strong> their new premium<br />

yoghurt, which had the added advantage<br />

and likeability factor of be<strong>in</strong>g made<br />

<strong>in</strong> England.<br />

So why the success? Why the follow<strong>in</strong>g?<br />

Not only do they produce premium<br />

quality yoghurt, The Collective have<br />

strengthened their market<strong>in</strong>g with a<br />

quirky sense of humour associated with<br />

their brand. Sweet Jane, a pla<strong>in</strong> yoghurt<br />

with a little English honey, is a simple<br />

pleasure that can make your day an epic<br />

one. It is m<strong>in</strong>d-blow<strong>in</strong>gly good and<br />

the p<strong>in</strong>k labell<strong>in</strong>g cleverly ties <strong>in</strong> with<br />

breast cancer charities – she is pla<strong>in</strong>,<br />

so one can make her not pla<strong>in</strong> at home.<br />

The other yoghurts feature a unique<br />

double layer<strong>in</strong>g of an added fruit or<br />

flavour, coupled with the gourmet<br />

yoghurt. So we have <strong>in</strong> the l<strong>in</strong>e-up:<br />

Zesty Luscious Lemon, Sumptuous<br />

Russian Fudge and the award-w<strong>in</strong>n<strong>in</strong>g<br />

Passion Fruit.<br />

There have also been special additions<br />

every three to four months, such<br />

as Mighty Mango, Bloody Orange,<br />

Banoffee, Apple Spice, and White<br />

Peach and Raspberry.<br />

Who is the current contender for<br />

the top spot? Th<strong>in</strong>k Romeo and Juliet,<br />

th<strong>in</strong>k Posh and Becks, or Will and Kate<br />

and then head to the chiller and try<br />

Raspberry and Amaretto, a fantastic<br />

tast<strong>in</strong>g yoghurt that stimulates<br />

childhood memories of a Bakewell tart.<br />

It can even transform <strong>in</strong>to a delicious<br />

even<strong>in</strong>g dessert with the addition of<br />

fresh raspberries and crumbled<br />

amoretti biscuits!<br />

There are a few basic fundamentals<br />

to this new bus<strong>in</strong>ess and its concepts:<br />

• Customer <strong>in</strong>teraction<br />

• Customer communication<br />

• Customer coupons for data collection<br />

• Promotions and customer tast<strong>in</strong>gs to<br />

encourage word-of-mouth feedback.<br />

There are Collective Dairy workers<br />

who monitor the communications and<br />

make sure that responses are made to<br />

all forms of customer communications,<br />

whether letters, emails or Tweets. Social<br />

media is extensively used to communicate,<br />

engage, discuss and even to develop<br />

ideas for the next feature flavour.<br />

Watch out for the Christmas edition<br />

– it’s Christmas Pudd<strong>in</strong>g.<br />

Lots of time and effort goes <strong>in</strong>to<br />

events and attend<strong>in</strong>g shows where<br />

extensive customer sampl<strong>in</strong>g can be<br />

done. Customers are gifted Collective<br />

Dairy cooler bags with free samples<br />

and leaflets <strong>in</strong> exchange for their<br />

contact details and a promise to<br />

provide feedback – both good and bad<br />

(although they receive little of the latter).<br />

Amelia will gladly tell you that they even<br />

encourage suggestions for new flavours,<br />

so go on, take a few moments and dream<br />

<strong>in</strong> yoghurt – what would you submit<br />

as your special edition flavour?<br />

You may be ask<strong>in</strong>g yourself why<br />

‘The Collective’? The answer to this<br />

question is pretty simple really – the<br />

bus<strong>in</strong>ess and the beautiful, creamy,<br />

seductive, No Bull yoghurt is the<br />

“collective efforts of the people,<br />

for the people”.•<br />

<strong>EP</strong> | <strong>January</strong> 14 | 41


THE ART OF<br />

NETWORKING<br />

Build<strong>in</strong>g effective professional relationships<br />

is a skill <strong>in</strong> itself. It takes much time, effort<br />

and <strong>in</strong>put, but if done well, it will stand the<br />

test of time and generate results.<br />

<strong>EP</strong> possesses a team of skilled <strong>in</strong>dustry<br />

professionals that can work with teams<br />

to coach and mentor on:<br />

• How to network effectively<br />

• Image and perception<br />

• Meet<strong>in</strong>g expectations<br />

• Build<strong>in</strong>g relationships<br />

• Host<strong>in</strong>g<br />

Our approach is very much personalised to the<br />

<strong>in</strong>dividual. As relationship sell<strong>in</strong>g is focused on<br />

