Jill Stein: Restaurants should invest in rooms to boost revenue

Restaurants should consider investing in accommodation if they want to weather the current hospitality trading environment, according to Rick Stein Group co-owner Jill Stein.

Speaking to The Caterer, Stein said businesses with the ability to diversify their income streams were likely to be better placed to navigate economic uncertainty.

“Opening restaurants is very challenging at the moment [...] so I would say to anybody, if they can and if you’ve got the space, add bedrooms, even if it’s only two or three – it’s a good source of extra revenue,” she said.

Stein said the decision to convert holiday flats above the Seafood Restaurant into guest rooms in the 1980s has proved highly successful, prompting the group to expand its accommodation portfolio across Padstow. It now operates 38 bedrooms.

Such is the success that Stein said the business successfully submitted plans to Cornwall Council last year to add three studio flats and eight rooms on the back of its St Edmunds House site in Padstow.

But, she said, expansion plans are currently on hold due to financial pressures and that any redevelopment would involve closing existing guest rooms during the works. “It’s something that we are desperately thinking of doing but it’s a bit of hold fire at the minute,” Stein said.

Her comments come as operators increasingly look to combine food, drink and overnight stays to boost revenues and encourage longer visits from customers.

The trend has been particularly evident in the pub sector.

Earlier this year, the Beckford Group opened its fifth pub with rooms and is set to launch a sixth, the King’s Arms, in September. The business also opened its first hotel this month.

Meanwhile, the Chickpea Group opened its 10th pub with rooms last month.

Jill and Rick Stein opened the Seafood Restaurant in 1975 and more than 50 years later the family business now includes 10 restaurants in locations including Padstow, Winchester and London, a pub, a cookery school, guest rooms, self-catering properties and four shops. 

They remain involved and their sons, Jack, Charlie and Ed, have leading roles in the company.

Image credit: James Ram