BUSINESS PLAN The Craven Heifer Main St, Stainforth, Settle, N.Yorks BD24 9PD By Patrick Turton (Prospective Tenant) 28th January 2011 -1- CONTENTS 1. INTRODUCTION 1. Patrick Turton 2. The Craven Heifer, Main St, Stainforth, Settle BD24 9PD 2. MARKETING PLAN 1. Local Market 2 Competitor Analysis 3. Customer Profiles 4. SWOT Analysis 5. 4Ps 6. USPs 3. HUMAN RESOUCES PLAN 1. Staffing 2. Staffing Strategies 3. Planned Staffing 4. Rotas and Hours 5. Remuneration 6. Recruitment 7. Training 8. Staff benefits 4. OPERATIONS PLAN 1. Opening Hours 2. Food 3. Accommodation 4. Bar 5. All Business 5. FINANCE PLAN 1. 2. 3. 4. Cash Flow Profit and Loss Funding Cost Centers 6. STRATEGY 1. Short term 2. Medium Term 3. Long Term 4. Possible Initiatives -2- 7. APPENDICES APPENDIX 1. - Food idea APPENDIX 2. - Bar ideas APPENDIX 3. - Accommodation ideas APPENDIX 3. - Target market Websites APPENDIX 4. - Holidays and Special Events 2011 and 2012 APPENDIX 5. - Stainforth and the Local Area on the Web APPENDIX 6. - Craven Heifer on the Web -3- 1. INTRODUCTION 1. Patrick Turton 2. The Craven Heifer, Main St, Stainforth, Settle BD24 9PD 1. Patrick Turton Experience in the Licensed Trade In 1996 I bought the lease to Maltings Squash Club, Doncaster. For the first 2 years I ran it as a partnership with my brother. We renamed it Maltings Leisure and Fitness. We then formed Turton Leisure Ltd. We transformed the business from an ailing squash club into a club with over 800 members and a strong function trade. The bar did in excess of 200 barrels a year. The clubs facilities included a members bar area (60), restaurant (30), function room (90). The function room could be split in two with half becoming a pool/darts room. Other facilities included a large modern fitness suite, 2 Squash courts, Sauna, Sun beds, Male and Female changing/toilets. I was responsible for all areas of the business and worked in every role when necessary. We catered for weddings, funerals, birthday parties for all ages, engagements etc. We provided sit down meals for up to 80 people, buffets, entertainment etc for our members we provided bar meals, snacks, quizzes, regular entertainment, Sky TV etc. We hosted a number of pool teams, darts teams, squash teams, golf societies etc. We were used for regular meetings by the Buffalos, rowing club, allotment society, neighborhood groups etc We were famous for our New Years Eve parties – sold out every year, football tournaments and curry nights. We were respected for our cleanliness and friendliness. Whilst developing the bar and function trade I also introduced and developed a new members only fitness facility. We also developed a team of loyal and dedicated staff who helped keep the facility running smoothly from 7.00am to midnight+, every single day for approaching eleven years. We had contracts with Scottish Courage, Bass/Interbrew, Tetleys, and local suppliers. At various times they provided us with finance, all of which was repaid. We produced consistent yearly net profits, trebled turnover and never failed to pay a bill on time. After 6 years we bought a second club, the Thorpe Marsh Power Stations former social facilities. This included a 9 hole golf course, fishing ponds, bowling greens and a club house licensed for 500. The plan was to merge it with the Maltings and combine memberships. Gym and golf, Squash and fishing etc. We pre-sold over 400 memberships, had 4 summer weddings booked, refurbished the bar, bought a tractor and all the fixture and fittings and had the opening night planned. The lease had been agreed and drafted and we had received the keys. The director of the company who owned the land and had agreed the lease then decided to resign. The managing director stepped in and changed the lease at the last minute. I had no option but to call the deal off. -4- My brother never recovered from it and abruptly resigned the following year. I paid him for his share of the business and became the Licensee. For the last 4 years I ran the Maltings alone. I bought the freehold of the club, increased profits and sold the club in 2007 for a reasonable six figure sum. I also sold other properties I owned leaving me mortgage and debt free with cash in the bank. We bought the lease in July 1996 for £12,000, investing £8,000 each. At the start of the first days trading we had just £780.00 in our business account, my brother had no money and a mortgage, I had £1500, a wife who had stopped working , a 6 month old daughter, a mortgage on a 1 bedroom cottage in Bradford and a battered Nissan Micra. I had been made redundant 3 months earlier and lost my company car. The club was in a real sorry state. It had been taken over by the local mafia. Most of the customers on day one have since served a sentence for serious crimes. The task was to get rid of the bad apples and stay alive in the process! One by one we managed to remove them which strangely meant most of the others respected us and left us alone. It also allowed all the good people in the area to visit us knowing that they would be in a safe place to socialise. This allowed us to get on with building the club. Six weeks credit with Bass allowed us to create a healthy cash flow. We then received a £20,000 write off loan from Bass, agreed before we started trading. This allowed us to refurbish the toilets and changing areas, remove the old body building gym and create a modern space, repaint the building, install CCTV and generally improve the infrastructure. Just before Christmas 1996 £80,000 of gym equipment arrived. This was financed through Admiral Leasing. We had just 2 staff, were doing Christmas lunches, parties, organising the Christmas period, pre-selling memberships, introducing a membership scheme as well as creating a new gym. I also moved my wife and daughter into rented accommodation in Doncaster whilst renting out the house in Bradford 2 days before Christmas. But we survived! Over the next decade we managed and developed the club. I had two more children James and Oliver who are now 13 and 11. Sophie my daughter is now 15. I am divorced from their mother but have been with my partner Jane for over 8 years. She is a head teacher of a Deaf School and helped me in all aspects of running the Maltings. She is looking forward to helping me with my next venture. Since leaving the Maltings I trained to become a teacher. I gained a PGCE in Business Education with QTS. I have worked as a Supply Teacher since, looking for a suitable opportunity in the Yorkshire Dales where we want to spend our future. We recently bought a cottage near Settle, less than 2 miles from the Craven Heifer. Since helping manage the Penelope Hotel in Llandudno in 1984 I have always wanted to run my own business, preferably with letting rooms and gain a degree having been unable to start my degree in Hotel and Catering Management in 1980. In 1991 I gained a B.A. (Hons) Recreation Management, I have run my own business and the Craven Heifer gives me the opportunity to develop a business with letting accommodation. It will also allow me to do it in an area I love and with customers I can share my passions of hill walking, fell running and real ale with. -5- 2. The Craven Heifer, Main St, Stainforth, Settle BD24 9PD The Craven Heifer http://www.cravenheiferhotel.co.uk/ The Craven Heifer is located in the rural village of Stainforth in the Yorkshire Dales National Park, just off the B6479. Stainforth is approximately 3 miles from the market town of Settle and 4 miles from Horton in Ribblesdale, the start of the famous Yorkshire 3 Peaks Challenge. The pub is positioned on Main St, a reasonably central location of the village. It has its own car park for about 6 cars over the road from the pub and ample roadside parking nearby. There is a large pay and display car park about 200 meters away. It is located next to a gushing beck which feeds the nearby river Ribble. The pub outside area overlooks the beck. The village of Stainforth is comprised mainly of private well maintained housing. The -6- population is older, more educated and more affluent than the national average. The Craven Heifer in 2001 was visited by Prince Charles when launching the Pub is the Hub. At this time the pub housed a post office which later moved out then closed. In the last decade the pub has had a number of managers and tenants. For the past 3 years it has been managed by a couple employed by the previous tenants who own a computer shop in Settle. The tenancy was relinquished in December 2010 and the pub is currently being run by temporary managers on behalf of Thwaites. I have had a caravan based at Langcliffe, about 2 miles from the pub for the past 2 years. I have walked to the pub on a number of occasions, usually to find it closed. I stopped making the effort to go there sometime ago because it seemed to be consistently badly managed. On New Years Eve 2010 I decided to take my family on a circular walk, with a drink at the pub if it was open. It was closed! However the temporary manager Owen opened it up for us and we decided to go back in the evening. My boys had a great time with the locals playing darts and I enjoyed a few pints of Original. It was quite obvious that all was not well. For New Years Eve it was quiet. After organizing 11 very busy New Years Eve parties in succession, for me personally quiet was not an issue. For the Craven Heifer as a business and those that did venture there it was probably a disappointment. This is not a reflection on Owen but where the pub has found itself after a number of years of mismanagement. On the whole however, the locals were friendly and well behaved. It seems though that the pub and the locals are not at one. I believe that the pub in recent months has had issues with stock. The toilets in particularly were in poor order and cleanliness in general seem to have been an issue. The standards within the pub in general have been slipping for sometime, whereas the village seems to have grown in affluence. It is probably because of this that the two are growing apart. The pub needs to reconnect as it is the obvious place to host the significant events in the lives of the people of Stainforth. Stainforth Within the village and surrounding areas there are a number of second homes and holiday lets. Potentially a good village pub should benefit from them. Good rooms within that pub should also be able to compete with them as most visitors to the area come for the countryside not just the accommodation itself. The biggest potential markets for the