14 Bryngarw House & Park Health and Wellbeing Overview and Scrutiny Committee 16 th January 2012 Observations Overview Item 4Appendix A

15 ‘To provide the Committee with an update on alternative internal options for Bryngarw House.’ This presentation aims to give members of the committee an insight into the findings and motivations behind developing a new business model for Bryngarw House & Country Park. Item 4Appendix A

16 Context Need to reduce subsidy at Bryngarw House in line with MTFS Need to address current perceptions of the House & Park in light of customer expectations Need to provide a basis for an in-house proposal as an alternative to external market testing As of Cabinet decision 26 th July 2011 need to produce in-house business case to achieve MTFS savings and create a sustainable, improved offer at both the House & Park Item 4Appendix A

17 Review methodology Analysis of financial performance Analysis of marketing, identity and position in the market places Produce informed, evidence based principles on which to establish a business model that contributes to corporate themes and delivers against the medium term efficiency proposals Identify areas for improvement and suggest a number of short term ‘quick-win’ improvement issues Item 4Appendix A

18 Health warnings! This review is an observations report. A business case based on the findings is the next stage and is in development following the Cabinet decision to reject the external options Mixed amongst clear facts is opinion The review was originally completed in early More recent data is now available but will be compromised by the ‘marketing’ exercise undertaken to sell the house Item 4Appendix A

19 Financial facts £1 in income for every £1.19 spent on the total operation £1 in income for every £2.10 spent on the house operation £1 in income for every £0.81 spent on the bar and catering operation Current budgeted subsidy is £108, 660 Bar and Catering operates at a £100K surplus while the House’s other functions operate at a £209K deficit As a percentage of total expenditure 53% is spent on employee costs. Industry average 30%. There is no capital allocation At the end of October (period 7) the Bryngarw House account is in surplus approx. £35K. Item 4Appendix A

20 Bryngarw House Costs % of total spend £852, 280 Item 4Appendix A

21 Bryngarw House Income 1998/99 – 2010/11 +15% or £100K +7.5% or £50K Item 4Appendix A

22 Operating environment good performance given the legal, technical and financial constraints “In our opinion, the level of turnover is relatively commensurate with the fair maintainable level of trade (FMT) of hotel business with a similar profile.” Savills. Staff are committed but are not trained industry professionals – all levels Attention to detail Strong local market Confused identity – a local authority service masquerading as a hotel or vice-versa? House & Park? Item 4Appendix A

23 The House & Park Currently there are two entities working in isolation 2 Logos, 2 marketing officers, 2 defined roles. Big opportunity but needs single leadership, management and vision Item 4Appendix A

24 Key messages The status quo ‘hotel’ option is not an option. The House is a successful function venue and the restaurant is held in high regard – these functions can work Fixed costs must be driven down – a high season only approach could be considered with complimentary off-season strategy “the business showed a net operating loss of circa £75k and £93k for the years ended 2010 and2009 respectively. It would appear that the primary reason for the loss making position is the considerable payroll costs within the business.” Savills. The House and Park must work as a single entity, focussing on the visitor and customer needs – it has the potential to penetrate tourism markets e.g. activity breaks, walking festivals, the family market etc. Item 4Appendix A

25 Key messages. A tourism focussed marketing approach is urgently required with better data capture to inform future direction. Establish the house firmly within the context of the Park and as part of the heritage of Bridgend for the people of Bridgend. Re-align the budget to reflect a new business model – review expenditure, and maximising income through new opportunities. Item 4Appendix A

26 Strengths and Weaknesses Food quality & experience Local market Wedding co-ordination and satisfaction Civic ownership Gateway to the Garw Valley and allied tourism opportunities Lack of Total Offer at House & Park Fixed Costs Tourism industry expertise and training Out-of season trade Marketing and information management Item 4Appendix A

27 Improvement areas Several areas of the house can be improved through attention to detail, general up-keep and operating procedures Promotion of informal dining options Telephone answering service Urgently implement public wireless access Improve data capture arrangements, explore the e- market and engage tourism colleagues Capitalise on One Historic Garden and COASTAL Item 4Appendix A

28 Emerging recommendations Phased capital investment, prioritising improved business facilities[ wifi etc], enhancements to bedroom décor, and exploration of increasing the size of the current bar area and replacing the current marquee etc. Improving the marketing function to develop an effective plan based on the priorities identified in the business case and using intelligence and data more effectively. Clear brand identity. Integrating the management and staffing of the house and park to develop a more holistic overall Bryngarw offer Developing a more seasonal approach to the House opening hours around accommodation, playing to the current business strengths and lowering fixed costs etc Item 4Appendix A

29 Medium term Business case development and options appraisal 1.Implement a new in-house business plan placing the house at the centre of an aspiring country park destination. 2.Consideration to establishing Bryngarw House as a trading arm of the Local Authority e.g. a Local Authority Trading Organisation. 3.As above but establishing Bryngarw House as a Social Enterprise. 4.Expansion of Healthy Living Partnership Project Item 4Appendix A