A survival strategy

17 March 2003 by
A survival strategy

Seven years ago the Lion Inn was one of seven pubs within a five-mile radius of the village of Trellech, Monmouthshire. Now there are two, or three if you include a nearby pub open only at weekends. Owner Tom Zsigo counts the closures on his fingers: "The Gockett, the Farmhouse, the Parkhouse and the Glen Trothy are all private houses now," he says.

"There's still a pub open nearby, but it's only open on a part-time basis; and there's the Village Green in Trellech, although that's more of a bistro."

Zsigo's wife, Debbie, says some of the closures were down to landlords running down the trade in order to sell the property on the private market, but many failed because they didn't have the business sense to survive.

"People are going out less and less, especially with supermarkets doing a pound a pint. A lot of rural pubs lost the impetus to compete," she says. "There just isn't the trade left."

What trade there is, though, clearly gravitates to the Lion, a haven of real ales, low-beamed ceilings, a log fire and traditional pub decor. It's a Wednesday lunchtime in February, in a village with only 200 residents, but the pub is full. Tom and Debbie have done 27 covers for lunch - unusual for this time of year, stresses Tom, but not unheard-of.

It's a long way from the pub's early days, seven years ago, when the Zsigos bought the Lion's freehold for £126,000 and paid £1 for the goodwill. Then the pub was run-down and dirty and opened for only about 20 hours a week.

At first the couple could afford to do little else other than clean up, gut the kitchen and fit a new one and replace the mismatched collection of pink velour, red shag-pile and office-grey cord carpet. Tom continued to work full-time in IT, while Debbie ran the pub and cooked during the day - in addition to looking after their first child, Jack.

Gradually the business evolved. While pubs around them got it wrong, the Zsigos tried to get it right. With only 200 people in the village they knew they had to attract custom from further afield. "We made a conscious decision to diversify, because we had to get one step ahead," Tom says. "We had to bring people in from outside to survive. We realised we had to offer proper pub food, home-made with good ingredients."

They offered a classic pub menu initially - dishes such as fish and chips, steak and kidney pie and steaks - but quickly extended it to include full vegetarian, kids' and evening menus featuring dishes such as mahi mahi in Kenyan banana and coconut sauce, Russian-style monkfish with vodka and poppy seed sauce on red cabbage, and pan-fried pigeon in red wine and horseradish.

Tom's eastern European background meant several Hungarian "specials" crept in, finally evolving into a full Hungarian menu with eight dishes. One day a specialist supplier offered ostrich steaks, which "went down like hot cakes". The pub's specialities now include ostrich, wild boar and kangaroo.

The Lion continues to change its menu often and in tune with customers' requests - an "alternative" Christmas dinner and seventies "retro" dinner complete with prawn cocktail and knickerbocker glory are favourites. They do about 12-20 covers at weekday lunchtimes and dinner, 40-50 at weekends and about 70-80 for Sunday lunch. The pub now receives bookings from as far afield as Cardiff.

The Lion is not just about food, however. Four regular real ales are sold, plus three changing guest ales and Welsh cider, all sourced from about 12 breweries. The pub is a member of the Campaign for Real Ale (Camra) and has appeared in the Good Pub Guide for several years.

Close contact with the local newspaper, the South Wales Argus, has resulted in valuable support. The Lion has now held the Argus's Pub Restaurant of the Year title for three years, is the Solid Fuel Association's Real Fire Pub of the Year 2003 and was runner-up in the Gwent Camra Pub of the Year 2003. It also claims to be one of the first public houses to accept the euro, hosts an annual beer festival and boasts popular crib and quiz teams.

Business has increased by 15% to 20% a year and, even during the foot-and-mouth epidemic, when others suffered declines in trade of 80%, the Zsigos experienced a drop of only 15-20%. While turnover for the first year was £54,000, the pub is on target this year to bring in £170,000.

As the pub turnover nears capacity, the couple have looked elsewhere for revenue. In 2002 they won the tender to open a teashop near Chepstow station during the summer, which brought in a total turnover of £70,000. They intend to repeat that this year.

The resulting profit is being ploughed back into the business and the conversion of an old pigsty into luxury accommodation at a cost of £40,000. After five years of planning, they have also been given the go-ahead to extend the building to include a further two bedrooms and downstairs room for the pub for £150,000 to £200,000.

"It's all part of the diversification," Tom says. "A lot of rural pub owners bought their pubs when all you had to do was to open the door to get 60 people a day though it. People are more choosy now and want more than the average pub offers. It's all about listening to what your customer needs."

Factfile

The Lion Inn
Trellech, near Monmouth, Monmouthshire NP25 4PA
Tel: 01600 860322

E-mail: lion@web-fanatics.co.uk

Annual turnover 2002: £150,000
Projected turnover 2003: £170,000
Seats: 30
Covers: 12-20 lunchtime and dinner weekdays, 40 to 50 weekend dinners and 70-80 Sunday lunch
Wet/dry sales ratio: 55 to 45
Staff: 27 full- and part-time
Cost of freehold: £126,000

The Zsigos' tips for success

* Listen to people and then offer people what they want.
* Make good food and good beer a priority.
* Make everyone welcome and get to know everyone's names and professions.
* Don't forget you are part of a community and make the most of it.n Remember, people love an open fire.
* Keep one step ahead - people don't want just pub grub any more.

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