Below par

Establishing a successful business is never easy. Doing it in France without knowing the language makes life even more complicated. Jessica Gunn finds out how Claire and Chris Benson have been managing.

After a fairly successful summer season, with weekly turnover averaging about Ffr40,000 (£3,800), Chris and Claire Benson now face the uncertainty of winter. Fluctuations in the weather keep customers away from both the golf course and the restaurant, putting an inevitable strain on the financial stability they have worked to achieve.

"We're pretty conscious of being on a tight budget at the moment," says Chris. "November to January are going to be a bit worrying. We've just got to try to keep our heads above water." With the end of their first financial year now in sight (20 November), the time for review and reassessment is approaching.

Reassuringly for the couple, who had no previous experience in hospitality or leisure, their original business plan seems to have been fairly accurate. This estimated a £500 profit at the end of the first year, and so far the club is on track for only a very small loss.

Business plan

"Our initial business plan, which was based on that of the previous owners, was accepted by the local authorities," says Chris. "It was then ripped up by our accountant, who showed us that it wasn't realistic. We then had to spend two weeks reformulating it entirely. She spoke hardly any English and we spoke barely any French, so a friend helped us translate, or we used dictionaries."

Creating an appropriate business plan provided a steep learning curve for the couple, who quickly discovered that establishing and running a business in France meant coming to terms with more than a new language.

Apart from the usual difficulties of finding quality staff, the Bensons soon discovered why there is such a large number of black market workers in France - the employer's tax contribution stands at 40% in France, compared with only 11.9% in Britain. On top of the minimum wage of Ffr46 (£4.38) an hour, the couple pay a further 40% towards an employee's health insurance, retirement and social security. For the Bensons' five staff, this meant a Ffr45,000 (£4,280) bill for the summer quarter. Staff wages represent about 20% of overall turnover.

"The worst thing is that small employers pay the same contribution as large corporations," says Chris. Furthermore, taxation in France is not collated and collected by one state body, as it is in Britain. "We kept receiving all these bills and wondering who they were from," says Chris. "There is no inland revenue in France. Only with the help of our accountant did we gradually realise who they were from, and that we had to pay them all."

The latest unexpected bill was from the local government, the "mairie". This was for £6,500, collected as a lump sum and used directly by local administration to fund refuse collection and local maintenance services.

High VAT charges on restaurant food can also prove a considerable obstacle for a small business in an area where good value for money is considered essential. "People here expect a three-course meal, with wine, for less than £10," says Chris. With a 19.6% VAT charge on food sold in a restaurant, as opposed to 5.5% on food bought in a shop or in a take-away restaurant, profit margins are tight.

The close of the golf season also means that maintaining customer flow in the club, restaurant and bar has become significantly more difficult. "The restaurant has taken a severe nose dive with the end of the season," says Chris. "Some days we serve 10-20 covers; yesterday, just one." The couple are now trying to decide whether keeping the restaurant open from November to January will be worthwhile. "Last year the Christmas week was one of our busiest, so it's a difficult decision," says Chris.

The couple remain positive about their future, despite current nerves. "The French are fair-weather golfers," says Chris. "We should see a renewed increase in golf in January and February, meaning business will pick up all round."

Next visit to Casteljaloux: 6 December

The story so far

When Chris and Claire Benson abandoned successful careers in IT in Britain for a bankrupt golf club in France, including a restaurant, bar and 15 derelict holiday gites, their future looked uncertain - especially as neither spoke French.

Despite difficulties in coming to terms with the language and culture, and having no experience in the world of hospitality, the couple have established themselves and their business. But the challenges are far from over.

Casteljaloux Golf Club

Avenue du Lac, F-47700 Casteljaloux, France
Tel: 00 33 5 53 93 51 60
E-mail:ccbenson@altavista.co.uk

Proprietors: Chris and Claire Benson
Purchase price: £60,000
Number of staff: seven
Staff wages as percentage of turnover: 20%
French minimum wage: Ffr46 (£4.38) an hour
Employer's tax contribution: 40%
Average daily takings, bar, restaurant and green fees: July/August, Ffr6,000-Ffr8,000 (£571-£762); September/October: Ffr3,000 (£286)
Daily bar turnover: Ffr1,000 (£95)
Daily covers (excluding tournament days): 5