Saving money and raising money: Life as a hotel restaurant

Tell me a little about the history of Northcote?

Northcote was established in 1983 by myself and Nigel Haworth with local businessman John Wolstenholme. It was a six-bedroom property, development in 1992 changed it to a 14 bedroom hotel,in 2013 increased to 18 and in 2014 we became 26 rooms as we are today. Northcote has held a Michelin Star since 1996, 27 Years, Lisa Goodwin Allen has been at Northcote since 2001 and has been Executive Chef since 2015. The hotel was developed in 2012 by Lynda and Richard Matthewman and they sold the property to The Stafford Collection in February 2019.

What was the reason for stopping full 7-day service?

The reason for stopping seven days was on the out-turn of the pandemic we simply did not have enough staff to run the property. We set our stall out to be full and run for five days to ensure we could command the standards and deliver a great experience with overall reduced running costs. The strategy worked surprisingly well more than anything due to the high volume of business and the extraordinarily high occupancy driven by the UK staycation markets. This made a super charged business in a controlled window – and ultimately this was super successful.

What has prompted the return to full seven-day service from April?

The return is all about risk and reward, firstly the recruitment landscape has changed, our head of People and Culture, Courtney Maksymow has done a first-class job in recruitment and retention to now be in a position to reopen. We also see the market changing and not being as fully driven as it was, in short if we lose market share on Wednesday, Thursday and Friday we would need to make adjustments to the infrastructure to afford to continue due to the revenue drop. In turn that would mean after rationalisation you would not have enough key skilled staff to deliver on weekends, high days and holidays, putting unnecessary pressure on the loyal team that remains.

By reopening we believe we can maintain a stronger staffing structure, increase sales opportunities as so many places are now five days that there is an actual market for Monday and Tuesday, and we hope in theory the revenue displacement will be replaced by the revenue on the Mondays and Tuesday. They will be lower than other days but will add a contribution to the operating expenses on the property. Interestingly, in the first two weeks we are reopening, we have 73% and 85% occupancy. It’s a gamble against the trend however, myself and Stuart Procter, The Stafford Collection COO, believe it is the right decision to re-open. This also would bring back some work life balance to the workforce, as with the intensity of five days we currently all need to be here most of the time so to speak. We have rolled the dice and we hope it works.

Do you think being part of a hotel helps a restaurant succeed?

100%, bedrooms feed the clientele in the restaurant. Bedrooms are a key part of the profit contribution that can help underpin a restaurant in more challenging times. The hotel also allows marketing opportunities to drive both revenue in the restaurant and the hotel.

How will being a part of the PoB help Northcote succeed?

Being part of POB is a 100% non-for-profit organisation that focuses 100% on the UK market which in our case is 98% of all the business we enjoy. We are fifty-two like minded properties mainly in the countryside that naturally share the same style of market and can share as we do not have geographical threat.

How happy are you with raising £73,000 for Hospitality Action?

Absolutely delighted why wouldn’t we be! It is a terrific testament to the quality of our client base that they have supported so well – I also believe by maintaining one focused charity has enabled the DNA of the cause to be instilled in the Northcote client base over the years we have been doing it. Therefore, they understand the case, appreciate its challenges and are happy to support and are more vested in the cause!

Why did you choose to work with Hospitality Action?

We chose Hospitality Action as the number one charity in our industry, we believe in what it stands for, we believe and trust in its governance and we have witnessed support for our own team members in times of crisis, during bereavement, sudden death, alcoholism, personal challenges, and the like. It is a 1st class charity for our hospitality family. I am staggered that not every conscious employer within our industry is not involved in the EAP program to assist and help their most valued assets within their businesses at a contribution of only £5.50 per annum per employee.

What are your hopes for Northcote for the whole year?

I hope that Northcote has a robust year and our incredible team keeps their truly positive spirit that ultimately combats the economic challenges we will no doubt face. It’s vital that we work closely with our parent company The Stafford Hotel and as a collective we focus on the team, education, training, development and 1st class welfare. Ultimately this will deliver an inspired workforce that will deliver a 1st class product that our guests will enjoy.