pub are the local campsites. Knight Stainforth campsite, located in Little Stainforth, about a 10 minute stroll away from the pub is one of the best sites around. From Easter to November the campsite is always busy. About 2 miles away is Langciffe Caravan Park. I had my caravan there and although it is badly run it still provides the pub with many opportunities. Stainforth and the pub are approximately 4 miles from the start of the Yorkshire Dales 3 Peaks. I first completed the 25 miles challenge of Peny-ghent, Whernside and Inglebrough over 30 years ago. It was that experience that has continually brought me back to the area. I have since completed it on numerous occasions. Over that period it has established itself as a major fundraising event for most of the major charities. Most -7- weekends Horton in Ribblesdale, the start of the challenge, attracts hundreds, sometimes thousands of people. Many travel from all parts of the country and require accommodation for the weekend. There are not many decent facilities in Horton itself which gives opportunities to those close by. The Craven Heifer is ideally positioned. Stainforth is also on the Ribble Way and The Dales Highway which presents opportunities for and overnight stop. Demographic data BD24 BD National Population 5,185 520,219 52,024,138 Median Age 44 35.75 39.05 % Retirees 29.24% 19.57% 21.96% % Unemployed 1.52% 4.24% 3.22% % Educated to Degree level 22.74% 15.47% 19.77% Full Time Students 259 19,239 1,766,469 %Full Time Students 5.00% 3.70% 3.40% Stainforth is also on the National Cycle Network. There are a number of cycling events that take in the roads around Stainforth and therefore there are opportunities for both accommodation and food and drink. For mountain bikers there are many off road tracks. The natural features that surround Stainforth continually draw people to Total Migrants 699 61,716 6,336,121 the area. About a 1 mile walk up from the pub is % Total Migrants 13.48% 11.86% 12.18% Catrigg Force, a large Average distance (km) stunning waterfall. Down travelled to fixed place of work 17.74 10.30 14.63 from the pub and next to Knight Stainforth Campsite is Stainforth Force. This is part of the River Ribble and is a powerful stepped waterfall which draws people for its beauty as well as an area to relax and sunbathe. In the autumn many people come to see the trout leaping up the waterfall. About a mile from the pub there is a walk over farmers fields to the Limestone Kilns. This is the hidden gem of the area. Probably the best example of a past era you will find anywhere. All of these features are on pleasant well publicised circular walks from Settle. Stainforth and the Craven Heifer are exactly the half way mark. Perfect for lunch times and early afternoon refreshments. Settle itself is only about a 5 minute drive from Stainforth. Perfect for those who want some civalisation close by but want to stay in the countryside. Stainforth and the Craven Heifer are perfect for all those who enjoy the countryside. As well as walkers, cyclists and campers there are also those who enjoy pot holing, caving, climbing, fell running, horse riding, fishing and those who simply enjoy driving in the countryside. Many of these will belong to local clubs who may need a venue for meetings, functions and events. I for example run with Settle Harriers who occasionally meet at the Craven Heifer as well as many other pubs in the area. The Craven Heifer potentially has many different income streams and markets. It has most of the facilities in place at present. Before it can exploit them however, the pub itself needs to focus on the basics of cleanliness, friendliness and good consistent service. -8- 2. MARKETING PLAN 1. Local Market 2 Competitor Analysis 3. Customer Profiles 4. SWOT Analysis 5. 4Ps – Product, Place, Price and Promotion 6. USPs – Unique Selling Points 1. Local Market Investment The beauty of the Stainforth and Settle area is that it has escaped the large pub, retail and hotel groups. Most of the businesses are independently owned, leased or tenanted which gives the visitors to the area a chance to escape city living. I believe that essentially it will stay that way as it does not have the road links that the Lake District has or the proximity to large conurbations that Skipton has. Many of the other National Parks have both major road links close by or are surrounded by large cities e.g. the Peak District and Sheffield I believe that visitor numbers will rise as more people increasingly search for remoteness and an escape from commercialisation, as well as stay in this country for their holidays and weekend breaks. Recent figures from Blacks the outdoor specialists reported the biggest increase in sales than any other retailer. The Yorkshire Dales is well positioned to benefit and the Craven Heifer has the potential to take its own slice of the market. To achieve this however the quality of the product and the service has to be in line with what most people have come to expect. It is this that the Craven Heifer needs to focus on. The potential of the area has already been recognised by other providers. The Craven Arms, which used to be the Old Station pub located on the A65, has received significant investment over the past 2 years. Although aimed at motorists on the A65 it has also recently added 7 en suite bedrooms. In Settle itself the Golden Lion, supplied by Thwaites but now run by Shire Hotels is undergoing a major refurbishment to all parts of the business. Less than a mile from the Craven Heifer an old mill is being converted into a large hotel complex. Although this could be seen as a threat to the Craven Heifer it also shows that someone is confident enough in the area to make a major investment. The Craven Heifer I believe can run on the back of their advertising whilst offering a completely different product. Market Place The area is predominantly rural and is made up of hamlets, villages and small market towns. The nearest major shopping area is Skipton about15 miles down the A65 from -9- Settle. The nearest cities are Bradford and Leeds, about 35-40 miles away and Burnley about 25-30 miles away. Kendal and Preston can be reached within the hour, Manchester a little longer. The pub in the past was always the center of rural life. Like other leisure facilities its main competitor is now the home. Cheap supermarket drinks, technology and major investment in both the internal and external areas of the home by many people has meant that local community pubs who have failed to invest and understand the needs of their customers have struggled to compete. The ones that have survived and prospered have a number of things in common. They have diversified their income streams, they know their markets and they provide for those markets. The best ones exceed expectations on a regular basis. The Craven Heifer to prosper has to do all of these things. There are a number of pubs in Settle and the surrounding villages, some tapping into the tourist market, some like the Craven Heifer who could but are not fulfilling their potential. The Crown Hotel in Horton in Ribblesdale is now tapping into the 3 Peaks market and is capitalizing on its location. The Harts Head at Giggleswick is probably the best local example of a pub that successfully caters for both the tourist and local markets. There are a number of holiday cottages, bunk barns, bed and breakfasts and small hotels. For most people who come to the area and live in the area the countryside and activities pursued in it are where most of their leisure time is spent. Settle has a number of restaurants; Indian, Italian, English; a number of cafes and takeaways and a selection of independent shops. There is a large Booths supermarket. For entertainment there is the Victoria Hall and a theatre at Giggleswick School. There is a swimming pool, rugby club, bowls club, cricket club and football club most of whom have their own bar. Settle social club provides low cost drinks and Sky TV. There is a large new bike shop in Settle as well as cycle hire near the railway station. The Settle to Carlisle Railway line and its steam trains bring people to the area and runs close to the pub. 2. Competitor Analysis 1. The Golden Lion, Settle. Used to be tenanted by Thwaites but now owned by Shire Hotels. In the middle of Settle providing Thwaites products, food and rooms. Also a locals bar with pool table and plasma tv. Currently under going a major refurbishment. In the past it has attracted a young local clientele who on a Friday evening were noisy and usually drunk. This was in complete contrast to the tourists, diners and resident guests in the next room. If this continues in the future many of their guests can be attracted to the Craven Heifer. Many are doing the 3 Peaks or are in the area to enjoy the countryside. 2. The Harts Head, Giggleswick. Good pub, good food, accommodation, great toilets, good service, good landlady. The first task at the Craven Heifer is to replicate all of these things – except I need to be a great Landlord! It does a great job at managing both visitors and locals. The downside is its location and lack of countryside pub appeal. Both things the Craven Heifer has in its favour. 3. Helwith Bridge. Probably the nearest pub to the Craven Heifer and nearer to the start of the 3 Peaks. Great location at the side of the river and a small camping area at the side of a large car park is the start and finish of the 3 Peaks cycle race and annual biathlon. No accommodation, has an old style bar and not - 10 - 4. 5. 6. 7. 8. always welcoming to visitors. Does food which is reasonable. The Craven Heifer can take some of its food and bar trade and tap into the 3 Peaks Cycle race. There is also a large fishing area across from it which attracts people to the area. Crown Hotel, Horton in Ribblesdale. At the start and finish of the 3 Peaks. 