location can make a vital difference
The Merchant House opened three years ago today and shows no sign yet of going bust. On the other hand, it shows little sign of making my fortune, so I shan't be placing an order for the Ferrari or gold bath taps yet. The sort of turnover it is reasonable to expect from a small business like this also dictates having very few staff on the payroll, so the personal workload is high in relation to the financial reward. Luckily, I find the plus points - mainly a little more control of one's situation - still tip the balance in favour of the arrangement.
In fact, the restaurant is full most sessions year-round and it is possible that a better businessman could make far more profit than I do. The problem is that I get more thrill from a dish on the menu than I do from an improved margin on the accounts. It is, however, a genuinely independent operation and the absence of bank debt, property mortgage aside, means there is no pressure to pursue a purely bookkeeping perspective.
I'm not the only one following this small-scale path, of course. Two of my former sous chefs have opened restaurants of this size in the West Country over the past year. Both are first-rate cooks, quite capable of stars in anyone's guide, also both are able to perform under the discipline of cost control. Most importantly, they are both lucky in having a partner willing to work all the hours God sends. Yet one is doing rather well and the other is still struggling.
Duncan Walker opened 22 Mill Street in Chagford, Devon, with backing from a group of local people who wanted a good neighbourhood restaurant, and so far appears to be on target for success. To be honest, I never thought while living in the area that there was the population to maintain another, even modestly priced, restaurant. So I'm delighted to be wrong. Walker worked with Raymond Blanc and Marco Pierre White at Le Manoir and also at the starred Milton Sandford restaurant at Shinfield before his long stint with me, so I am surprised there has been no real newspaper coverage of his efforts in Chagford. Luckily, he appears to be thriving without it.
David Pope opened up his restaurant, Crahan, near Helston in west Cornwall, at about the same time, but is struggling to find the punters necessary for long-term survival. He worked for me for nine years and then for another five with Rick Stein in Padstow. AA Gill gave his grub a stunning review in the Sunday Times but there appear to be only a trickle of people willing to cough up £20-odd for the food.
Perhaps the late Conrad Hilton had a point when he said that the secrets of success were location, location and location. Perhaps west Cornwall is a moor too far for the cash-strapped chef to wander. Certainly, there is more ocean within driving distance than there is population. Perhaps the summer will see things turn around for him. Let's hope. n
Next diary from Shaun Hill will be on 29 January