the one to one, so our approach is too.<br />

If you would like to f<strong>in</strong>d out more, please<br />

contact chris.sheppardson@epmagaz<strong>in</strong>e.co.uk<br />

or call on 0207 025 1862<br />

E Productions


MIKE DAY OPINION<br />

Technical Determ<strong>in</strong>ation<br />

and Expansion for <strong>2014</strong><br />

Extend<strong>in</strong>g the use of back-office management software<br />

As 2013 draws to a close, now is a good<br />

time for all companies to reflect on how their<br />

bus<strong>in</strong>esses have performed over the past 12<br />

months. It is the perfect time to consider the<br />

next steps to take <strong>in</strong> order to re-focus their<br />

efforts and extend their areas of technology<br />

use to be sure of their ability to grow the bus<strong>in</strong>ess.<br />

Customer focus and profitability are two critical<br />

compatible elements with<strong>in</strong> a service organisation and<br />

technology should no longer be seen as a footnote <strong>in</strong> this<br />

process, but <strong>in</strong>stead should play a fundamental role <strong>in</strong><br />

any forward plann<strong>in</strong>g.<br />

In the last year, the hospitality sector has cont<strong>in</strong>ued<br />

to embrace the use of technology to help manage and<br />

support its bus<strong>in</strong>esses.<br />

Outdated paper processes<br />

“The impact that<br />

technology is hav<strong>in</strong>g<br />

on the bottom l<strong>in</strong>e<br />

is measurable<br />

and significant”<br />

have been replaced by ever<br />

more <strong>in</strong>novative back-office<br />

management systems and<br />

new simple rout<strong>in</strong>es make<br />

light work of essential<br />

order<strong>in</strong>g, cost<strong>in</strong>g and marg<strong>in</strong><br />

management activities. In<br />

parallel, there has been a<br />

marked <strong>in</strong>crease <strong>in</strong> the use<br />

of social media tools to<br />

communicate <strong>in</strong>stantly,<br />

effectively and <strong>in</strong> a targeted manner with customers,<br />

all of which harness and enhance customer loyalty.<br />

The impact that technology is hav<strong>in</strong>g on the bottom<br />

l<strong>in</strong>e is measurable and significant. The flexibility to<br />

access such powerful technical resources via a<br />

multitude of mobile handheld devices with immediate<br />

results must surely make active engagement with the<br />

latest technology a top New Year resolution.<br />

So what are hospitality professionals th<strong>in</strong>k<strong>in</strong>g about<br />

when it comes to develop<strong>in</strong>g their use of technology?<br />

At IndiCater, we focus purely on our Cloud solutions<br />

and are privileged to talk to our client and customer<br />

base about their plans and aspirations for companywide<br />

solutions, as well as traditional back-office<br />

management software. One of the prevalent themes<br />

<strong>in</strong> these conversations is the development capability<br />

of management software to enhance the customer<br />

experience, someth<strong>in</strong>g we are already witness<strong>in</strong>g<br />

across all sectors, from provid<strong>in</strong>g pre-order cater<strong>in</strong>g<br />

services at leisure and visitor attractions to patient<br />

feed<strong>in</strong>g with<strong>in</strong> a hospital environment.<br />

A new application, recently launched and already <strong>in</strong><br />

use with a major IndiCater client, allows hospital ward<br />

staff to take meal orders from a patient’s bedside us<strong>in</strong>g<br />

any mobile tablet device. With orders received directly<br />

by the kitchens, not only does this result <strong>in</strong> an improved,<br />

friendlier customer experience, it also leverages<br />

significant reductions <strong>in</strong> wasted food production<br />

– early predictions are <strong>in</strong> excess of 10 percent.<br />

Similarly, <strong>in</strong> partnership with<br />

one of the UK’s lead<strong>in</strong>g visitor<br />

attractions, IndiCater have<br />

developed the Virtual Deli tool<br />

to help improve service po<strong>in</strong>t<br />

queues at peak times, result<strong>in</strong>g<br />

<strong>in</strong> higher rates of customer<br />

satisfaction and, of course,<br />

higher customer spend for<br />

our client. Virtual Deli allows<br />

customers to pre-order and<br />

pre-pay for their items and<br />

collect their order at a<br />

designated time without the need for queu<strong>in</strong>g.<br />

In commercial cater<strong>in</strong>g, whether <strong>in</strong>-house or<br />

contractor operated, we are work<strong>in</strong>g with caterers to<br />

extend the use of back-office management software<br />

beyond its traditional remit of streaml<strong>in</strong><strong>in</strong>g <strong>in</strong>ternal<br />

company processes by widen<strong>in</strong>g its functionality <strong>in</strong><br />

order to provide a direct <strong>in</strong>terface with customers.<br />

This will enable customers <strong>in</strong> contract cater<strong>in</strong>g<br />

