This is the latest in a regular series of Business Q&A features published weekly. This week, we spoke to Paul Kinsey, owner of hospitality and leisure company the Harewood Group. 

Tell us in fewer than 30 words what your firm does.

We own and operate bars and clubs. We have one, soon to be two, in Harrogate, and three, soon to be four, in Sheffield.

We also do consultancy work for other companies looking for turnaround solutions. All the businesses we've taken over in the past – which in Harrogate have included the Viper Rooms, Moko Lounge and the Pitcher and Piano – have been failing, but we turned them around.

We offer a proven management team to landlords, banks, investors and leisure specialists.

What does it take to be successful in business?

Resilience, without question, and dedication is critical.

You need reasonably good leadership strengths. Once you've got more than one site, you're relying on other people, so you need to be able to lead them all.

In this business, you also have to balance being an operator with being an investor. The operator in me always thinks there's something that can be done to turn a business around, but the investor in me has to think about whether it's going to be worth the bother.

What drives you to do what you do every day?

I enjoy it. I've always enjoyed the leisure sector, whether I've been running a plc or the family business.

When we took over the Four Leaf [formerly the Pitcher and Piano on Harrogate's John Street] and there was no one around who could lift kegs, I got stuck in and did that for a couple of weeks.

There are lot easier ways to make money, but I love the immediate results of the customer's experience and the atmosphere you create. There's no better feeling than being in a relatively large venue and being surrounded by people enjoying themselves – in a place you created.

What’s been the toughest issue your business has had to deal with over the last 12 months?

The increase in the cost base, and political uncertainty. Because our sector operates on people's discretionary spend, we rely on them feeling optimistic. When politicians create uncertainty, customers start to question their discretionary spending.

Even potential policy changes are being trailed in the press now. The government seems to be playing out a would-be budget to trial it and then adjusting it according to public reaction. It makes people nervous and more careful – they just stop spending.

We're still playing catch-up from covid. We didn't get any of the support that smaller venues got, because our rateable values were so high. So we ended covid with a £1 million deficit, without any way of recouping that apart from carrying on trading for the next 10 years – so that's what we're doing.

Which other local firms do you most admire and why?

Bettys and Taylors have done a great job in terms of developing their brand and sustaining it.

The other one I'd mention is Rudding Park. They've done a fantastic job of developing a business that will last through the generations. It stands out as fairly iconic, really.

Who are the most inspiring local leaders?

Off the top of my head, I can't tell you who the CEOs of Bettys and Rudding Park are, but they would be the kinds of people I would mention.

In terms of politics, I struggle to see anybody in local politics in recent years who has impressed me at all. I haven't seen anyone who does anything other than toe the party line. There's no common sense or strategic thinking.

This town has a huge amount of history and legacy, but it's all just dripping away. It's incumbent on local politicians to stop that, but it's not happening.

What could be done locally to boost business?

The town has got a great heritage and we need to lean into that. The town needs vibrancy, and there could be a lot more done to encourage restaurants and bars to promote Harrogate as a place to come to.

The conference trade needs a late-night economy – two or three days at a conference needs to be fun – but the council has never embraced that. There seems to be a complete level of disinterest in harnessing the leisure economy to help land those big events for the town. Wetherspoons is by far the busiest pub in Harrogate, and that should tell them something.

Tourism is the town's major source of income, so what did they do? Scrapped the tourist information office. That doesn't sing out to me that tourism is on their agenda.

They should expand the Turkish Baths. The rest of that building is standing empty, costing the council £200,000 a year. But there's huge demand for spa facilities – people in their 30s still want the spa town ideal, but it has to be modern and in keeping with the times.

Best and worst things about running a business from Harrogate?

Harrogate is a lovely town with really nice people, in general. People here are fairly accepting of the effort it takes to create new concepts and will try things with an open mind.

We've always found audiences in Harrogate to be very responsive. They're challenging, but they do 'adopt' businesses and feel that they belong to them.

The worst thing is the cost of doing business. Business rates are ridiculous, especially when you don't get anything back for it.

It's probably 50% cheaper for me to operate in Sheffield city centre than it is in Harrogate. A lot of retailers have exited over the last five years, and there's little sign of a new wave coming in to take their place.

What are your business plans for the future?

I don't have any particular set target. We're family-owned, so we don't have anyone else's target to hit.

But it's clear there's going to be some consolidation and shake-up in the market, so we'll be looking for opportunities. We'll grow opportunistically. The big pub companies don't have that operational nimbleness to adapt in this climate, and that will certainly create opportunities for us.

We've just taken over the Foundry Project on the Ginnel in Harrogate, so we'll see how we go with that.

What do you like to do in your time off?

For the last three or four years, every spare minute has been spent with my grandchildren – I've now got eight.

I also like taking short holidays to Rome, Prague, Croatia, Malaga – places that are fairly accessible from Leeds Bradford Airport.

Jet2 have done a fantastic job at Leeds Bradford – they've made it as painless a travelling experience as there has ever been.

Best places to eat and drink locally?

Will & Vics [on Cold Bath Road in Harrogate] has always been a staunch favourite with everybody.

We like The Ivy [on Parliament Street] too. It's not cheap, but it's consistent and you can always get in there!

Brio's [on King's Road] is a really good independent restaurant. They do a really good job too.

I also like the Alice Hawthorn [at Nun Monkton] – it's consistently very good.

I don't particularly like formal service. All these four restaurants serve good-quality food and wine, but without standing on ceremony. They all tend to employ nice people who are naturally friendly as well as being well trained. You can train someone to be 95% perfect, but you can't train them to be nice, diligent and reliable – that comes down to the individual.

If you know someone in business in the Harrogate district – including Ripon, Knaresborough, Boroughbridge, Masham and Nidderdale – and you'd like to suggest them for this feature, drop us a line at contact@thestrayferret.co.uk.