Case study 4 – Acquisition of Distressed Wine Bar / Restaurant 2012-13
Cheswick Capital recently acquired a loss making wine bar and restaurant called Foxtons in Northumberland town, Berwick Upon Tweed.
Foxtons Wine Bar & Restaurant has enjoyed a successful trading period in its first five weeks, since being taken over by Cheswick Inns Limited, a special purpose vehicle owned by Cheswick Capital and a local private investor.
We have welcomed old and new customers over Christmas 2012, many people returning to sample the atmosphere and the good food and wine. Christmas 13 saw a substantial rise in sales and a good profitable trading session.
We appointed new general manager Tracey Thompson to lead the hands on turnaround and she has now rebuilt the staff and delivered a busy bar with friendly people serving our guests. New chef Wendy Robertson, joined Jamie Lee and we have recruited a third chef called Rodrigo DeHaro who hails from Spain.
With Sunday lunches, weekday lunch, afternoon light bites and full dinner service 6 days a week, we now have the team to deliver quality food, consistently.
We have actually INCREASED staff numbers and we are seeing the benefits of higher sales and margins. Sales have seen a rise of over 35% and the business generated a good profit in its first period of the turnaround, under our ownership. Most turnarounds focus on cutting costs, of course, but we have increased Foxtons overheads because we felt the customers were being under-served by too few employees.
We look forward to the complete redecoration and introduction of new quality toilet areas in January 13. After that, it is a case of getting on with delivery of high quality food and beverages, in a nice, clean, contemporary venue.
So a successful first few weeks, but like any turnaround job, this is a medium-term plan to deliver consistent sales, drive profitability and eventually a strong return on our investment.
See our new marketing work here - still so much work in progress, because there was no previous web presence!
www.facebook.com/pages/Foxtons-Wine-Bar-Restaurant/497567843598538 0 to 1,200 likes in just 9 months
Need help in building this level of marketing for your business? Please call now!
If you are an investor in, or owner of a small business and either want turnaround advice, or you wish to sell a stake or sell out altogether, please give Cheswick a call 020 7416 6677.