environments to use their PC or handheld device<br />

to respond directly to customer surveys, access<br />

pre-order/pre-pay applications, book and track<br />

the provision of on-site hospitality services.<br />

At IndiCater, we believe that <strong>2014</strong> will be the start<br />

of a revolution <strong>in</strong> the use of back-office Cloud software.<br />

It will be an excit<strong>in</strong>g year! •<br />

Mike Day is CEO of IndiCater Ltd.<br />

<strong>EP</strong> | <strong>January</strong> 14 | 43


NICK DAWE<br />

A<br />

TALL order<br />

“The guid<strong>in</strong>g<br />

mantra, our ‘why’,<br />

at Lime&Tonic,<br />

is to enrich people’s<br />

lives through<br />

unforgettable<br />

experiences”<br />

44 | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

WHERE DO YOU GO FOR RECOMMENDATIONS ON ACTIVITIES OR EXPERIENCES IN YOUR CITY<br />

OR WHEN YOU TRAVEL ABROAD? MANY OF US RELY ON FRIENDS, BUT A RISE IN REVIEW AND<br />

RECOMMENDATION WEBSITES HAVE FUNDAMENTALLY CHANGED HOW WE ANSWER THESE<br />

QUESTIONS. THE “THINGS TO DO” SECTOR IS ESTIMATED TO BE WORTH €230BN<br />

WORLDWIDE. LIME&TONIC ARE AIMING TO BECOME THE LEADING ONLINE PLATFORM FOR<br />

MARKETING PREMIUM EXPERIENCES. WITH AMBITIOUS PLANS TO BE IN 50 CITIES BY THE<br />

END OF 2016, NICOLE THOMPSON MET CO-FOUNDER STEFAN CORDINER TO LEARN MORE<br />

The company started out<br />

<strong>in</strong> 2011 offer<strong>in</strong>g special<br />

activities <strong>in</strong> Prague and<br />

has quickly expanded to<br />

a range of more than 1,000<br />

experiences across seven cities around<br />

the world. These can <strong>in</strong>clude themed<br />

afternoon teas, private group d<strong>in</strong>ner<br />

parties at unusual venues and a series<br />

of different masterclasses. Lime&Tonic<br />

launched <strong>in</strong> London <strong>in</strong> summer 2012<br />

and this year saw the launch of their<br />

digital concierge app.<br />

“I was first approached with the idea <strong>in</strong><br />

2010 by my co-founder David O’Sullivan.<br />

By this time I had already completed my<br />

third start-up and was look<strong>in</strong>g for my<br />

next opportunity. Through my previous<br />

ventures I had learned a lot about the<br />

management of start-ups and had<br />

developed a list of th<strong>in</strong>gs I would never<br />

repeat when form<strong>in</strong>g a bus<strong>in</strong>ess. While<br />

Lime&Tonic didn’t meet all the criteria at<br />

first, the core concept was very appeal<strong>in</strong>g<br />

and it was the first idea that I was will<strong>in</strong>g<br />

to make work.”<br />

Stefan speaks with an air of quiet<br />

confidence. The experiences lead<strong>in</strong>g<br />

up to found<strong>in</strong>g Lime&Tonic have shaped<br />

the way the company is managed.<br />

After obta<strong>in</strong><strong>in</strong>g a degree <strong>in</strong> management<br />

specialis<strong>in</strong>g <strong>in</strong> hospitality operations,<br />

he worked for a number of years <strong>in</strong><br />

hotels and restaurants <strong>in</strong> Sydney and<br />

the London area, before mov<strong>in</strong>g to<br />

Prague for love. It was here that Stefan<br />

found his second love – he’s a committed<br />

entrepreneur. In the space of 10 years<br />

he has set up four ventures and been<br />

<strong>in</strong>volved <strong>in</strong> numerous other projects,<br />

<strong>in</strong>clud<strong>in</strong>g one of the first onl<strong>in</strong>e<br />

