Better Business – The Red Lion, East Haddon
When Nick and Ren Bonner took over the Red Lion in East Haddon, they decided to improve the menu and broaden the pub's appeal, enlisting former Gary Rhodes chef Adam Gray as a consultant, and eventually a business partner. Katherine Alano reports
Need to know
The Red Lion pub is located in the heart of the idyllic village of East Haddon in Northamptonshire. It also houses seven bedrooms, a cottage and most recently a cookery school.
The owners, husband and wife Nick and Ren Bonner, took over the pub four years ago, and in a move to improve the menu they took on former Gary Rhodes chef Adam Gray (pictured right) as a consultant. Gray, originally from East Haddon, started to consult with the Red Lion once a month, but as the relationship developed he decided to get more involved, and in August 2010 he bought a 50% share of the pub.
"At the time I was working as head chef at Rhodes 24 and had held a Michelin star for many years. Taking on the Red Lion seemed like a perfect opportunity for me, and although I was very happy with Gary I thought it was time to shine on my own," Gray explains.
Making the offer more affordable
Both Gray and Nick Bonner wanted to work towards making the food offering more accessible to diners. For Gray this meant the menus had to be cheaper and use more local produce.
"With my background with British food and working with Gary we wanted to use solely British seasonal ingredients. The menu had to be simple and cost effective," he explains.
Over the years, the Red Lion has experienced very little trade from the locals. In an effort to dispel the stigma that the pub doesn't welcome locals, Gray and Bonner were keen to rebuild this relationship.
"Most of our trade comes from outside the village, but with the new menu we hope to make it inclusive," says Gray. Making the menu more accessible, particularly during a recession, is important, he adds.
"It is difficult to say who our target market is because we want to make it a venue for all. Today for lunch we did 45 covers; the average age [at lunchtime] is 50-60, and in the evening it is around 35."
Marketing
The Red Lion changed its website six months ago and now includes blogs and uses social media such as Facebook and Twitter.
Since sending out newsletters, it has accumulated a database of 2,000 people including 1,000 that have come via the cookery school.
"We definitely see a spike in traffic to the website when the newsletter goes out," says Gray. The newsletter is sent out every month, offering recipients a discount voucher for the restaurant, which they present on arrival. More recently the Red Lion has taken part in a discount offer to Waitrose magazine readers.
The business has seen increases in revenue every week over the past 10 months.
"It's fantastic - but it is because we have dropped our prices. We are still making a profit because we have cost-effective dishes on the menu," Gray explains.
Gray is also a Northampton Ambassador, which helps him source local suppliers, which in turn helps to drive down prices such as delivery charges.
"Because we can keep our costs down we can reflect this in our menus and ultimately the customers benefit," Gray adds.
He admits it has been an uphill struggle to source good produce locally, and faces the dilemma of balancing the quality of the ingredient with being cost effective. When necessary he uses suppliers from London and elsewhere outside the county.
The future
The seven bedrooms recently underwent a refurbishment and have all been individually designed. They represent an important step for the business. Before the refurbishment, the rooms were at 70% occupancy during the week and 50% at the weekend.
"Due to our location we are usually a mid-country stop for travellers. Looking at nearby hotels, such as the Travelodge, which doesn't offer the same as we do, we will be putting the rooms up at £95 per night," says Gray. "We are trying to be realistic with the cost."
In addition to the rooms the pub has a two-bedroomed cottage in the grounds, which is ideal for families. The business has also recently obtained a wedding licence, and has started to promote itself as a wedding venue as well as a pub and a restaurant. The Red Lion already has six weddings booked this year.
Another major part of the business is the outside catering division, which cooks at stately homes including Earl Spencer's home, Althorp House.
"There are a lot of stately homes in the area and once they find out you have been a Michelin-starred chef they want you to cook," explains Gray.
"It has been a great revenue driver. In June we have between 3,000 and 3,500 people for an afternoon tea over three days. "
Business advice
Gray found that compared with London, businesses in East Haddon rely more on word of mouth. He admits that in the first year the business tried to move too quickly and changed the menu from traditional pub fare to something much lighter and healthier.
"It shocked everyone. We learnt a valuable lesson in that we had to listen to our customers. They are your revenue. I now know a lot of them personally and when I talk to them and ask how things are they can tell me what they think."
Spotlight on Shires Cookery School
Gray met Wendy Carter, a former journalist who had a cookery school with no premises. Carter used to hire kitchens around the country and ran a course every week.
"Nick, myself and Wendy met to discuss it and we are now all directors of the Shires Cookery School. Wendy already had the name so we bought the name, and put in the same amount of money and spent £100,000 refurbishing the cookery school," recalls Gray.
The cookery school offers an extensive range of specialist courses designed for novice cooks and also those looking to expand their knowledge of new techniques and ingredients.
The Shires Cookery School offers day and evening classes, at a cost of £95 for a full day and £50 for a half-day course. It is fully booked for four months in advance for every course.
FACTS AND STATS
Head chef Anthony Horn
Front of house manager Nick Bonner
Staff 8 Full time/ 8 part time
Average spend £28 (per head)
Turnover £800k (including cookery school)
Maximum capacity 90