10 bedrooms not all en-suite. New tenants who have refurbished the bar and provide a simple but effective menu for the many hungry walkers who frequent it. Always busy through the summer and a good beer garden. Possible to attract the 3 Peak walkers they cannot accommodate. Again the Craven Heifer would do well to replicate some aspects of it. Golden Lion, Horton in Ribblesdale. Perfect location for the start and finish of the 3 Peaks and next to Holme Head campsite. Has had a chequered past and a pub I have not visited for a while. The last time I did it was being run by some new age travelers. In recent years it has added a bunk barn and offers en-suite accommodation. It is frequented by a lot of young people from the nearby campsite. The campsite has very poor facilities and attracts many who are new to camping. Families and those wishing to have better facilities usually stay at Knight Stainforth. Unless it has improved there is potential to attract the more discerning 3 Peaks walker from staying there. Game Cock, Austwick. About 5 miles form the Craven Heifer and the same distance from Horton in Ribblesdale. Could be classed as a food destination pub. Thwaites products. Has 4 letting bedrooms, none of which are en-suite. Nice village in a reasonable location to enjoy the 3 Peaks area. It would be difficult to compete with there food offering unless a qualified chef was employed. I do not think the Craven Heifer could justify this at present. We went here for our Sunday lunch over a number of weeks and enjoyed it. Then the standards dropped and there were only foreign staff and we stopped going. The infrastructure of the pub is good but surprising the rooms are not en-suite considering the food offering. Potential to attract their guests. Station Inn, Ribblehead Fantastic location. Unspoilt views of Whernside – especially from the loo! I have stopped here a few times in the 4 poster room looking out to Whernside. Not fantastic rooms but en-suite. The pub has had a number of owners in the last few years. The last time I visited a big plasma with sky tv, turned up very loud for Rugby League killed what once was the best atmosphere in any pub I have been in. Further to the start of the 3 Peaks from Stainforth and very isolated so might not suit everyone. Craven Arms, Giggleswick The newest pub in the area and currently the newest en-suite accommodation. Setting the standards for modern new rooms. The location at the side of the A65 is however an advantage in terms of passing trade but a downside for those wishing to stay in the countryside. The Craven Heifer has to offer well presented rooms to draw customers away. Other Competitors: Other pubs to be aware of are the Old Hill near Ingleton, the pubs in Ingleton, the New Inn at Clapham, the Buck Inn and Listers Arms at Malham and the Royal Oak in Settle. There are many local bunk barns, guest houses and local B and Bs that offer good accommodation. Most do not have a bar or provide food. Links close to their websites are needed so if they do not stay at the Craven Heifer there is the potential for a visit to eat or drink. - 11 - 3. Customer Profiles Existing The Craven Heifer has lost its identity and its potential customers are confused as to what the pub is. The locals have a pub that is in the community but not part of the community and therefore do not have a reason to use it except as a meeting place. Walkers never know what time it is open and what is on offer. People wanting accommodation think it is a hotel, when in fact it is a pub with rooms. People using the campsites, if they find it on a Friday or Saturday evening have been impressed because they find the only facility in walking distance, serving food in a traditional pub. It is therefore difficult to define typical customers, except weekend visitors from the local campsite because the offering has been inconsistent. Target Market Weekends (Fri – Sun) Am Residents - potentially breakfasts, morning coffees etc aimed at the campsite, locals and Walkers. Morning papers and relaxation. Lunchtimes/ Mid Afternoon: Those doing circular walks from Settle. The campsite and passing tourists in cars. Provide snacks, light meals/basic food menu, ice creams, teas, coffees Early evening: Walkers and those finishing the 3 Peaks. Campsites. Local B & B and self catering visitors, Day trippers on their way home or arriving. Locals, Residents. Families. Full menu from 6 – 9pm. Create a lively family friendly atmosphere. Evening/Late: Locals, Residents, Campsites, surrounding area residents. Good friendly atmosphere, background music, possibly low key entertainment at certain times. Mainly good old fashioned chatting, drinking and relaxing free from technology. Kids welcome in the Vault only. Mid week Lunchtimes/Mid Afternoons: Open for drinks only with a selection of pre-prepared sandwiches and snacks. Walkers who are enroute or car tourists. Early evening: Basic food menu for residents and walkers. Evening/Late: Quiz nights, board games, jazz/folk nights, poetry and talks, club meetings, darts and doms, whist drives, chess and draughts, bar skittles, shove halfpenny. Aimed at bringing in the local community and to be enjoyed by any residents. - 12 - 4. SWOT Analysis STRENGTHS The location of Stainforth. Mixed income streams and offerings Google Ranking Experienced operator No debt Knowledge of the area Extensive data base of potential visitors WEAKNESSES Recent past history Catering No experienced staff No track record or bookings for accommodation and catering No regular visitors – clubs, societies Hidden from the main road/signage Domain name Size of bedrooms OPPORTUNITIES Creating a new reputation and perception of the facility Bunk barn accommodation Cycle Hire Group bookings – Small team training, schools, running clubs, walking clubs 3 Peaks The internet Growing family THREATS New hotel being built nearby Campsite developing a clubhouse Government policies – fuel, licensing, tax, unemployment Foot and mouth disease - 13 - 5. 4 Ps – Product, Price, Place and Promotion Product The Craven Heifer is a traditional pub with rooms. There are 9 letting rooms. One ensuite double, one en-suite twin one en-suite family room, One en-suite single room and a double, twin, bunk room and single room which share the main bathroom. There is a recently developed bunk barn with its own entrance and facilities to the rear of the pub. This can sleep up to six. The main bar has kept its old features and open fire. The bar also serves the Vault to the front of the pub. This has a dartboard, television, open fire and fruit machine. Across from the vault is the dining area. This seats about 24 and has a wood burning fire. This goes through to an office and catering kitchen. Outside is a smoking area and seating for about 30 people overlooking the beck. To the side of this are storage facilities and the bunk barn. The letting bedrooms and private area are to the first floor. Ladies and Gents toilets are to the rear of the main bar. The pub offers food, drink and accommodation with small function facilities and limited entertainment. Price The unopposed location of the pub means that if the product is improved to an acceptable level then the price will become less sensitive. Thwaites do not sell the cheapest products and the food and accommodation need to follow this philosophy. Place The Craven Heifer is in the perfect location to attract most of its target markets. Day trippers by car may miss the pub as it is off the main road to Horton. There are two roads into Stainforth both having the brown Craven Heifer Hotel signage. The hotel part of the name could be misleading to those who do not know the area. However for walkers and those who enjoy a traditional pub in a great location then Stainforth is a great place for it. For those walking the 3 Peaks it is easily accessible and away from those in Horton attracted by a cheap campsite. There is also a reasonable local population for a village pub. Promotion All good businesses thrive on good word of mouth. The recent past of the Craven Heifer will have done nothing to enhance this form of advertising. Get the pub right however and it will help turn it round. It will need help from other forms of promotion. With the help of the internet in general, websites, search engines, database, facebook, emails etc many forms of traditional, often expensive forms of advertising are now redundant. From my time at the Maltings I gathered thousands of names and addresses who are all potential residents. - 14 - Developing a good website with a high google ranking and linking that to target market websites is a simple, cost effective promotional strategy. The domain name is crucial. I do not think that www.cravenheiferhotel.co.uk portrays the product offering correctly. It should be a pub with rooms offering good and plentiful food in Stainforth, the Yorkshire Dales. Available domain names costing just £5.85 for 2 years include: www.cravenheiferstainforth.co.uk www.cravenheiferpub.co.uk www.cravenheifer3peaks.co.uk www.3peaksrooms.co.uk www.stainforthpub.co.uk www.stainforthyorkdales.co.uk www.cravenheiferpubwithrooms.co.uk Pay per click and ad words can also prove to be a cost effective way of marketing the pub. Mail shots to local houses and businesses with an offer to visit always work well. This can also be targeted at the local campsites. Developing links with local businesses, clubs, schools, colleges, and societies is a quick way of reaching more people. Signage from the road needs to be improved. A photo copied map of Circular walks from Settle passing through Stainforth with an advertisement and offer for the Craven Heifer on the back could be left in shops, cafes, b & bs etc in Settle. Potential Promotional Offers Group discounts on standard rooms (minimum of 4 people) Accommodation – Midweek prices include a free evening meal Midweek Accommodation – stepped discounts for group bookings Kids eat free Monday to Wednesday – U12s, 12-18s half price on main menu. 2 for the price of 1 on certain meals Monday to Wednesday Stop 4 or 5 nights Sunday to Thursday and get 1 night free. Loyalty Card – 1 pint free for every 12 pints consumed of the same ale. 6. USPs – Unique Selling Points Fantastic location to enjoy a wide range of countryside activities Close to the start of the Yorkshire Dales 3 Peaks Facilities to cater and look after a wide range of visitors to the area. Close to a well run and busy campsite In the middle of a number of circular walks On the Ribble Way, the Dales High Way and National Cycle Network. In the middle of the countryside yet close to all the facilities of a market town. A number of complimenting income streams. - 15 - 3. HUMAN RESOURCES PLAN 1. Staffing 2. Staffing Strategies 3. Planned Staffing 4. Rotas and Hours 5. Remuneration 6. Recruitment 7. Training 8. Staff benefits 1. Staffing Current Staffing Because of the recent history at the Craven Heifer, the business currently has no staff. This means there are no issues regarding TUPE. It does however mean that there will be no experienced staff at the outset. This could turn out to be an advantage as it will enable me to mould a