company formation bus<strong>in</strong>esses,<br />

a specialised accountancy consultancy<br />

and an onl<strong>in</strong>e residential real-estate<br />

portal for <strong>in</strong>vestors <strong>in</strong> Central and<br />

Eastern Europe. Alongside his different<br />

ventures, Stefan also established the<br />

Czech Angel Investor Network (which<br />

was part of the European bus<strong>in</strong>ess angels<br />

network) and developed contacts that<br />

have become fundamental to the<br />

Lime&Tonic bus<strong>in</strong>ess today.<br />

“After successfully launch<strong>in</strong>g <strong>in</strong> Prague,<br />

the next city we chose was Sydney, where<br />

I’m from. It was important for us to<br />

expand <strong>in</strong>to cities where we already<br />

had contacts. Look<strong>in</strong>g back,” Stefan says,<br />

laugh<strong>in</strong>g, “Sydney was probably not the<br />

best choice as the second city. The time<br />

difference meant Dave and I weren’t<br />

sleep<strong>in</strong>g for the first few months!<br />

“Each city we have picked afterwards<br />

has been with the help of our contacts.<br />

Not only did the bus<strong>in</strong>ess angels become<br />

part of our user base, they would also<br />

help source contracts for our follow<strong>in</strong>g<br />

locations and usually help out as well.<br />

“The guid<strong>in</strong>g mantra, our ‘why’, at<br />

Lime&Tonic, is to enrich people’s lives<br />

through unforgettable experiences.<br />

This is the first company that I have<br />

been <strong>in</strong>volved <strong>in</strong> where everybody<br />

really, really stands by the company’s<br />

values. Not only do our team members<br />

believe <strong>in</strong> our concept, but the<br />

merchants are happy, we have a lot<br />

of engagement from the customers<br />

purchas<strong>in</strong>g the experiences and a very<br />

supportive group of <strong>in</strong>vestors. We share<br />

the feedback that we receive from our<br />

customers dur<strong>in</strong>g company meet<strong>in</strong>gs.<br />

One of our experiences <strong>in</strong> Dubai has<br />

become very popular for engagements<br />

– it has witnessed four successful<br />

proposals already.<br />

“Over three years we have delivered<br />

over 85,000 paid consumers to the<br />

restaurants of our 250-plus premium/<br />

five-star merchants, deliver<strong>in</strong>g<br />

€2.4 million <strong>in</strong> sales. We have more<br />

than 1,100 experiences across our<br />

seven cities.”<br />

So how does London compare to<br />

other cities?<br />

“London has been a tricky city, but<br />

we’ve learned from experience that this is<br />

due to the size of the market available <strong>in</strong><br />

large cities. The consumer base tends to<br />

be more fickle because they have more<br />

options or already established<br />

competition. Metrics <strong>in</strong> London, such as<br />

average spend per head, are lower than<br />

smaller cities, yet cost of acquisition per<br />

consumer is much higher. We still<br />

consider it to be an important base and<br />

have managed to create well-respected<br />

partnerships so far – we just expect our<br />

growth period to be less steep here than<br />

smaller cities where we have managed<br />

to dom<strong>in</strong>ate the market.”<br />

After hear<strong>in</strong>g Stefan speak so<br />

passionately about Lime&Tonic, I ask the<br />

<strong>in</strong>evitable question: what is the exit plan?<br />

“When go<strong>in</strong>g through our first round<br />

of fund<strong>in</strong>g we were asked to put a plan<br />

together by our <strong>in</strong>vestors. Our market<strong>in</strong>g<br />

platform gets more powerful as our user<br />

database grows and, as we expand <strong>in</strong>to<br />

different countries, we become more<br />

relevant to consumer-fac<strong>in</strong>g bus<strong>in</strong>esses,<br />

like credit-card companies, who may be<br />

search<strong>in</strong>g for a concierge solution for their<br />

gold and plat<strong>in</strong>um cardholders. Ideally we<br />

would be taken over by a company that<br />

matches our desire to keep on enrich<strong>in</strong>g<br />

the lives of our user base through the<br />

provision of unique experiences.”<br />

Vienna and Istanbul are set to launch<br />

as official cities <strong>in</strong> <strong>2014</strong>. They will also be<br />

focus<strong>in</strong>g on the US market and look<strong>in</strong>g at<br />

“secondary cities” such as Las Vegas,<br />

Aust<strong>in</strong> and Seattle, where their<br />

competitors, Sosh and YPlan, aren’t<br />

present. Lime&Tonic will also be start<strong>in</strong>g<br />

their next round of fundrais<strong>in</strong>g <strong>in</strong> America<br />

after f<strong>in</strong>d<strong>in</strong>g the London market quite<br />

sluggish while look<strong>in</strong>g for funds.<br />

With hopes of establish<strong>in</strong>g a database<br />

of 10,000 experiences <strong>in</strong> 50 cities by 2016,<br />

it will be <strong>in</strong>terest<strong>in</strong>g to track Lime&Tonic<br />

as they expand. •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 45


READY TO SERVE<br />

WHERE KNOWLEDGE AND EXPERIENCE COUNTS<br />

Chess Partnership possesses one of the<br />

most experienced recruitment teams to have<br />

operated <strong>in</strong> the <strong>in</strong>dustry. The team believe<br />

<strong>in</strong> the importance of:<br />

• Industry knowledge<br />

• Personal relationships<br />

• Add<strong>in</strong>g value through expertise<br />

• Work<strong>in</strong>g to solutions<br />

• Real care for our clients<br />

• Inclusiveness<br />

If you want professional advice and<br />

support of the highest order, then the<br />

team at Chess is ready to serve<br />

www.chess-partnership.com


MANAGEMENT<br />

Miriam Staley,<br />

encourages us<br />

to th<strong>in</strong>k beyond<br />

conventions when<br />

it comes to the way we lead<br />

Th<strong>in</strong>k before<br />

YOU LEAD<br />

When eng<strong>in</strong>eers<br />

from electronics<br />

brand Haier went<br />

to the Ch<strong>in</strong>ese<br />

countryside to fix<br />

broken wash<strong>in</strong>g mach<strong>in</strong>es, they discovered<br />

someth<strong>in</strong>g surpris<strong>in</strong>g. Farmers were<br />

us<strong>in</strong>g their product to wash vegetables!<br />

Rather than follow<strong>in</strong>g the same l<strong>in</strong>e of<br />

th<strong>in</strong>k<strong>in</strong>g as their competitors, who had<br />

also discovered this <strong>in</strong>trigu<strong>in</strong>g use for their<br />

