Member Article

Family-run restaurant achieves success during the downturn

The Chancel Wine Bar and Café is an intimate, family-run establishment in Plymouth. Originally set up by husband and wife team, Jamie and Paula MacLeod-Johnstone, as a wine bar 15 months ago; it has rapidly become one of the town’s most well-loved restaurants. It offers diners a choice of 42 wines alongside an array of light bites and more substantial meals, cheeses and deserts; and recently won the Best Bar None award for the Best Food Bar in Plymouth.

What was the business challenge?

Paula and Jamie’s business objective was simple; they wanted to build a successful hospitality business in Plymouth. Prior to opening The Chancel, they had no experience in the industry but saw the empty premises and decided to take the leap, as they felt Plymouth was lacking in places for discerning adults to enjoy an evening out.

How was it overcome?

In September 2011 Groupon Business Consultant Phil visited the restaurant to ask Paula and Jamie if they’d be interested in partnering with Groupon to drive the business forward. Knowing that The Chancel was still in its early days and that raising awareness was vital, the couple accepted: “We were still a very new business when Phil introduced us to Groupon and what it could do. We knew how tough many restaurants, bars and pubs were finding it in Plymouth, so we wanted to make sure we started The Chancel off on the right foot and did everything we could to make it a success.” Phil, Paula and Jamie brainstormed potential deals together. The couple then sat down to do the sums and calculate the most cost-effective way to run the deal. Two weeks later, it went live. “Our first deal, which we’ve run several times since, was an antipasti platter for two with wine for £14. Diners could enjoy a selection of breads, olives, meats and compliment it with one of six house wine favourites,” says Paula.

What have been the key success areas?

“Our first deal was such a roaring success that we’ve run one a month since,” explains Paula. “We’ve experimented with slightly different variations to make sure our customers keep coming back to try something new at the restaurant. All in all, we’ve sold over 900 Groupon vouchers. By offering either a main or starter deal, we’re able to upsell additional courses and drinks; 80% of our Groupon customers buy something else from the menu. For the £14 antipasti deal the average additional spend is £20. That’s a 70% increase in takings per Groupon table!”

Paula and Jamie have been careful to ensure these customers get the same treatment and portion sizes as everyone else. By doing so, they’ve climbed up the Tripadvisor rankings to become the third best restaurant in Plymouth, with a whopping 4.5 out of 5 stars. They commented, “we’re thrilled to have been rated so highly by our diners in such a short space of time. Groupon has helped put The Chancel on the map and made us a name in the community. Whilst other restaurants in the area are quieter, we’re always full to the brim. We schedule the deals to fill our quieter evenings on Mondays, Tuesdays and Wednesdays, so the surge in deal diners doesn’t disrupt our usual service. We must be doing something right because over 75% of our Groupon customers come back within the next month.”

What’s next?

“Working with Groupon has helped us build a successful hospitality business during the recession. The whole experience has been positive,” says Paula. “Not only have we boosted revenues and raised awareness, but our Business Consultant is always at the end of the phone. The additional business tools in Groupon’s Merchant Centre also help us to run The Chancel more smoothly. At a glance, we can see how many deals we’ve sold, how many have been redeemed and how many are left to fit in. This means we can adjust our staff levels and bookings schedule to make sure they all get fulfilled.” Paula and Jamie plan to keep running Groupon deals on an on-going basis.

This was posted in Bdaily's Members' News section by Ellen Spenceley .