fresh team together and build it at a pace to suit the business. Staffing on takeover I am currently identifying friends, family and past contacts that at the outset will be able and willing to help me get up and running. This will give me time to get a real feel for the business and identify potential staff who I think can be of benefit to it whilst fitting into my future plans. Prior to taking over I will advertise for 4 part time cooks/bar persons who are willing to work weekends. This will allow me to offer good service at the weekends from the outset, knowing that I will need these staff no matter what the level of future business is. 2. Staffing Strategies 1. Develop a team of part-time staff, many doing 16 hours each week, who are trained to carry out all of the core tasks. This team works with me to ensure all our objectives are achieved. This is the structure I used for the last 4 years at the Maltings and our objectives were met. It needs managing closely as staff are not given titles or power over any other member of staff. There is myself at the core and the team work with me and with each other. Team players must be recruited. Flexibility of roles ensures that staff do not get bored and they appreciate all the roles. It also means the business is not reliant on key people. Keeping the team together and developing it is crucial. This could be a challenge in a seasonal business. - 16 - 2. As strategy 1 but concentrate all the budgeted wages cost into the 35 week summer period to help free up more of my time to concentrate solely on developing the business. The extra income earned could then fund the winter staffing. This strategy means that what ever volume of business throughout the summer, the pub should have more than enough staff to cope with it. It will also free much more of my time up. I have however tried to free up my time throughout the week so that I can use some of it for developing the business. I believe in the first year I need to be more hands on getting the product right and seeking opportunities from word of mouth and developing the pubs internet presence. This can all be done within the pub itself and in between the operational tasks that are required. When I get to the stage that I am too busy dealing with customers then I know I can afford extra staff to share the work load. It will also mean continuity throughout the winter period if the summer targets are met. 3. Take on 3 full time members of staff who share the 118 summer hours and duties between them. Give them use of the private accommodation and provide them with meals. This means you get 3 staff who are dedicated to the business and who are permanently on hand. This means that someone will be available at all times to deal with any issues or level of business. Someone will be on the premises overnight every night The downsides are that you reduce your flexibility in staffing the business to meet demand. There will be tax and NI to pay. It will be more difficult to dismiss them and manage them. Relationship factors make managing them more difficult – personal and business can overlap. 4. Take on a partner. The workload and decision making can be shared and two skill sets rather than one will be available I have been down this path and when it works it works really well. Unfortunately if the relationship breaks down then the business can suffer immeasurably or the relationship with that person likewise. You also would need to share any profits even though the workload or skill set might not have been equal. You also cut down on the flexibility of the staffing which becomes an issue if one partner or both wants to take a holiday. 5. Employ a manager You can share the workload and keep a professional distance. You can draw up a detailed job description and contract. They can bring new ideas and new skills. You would have someone who could stay over night for residents. They do however need to be paid and motivated and employing the right person is essential. They would however need to help generate you more profits to pay for their higher wages/salary and be able to carry out all the necessary duties. This position is not required in the initial stages. If the business can be built beyond the initial targets then employing a manager might be a way of building it and sustaining it beyond that. 6. Take on some Apprentices For less than a £100 a week an apprentice will give over 30 hours in return. One - 17 - specialising in hospitality and catering could be motivated to give a good return. They are usually aged 16-18 so will be unable to do the bar if required. They have to do at least 1 day studying at college and support of their studies is necessary. They will have little work experience so may need to be trained and supported. 3. Planned Staffing Staffing required I have outlined above a number of possible strategies regarding staffing. The projected staffing is based on Strategy 1. From the projected budget for staffing of £32499.00 I planned the number of hours this equated to both for summer and winter. I identified times in the business when I would need help to meet the operational objectives and give myself time either to relax or develop the business. From the planned staffing hours I identified the type of staff required to achieve the projected income and within the budget for staff. The planned staffing came out at £235 over budget. In the attached projections there are 2 spread sheets. One for summer staffing and one for winter staffing. Each sheet has 3 sections: 1. The number of staff hours and at what time of day they will be required. This then calculates the cost of these hours. The hourly rate used is £6.00 per hour. The overall budget used is £32,499.00 though the actual cost is approx £235.00 over this. Summer is calculated as 35 weeks and winter 17 weeks. I have forecast that 90% of overall turnover will be achieved in summer and 10% in winter 2. From these calculations I then identified what type of staff would be required and what hours they would work. This produced a rota for the staff and total hours worked. This in turn enabled me to identify what type of staff I require: 3. The first section does likewise for the hours that I will be required to be working in the business. This enabled me to draw up a rota for my hours. The above staffing will be complimented by my partner Jane who is willing to do what is required at weekends and school holidays. Likewise my 3 children can all play increasing roles at these times. I also have other friends and family to call on in emergencies. Although I have given each role a title, in practice I will ensure that each staff member is capable and willing to do any of these roles. This allows total flexibility to cover for busier times, absences or staff leaving. It also means that no one staff member can hold the business to ransom. All the staff will be locals. This means they will be on hand for unexpected events and they will also be a good resource for promoting the business locally. Because the business is seasonal, carrying staff through the quiet period can be a financial issue. However losing good staff and having to develop a new team each year could have a far greater financial impact. In my plan I have retained all the staff through - 18 - the winter but on slightly reduced hours. Some of the bar hours have been given to cleaning staff and vice versa. This will allow the pub to function efficiently throughout the winter period give the pub an opportunity to increase the forecasted turnover (see cash flow spreadsheet) This form of staffing enables me to draw on local staff to meet the needs of the business and will give me the base to build the business. The challenge is to find these staff and knit them into the business. Casual Staff Identify a pool of local people who have specific skills that can be called upon –e.g. someone to prepare buffets, homemade cakes, prepping up specials; maintenance, waiting staff, kitchen staff etc 4. Rotas and Hours No. of Staff Hours The 3 bar staff and 3 cooks will each have a minimum of 16hours through the summer and paid under tax and NI threshold. It will however mean they will be entitled to working tax credits. Throughout the winter, in an attempt to keep them on board and offer a reasonable level of service I have reduced their hours without getting rid of them. This will however affect their entitlement to working tax credits. The challenge is to build the business through the summer so we can retain these staff on 16 hours through the winter. The 2 cleaners will each be on a minimum of 8/9 hours per week with extra payments if more than 2 rooms per night are let Throughout the summer period I will employ a weekend breakfast person. We will definitely require 1 waiting staff on Sunday afternoons and I will be looking for a pool of casual staff who can step in at busy periods. The total number of staff hours each week throughout the summer is 118 reducing to 86 throughout the winter. The summer weekly wage bill is projected to be £689.00 and the winter weekly wage bill £507.00. Summer Winter 3 Cooks 16hours each 12 hours each 3 Bar 13-16hours each 10-14 hours each 2 Cleaners 8-10 hours each 8-9 hours each 1 Breakfast 6 hours 0 1 Waiting 3 hours 3 hours Patrick Turton Hours I have identified times when I will be required to work in the business alongside staff; times when no staff are required and where specific tasks are required to be done myself. I have also freed up time throughout the day so I can develop the business and get a run in. Throughout the summer this equates to 69 hours and winter 72 hours. My incentive to exceed targets is to reduce my direct involvement in the running of the business so I can concentrate more of my time enjoying activities with - 19 - customers and driving in, or sustaining levels of business above those targeted. Some of these hours I can delegate to my partner Jane and my 3 children. Staff Rota The rotas on the staffing spreadsheet projections for both summer and winter should be enough to achieve the projected incomes. The unknown presently are Friday and Saturday evenings. I have one in the kitchen, 1 on the bar and myself waiting on and helping on both the bar and in the kitchen if required. If we get an influx of customers from the campsites and residents as well as locals we might need more staffing. Jane my partner should be on hand to help as should my children on certain weekends. For this reason I need to have a pool of casual staff I