mach<strong>in</strong>es, and simply marvell<strong>in</strong>g at the<br />

so-called ‘ignorance’ and ‘stupidity’ of<br />

the rural farmers, Haier did someth<strong>in</strong>g<br />

different. Very different.<br />

They developed their th<strong>in</strong>k<strong>in</strong>g about<br />

their bus<strong>in</strong>ess and produced a model<br />

of mach<strong>in</strong>e with a specific ‘vegetable<br />

wash<strong>in</strong>g’ cycle, which became a hugely<br />

successful item, cement<strong>in</strong>g Haier’s<br />

position as a stand-out leader <strong>in</strong><br />

that marketplace.<br />

Leadership isn’t just what you see on<br />

the surface, the actions or even the words.<br />

Leadership is everyth<strong>in</strong>g that has had to<br />

take place to get to that po<strong>in</strong>t. And that<br />

<strong>in</strong>cludes leadership th<strong>in</strong>k<strong>in</strong>g.<br />

Increas<strong>in</strong>gly, elasticity and adaptability<br />

of thought as much as critical, strategic<br />

and creative th<strong>in</strong>k<strong>in</strong>g is becom<strong>in</strong>g a<br />

necessary characteristic for a leadership<br />

population <strong>in</strong> any <strong>in</strong>dustry.<br />

Albert E<strong>in</strong>ste<strong>in</strong> said: “The problems<br />

that exist <strong>in</strong> the world today can’t be solved<br />

by the same level of th<strong>in</strong>k<strong>in</strong>g that created<br />

them.” If, as leaders, we are committed to<br />

tak<strong>in</strong>g this challenge to heart, then that<br />

means mak<strong>in</strong>g some significant changes<br />

to the way we process <strong>in</strong>formation, seek<br />

solutions and then ultimately make the<br />

decisions that drive us and our<br />

organisations forward.<br />

In this environment of fast-paced<br />

change, <strong>in</strong>formation overload and extreme<br />

busyness, it is difficult to f<strong>in</strong>d or create the<br />

necessary space and time required to focus<br />

on our th<strong>in</strong>k<strong>in</strong>g as a dist<strong>in</strong>ct first step of<br />

any decision-mak<strong>in</strong>g process. It is even<br />

harder to truly stretch our th<strong>in</strong>k<strong>in</strong>g beyond<br />

the conf<strong>in</strong>es of convention, further than<br />

what we believe we already know and away<br />

from the vicious jaws of flawed reason<strong>in</strong>g<br />

to which it is all too easy to fall prey.<br />

We are all at the mercy of the cognitive<br />

biases that lurk <strong>in</strong> the dark alleyways of<br />

our m<strong>in</strong>ds, but these can be particularly<br />

dangerous <strong>in</strong> a context of leadership, where<br />

the need for <strong>in</strong>novation and adaptability<br />

is essential to ensure a bright – and<br />

profitable – future.<br />

You may have been brought up with an<br />

appreciation of the value of the old adage<br />

‘th<strong>in</strong>k before you speak’, but a new mantra<br />

for modern-day bus<strong>in</strong>ess could well be<br />

‘th<strong>in</strong>k before you lead’. And to this end, an<br />

open m<strong>in</strong>d and the will<strong>in</strong>gness to question<br />

everyth<strong>in</strong>g is a great start<strong>in</strong>g po<strong>in</strong>t.<br />

Challeng<strong>in</strong>g the underly<strong>in</strong>g assumptions<br />

that are at the root of all our th<strong>in</strong>k<strong>in</strong>g is a<br />

great way to unlock new potential and<br />

creative solutions. The frame of<br />

unconscious rules and constra<strong>in</strong>ts that<br />

surround all our problems and form our<br />

worldview might well keep everyth<strong>in</strong>g<br />

safely <strong>in</strong> its place, but also precludes the<br />

option for a bigger w<strong>in</strong>dow of opportunity<br />

or, better yet, a doorway <strong>in</strong>to an as yet<br />

unimag<strong>in</strong>ed future.<br />

A franchise holder for a company that<br />

supplied vehicle clean<strong>in</strong>g and ma<strong>in</strong>tenance<br />

