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28
Aug 2022
Hot Seat: Leading Bettys in turbulent times
The board room at the top of Bettys on Harrogate's Parliament Street provides panoramic views of the town centre.
Spectacular as they are, it's impossible not to look down now without a sense of trepidation.
Recession, cost of living crisis, inflation, recruitment problems and energy bills are rarely out the news and you wonder how many of the shops and businesses will still be around in a few months time.
Simon Eyles, a member of the collaborative chief executive at Bettys since June 2016, says it feels like the most challenging time in his career.
Even Bettys? The queue for the flagship tearoom in Harrogate still snakes around the corner but Harrogate's best-known brand is not immune to the turbulence.
Its latest accounts, published in July, warned of 'significant trading challenges' ahead and revealed that although turnover grew by 8.8% in the year to October 31, 2021, operating profit fell by £1.6m to £15.5m.
Mr Eyles says recent accounts are difficult to read because there have been so many one-off costs due to things like covid but accepts these are tough times.
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He quotes ex-boxer Mike Tyson's famous line that 'everyone has a plan until they get punched in the mouth', adding: "It feels like we have been punched in the mouth a lot recently." But he remains upbeat.
Northern roots
Born in Stockton-on Tees and now living near Boroughbridge, Mr Eyles has spent his entire student and working life in the north.
He did business studies at Sheffield Hallam University and subsequently held senior marketing and commercial roles with household brands in the food and retail industry, including Asda, McCain and Lurpak.
A Middlesbrough FC fan and former county tennis player who now plays for Boroughbridge Tennis Club, he joined the Bettys & Taylors Group as marketing director for Taylors of Harrogate in 2011.
In 2016 he transferred to his current role at Bettys, which employs about 1,450 staff at its Starbeck bakery and five tearooms. He says:
Outside Bettys' flagship tearoom in Harrogate.
Five chief executives
My Eyles is one of five chief executives under Bettys' unusual collaborative structure. He says:
The leadership isn't planning any fundamental changes. Bettys will continue to operate five tearooms: Harrogate town centre, RHS Harlow Carr, York, Ilkley and Northallerton. Mr Eyles says:
Harrogate town centre and York are the busiest and attract more tourists for afternoon tea. Harlow Carr, he says, does well on the retail side from people popping in as part of a trip to the RHS gardens whereas Northallerton and Ilkley have loyal local followings seeking tea and cake.
There's also Bettys' bakery in Starbeck, which is significantly affected by rising energy costs. My Eyles says:
Christmas build-up begins
September marks the start of Bettys' build up to Christmas, which is its busiest time of year.
The window displays and products are planned and the Christmas catalogue will soon be published.
Last year's Christmas window display in Harrogate.
Last year the company reported its highest ever sales figures for a Christmas period. Online sales have doubled since the pandemic.
The premium market Bettys serves is to some extent insulated from the recession but equally many people are more cutting back on treats.
Recruitment remains a major headache, especially for kitchen staff. Brexit, he says, is having a delayed effect and making recruitment harder. It's also prompted the company to stop trading in Europe:
Bettys was founded in 1919 by Frederick Belmont, of Switzerland, whose family still owns the company. Mr Eyles, who has a 14-year-old daughter and two labradors, says the family is not involved in day-to-day business but are regularly updated and make strategic decisions.
His advice for companies struggling to survive?
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