can call on at short notice. We will also on Friday evening need to meet and greet arriving residents I have a cleaner in daily throughout the summer period for 2 hours each morning and 4 hours on a Saturday and Sunday morning. On both of these weekend mornings they will for the first hour be required to help with breakfasts. Within the 2 hours allocated for cleaning throughout the week it is expected that 2 letting rooms can be cleaned. If more than 2 rooms are let they will be paid £3.00 per room extra. In the 3 hours allocated at the weekends up to5 letting bedrooms are expected to be cleaned. Throughout the winter the mid-week cleaning and some of the bar hours will be combined so bar staff will do some cleaning hours and cleaners some bar hours. Each member of staff will be trained to carry out all the roles required. Patrick Turton Rota Each weekday mornings I will cook breakfasts if required. If more than 3 rooms are booked I will call in extra help. On Wednesday evening/Thursday morning I will clean the lines. Monday to Wednesday I will make sure all areas are stocked, maintained and ready for the weekend. I will also concentrate on marketing activities. On Thursday evenings I will present a quiz night. When on the bar at quiet times I can carry out admin tasks. On Wednesday evening I want to try and run with Settle Harriers – or preferably get them to base themselves from Stainforth. Alternatively I could start a running club from the Craven Heifer I will lock up and stay overnight every night until I identify someone suitable to cover the odd night. I will for the first year be close at hand at all times. 4. Remuneration National Minimum Wage rates from Direct.gov Current NMW rates There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates are: £5.93 - the main rate for workers aged 21 and over £4.92 - the 18-20 rate - 20 - £3.64 - the 16-17 rate for workers above school leaving age but under 18 £2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship The age at which you become entitled to the main rate was reduced from 22 to 21 on 1 October 2010. The apprentice rate was introduced on the same date. If you are of compulsory school age you are not entitled to the NMW. Some of your other employment rights are also different. Compulsory school age Children are of compulsory school age up to the last Friday in June in the academic year of their 16th birthday. After this they have reached the MSLA and they can apply for their National Insurance Number and work full time. The youngest age your child can work part-time is 13 years old, with the exception of children involved in: television theatre modelling similar activities Restrictions on child employment Children may not work: without an employment permit issued by the education department of the local council, if this is required by local byelaws in any industrial setting such as a factory or industrial site during school hours before 7.00 am or after 7.00 pm for more than one hour before school (children can only work before school if local byelaws allow it) for more than four hours without taking a break of at least one hour in any occupations prohibited by local byelaws or other legislation, such as pubs and betting shops in any work that may be harmful to their health, well-being or education without having a two week break from any work during the school holidays in each calendar year Term time During term time children may work a maximum of 12 hours per week. This includes: a maximum of two hours on school days and Sundays a maximum of five hours on Saturdays for 13 to 14 year olds, or eight hours for 15 to 16 year olds School holidays - 21 - During school holidays 13 to 14 year olds may work a maximum of 25 hours per week. This includes: a maximum of five hours on weekdays and Saturdays a maximum of two hours on Sunday During school holidays 15 to 16 year olds may work a maximum of 35 hours per week. This includes: a maximum of eight hours on weekdays and Saturdays a maximum of two hours on Sunday Wage Budget The above are the laws and guidelines for minimum pay. All my projected wage calculations, except for waiting staff are based on paying everybody £6.00 per hour. There is therefore considerable scope in either reducing the wage spend or increasing staffing whilst staying within budget. The challenge is finding the right young people. When the business is more established I will look to grow the roles of some key staff so they can take more of the day to day duties off myself. This will then mean paying tax and NI. Contracts of Employment A standard contract of employment will be drafted. This will then be tailored towards the individual. All will initially be given a contract to the end of the summer period. This contract will then be reviewed. Incentives I have not introduced an incentive scheme at this stage except more hours and money for cleaning extra letting rooms. If there is a challenge finding the right staff I may have to. If I want to retain certain staff I might have to. When I get a feel for the business I may offer incentives to motivate if I feel this would be of benefit. 6. Training I am hoping to recruit staff that have some experience in the hospitality industry and have a basic food hygiene certificate. If not they must be willing to obtain one quickly. I need to obtain one so I can ensure everyone are meeting the current standards. I will look closely at taking on an apprentice but they must be the right person as I will not have time to monitor their every move. I will need a pool of staff 18+ to work the bar. I will be looking for 2 staff I can confidently leave in charge if required. These will be given extra training if required. - 22 - I will look at bringing in some help to develop the catering. 7. Staff benefits Instead of financial incentives I will ensure that staff are well looked after, work in a safe and friendly place and are paid on time and in full. Over and above this, if they are required to work more than 4 hours then they will be entitled to a free meal or drink from the bar. When they have completed 8 shifts satisfactorily they will be given a clothing allowance to buy shirts or blouses – or be provided with them. Staff get togethers a couple of times a year with a contribution from the business. Discounts for family and friends. Staff Clothing All staff must wear smart clothes – trousers, skirts, blouses or collared shirts/tshirts. Any combinations must consist of black and white. When an established team has been developed I will look at projecting a more specific image - 23 - 4. OPERATIONS PLAN 1. Opening Hours 2. Food 3. Accommodation 4. Bar 5. All Business 1. Opening Hours Summer Breakfast Bar Food Monday 8.15am -9.30am 12pm -11pm 6.00-9.00pm Tuesday 8.15am -9.30am 12pm -11pm 6.00-9.00pm Wednesday 8.15am-9.30am 12pm-11pm 6.00-9.00pm Thursday 8.15am-9.30am 12pm-midnight 6.00-9.00pm Friday 8.15am-9.30am 12pm-midnight Saturday 7.15am -9.30am 12pm-midnight Sunday 7.15am-9.30am 12pm-11pm 12 - 5.00pm 6 - 9.00pm 12- 5.00pm 6 – 9.00pm 12.30-5.00pm Breakfast Bar Monday 8.30am -9.30am 12pm -11pm ------------ Tuesday 8.30am -9.30am 12pm -11pm ------------- Wednesday 8.30am-9.30am 12pm-11pm ------------- Thursday 8.30am-9.30am 12pm-midnight 6.00-9.00pm Friday 8.30am-9.30am 12pm-midnight Saturday 8.15am -9.30am 12pm-midnigt Sunday 8.15am-9.30am 12pm-11pm 12 - 5.00pm 6 - 9.00pm 12- 5.00pm 6 – 9.00pm 12.30-5.00pm Winter Food The bar will be open everyday from 12pm to finish both winter and summer. This means that walkers will become confident that the bar will be open no matter what time they arrive - 24 - Opening Saturday and Sunday mornings may be option. The premises are allowed to open from 8.30am and serve alcohol from 10.00am. The evenings can be extended to 12.30am Sunday to Thursday and 2.00am Friday and Saturday and 2.30am on Bank Holidays. 2. Food Food Availability Food will be served every evening throughout the summer except Sunday from 6.00 – 9.00pm. Monday to Wednesday will be the basic bar menu. Thursday will be the basic menu plus a selection of curries to cater for the Quiz and Curry night. Friday and Saturday evenings will be the bar menu plus a selection of Specials... Sunday lunch and the bar menu will be served from 12.30pm – 5.00pm on Sunday afternoons. A snack menu will be available from 12.00pm-5.00pm on Friday and Saturday afternoons. Food Ordering and Service Options: Option1 Keep the current set up – Separate dining room with table cloths. Either full table service or food ordering and drink purchasing from the bar depending on time of the week or day. No investment required and a safe option To make it work efficiently you need at least one person in the kitchen, one on the bar and a waiting staff. This can only be justified at potential busy periods. Difficult to provide a food offering Monday to Thursday and when the kitchen is closed. Restricted to offering food from the menu with no possibility of impulse purchases. Option 2 Where the office is between the kitchen and the dining area develop a food serving counter. This will have a food display counter and cooler where preprepared food and snacks can be displayed. That area will have coffee machines, fridge for soft drinks etc leaving the bar area as just that. An eat in or takeaway service operated at all times with hot food available at specific times. This would ensure that some type of food is available at all times. On a Friday and Saturday evening a full bar menu to be offered and likewise Sunday lunchtime. At certain times the French doors to the side leading in to the dining room could be used as a takeaway entrance. This will allow u18s to serve and take money and orders leaving the bar area just for drinkers. If drinks are required they can be served to the table by the bar person - 25 - Behind the serving counter confectionery, cakes, snacks and soft drinks can be displayed where children can order for themselves. The vault would be for dogs and their owners only. A TV put into the dining area. Useful as an alternative space for larger sporting events and screen for meetings and presentations. Tablecloths off and a much more informal eating place provided. Copy some of the aspects from the café in Feizor. Advantages/Disadvantages It will require some investment and would not suit those who want to come to the pub just for a pub meal not a café style offering. That said, at certain times the bar area could be used for adults only wanting a bar meal. Opens the food and drink offering