products was struck one day by the<br />

realisation that because the company<br />

name was Autosmart and the product<br />

<strong>in</strong>structions referenced cars and trucks,<br />

he had never thought outside the<br />

boundaries that those parameters had<br />

created <strong>in</strong> his m<strong>in</strong>d.<br />

As soon as he broke that frame, he also<br />

broke <strong>in</strong>to new markets, with the discovery<br />

that not only did their soap formula keep<br />

boats and yachts spotlessly clean, but also<br />

that their particular brand of polish was<br />

perfect for a high gloss f<strong>in</strong>ish on both<br />

pianos and – perhaps <strong>in</strong> the greatest leap<br />

of lateral thought – marble gravestones!<br />

While our <strong>in</strong>herent biases can<br />

sometimes enable us to comply with<br />

social norms and keep us from extreme<br />

danger, when it comes to leadership<br />

th<strong>in</strong>k<strong>in</strong>g they are rarely our friends.<br />

Whether it’s an <strong>in</strong>nate tendency to search<br />

for th<strong>in</strong>gs that confirm our beliefs while<br />

discount<strong>in</strong>g those options that don’t, or<br />

a bias towards solutions that create the<br />

smallest degree of change and ma<strong>in</strong>ta<strong>in</strong><br />

an accepted status quo, we must seek to<br />

understand and then th<strong>in</strong>k beyond what<br />

quickly becomes the bra<strong>in</strong>’s equivalent of<br />

a boa constrictor wrapp<strong>in</strong>g itself around<br />

our maximum thought potential. If we<br />

don’t it would be a bit like cont<strong>in</strong>ually<br />

try<strong>in</strong>g to drive a car with the handbrake on.<br />

When we adopt an expansive approach<br />

to the way we th<strong>in</strong>k, the results speak for<br />

themselves. And there’s noth<strong>in</strong>g stopp<strong>in</strong>g<br />

you from start<strong>in</strong>g now.<br />

If Haier can <strong>in</strong>vent a wash<strong>in</strong>g mach<strong>in</strong>e<br />

with a cycle for farmers’ vegetables and car<br />

polish can make a gravestone sh<strong>in</strong>e, then<br />

just th<strong>in</strong>k about what you could do. •


<strong>EP</strong> aims to discover other great entrepreneurs<br />

and bus<strong>in</strong>esses that have a connection to<br />

hospitality. DONNA IDA, self-confessed jeans<br />

obsessive and now London’s lead<strong>in</strong>g jeans<br />

aficionado, is one such example. SARA STEWART<br />

talked to Donna about her story<br />

Jeans<br />

genie<br />

Donna arrived <strong>in</strong> London<br />

from her home <strong>in</strong> Sydney,<br />

Australia after decid<strong>in</strong>g<br />

that there was more to<br />

do here. She started out<br />

<strong>in</strong> market<strong>in</strong>g as an executive <strong>in</strong> corporate<br />

hospitality, a role she quickly fell <strong>in</strong> to, and<br />

discovered she had a great love of pleas<strong>in</strong>g<br />

her clients and provid<strong>in</strong>g them with all<br />

their needs. Detail and execution became<br />

Donna’s bywords and she aimed to provide<br />

the best service she could. <strong>Hospitality</strong>, <strong>in</strong><br />

all its guises, requires this level of attention<br />

and Donna delivered with great style.<br />

It was therefore a shock to both her<br />

and her management team that,<br />

follow<strong>in</strong>g a shopp<strong>in</strong>g trip <strong>in</strong>to the West<br />

End, she discovered that her second love,<br />

jeans, were not well catered for, despite<br />

be<strong>in</strong>g readily available <strong>in</strong> every<br />

department store. She jumped at the<br />

opportunity to fill this gap <strong>in</strong> the market<br />

and provide both the selection and the<br />

service that she sought.<br />

With back<strong>in</strong>g from private <strong>in</strong>vestment<br />

and her thoughts of the greatest collection<br />

of designer denim swirl<strong>in</strong>g <strong>in</strong> her m<strong>in</strong>d’s<br />

eye, she set up her first Donna Ida<br />

boutique and states that it provided<br />

“a good edit from the department store<br />

offer<strong>in</strong>g”, and so the IDA Jean was created.<br />

IDA Jean is, of course, a woman. She<br />

is “classy, cool, edgy, stylish and<br />

sophisticated”, and is “a lady who dr<strong>in</strong>ks<br />

her g<strong>in</strong> out of a teacup”. The IDA Jean is<br />

also well-tailored and comes <strong>in</strong> many<br />

f<strong>in</strong>ishes, <strong>in</strong>clud<strong>in</strong>g denim.<br />

