Crown of thorns
The chef has walked out and the manager is to resign at the end of the month, which leaves managing director Robert Banks with the day-to-day running of the Crown at Iverley. He tells Helen Adkins what happened.
Towards the end of 2001 Robert Banks, managing director of the Crown at Iverley, was becoming more and more puzzled. When studying the restaurant's monthly figures, he couldn't understand why turnover was so erratic or why, despite increasing numbers of customers through the door, he was seeing no profit.
His other business, event catering company the Food Experience, kept him away from the day-to-day running of the restaurant, yet he had heard no reports from the manager, Ian Shipman, of any problems.
Things became clearer when Banks looked more closely at the accounts and found food costs to be out of control, running between 35% and 50%, well over the required 30%, and losing the restaurant up to £3,000 each month. Wage costs were also running high, at 40%, with staff standing idle during slow periods. After words with head chef Simon Taylor and restaurant manager Shipman, it was hoped things would improve. On 3 December, however, Taylor walked out without giving notice. Soon after, Shipman decided he would also leave.
"The business wasn't working. December was a disappointment, well below our projected turnover of £60,000, at £48,000, so Ian and myself sat down and discussed the future," says Banks. "It was agreed that this was not the position for him, so he has decided to resign at the end of February to pursue more challenging areas."
By then Banks will have returned from Scotland - where the Food Experience is currently catering for a Range Rover launch - to take over the helm and get the business back into shape. He is having to put in an extra £30,000 to cover any shortfalls, but he is optimistic that the business will work.
Things are already looking up. After Taylor walked out, the Crown's sous chef, Richard Glaze, took over and has so far done an excellent job, according to Banks. The quality of the food has risen, presentation is much improved, and he is managing to achieve a 30% food cost.
"We had felt that the quality of food Simon was producing wasn't good enough. The attention to detail was lacking and the presentation was poor," says Banks. "Richard has already raised the standard, and we've got some really nice dishes planned. He is also using food that is within costs, and as long as he can do that I am happy for him to be doing the job."
Richard's dishes include fillet of beef on buttered spinach and potato r"sti with parsley and braised oxtail jus, and pan-fried saddle of rabbit with sage-infused jus and crushed potatoes. Banks and Glaze are hoping the new menus will entice potential customers and impress the group of local restaurant critics who have been invited to the restaurant next month. Other initiatives, such as special themed nights celebrating seafood or Tuscan cuisine, have been planned to boost the quiet nights between Sunday and Wednesday, when covers can be as low as 25.
Staff costs have been resolved by not replacing those who left at the end of last year, and with Thursdays, Fridays and Saturdays fully booked for the next few weeks Banks is confident of imminent success.
"The nice thing is that people are still coming in through the door and are returning because we haven't let our standards drop. That's what is important."
The story so far
With weekday evening trade up and Christmas bookings looking good at the end of last year, restaurant manager Ian Shipman was in an upbeat mood, confident that projected turnover would be met and even exceeded.
The Crown at Iverley
Norton Road, Iverley, Stourbridge DY8 2RX
Tel: 01562 883004
Parent company: Food Experience²
Managing director: Robert Banks
Lease price: £60,000
Investment: £300,000
Annual rent: £16,500
Restaurant manager: Ian Shipman
Assistant restaurant manager: Karen Good
Head chef: Richard Glaze
Seats: 60
Average spend: £19
Covers: December 1,600, January 925
Staff: eight full-time, eight part-time
Turnover (net of VAT): July £56,000, August £61,000, September £44,000, October £46,000, December £48,000