to all ages both serving and customers. Could draw locals and those self catering to visit the pub for a takeaway. This could provide a secondary spend opportunity. Alternatively they might come in and spend more if that option was not available. Some type of food would be available all day and at the quieter times one bar staff could operate both areas as a selection of snacks and sandwiches can be pre-prepared or made for them if a Subway type setup was adopted. The counter would be close to the kitchen and could be permanently left set up. It removes all food and non bar purchases at busy times away from the bar leaving it free just for drinkers It is however hidden from the bar area which logistically could be an issue. Option 3 A similar option to number 2 but set up in the vault or from behind the bar serving the Vault. Advantages/Disadvantages It would take over most of the room meaning that room as well as the dining room is taken over for the food offering. This means no where for dog owners, those wishing to play darts or wanting to watch TV to go. Logistically those wanting snacks etc and children can be served by the same person operating the bar which would be fine at quieter periods. Requires a bar person to serve. It cuts down on drinking only space. It is quite a distance from the kitchen to keep stocking up. Probably not enough space and may have to be setup and taken down before and after busy food periods. Option 4 Similar to options 2 and 3 but set up in the bar area. Advantages/Disadvantages Logistically in terms of staffing and promoting food to customers this would be the best place. There is however limited space in the bar to do this and it would affect the - 26 - ambience of the bar area. It would also mean that children would need to enter the bar area. Potential conflict between diners and drinkers. Option 5 No food option and become a wet led, entertainment led local. Advantages/Disadvantages No food staff or food required so pub is easier to run and you can concentrate solely on driving the wet sales. If providing accommodation and breakfasts then a kitchen needing to meet all the necessary standards will be required. The location of the pub and the lack of any other nearby facilities suggest there is strong potential demand for a food offering. The local community is not big enough or of the right demographics to sustain a wet led pub. Option 6 Sub-let the food business. Advantages/Disadvantages No food to purchase or staff to employ. No investment required into the food operation. Free time up to concentrate on wet sales and accommodation. Will lose a potentially vital profit center. Will lose control of the food offering and the standards of service provided. Potential conflict of interests and ideas. Kitchen Equipment An inventory of equipment is required before signing agreement and identification of what is required to produce a functioning kitchen. 3. Accommodation Room Bookings Busy periods: Anyone enquiring about room availability over the phone for a specific period will be given available rooms and tariffs. A manual diary for bookings will be kept behind the bar along with a provisional bookings sheet. If they wish to book those dates then the provisional booking sheet must be filled in. Simple details of the customer. The customer then needs to fill in the booking sheet on the website or we will email them a copy. When we receive this and payment for 50% of the bill they will be transferred from the provisional bookings folder to the confirmed bookings folder. This will be updated daily by me. - 27 - Those enquiring about rooms will be encouraged to send an email regarding their booking. A booking form on the website will capture all the necessary details. Quiet period: Confirm available dates by checking both provisional and confirmed bookings diary. If available then fill in booking form over the phone and take 50% of payment by credit card. Send an email to confirm booking and enter as a confirmed booking. Arriving Guests From the booking form an estimated time of arrival will have been stated so we can prepare for their arrival. Make sure rooms are warm and clean before showing them to it. If busy when they arrive, offer them a complimentary drink from the bar and show them to their room when convenient. Put their bags in what is currently the office area. If they do not need showing to their room, give them the keys (from behind the bar – out of sight) and give all the necessary information. All this information will also be in the rooms along with a welcome pack and complimentary drinks. Departing Guests Vacate rooms by 10.00am and 11.00am depending on how busy. If leaving before 9.00am they must settle the bill the previous evening. Drinks and food must be paid for when purchased unless the rooms have been paid for in full in advance. Credit card details will have been taken when booking. Walk in guests must pay on arrival and pay as they purchase. Allocating Rooms The first priority is to get the 4 en-suite rooms and the bunk barn to a standard where we can confidently charge the budgeted rates. These rooms will be for individual advance bookings only at weekends The other rooms will be offered only when these rooms are full, unless of course someone wants a low cost room. The room attached to the private living area will be available for letting as part of a group booking. Bunk beds will be put in the room. The non en-suite rooms will be for group bookings only. Two of these rooms will be able to accommodate dogs. Bunk Barn and Group Bookings The non en-suite rooms – two twins, single and bunk room along with the bunk barn can be booked by groups of up to 15. These rooms can then be offered at discount rates depending on numbers. The bunk barn can be booked exclusively or just an individual bed. Packed lunches or breakfast if required can be offered. A breakfast pack for the bunk barn only can be offered The bunk barn can be booked on a room only or bed and breakfast basis only. Rooms must be paid for in advance. - 28 - If the room is not exclusively booked then other visitors may share the room. Accommodation Standard Inventory A comfy bed Clean and well presented bedding Wardrobe space At least 4 drawers Bedside table each Lights at each side of bed (double) Two white bath towels each and one hand towel each Television Kettle Cup and Saucer each Selection of hot drinks Selection of small snacks Soap and small shampoo each Full length mirror Information pack Fire instructions Breakfast card and instructions Key and opening/closing times Advice about drying area Radio alarm clock Coat hangers Drinking Glasses and water jug Floor mats Cleaning equipment Curtains Spare bedding Heating Lamp shades Hairdryer Breakfast Breakfasts will be available from 7.15 to 9.30am at weekends and from 8.15 to 9.30am Weekdays. Earlier breakfasts can be arranged if booking in advance or a pack up can be organized. Weekday breakfasts will be done me and a breakfast staff will be employed at weekends. If more than 4 rooms are booked then a waiting staff may be employed. Cereals etc will be provided on a self help basis. Cooked breakfasts will be cooked to order. Orders if possible placed the night before to ensure good service. - 29 - 4. Bar Music PPL license obtained Music and PA system to all rooms installed with the ability to play only to the areas you wish. A play list devised so the right music at the right sound levels at the right times are delivered by all staff. Entertainment I will need to get a feel for what the locals in particular like and dislike and see if I can plan a cost effective answer. After a few weeks of settling in I am planning to introduce a Curry and Quiz evening every Thursday. Curries served from 7.00pm to 9.00pm, Quiz to start at 9.30pm. I need to get music piped in to each room with an integrated microphone. This will be aimed at locals but open to all. If the Thursday night builds then a quiz night on Sunday evenings will be introduced. Monday to Wednesday I want to look at what can be introduced in terms of traditional pub games and low key, traditional forms of entertainment and self amusement. Development of teams and association with clubs and societies to drive in some business. Creating Atmosphere Different atmospheres and approaches need to be implemented at different times of the day and week. This can be done by music, by staff, by food offerings and entertainment. I will need a few weeks getting a feel for the place and the people before a decision is made to try and formalize some of the offering. The rest is finding good staff to work with who can interact with all the different possible markets. Small Functions The dining area could be hired Monday to Thursday for private hire. No charge if using our catering or accommodation Buffet, lite bites or sit down meal for up to 30 people. Bar Accessories 25ml, 35ml and 125ml measures Cocktail sticks Glasses of all sizes and types. Needs analysing. Lemons Cherries Matches Bottle openers - 30 - Outside Area Seating for 24 Smoking shelter Lighting Heaters Ash trays Music Signage Plants Outer Buildings Fridge and freezers, stock storage area. Fully secured. Washing and drying area Bunk barn Cycle and bag secure area (currently workshop) Front of pub Plants Good presentation All information is up to date Advertise rooms Tidy car park area Lighting 5. All Business Security I believe there has been at least one break in and I need to find out more before any action is taken regards alarms and CCTV. I hope I would not need to go down this path but if it is for the benefit of customers then I need to review it. When customers are resident then a key system will need to be in place and deadlines agreed. Until I find a reliable person to stay overnight on the premises I will stay on the premises every evening. No excess money will be kept on the premises and I will operate at least 2 safes. Tills will be cleared regularly. Keys will be given to designated staff only. Cleaning and Maintenance General cleaning will be carried out by the employed cleaner. 