What Donna discovered was that,<br />

despite a plethora of jeans <strong>in</strong> every<br />

department store, boutique and high<br />

street cha<strong>in</strong>, there were no jeans “for real<br />

women”. The IDA Jean is high-waisted<br />

denim that comes <strong>in</strong> many colours and<br />

f<strong>in</strong>ishes, and Donna’s claim to fame is<br />

that she has had only one customer that<br />

she could not f<strong>in</strong>d a good fit for.<br />

<strong>48</strong> | <strong>January</strong> 14 | <strong>EP</strong>


BUSINESS<br />

The IDA Jean has become synonymous<br />

with good fit and tailor<strong>in</strong>g, good choice<br />

and a great colour selection. Donna has<br />

listened to her customers, provided<br />

exemplary service and has a fantastic<br />

level of customer empathy. The IDA<br />

shopper is catered for from <strong>in</strong>itial enquiry<br />

to purchase follow up, she provides a<br />

personal service and customers can<br />

even book <strong>in</strong> to the ‘Denim Cl<strong>in</strong>ic’ for<br />

a personal fitt<strong>in</strong>g experience, view<strong>in</strong>g<br />

themselves from a pedestal flanked by<br />

three full-length mirrors to see their jeans<br />

from every angle.<br />

Donna has developed this service<br />

to provide an onl<strong>in</strong>e appo<strong>in</strong>tment<br />

tool, where would-be purchasers<br />

can send <strong>in</strong> their measurements<br />

and requirements from the<br />

onl<strong>in</strong>e fitt<strong>in</strong>g service or can take<br />

the onl<strong>in</strong>e tutorial that provides<br />

a quick lesson on how to shop<br />

for different body shapes.<br />

They can also see the jeans<br />

on a virtual model before<br />

com<strong>in</strong>g <strong>in</strong>to the boutique<br />

to try them on.<br />

IDA Jeans are def<strong>in</strong>ed<br />

by their names: Ivy, Jeanie,<br />

Frenchy, Martha and Mabel<br />

are all available <strong>in</strong> a variety<br />

of colours, shapes and sizes.<br />

The jeans selection also<br />

changes with the seasons,<br />

fashions and fads.<br />

Donna feels that she has<br />

listened to what customers want<br />

and has set about deliver<strong>in</strong>g not<br />

just a boutique that caters for the<br />

average woman, but a sanctuary of<br />

welcome smiles, jeans styled on<br />

women’s names and a claim that every<br />

woman can come <strong>in</strong>, browse and walk<br />

out with a great fitt<strong>in</strong>g pair of jeans.<br />

The IDA Jean has been developed out<br />

of a desire to provide a service that is truly<br />

all-encompass<strong>in</strong>g. Donna’s experience <strong>in</strong><br />

provid<strong>in</strong>g a full service to her corporate<br />

hospitality clients grounded her vision<br />

and provided a framework for her to<br />

offer a complete service and a depth<br />

of understand<strong>in</strong>g that allows her to<br />

listen to what her customers want.<br />

When questioned on the change<br />

from corporate hospitality to denim,<br />

Donna is quick to po<strong>in</strong>t out that she<br />

merely spotted a gap <strong>in</strong> the market,<br />

where there was a plethora of choice,<br />

but no one had really listened or looked<br />

at what was needed so that jeans could<br />

be worn by all women, no matter what<br />

age, shape or style. Donna expla<strong>in</strong>s that<br />

she is <strong>in</strong>spired by women who know what<br />

a waist is and that she found more and<br />

more women were look<strong>in</strong>g for highwaisted<br />

jeans that give shape and “hold<br />

you <strong>in</strong>!” She draws her <strong>in</strong>spiration from<br />

qu<strong>in</strong>tessential British elegance and<br />

a degree of sophistication with a great<br />

deal of selection thrown <strong>in</strong>.<br />

There are now four Donna Ida<br />

boutiques open and she has a<br />

flourish<strong>in</strong>g onl<strong>in</strong>e presence. She<br />

tweets with her customers and uses<br />

social media to cont<strong>in</strong>ually stay <strong>in</strong><br />

touch with what the IDA woman is<br />

look<strong>in</strong>g for <strong>in</strong> her jeans. The boutiques<br />

have stayed true to their base desire to<br />

offer what is wanted and now provide a<br />

selection of accessories to complement<br />

the jeans purchase, along with a large<br />

collection of the latest and most<br />

sought-after denim brands.<br />

“Customers can<br />

even book <strong>in</strong> to the<br />

‘Denim Cl<strong>in</strong>ic’ for<br />

a personal fitt<strong>in</strong>g<br />

experience”<br />

When asked what the future<br />

looks like, Donna po<strong>in</strong>ts towards<br />

“achievement and success” as her<br />

driv<strong>in</strong>g forces. She has a desire to see<br />

IDA Jeans <strong>in</strong> every country, “with a few<br />

exceptions”, and to cont<strong>in</strong>ue to improve<br />

her customer service experience both <strong>in</strong><br />

store and onl<strong>in</strong>e.<br />

Her greatest achievements to date<br />

<strong>in</strong>clude hav<strong>in</strong>g turned away only one<br />

woman that she did not have jeans to<br />

fit, her onl<strong>in</strong>e ‘f<strong>in</strong>d your perfect jeans’<br />

