Our Solution
We conducted a detailed evaluation of the site including all aspects of trading and management and produced a recovery plan and supporting budget P&L.
We were aware of the high staff costs relating to the business and therefore opted to replace the current management couple.
We replaced the current management couple with a single operator (Chef/Manager) and agreed a maximum spend on weekly wages relating to the turnover of the business.
We agreed a Business Development Fund with the client to perform some basic repair work to the letting bedrooms/bathrooms to make them let able again, recruited a landscaping company to re-design the poorly maintained grounds/car park, purchased new signage and hanging baskets.
We re-designed the menu to improve margin and appeal.
Achieved substantial savings in costs to the P&L and therefore, enabling us to manage the property on a Fixed Fee of £850 per week, whilst paying a commercial rent of circa £22,500.
The Outcome
Turnover is currently at £4700 per week over a period of 4 weeks.
The site as a standalone business is now at a break even situation. This will currently cost the client a management fee of £250 per week upon review.
At this stage the business has become re-let able as a tenant would operate the business without the cost of a manager.