2 hours per day everyday through the summer has been budgeted for. The cleaner will also be paid an extra £3.00 per letting departure and £1.50 for a tidy if staying more than - 31 - 1 night. They will be informed the previous day of the number of rooms needed cleaning so they can plan their day. Cleaning of the lines will be carried out on a Wednesday evening and Thursday morning by me initially. At the same time a maintenance check will be carried out. A local electrician, plumber, builder and carpenter need to be identified for more major repairs. A cleaning schedule and rota will be devised so each area of the business is cleaned at the correct regularity and to the correct standards. Bar staff will ensure that the bar is clean at all times and likewise kitchen staff will ensure the kitchen follows the correct hygiene procedures. I will do a daily tour of the rooms to ensure they meet the highest standards. Feedback forms and verbal feedback from guests will help monitor standards. Cleaning Schedule Daily, Weekly, Monthly and Annual schedules. Financial Control I will be responsible for all areas of finance and cash control. Staff will be responsible for ensuring the till balances and the change draw is correct at the end of their shift. I will monitor any discrepancies. Spreadsheets will be set up to record all income and expenditure. Budgets will be set and monitored regularly. Cash will be taken off site and banked regularly Change will be collected mid week. Staff will be paid on a Sunday in arrears – cash. Credit/Debit card payments to be checked regularly Accountant to do end of year accounts only Laws – Health and Safety, Fire, Environmental Health, Licensing Risk assessments for health and safety, fire and the handling of food need to be carried out regularly An accident book needs to be available. Fire extinguishers need to be checked and certified. A fire alarm practice needs to be done monthly Fire procedures in each room Signage and emergency lighting checked PAT testing up to date A folder containing all this information is required Licensing laws – premises license, personal license and list of responsible persons displayed Employers liability license displayed Health and Safety information displayed Fridge temperature sheets up to date - 32 - Cleaning schedule Price list displayed Stock Control and Ordering Separate systems for wet and dry products Children and Dogs Children allowed in the dining area and vault only Dogs allowed in the vault only Accommodation – children under 12 must sleep in the same room as an adult and will be charged half the adult rate. 12 -18 year olds must be accompanied by an adult If the adult has an en-suite room the child/children can have a standard room for £7.50 per person per night less than the normal room rate. Dogs will be allowed to stay free of charge in any of the standard rooms if accompanied by an adult. Complaints/Feedback Each room will have feedback cards All complaints must be fully dealt with to the customers satisfaction All complaints must be recorded New systems implemented if required, I will resolve all complaints and follow up and take the necessary action Constant assessment of all areas to ensure that complaints do not materialize in the first place. Initial room check sheet. Complete and return to the bar for a complimentary drink on arrival. Prevent complaints hitting the internet Shortages, Breakages, Complimentary Drinks, Staff Drinks Folder behind the bar. All instances must be recorded. - 33 - 5. FINANCE PLAN 1. 2. 3. 4. Cash Flow Profit and Loss Funding Cost Centers 1. Cash Flow Cash Flow Forecast – Year 1 The first years cash flow forecast will need readjusting to take into account realistic time frames for both income and expenditure. For example accountancy fees will not be payable until after the year end. The business will be trading almost from a standing start which means that the first 3 to 4 months income could be below target. If this is the case then variable costs will need to be reviewed and a focus will be required on marketing activity. If trading commences in March 2011 it will take 2 months to get everything in place to operate the plan. The first 2-4 months will need reviewing constantly to see where and how far from target, income streams are. Income will probably be greater in the school holidays and peak summer months of July and August and less in March and October. A positive cash flow will be required at the end of October to service the negative flow through the winter. Other Costs At the out set these costs in particular need monitoring. Most are variable costs and money spent from these budgets must be aimed at giving a short term return. Fixed Costs The fixed costs including drawings equal to the rent are £45,217.00. Gross profit from projected drink sales only is £54,343.00 Projected gross profit for accommodation and food combined is £46,800.00 Summer and winter defined Summer runs from the beginning of March to the end of October. This is 35 weeks. In the cash flow projections worksheet, summer and winter are defined and the number of weeks each month is shown. Winter lasts for 17weeks. Income projections are calculated on the basis that 90% of all projected income will be taken in the 35 week summer period. The remaining 10% of income it is projected will be taken in the 17 weeks winter period. – see cash flow spreadsheet - 34 - 2. Profit and Loss The projected figures are based on the business breaking even in the first year – less depreciation. The wages figure is £235.00 over the projected figure. From year 2 onwards the aim is to produce increasing net profits year on year. 3. Funding Set Up Costs It is calculated that the initial set up costs will be just short of £29,000.00. This includes £3000.00 of working capital and £3000.00 of stock. Investment I have identified about £7000.00 of investment required – most in the early stages. Most of this figure will be required to get all the rooms functional and to the standard to achieve the required room rates. This figure includes £1500.00 to buy the website though I believe that this figure can be negotiated. Sources of funding Initial investment will therefore be in the region of about £36,000.00 I will be able to fund this immediately with cash. 4. Cost Centers Drinks Sales Cask Ales – Bomber, Wainwright and Nutty Black Keg beers – Thwaites Smooth, Thwaites Light and Guinness Lagers – Kronenberg, Kaltenberg, Fosters Ciders – Strongbow Wines and Spirits – Bottles – BIB – Lemonade, Pepsi and Diet Pepsi Soft Drinks Cordials – Margins & Prices Cask Ales, Keg beers and Lagers were priced with a 45% margin. All have realistic selling prices. There is room to increase the margins on the Nutty Black, Thwaites Smooth and Light and still have realistic selling prices. The Lagers and Guinness have realistic selling prices and Strongbow at 47% GP - 35 - has an acceptable selling price. Wine GP is 60%, Spirits 65%, Bottles 60% and Soft Drinks 70% I do not have the wines and spirits price list but hopefully I can fulfill my plan in offering a wide and varied selection of both. I worked out the 12 Litre BIB selling price on the assumption that each 12 litre produces 72 litres and each glass would contain 330ml. This produces 216 drinks per BIB giving a selling price of between 60-70p at 70% margin. If this calculation is correct there is considerable scope to increase margins. See Drinks Spreadsheet. Weekly Targets Assuming that 90% of all projected drinks sales are produced through the 35 Summer Months and 10% through the 17 weeks Winter period the average weekly target for the summer is approx £3300.00 and for the Winter £750.00. These figures are averages and do not take into account peak holiday periods or the start and end of the summer period which will probably be slightly quieter and December in the winter period which potentially should be higher. Food Income and Weekly Targets Food sales are projected with a GP of 60% Projected sales including VAT total £41,600.00 Weekly targets have been calculated on the same basis as for the drinks above. Summer average weekly targets are just over £1000.00 per week and Winter £300.00 80% of all food sales are projected to be taken on Friday, Saturday and Sunday. Accommodation Income and Weekly Targets Projected sales including VAT total £31,200.00 I need to work out a GP%. I have built into the projections a breakfast cost of £4.00 per person. I need to also build in the cost of toiletries, complimentary drinks and laundry. Weekly targets are again calculated on the same basis as for food and drinks. Summer average weekly income targets are approx £1000.00. This equates to 34 nights booked Winter average weekly income targets are just over £200.00.This equates to 8 nights booked each week. Staffing – summer and winter See Human Resource Plan - 36 - 6. STRATEGY 1. Short term 2. Medium Term 3. Long Term 4. Possible Initiatives 1. Short-term Before Agreement is signed Re-visit the rooms, kitchen and dining area and decide what, if any investment is required to start trading according to the plan Agreement regarding the website. Kitchen equipment inventory and analysis of anything that may be required. Bar inventory to be assessed Before Starting To Trade All trading areas developed to a point where they can operate to a level to deliver the projected income. TULIP training course completed Basic Hygiene certificate passed Menus finalised and kitchen stock identified. Familiarisation with cellar and cask ale training Family/Friends in place to help until enough staff are in place Start identifying potential staff, advertise key positions and possibly carry out interviews. Get promotional literature together – leaflet drops, posters in and around the pub Sort out Website Planning permission for the Bunk barn sorted Build an internet presence – Facebook, Mail shot the Maltings, links to target markets Credit card machine facilities in place Company formation Bank accounts Accounting systems in place All admin forms in place Decide on clothing for staff Pre Stock Order – decide on make up of bar. Music play-list HMRC contacted for VAT and PAYE PPL LPG gas and gas for pumps ordered Telephone and Wi Fi connected Insurance Fire Extinguishers Cleaning Schedule - 37 - Feedback Forms Stock Sheets Temperature Check Sheets for fridges Health and Safety Manual/Accident book PAT testing First Day Stock checks etc Advertise welcoming evening for all locals – date within first month of taking over Advertising boards in place Check utility readings Stock Order First Week Interview key staff if not already done so or carry on search for them Leaflet drop all the locals inviting them to the welcoming evening and outlining the plans for the pub Make contact with the campsites to discuss any possible joint advertising etc Start work on getting the 4 en-suite rooms and bunk barn functional Utility companies, Business Rates to be contacted First Month By the end of the first month have all the main areas operational and working to fulfill the plan. First Summer Trading The key is excellent service to generate positive word of mouth advertising. Review the food offering Develop bike storage area Develop links with Settle Cycle Hire Introduce Quiz and Curry evening First Winters Trading (Year 1) A full locals program in place Group booking initiatives in place and promoted Concentrate on building internet presence. Focus on building mid week trade. All the core areas of the business are operating efficiently. - 38 - 2. Medium Term Years 2 to 5 Implement identified initiatives that can add to the customer offering and identify and implement initiatives that will add to profitability. Work towards freeing more personal times to be spent with customers or leading new initiatives Create year on year increases in turnover and profitability 3. Long Term 5 Years + As someone said to me sometime ago – you cannot call yourself a businessman until you get to year 5 and you do not have a business either. More of the same with a look to the wider market to see if there are other opportunities that can be undertaken without jeopardising the core business. 