Hundreds of people gathered outside Bettys in Harrogate today to watch the tearoom unveil its fifth annual Christmas window display.

Carol singers, minced pies and hot chocolate added to the festive atmosphere as the excitement mounted.

Staff worked through the night to finalise the display, which features numerous presents. Then finally at 5.30pm this afternoon, a countdown began and the fruits of the staff’s work became apparent.

The Parliament Street tearoom is regarded as Bettys’ flagship store and marks the start of Christmas for the town’s most famous brand.

You can see a video of the big reveal on the Stray Ferret’s social media channels.

Crowds gathered on Parliament Street.

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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.

“It is a tough time for the High Street and I do worry where things are going. Every retailer needs to be on top of their game in the next six months time.”

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.

“I’m an optimistic person because if you were a worrier you would get yourself into a pickle right now.

“There’s an insight we have that says ‘there’s nowhere quite like Bettys’. That’s something I want every single customer to feel when they leave.

“We need to ensure our menus keep changing by doing things like making sure we have the best service, more vegetarian options. We don’t need to reinvent ourselves or have a revolution — it’s about how we carefully and skilfully change.”

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:

“This place grabs you. It has deeper connections, deeper history. It can be a weight to carry knowing how precious and valuable it is.”

Outside Bettys’ flagship tearoom in Harrogate.

Five chief executives

My Eyles is one of five chief executives under Bettys’ unusual collaborative structure. He says:

“I find it a supportive model as the five of us have different perspectives and areas of expertise, meaning that we can make better, rounded balanced decisions.

“We can move at pace when we need to but sometimes it’s better to discuss, listen to each other’s views, in order to make a more informed decision.

“We certainly are not a ‘command and control’ business, as we have all worked in organisations that have this power dynamic and believe that this is a more rounded, considered approach to leadership.”

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:

“We are Yorkshire through and through. There are no plans to open in London or anywhere.”

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:

“We have to work really hard as to how we can absorb those costs.

“You can’t just keep putting prices up, you have to find the right balance and the queues are sign we have got that equation right.”

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:

“We ship a lot to the United States and Australia but the complexities that are involved with shipping to Europe means that we are not doing it because it’s not worth it for us. I don’t think Brexit has done us any favours.”

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.

“Bettys will be thriving for years to come. We will have evolved but at the heart of it we will always be a magical experience.

His advice for companies struggling to survive?

“If you freeze and wait for things to settle down, that is a big risk. You need to be proactive.”

It is officially Christmas at one of Harrogate’s most famous locations.

Bettys has installed Christmas windows at its tearooms in Harrogate, York, Northallerton and Ilkley.

Father Christmas popped by the Harrogate tearoom for a sneak preview and to welcome the launch of the company’s festive afternoon tea.

It comes days after Harrogate Business Improvement District partnered with the Rotary Club of Harrogate to announce the start of this year’s Christmas Shop Window competition.

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Words like ‘e-commerce’ and ‘digital’ don’t sit naturally with a company steeped in tradition like Bettys and Taylors of Harrogate.

Bettys, which is probably the Harrogate district’s most famous brand, is known for its timeless tearoom experience that echoes of a past dating back to 1919.

But times have changed and when covid forced the closure of its shops the company found it could not meet the online demand for its products.

Samantha Sargison, head of digital and corporate at Bettys, says:

“We forecast ahead and over the pandemic there were times when we were topping out the capacity of the bakery. Customers could not purchase for the next four to six weeks.

“It was disappointing that we couldn’t be there for them when they wanted us but in a way it’s a nice problem to have when you are surpassing demand in that way.”

Bettys, which is still owned by the family of its founder, Fredrick Belmont, hired Brighton-born Ms Sargison to the newly created role in 2017 in recognition of the need to improve digitally.

She had previously worked in London for the likes of Kurt Geiger and De Beers so the transition from selling luxury handbags and diamonds to luxury cakes came naturally.

Bettys has made significant progress in the four years since she joined. Online sales have trebled since 2017 and are 34 per cent up this year already on the figure for all of 2020, despite lockdowns. Ms Sargison says:

“We have more customers than ever ordering online with us. Our e-commerce customer numbers are up 168 per cent versus 2019 and 220 per cent up since I joined in 2017.”

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With shops shut during lockdown, necessity became the mother of invention as the company attempted to fulfil demand for its treats in new ways.

It introduced takeaway afternoon teas for collection during lockdown and when the tearooms reopened it started offering ‘shop from your table’, which allows customers to place takeaway orders at their tables and have their gifts packaged when they leave.

There are, however, limits to what Bettys customers would expect. Ms Sargison says:

“Customers won’t be ordering by app like they do in McDonald’s any time soon.”

She’s also adamant that e-commerce will never replace its tearooms in Harrogate, York, Northallerton and Ilkley.

“The tearooms are the beating heart of Bettys. It’s just another means of reaching the customer further afield.”

Christmas hampers

In retail, it’s beginning to look a lot like Christmas. Bettys’ Christmas catalogues land on doorsteps at the start of October and the orders will then fly in faster than ever until Christmas Eve.

Hampers are the main Christmas product but tea and scones and the famous Fat Rascals are also big business. The speed of digital growth makes forecasting supply difficult for a business selling perishable goods.

Cakes are made early each day at the bakery in Starbeck and dispatched by 4pm for next day UK delivery. Because Bettys doesn’t add preservatives, some products aren’t sold online because they won’t be fresh on arrival. Others are too fragile to post. Ms Sargison says:

“In some ways we’ve made a rod for our own back by maintaining the tradition of not adding preservatives.”

Eighty-five per cent of online orders are gifts, often bought by tech savvy younger people for older relatives so Bettys’ online offering has to be sharp.

“There’s still a lot to do on improving the website itself. It has massively improved from five years ago but still has a way to go to be as efficient and easy to use as possible.

“Last summer we launched the afternoon tea box. We relaunched the checkout this year. It’s about making sure the service and experience customers get online is the same as they get in the tearooms — service with a smile and a welcoming tone to the copy.”

Starbeck bakery

After months of furlough and working from home, Bettys staff are beginning to return to the office.

For Ms Sargison, who leads a team of 10 staff responsible for business-to-business sales, digital, e-commerce and innovation, this means travelling to Starbeck from Skipton.

Working above the bakery and being entitled to free lunches has its perks but it’s a lot of travelling for a mother living in Skipton with two children.

But she says she feels valued at Bettys, which she describes as the northern equivalent of Fortnum and Mason.

“It’s a family business and you feel it from the moment you join. I have worked for companies where I’ve felt like a cog in the wheel but I certainly don’t feel that here.

“Bettys has got a big vision. The pace might not be the same as it is in London but it has that same drive and ambition.”