We started with discussions on working with private equity and ended up pondering how many more pizza concepts the UK could handle. The debate was fascinating, sometimes argumentative, but always informative. We all walked away feeling more energised and clearer on certain issues than we had been before.
This experience reminded me of the importance of spending time with industry peers to debate both pressing and not-so-pressing issues. It’s crucial to find ways to improve our future together, and I feel very lucky that my job allows me to talk to people frequently. I find that I am given the opportunity to listen more often than most, which really is invaluable in an industry like ours. I get to hear and better understand different experiences of those around me. And, as someone who is both a supplier and an operator, I also hope that I can relate to challenges more easily than others.
One of my reflections after the dinner was why the pub and restaurant industries seem so far apart. I don’t see them as fundamentally different. I often argue that my own village pub has a higher percentage of food sales (70%, for those interested) than the average restaurant. We serve less alcohol because someone is always driving.
I concluded, perhaps incorrectly, that the biggest difference between the two industries is scale and finance. The restaurant sector seems more focused on rapid scaling and has a higher level of ambition than the pub sector. Consequently, it needs more financing, with private equity often backing these businesses. One might conclude that private equity has also fuelled this need for growth. To achieve a threefold return in five years, you have to grow quickly. As a result, the types of people and the necessities of the business model create very different landscapes.
I recently attended a business leaders forum for high-growth companies. Richard Harpin, who chaired the session, asked an intriguing question: who was an accidental business founder and who was a purposeful one? Who had wanted to do it since they were young, and who just stumbled into it? I was fascinated to learn that about two-thirds had always wanted to do it. I was one of those who stumbled into it. There must be a different personality type at play here, but I’m not sure what it is, especially since he mentioned that the best leaders have low ego (not sure where I stand on that either!)
This leads to the question of how we define success. Oijon Rogers, founder of the Devonshire Arms, defines success as having one amazing business. One of the worst questions people ask at conferences is how many sites you have. I hate that question, but I still ask it myself. Should we be asking how many sites you have and how many you want? Should we be asking how much money you make, or is that too personal? Should we be asking what success looks like for you and how you will get there? Or should we simply be asking how much you enjoy it?
One of the five attendees was an operations manager for a chain of restaurants. We spent a lot of time debating whether he wanted to go out on his own and what was stopping him. Friends of his had done well, and he really wanted to, but wasn’t quite brave enough. Yet. Maybe he will be like me and become an accidental business founder. And like his friends, he might start in pubs, not restaurants.
By the way, the consensus on private equity was clear: avoid it if you can. Sure, it presents incredible opportunities, but the relentless pursuit of growth isn’t for everyone. Many of us simply aren’t wired that way. As for our thoughts on pizza, we agreed it has lasting appeal. It’s a versatile vehicle for a variety of flavours and has the distinct benefit of being challenging to replicate perfectly at home.
So, gather your group of five, enjoy a hearty meal, and, like me, emerge with renewed energy and passion.