4. Possible Initiatives Bike Storage Area Cycle Hire Food Counter Take away service Shop Small meeting and group training area Guided Walks and Training weekends 3 Peaks Pick up and Drop off Educational visits Hairdresser Holiday Cottage Parcel pick up and drop off Cycle Tours Bag drop off – Ribble way, The Dales High Way Internet café Outside heating Barbecues TV in Dining area for group training and sporting occasions Traditional Bar games – Shove Hapenny, Bar Skittles, Whist Drive Golf societies Craven Heifer/Stainforth Running Club Music and PA system, Lighting, Karaoke machine - 39 - APPENDICES APPENDIX 1. – Food ideas Basic Menu – Monday to Saturday Evenings and Sunday Afternoon http://www.crown-hotel.co.uk/menu.htm http://www.hartsheadhotel.co.uk/dining.htm http://www.gamecockinnaustwick.co.uk/page3.html http://en-gb.facebook.com/pages/Elaines-Tearooms-Feizor/373097520912 Scampi and Chips Gammon and Chips Chicken and Chips Salads – Prawn, Tuna, Ham, Cheese Fish and Chips Cumberland Sausage and Chips Quiche and Chips Pie and Chips Burger and Chips Margarita Pizza Meat Feast Pizza Salmon Fish Cakes and Chips All Day Breakfast Jacket potatoes instead of chips £6.95 £7.95 £7.95 £7.25 £7.45 £7.95 £7.25 £7.25 £7.25 £7.25 £7.25 £6.95 £6.75 Kids Fish Fingers Mini Pizza Chicken Nuggets Burger All £3.50 Lite Bites Menu – Friday and Saturday Afternoons Chip Butties Cheesy Chips Bacon Butties Egg Butties Jacket Potatoes – Tuna, Cheese, Beans Beans on Toast Egg on Toast Soup Omelettes Toasties £2.25 £2.55 £2.75 £2.65 £4.75 £2.65 £2.55 £3.65 £4.75 £3.25 - 40 - Specials – Available Friday and Saturday Evenings and Sunday Afternoon Curries Lasagne Fish Pie Lamb Dishes Steaks Pies Chilli Con Carne Priced £8 to £10+ Snack and Sandwich Menu – Available at all times Ploughmen Sandwiches – Ham, Tuna, Cheese, Salad Scones Homemade Cakes Flap Jack 60 to 70% GP Sundries Chips Onion Rings Wedges Plain Jacket £2.25 £2.00 £2.45 £3.25 Sunday Lunch Beef and Lamb and Vegetarian option Yorkshire puddings, Veg, New Potatoes, Roast Potatoes 1course £8.25 2 Courses £10.50 3 Courses £13.25 Vegetarian Options Nut Roast Quiche Salads Scampi Fish Quorn based meat dishes – mince, chicken, sausages Egg based dishes Vegetable Stew Mushrooms and Rice Fish Pie - 41 - Breakfast Menu Full English – 2 Eggs (choice of), 2 Rashers of Bacon, 2 sausages, Beans or Tomatoes, Fried Bread, Black pudding, mushrooms – either toast or bread and butter. http://www.bbc.co.uk/food/recipes/stressfreefullenglis_67721 2 Boiled Eggs with soldiers Scrambled egg on toast Beans on toast Continental – Bread roll, cheese, ham etc Cereals, Grapefruit, Juices, Eggs – Scrambled, Boiled, Fried, Poached The Perfect Ploughman’s http://www.food.com/recipe/traditional-english-pub-style-ploughmanslunch-250126 Starters Soup Prawn Cocktail Garlic Mushrooms Melon Sweets Cheesecakes Apple Pie Treacle Sponge Ice cream Sticky Toffee Chocolate Fudge - 42 - APPENDIX 2. – Bar ideas – add to drinks spreadsheet From Pumps Cask Ales – Bomber, Wainwright, Nutty Black Alternatives: Keg Beers – Thwaites Smooth, Thwaites Light, Guinness Alternatives: Keg Lagers – Kronenberg, Keltenberg, Fosters Alternatives: BIB Pepsi, Diet Pepsi, Lemonade Alternatives: Optics Standard: Vodka, Whiskey x 2, Brandy, Rum, Gin, Baileys Alternatives: Bottles of Spirits Cointreau, Drambui, Blue Bols, Malt Whiskies, Bottles Soft Drinks Cordials/Orange Juice Orange, Lime, Blackcurrant Mixers Tonic, Slim line, Orange Juice, Tomato, Wines Red: White: Rose Sparkling - 43 - APPENDIX 3. – Accommodation ideas http://www.buckinnmalham.co.uk/accomodation.php http://www.crown-hotel.co.uk/tariffs.htm http://www.hartsheadhotel.co.uk/accommodation.htm http://www.thelionsettle.com/?gclid=CJPal_fB1aYCFQsTfAodag9LXA http://www.goldenlionhotel.co.uk/accommodation.cfm http://www.craven-arms-giggleswick.co.uk/rooms.html http://www.thethreepeakschallenge.co.uk/yorkshire-three-peakschallenge/accommodation.aspx http://www.yorkshiredales-stay.co.uk/search/all-regions/all-towns/allaccommodation/Stainforth/Fishing-Friendly/ http://sherpavan.com/ - Craven Heifer advertisement http://www.daleshighway.co.uk/accommodation.htm - Craven Heifer advert http://www.clickbedandbreakfast.co.uk/bed-and-breakfasts-in-stainforth-2page1.asp http://www.pandarooms.com/UK/North+Yorkshire/Settle-hotels.html - 44 - APPENDIX 4 - Target market Websites www.mtbdales.com mountain bikers www.bhf.org.uk British Heart Foundation 3 Peaks Challenge 2011 http://www.flyfishingyorkshiredales.co.uk/find.htm Fishing at Helwith Bridge http://www.settleharriers.org/ Local running club http://www.maximumadventure.com/the-uk/yorkshire-3-peaks-challenge.html Organise 3 Peaks events http://open-three-peaks-challenge-2009.weebly.com/ 3 Peaks organisers http://threepeakschallenge.weebly.com/yorkshire-three-peaks.html 3 Peaks Organisers http://www.thethreepeakschallenge.co.uk/yorkshire-three-peakschallenge/yorkshire-three-peaks-challenge-2011.aspx 3 Peaks Organisers http://www.mariecurie.org.uk/en-gb/events/uk-mountain-challenges/yorkshirethree-peaks-mountain-challenge-2011--8614/?gclid=CMy12MrK1aYCFUENfAodkFvoMw Marie Curie 3 Peaks Challenge 2011 http://www.heartresearch.org.uk/three_peaks.htm 3 Peaks Charity 2011 http://www.3peakswalks.co.uk/charity/calendar.shtml 3 Peaks http://www.forum.walkingbritain.co.uk/cgi-bin/yabb2/YaBB.pl?num=1291117953/1 3 Peaks http://raise4leukaemia.org.uk/challenges-for-charity/uk/3-peaks-challengeyorkshire 3 Peaks - Charity https://secure.macmillan.org.uk/events/event_registration.aspx?id=382 3 Peaks Charity http://www.epilepsy.org.uk/involved/threepeaks - 3 Peaks Charity http://www.ramblingclubs.com/rambling.php Walking Clubs http://www.nationaltrails.net/ribbleway/ribbleway_day_6.html - Ribble Way http://www.ribbleway.com/route/ Ribble Way http://www.localmouth.com/go/stainforth Local forum http://www.settlegolfclub.co.uk/settlegolfclub/Home.html Golf Societies http://www.sustrans.org.uk/map?searchKey=bd24+9pd&searchType=search&Sear ch=Find#382367,467635,5 National Cycle Network http://www.offtherails.org.uk/ Cycle Hire Settle http://www.knightstainforth.co.uk/ Local Campsite http://www.langcliffe.com/ Local Campsite http://sherpavan.com/ Bag Transfer http://www.daleshighway.co.uk/accommodation.htm - Dales Highway http://www.horton-in-ribblesdale.com/ Start of 3 Peaks http://www.brigantesenglishwalks.com/ Bag Transfer & Walking Holidays http://www.ywt.org.uk/_filestore/File/Nature%20reserves/Semerwater.pdf - Fishing and Water Sports - 45 - APPENDIX 5. - Holidays and Special Events 2011 and 2012 March St David’s Day St Patrick Day Mothers Day British Summer Time begins April School end of term Good Friday Easter Sunday Easter Monday Royal Wedding Grand National 3 Peaks Race May Half Term May Day Spring Bank Holiday FA Cup Final June Fathers Day St Georges day Wimbledon starts July Start of Summer Holidays Open Golf British Heart Foundation 3 Peaks Challenge – 23rd www.bhf.org.uk August Yorkshire Day School Holidays August Bank Holiday September 3 Peaks Cycle event Settle Loop Fell Race October Halloween Half Term British Summer Time ends - 46 - November Bonfire Night Children in Need St Andrews December Christmas Holidays Christmas Eve Christmas Day Boxing Day New Years Eve January New Years Day Burns Night February Valentines Day Pancake Day Ash Wednesday Half Term Events to research Local Settle events 3 Peaks Charity events Walking clubs and Organised walks in the area Cycling/Mountain Biking clubs and events Local Festivals Running clubs – 3 Peaks Race in April - 47 - APPENDIX 6 - Stainforth and the Local Area http://www.cravenheiferhotel.co.uk/ http://www.yorkshiredales.org.uk/short-walks_stainforth-and-catrigg-force.pdf Catrigg Force – Local Attraction http://www.beenthere-donethat.org.uk/yorkshire/penyghent.html Stainforth Force http://www.wainwright-wanderings.co.uk/w0362.htm Hoffman Kiln and Craven Lime works – Walk from Stainforth – Great picture of the Craven Heifer http://www.walkingforum.co.uk/index.php?topic=9645.0 Walks from Stainforth http://www.wildcardwalks.co.uk/photo-galleries-stainforth.html Stainforth Walks http://www.one-foot.com/Kilns,%20Caves%20and%20Waterfalls%202008.html Hoffman Kiln http://www.skiptonweb.co.uk/tourist/walks/15_langcliffe/index.htm Walks http://www.grassingtonweb.co.uk/villages/stainforth.asp Stainforth http://www.settle.org.uk/ Settle http://www.settle.co.uk/ Settle – and accommodation http://www.yorkshire-dales.com/stainforth.html - 48 - APPENDIX 7 - Craven Heifer on the Web Craven Heifer Website – Current and Potential Changes Accommodation Modern twist Domain Name Email Pay pal Booking Form Links Maps 3 Peaks Events Articles on the Web about the Craven Heifer http://officialpubguide.com/pubdetails.php?pubid=1000 – Listed with advert http://sherpavan.com/ - Craven Heifer advertisement http://www.daleshighway.co.uk/accommodation.htm - Craven Heifer advert - 49 - Craven Heifer Business Plan – Additional Information required or areas that require further research and work: Prices, Products and GP% for Drinks – Wine, Spirits, Bottles Food Menus – Appendix 1 Drink Products – Alternatives – Appendix 2 Build and expand all Appendices Initial Investment – revisit the pub Insurance Utility bills Weekend staffing and flows through the summer Initial staffing Training courses - 50 -