Turning up the eats

Running a pub at the end of a village, on a road to nowhere, doesn't sound like a profitable business venture, but that's what tenants John and Sue Hughes have made of the Globe Inn (formerly the Globe hotel) in Overton, Lancashire.

Since the relaunch of this ailing pub with rooms in May 1999, the Hugheses have seen significant growth in wet profit, accommodation and, in particular, food.

As John Hughes points out: "People do need to have a reason to visit the Globe." And food has been their solution. Both John and Sue have a background in Bass, predominantly with Toby Carveries, so the introduction of a carvery-based restaurant to the Globe was a natural step and one endorsed by owner Mitchell's Brewery.

Net food sales have risen again this year from £4,400 a week in 2000 to about £5,300 in 2001, an increase of £900 on the success of their first year. Despite continuing problems with inconsistent business, creative ways of dealing with food miscalculations have resulted in monthly curry evenings, an idea that has worked as a successful marketing tactic locally and has helped to increase profits.

"We have to try to pitch our selling price at about £5 to match local emphasis on good value, which can be difficult," says John. "But making the margin is straightforward because otherwise the meat would be thrown away."

Drink sales have not seen a corresponding success, net profit broadly holding at last year's figure of around £3,300 a week. "It's a bit disappointing," says John, "but as we have become increasingly known for our food, the pure drinkers have moved to the other village pub."

With only one large room for both drinkers and diners, the clash of interests was one they had identified in advance, according to John. It is not something they appear overly worried about, however, looking to their six rooms as a more secure method of maintaining profit margins.

Hiring a marketing specialist to target local business has proved a winning tactic, with turnover from accommodation seeing a £200 growth per week over last year. The average achieved room rate for a double room is £35 off a rack rate of £49.50, but low overheads mean the focus on filling rooms is reliably profitable.

Perhaps the biggest drama of the past year, however, has been the loss of former managers John and Sally Hunt. "We always knew they had come to us on the understanding that it was a stepping stone to owning their own pub," says John Hughes, "but we just didn't expect them to leave after only 18 months."

When the chance came for the Hunts to buy their own tenancy in Sally's home village of Eyam, Derbyshire, they all knew it was a once-in-a-lifetime opportunity. Opening a new pub-restaurant in Derbyshire at the same time as foot-and-mouth broke out has meant a struggle for the Hunts and their seven-bedroom Miner's Arms. "I think they're over the worst now," says John Hughes.

The loss of the Hunts, however, meant an opportunity for recent Acorn winner Yvonne Marie Lomas. Former deputy manager at the Hugheses' other tenancy, the Hest Bank hotel in Lancaster, Yvonne is now full-time manager at the Globe.

"The benefit of having Yvonne as manager at the Globe has meant we are now much closer and more involved with the business ourselves," says John. "Because John and Sally were as experienced as we were as managers, we tended to leave the day-to-day running of the Globe to them while we focused on Hest Bank." Yvonne's background as a chef has also meant a reinvigorated focus on gaining profit from the carvery.

A more practical advantage has been that a lower salary payout to Yvonne compared with both of the Hunts' has resulted in a decrease in overall overheads. This has in turn allowed them to take on some day managers at Hest Bank and a deputy at the Globe. "We need the time to focus on developing ourselves, not just running day-to-day business," says John.

Immediate plans include applying for a music and entertainment licence based on the success of a recent karaoke evening. "We were worried the music would compete with the food," says John, "but it worked really well. If we get a licence, we'll definitely be exploiting it for more than just karaoke."

The story so far

John and Sue Hughes, successful tenants at the Hest Bank pub in Lancaster, took over the tenancy of the failing Globe hotel in nearby Overton village in May 1999.

They immediately appointed old friends and colleagues John and Sally Hunt as managers. Since then, the Hunts have moved to Derbyshire to establish their own pub.

Yvonne Marie Lomas, former deputy at the Hest Bank and a recent Acorn winner, has taken over management of the Globe and is continuing their success.

The Globe Inn

Main Street, Overton, Lancashire LA3 3HD
Tel: 01524 858 228

Brewery: Mitchell's
Tenants: John and Sue Hughes
Manager: Yvonne Marie Lomas
Projected profit 2000/2001: £50,000
Net profit 2000/2001: £30,000
ETC rating: three diamonds
Target wet net sales 2002: £185,000
Target food net sales 2002: £164,000
Target accommodation net sales 2002: £25,000

Next week: Devonshire Fell one year on