How has The Pint Shop created such great success in just three years?
Richard Holmes and Benny Peverelli opened The Pint Shop in Cambridge in November 2013 with £200,000 from investors.
In late 2014 they announced plans to expand into two new locations and raised £600,000 in one day from existing investors.
In January 2015 they approached the hospitality industry for £2 million to fund the expansion plan.
They got what they needed, with offers still coming in, because they could show that they have a formula for generating growth, with revenue to match.
Year one £1.6 m
Year two £1.9 m
Year three £2.3 m
They also won 2 awards – from the Times and the Independent – which they estimate brought in an extra £2,000 a week.
Do Simple Things Well
Pitching to investors to raise the initial cash was a wake up call.
They were told, “What you’re proposing isn’t different, isn’t exciting, isn’t special.”
They went back to the drawing board and came up with the ideas that have made The Pint Shop unique – and very successful.
British bread, meat and beer are their staple offerings but done with style and in a way that answers the customers needs before all else.
There are several ingredients that are contributing to the success of the Pint Shop, but the main ones are:
- Good planning and forecasting based on solid experience
- Well financed with growth in mind
- Differentiated from the competition
The friends met in 2008 and had each spent 14 years working in the hospitality industry before they decided to start their own business.
They spent a year working on their business plan and raising money for their new venture before they left employment.
When asked how they will maintain the individual character of The Pint Shop Cambridge when they expand to Oxford, London and other locations, Rich and Benny said,
We’ll give ownership to the local team, guaranteeing the same quality but allowing each branch of the chain to have its own personality
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I loved hearing from Rich and Benny about their ongoing Pint Shop journey. It had all the hallmarks of a great story: interesting characters, huge risk, and a colossal task. What’s also intriguing is that they are now becoming a chain, the style of food and drink offering that they were so offended by when they started. However, all chains start as independents – perhaps the Pint Shop will become a ‘good chain’, with unique characteristsics (not just physical qualities of the venue) at each place that they open.
I liked their answer to the question about maintaining the character as they expand. It sounds so like the way we want Drive to grow! Local autonomy for the team to do their own thing and make the experience unique but within guidelines that guarantee quality.
My favourite pub in Cambridge so great to hear of their success. They are clear about their offering, deliver it well and have shown great courage in their growth plan which is so often lacking in new businesses. Many of us lack the confidence or vision to ‘think big’ and they are truly an inspiration.
It was interesting to hear how Rich and Benny intend to ‘keep it fresh’ and ensure each location has it’s own style despite ‘being part of a chain’ as the business grows.
Their aspirations are also clear by referencing The Ivy as part of a chain – but that isn’t strictly correct. There is only one The Ivy – apart from the one in Dubai – but there are several Ivy Brasseries and Cafes that are all part of a group of 20-30 restaurants and clubs, all built on the reputation of the original.
I imagine most customers have no idea about the ultimate ownership of each restaurant and it proves that you can grow a significant business while retaining individual style and credibility. All power to Rich and Benny – a fascinating success story that I shall follow with great interest.
I read a while back that Starbucks has a range of Stealth Starbucks masquerading as indie coffee shops that it uses for a variety of reasons so your comment about not knowing the ultimate ownership of an outlet is very true!
http://www.citymetric.com/business/your-local-indie-coffee-shop-may-be-stealth-starbucks-637