Ellesmere eating spot still in red
Friday 27th August 2010, 1:49AM BST.
A controversial taxpayer-funded restaurant at a Shropshire beauty spot, which underwent a £2 million revamp, has operated at a loss of almost £35,000 in its first year of trading, it emerged today.
The Boathouse Restaurant beside The Mere in Ellesmere is run by Shropshire Council.
Council officials today said, despite the financial loss, the restaurant is going “from strength to strength” and has seen income rise by 70 per cent in the last year.
Neil Willcox, head of leisure and outdoor recreation at Shropshire Council, said: “Visitor numbers are up and income up by 70 per cent over last year.”
Bosses had forecast a first-year loss of just £785 when figures were released under Freedom of Information rules last summer.
But the scale of the actual loss, which has emerged after another FOI request this summer, is far greater.
Both FOI requests were made by Ellesmere resident Ken Dakin.
Accounts for the restaurant, jointly owned by Ellesmere Town Council, show between July 2009 and July this year, there was a net loss of £34,760.
Accounts seen by the Shropshire Star show gross expenditure for the period was £250,571, including £123,371 on staff costs.
But restaurant sales were just £212,610, while venue hire made a further £3,201.
Most Commented
- Clampdown on Shrewsbury chuggers
- Bishop's gay marriage views do nothing to support bible teachings
- Letter: Alcohol price plans annoy me
- Planners ordered to stay on Newport visit bus
- Letter: Angered by close encounter of the furred kind
- Letter: No sense in overseas job adverts
- The Bleak Old Shop of Stuff doesn't raise a smile
Shropshire Star on Twitter
Keep updated with the latest breaking news and content on our Twitter feed.
Lifestyle
Interactive Dining Out map
Hundreds of reviews by the Shropshire Star and Express & Star's teams to help you decide where to eat.
Entertainment
All the film reviews
Before you plan a trip to the pictures, get our critics' verdicts on all the latest movie releases.
OUR NEW APP
Get the new Shropshire Star app
Download the Shropshire Star’s new app to your iPad or iPhone to get one week of access to our digital newspapers absolutely FREE.
shropshirestar.com
Popular sections
Useful links
Nice to see the boathouse is doing ok, if not brilliantly. I often drink a coffee there and find it a pleasant atmosphere to do so.
One way to improve the olace would to get the boats out again. After all it is the boathouse!
The amount of sunny weekends my friend & I have been there, not only looking to hire a boat ourselves, but listening to others asking about the same. The staff have noanswer as to where they have gone :-(
If the council is willing to offer a deal, I am willing to take on the hire job next year.
I would be willing to run from easter till October. But it would have to be negotiable as it would involve a loan.
Report abuse
put the prices up – that will cover it
Report abuse
How much of the loss was depreciation and capital costs in setting up the restaurant.
Report abuse
Another skewed dig at the Boathouse, and from guess who? Oh yes, Mr Dakin again (yawn).
The normal business procedure is to disregard start-up costs when calculating operating profit. If this is done, the figures look much more healthy, particularly for any premises which has undergone such a transformation. The whole of the mereside is now buzzing with visitors, and has been ever since the Boathouse re-opened last year. Come and see for yourself, Mr Dakin.
Report abuse
i am sure the weather last year from july to september might have affected the takings. it is a lovely spot and i agree about bringing the boats out. this project deserves to succeed and many visitors to shropshires lakeland can help.
we have an excellent forcast for this weekend so enjoy ellesmere and the boat house
Report abuse
Yet more evidence of the stupidity of thinking that an emphasis on the food and drink sector as an economic driver is daft.
Too much attention is given to “foodieness” and restaurants.
Report abuse
“Yet more evidence of the stupidity of thinking that an emphasis on the food and drink sector as an economic driver is daft” – this is a double negative – actually what do you mean?
Report abuse
Thanks Karenk.
I meant that it’s stupid/daft to think that the food sector will have any significant or longterm benefit to the Shropshire economy.
Report abuse
I do not agree.
Report abuse
I really disagree with you. Go to any small town with decent cafe culture and the place is buzzing. It’s really important. Seats and tables outside, even in the cold, attracts tourists in to spend their money. They’ve got it right in Europe, it should be happening in Shropshire.
Report abuse
In reply to 1 and 4 above, the boats are run by a private company, The Shropshire Steamboat Company. And guess what, they are running now , at least when the weather is decent!
Report abuse
it seems a bit strange that a resturant with about a 60% wage cost is still in buissness
Report abuse
I think it works out at under 50%, just about, but it still seems to be a terrible way to run a business.
Report abuse
Capital costs are apparently ignored in the “voodoo economics” of local government. The restaurant enjoys one of the best locations in Ellesmere, pays no rent to either of the two Councils, has had around £60,000 of the latest kitchen and other furnishings provided for it from the outset and still manages to make a loss – despite increased sales. I think this speaks for itself.
Report abuse
why one earth does the council run a resteraunt!! for god sake, get on with picking up bins and sweeping the streets this is just squeezing out private enterprise
Report abuse
porthillboy i suggest you only have to look at the foody movement in ludlow to overturn your argument. i suggest the boathouse invents or has made for them the ellesmere sausage or the ellemere cake. good luck ellemere and the boathouse. we foodies must stick together
Report abuse
shambolic. yet another council service which cant cut its cloth, no doubt the cleaners and cafe staff are on about £10 per hour and a final salary scheme meanwhile in the real world most people get minimu wage for this kind of work, the council should not be running cafes
Report abuse
like most council services then, run by amateurs and over paid staff with no business sense, i think the council should get a business manager in place to run all chargable services and stop political control let the market set wages and prices etc
Report abuse
I think what Port Hill Boy is suggesting is that in tough economic times one of the first sectors to get hit hard is the food/drink/entertainment industry.
He is quite right. Discretionary spending is reduced and therefore dinner out with a few adult beverages is one of the first things to go.
I don’t believe he is taking a swipe at foodies (and drinkies, or should that be drunks), but is merely suggesting that the way out of a recession is not to invest in restaurants.
Report abuse
well this should be on the list of council services to be privatised as part of the debt reduction plan for the UK
Report abuse
I am a swan who lives on the mere, and without this restaurant, my family just wouldnt survive. We live off the scraps of food and bread which is thrown to us. So please support us, I really dont want to have to claim Bird welfare. Its bad enough having bloody ducks pinching our scraps. Thankyou.
Report abuse
Maybe more marketing is the answer. I live in Telford and it’s the first I’ve ever heard of the place! I shall most certaintly consider a visit on a fine weekend day.
Report abuse
I’ve said all along, that people running the council, couldn’t survive in the real world, especially if they had to run a “proper” business and this just goes to show that.
Leave the running of “proper” businesses to proper business people and stop squandering our money, while you “play” at being in the real world.
Report abuse
The Boathouse is great! My family and I have enjoyed many a meal here. However, the place needs to be open for longer – closing at 5pm is missing out of a great deal of trade. I hear that the main reason for closing at 5pm is a lack of evening trading license due to its close proximity to the water/mere! Ridiculous situation really. By opening in the evening revenue could be maximised – the potential is huge.
As for the boats – I also hear that the company running it is unhappy about a lack of support/patrons. All I can say is get the damn things in the water/rent-able and people will use them. I have lost count of the times this summer that we have walked past the mere saying ‘if only the boats were running’. All too often the are moored up close to the island or not even in the water. If you want more business then make them available! It’s hardly rocket science.
As for the boathouse – GOOD JOB – Keep it up and increase your trading hours.
Report abuse