Lynton and Barnstaple - Operations and Development

Sorry misread you post - I was referring to the OSHI.

 

For a commercial operation it is more common to take a flat (interest only) mortgage, but possibly for a shorter period (10/15 years ?), to allow the business to get the benefit of the cash flow and also of the effects of inflation. Part of the borrowings may also be by way of overdraft, allowing the business to offset periods of cash surplus (seasonal?) against the loan to save interest.
In the case of OSHI much will depend on the way the owning body wants to operate and the terms they can negotiate with their bank.

One option I think you have overlooked is that of letting the Inn premises out to an independent operator at a reasonable rent. The independent then takes the pub business risks and rewards whilst the OSHI Trust retains ownership of the property and can develop the rail side of it as and when required. Win/win ?

 

A significant risk with this is that you inadvertently get 'the independent operator' who is the tenant from hell! OK, I exaggerate a trifle, but nevertheless it would be quite possible to get someone who could damage the reputation that one would seek to be creating/enhancing. The OSHI could (should?) clearly be instrumental in building the reputation of the L&BR.

 

While it may not be an ideal fit for the railway business wise I thing they could learn a lot from someone like Weatherspoon's

 

I’m not sure what lessons from Wetherspoons could desirably be applicable to a country destination pub that’s not part of a chain. I’m sure there are basics like stock control, but I’d expect any competent landlord to be on top of that. But otherwise, the type of offering that Wetherspoons provide is so far away from what would make me go out of my way to the OSHI that I’m struggling to see how they’d be relevant.


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the Blackmoor plc would still be responsible for the loans though and if the independent goes squit then what, that option might just make the OSHI look untouchable and the BPLC would have a major headache to sort out

 

That’s also true if they mess it up themselves. Whether renting it out or running it directly BPLC need to find, if they haven’t already, management who know how to run a food & drink hospitality business, not a railway.

 

Quite right. Weatherspoons benefit from Central purchasing which enables low prices, pre-prepared meals to ensure consistancy and an IT system which ensures re-stocking. After all it was stock processing which led to the development of the first Business Computer by J Lyons and Co in 1951.

 

..other than perhaps discounted-rate breakfasts at 7am for all the Depot staff

 

Interesting - A long time ago we looked at buying a Cafe and Bakery - our accountant wanted to look at the books which were not forthcoming. It came on the market again a few years later and the owner said that he wished his accountant had wanted to see the accounts.
Having said that the OSHI seems to be sucessful at the moment so I think the new owners should carry on with the same formula - their website seems to be advertising events well into next year. There is little point speculating until the purchase is completed.

 

Having had the misfortune to sample Wetherspoons food(?) at lunchtime few week ago, no thanks. There's food, chain pub food and Wetherspoons food, in strict order of preference.

 

My thinking is not so much to do with the food or drink on offer, but more about business sponsorship deals, might even steal one of their managers away from them. Looking at the countries hygiene tables, Wetherspoons has the best record for food pre and general hygiene out of all the pub chains. we need to install best practise from day one or it could fail, also OSHI needs to turn around the comments on places like tripadvisor.

 

I agree with you on best practice, and also on ensuring quality. But I'm speechless at the idea that Wetherspoons are the right pattern to follow. I simply don't trust the surveys you're referencing, as my experience of them is a long way off that - and if the comparison is to Brewers Fayre, Harvester, etc., then that's like asking whether I want McDonalds or KFC.

Ultimately, chain pubs are very different businesses to standalone country pubs. They have completely different ways of working, and the skills for someone to run a branch of a chain are very different to someone who can run a standalone business. The only chain I've ever used that has successfully balanced a sense of being a country pub with being part of a chain is Brunning and Price, but even there I have serious doubts about the comparison.

Good pubs rely on good personal chemistry - get that right, and most of the rest follows. What we need to hope is that the L&B recognise what they need to nurture in the OSHI, and are willing to give it the space to do what it needs to, without either bleeding it dry or letting it suck in investment.

 

It is said that a good restaurant is only as good as its chef.

 

So true, if they can get the right person to run the place then it will be find, I just hope some people don't think of it as a cash cow right now. the other thing is of course is that once the pub is owned by the Blackmoor PLC you don't know if the staff will stay and I suspect you will have to also consider such things as TUPE agreements.

Unless they are zero hours contracts

 

i think they are initially using the guy from Moorlands who already oversees the sales/cafe ect at Woody Bay

 

He can nip between WB and OSHI on the train ... oh, wait