Speciality Food January 2024
next 10 to 15 years we can take more from the chains.” On the subject of refurbishment, Stefano implores businesses to plan for the bigger picture, and to not leave works until the last minute. “Waiting until an area starts to look worn or grubbymisses a trick and could turn off customers. It looks like a sunk cost because you’re not getting an immediate ROI, but if you don’t get a hold of refurbishments early, it could cause issues down the line.” Stefano advises others to “recognise what is essential, what’s offering, though, has to be good, as “10 years ago people didn’t know much about coffee, but now there are coffee geeks. You have to ensure what you’re selling is decent.” It is the “responsibility” of independents to take on the supermarkets and high street chains in this sector, he adds. “The products we have are far superior, and it’s a good idea from an economic and local perspective. The more we have a supportive network in place in the sector, talking about the opportunities in refurbishment and expansion, in the moment, as customers continue to be more considered with where they spend their money, coffee and cake are becoming the default choice for many. “It’s a low barrier to entry,” explains Stefano, who says these sub-£10 spends can block tables, and anyone thinking of adding a café or restaurant to their business should take this into consideration. He suggests having defined times for lower ‘cake and coffee spends’ or even, if the budget allows, having an area specifically dedicated to light bites and hot and cold drinks. The specialityfoodmagazine.com 23 CASE STUDY “We had to be different,” Stuart says of the expansion. “We wanted to produce as much as we could within the shop. We do pies, sausage rolls, Scotch eggs, quiches – and we’ve got one of the largest selections in the country on the butchery side, including ready meals, that’s how we’ve diversified.” More recently a large modern restaurant opened, replacing the café, and although it’s been beautifully done, and thrives at weekends (especially Sunday lunch), Stuart cannot deny they’ve lost some loyalty from customers who’d come to rely on their café offering. “People just want to come in for coffee and a bit of cake,” he says. “And we now only do that at certain times. We get hammered by customers!” The effect has been so noticeable, they’re seriously considering adding a separate coffee shop to cater to demand, which he says is disheartening in some ways, as after VAT has been taken off a £5 spend, it puts very little back in the till. However, the development did give him the boost he needed to invigorate the main shop, alongside his son, who has joined the business “because I’d let that get a bit behind.” And having a fully functioning restaurant is proving a great way to manage stock. Whereas a spare bit of lamb leg in the butchery might end up becoming a few packs of mince or burgers, a premium can be commanded if the same cut is used, as leg steaks for example, in the restaurant, at £18 a portion. “And that works for us on margins and profitability.” Stuart’s main advice is to seriously consider whether you can staff your expansion. In his rural location, he’s found it tough to recruit – spending hundreds of pounds a month to find suitable, reliable candidates. Cafes are king at themoment Stuart Gooderham and his family set up Goodies Farm Shop 21 years ago, in response to sales from pig farming bottoming out. From its beginnings, going from selling potatoes roadside, to having a butchery in a trailer, it was just a year before it turned into a real farm shop operation, with a café. nice to have, and what you need to get ahead on, whether that’s upgrading equipment, or painting, or changing tiles. It all needs to be planned in advance, the cash flow thought through, and ways in which you are going to track success.” His own advice has been put into action recently, as Macknade changed its wine shop, moving shelves, adding new light and music, andmaking some cosmetic alterations. Already the business is seeing an uptick in sales here. “As business owners, we come in through the back door and just get on with our work. But we need to see each part of our business from a customer’s point of view, and what theymight want or need.”
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