Sums and substance
It seems an odd choice for an accountant who "can't boil an egg" to start a catering company, but Liz McAreavey, founder and chief executive of Le Bistro, finds her background a positive help. "I call myself a business person, not a caterer," she explains. "I'm able to distance myself from the passion of being a cook, take a step back. I see catering as a commodity."
It seems to have worked. The Edinburgh company has increased its turnover from £1.5m to £7m in the past three years, catering for leading leisure and prestige locations such as the historic Holyrood Palace and Musselburgh Racecourse.
McAreavey's foray into catering began in 1985 when, aged 23, she baked products for local delicatessens to fund her accountancy studies. The products became so popular that in 1987 she realised she needed to expand. She borrowed £45,000 from the bank and bought a small sandwich bar and delicatessen called Le Bistro.
The recession had just begun and Mc-Areavey, finding herself struggling, started supplying working lunches to local companies. Business took off and in 1989 she won contracts to supply the Chamber of Commerce and the Law Society of Scotland. This prompted another acquisition - in 1994 she bought special event company Smile Parties.
"This dovetailed into a sector where the potential was huge, but which was difficult to break into because each venue had its own recommended caterers," she says.
The market was dominated by a company called Crawfords. Once again, McAreavey set out on the acquisition trail, but in 1996 her offer was rejected. Three months later, Crawfords went into receivership and Le Bistro made its move.
"Overnight our turnover went from £400,000 to £1m. For several months it was immensely hard work and I really needed the loyalty of my staff," says McAreavey, who found herself handling such prestigious events as the Highland Show.
It was a turning point not only for Le Bistro but also for event catering in Scotland. "Crawfords had kept both quality and prices down, which hadn't done the industry any good," says McAreavey. "The challenge was for us to try to persuade clients that if they wanted quality, they would have to pay increased prices. We did it gradually and most clients agreed."
Four years on she still has these clients. Business has built up steadily and in 1998 Le Bistro scooped the prestigious contract for the Royal Yacht Britannia, taking the company's turnover from £1.5m to £2.2m. In 1999 Le Bistro won its first contract outside Scotland, at the Newcastle Theatre Royal.
Next week: Pride and Good Eating Company