and a video demonstrat<strong>in</strong>g how to<br />

shop for that perfect pair of jeans.<br />

Donna has a grow<strong>in</strong>g number of repeat<br />

customers, which she prides herself on,<br />

and sends jeans orders around the<br />

world to customers who cannot get <strong>in</strong>to<br />

London – this she uses as her bus<strong>in</strong>ess<br />

barometer to measure her bus<strong>in</strong>ess and<br />

service levels.<br />

When asked to describe herself as<br />

a pair of IDA Jeans, Donna smiles and<br />

states simply: “A pair of cropped,<br />

leather, sk<strong>in</strong>nies.” •<br />

<strong>EP</strong> | <strong>January</strong> 14 | 49


CHRIS SH<strong>EP</strong>PARDSON OPINION<br />

The old ways … still <strong>in</strong> vogue<br />

As modern communications become faster and more open,<br />

there appears to be a return to old-fashioned values<br />

The last five years of recession have thrown<br />

up many contradictions, many surprises and<br />

seen many changes. However, the fact of the<br />

matter is that th<strong>in</strong>gs never change as much<br />

as one assumes. Yes, there have been new<br />

developments, but the basics rema<strong>in</strong> the<br />

same. The emphasis just changes with the times.<br />

There are three key themes that jump out:<br />

Old-fashioned ways are back <strong>in</strong> fashion<br />

Yes, the recession has been long, brutal and tough<br />

for every bus<strong>in</strong>ess. Many have tired of sales l<strong>in</strong>es<br />

and excuses for poor delivery.<br />

Once aga<strong>in</strong>, people want to work<br />

with those they trust and value. It<br />

is as though we have returned to<br />

the ways of the late ’80s, but with<br />

the addition of modern comms.<br />

The concept of community is<br />

important aga<strong>in</strong>, as are gestures<br />

that go beyond the norm – the<br />

handwritten note be<strong>in</strong>g one.<br />

Some are beg<strong>in</strong>n<strong>in</strong>g to write<br />

personalised letters once aga<strong>in</strong><br />

because such a simple gesture,<br />

which takes a few m<strong>in</strong>utes of care,<br />

has such an impact on the receiver.<br />

But the core po<strong>in</strong>t is that the importance<br />

of relationships has returned.<br />

Openness and <strong>in</strong>clusiveness<br />

People want an open, <strong>in</strong>clusive approach where people<br />

talk as colleagues. There is a wear<strong>in</strong>ess of awards and<br />

‘elite’ clubs. Awards have their place, but there are so<br />

many today that they beg<strong>in</strong> to lose their value and<br />

become seen as ‘rewards’ for those <strong>in</strong> the ‘club’. In a<br />

tough time, people value <strong>in</strong>formal, accessible networks<br />

where they can learn and build new friendships.<br />

Time is a scarce resource<br />

The average executive today reads six times more<br />

than their counterpart would have done ten years<br />

ago. Emails will be read from 6 or 7am until 10pm.<br />

The result is that the m<strong>in</strong>d tires and becomes saturated.<br />

This has three effects:<br />

• The obvious one is that people do not hear all<br />

the messages. It used to be said that you had to tell<br />

or show a person someth<strong>in</strong>g three times for them to<br />

hear it once. Today it is seven times. More importantly,<br />

people tire of the written word. They do not want to<br />

read another email or see another form.<br />

• It is natural that the emerg<strong>in</strong>g<br />

generations do not value<br />

“In a tough time,<br />

people value<br />

<strong>in</strong>formal, accessible<br />

networks where they<br />

can learn and build<br />

new friendships”<br />

the old networks <strong>in</strong> the<br />

same way as previous<br />

generations. Their time<br />

is precious for relaxation<br />

– so why network for the sake<br />

of it? However, a supportive<br />

community is important.<br />

• As many of the emails are<br />

<strong>in</strong>ternal, it is natural that they<br />

become focused on <strong>in</strong>ternal<br />

issues rather than observ<strong>in</strong>g<br />

the external market<br />

and <strong>in</strong>fluences.<br />

So this all leads us to an environment where it<br />

is hard for bus<strong>in</strong>esses to reach their audience and<br />

where there is a reluctance to network. In fact, many<br />

do not know how to network and shy away from it.<br />

One can easily see the contradiction. The bus<strong>in</strong>ess<br />

world is <strong>in</strong>creas<strong>in</strong>gly valu<strong>in</strong>g old-style practices and<br />

yet many do not possess the old skills.<br />

Times may change, but much also rema<strong>in</strong>s<br />

constant. It is reassur<strong>in</strong>g that life never changes<br />

that much. •<br />

Chris Sheppardson is the Manag<strong>in</strong>g Director of Chess Partnership<br />

50 | <strong>January</strong> 14 | <strong>EP</strong>

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