ON-TRADE: UNDERDOG – Every dog has his day

One-time novice bar owners Will Beckett and Huw Gott are now the driving force behind the Underdog Group. Julie Sheppard catches up with them as they launch their new on-trade business consultancy

“We felt like underdogs,” says Huw Gott, explaining why he and business partner Will Beckett decided on an unlikely moniker for their bar and pub group. “With The Redchurch [their first bar] people wouldn’t give us credit. We couldn’t get quite as good a deal as we wanted to, because we were first-time operators.” And so Underdog Consultancy was born. Its mission: to give advice and guidance to first-timers, not to mention a helping of kudos to reassure potential investors and creditors.

Gott and Beckett, both aged 29 and co-directors of the Underdog Group, have been quietly courting success since opening The Redchurch in 2003. Now with four venues in
their portfolio, recent gongs include the Evening Standard Bar of the Year 2006 (for Green & Red), Time Out Gastropub of the Year 2006 (Marquess Tavern), Elle magazine’s 10 best bars in the UK (Green & Red and Hawksmoor) and Restaurant Awards Best Dish (roast beef) 2006 (Marquess Tavern), to name but a few. Not bad for two boys from St Albans. So where did it all start?

Back to school 
“We met at school when we were 11,” says Beckett. “We lived in each other’s pockets pretty much from that age.” The duo parted ways to study at university, after which Gott helped his parents set up a café. “I learned a lot about the realities of running a business. I was helping out with everything – front of house, managing, washing up – and it was after that that I wanted to do something myself,” he explains.

Gott moved to London, working at Café Kick in Shoreditch by night and as a press officer at the Stock Exchange by day. “So I was always falling asleep in the stationery cupboard at work. Meanwhile, I was looking around for a site and trying to find people to invest in the project,” he explains. Eventually both a silent backer and a venue were found. “I spent a long time looking for a site and finally found a place called Bengal Fried Chicken,” says Gott. “Yes, it was very classy…” It was at this point that Beckett came on board, getting stuck into renovating the site, a fried chicken shop on a back street in Shoreditch. 

Starting out

“When you set up your own small business, you have to do everything,” says Beckett. “I project-managed the builders, I was sugar-soaping walls, varnishing the floors. We had endless late-night sessions painting.” Despite this hands-on approach, it wasn’t plain-sailing. “We formalised a plan, but the plan bore no resemblance to reality,” he explains. “In fact recalling The Redchurch set-up is one of the reasons we’re doing consultancy – because we did a lot of things wrong. And the things we did right we almost did right by accident, because we had no idea what we were doing.”

Unsurprisingly, the project went over budget. “We ended up spending £125,000 – with the lease premium, professional fees and the set-up and buying stock – and we definitely could have done it for £25,000 less,” says Beckett. “We could have spared ourselves hassle; we could have got better deals; we could have done it better from start to finish really.”

The pair then spent “every minute” of the next year at The Redchurch, a late-licence DJ venue, which brought them rapidly up to speed on the mechanics of running a bar. “We did everything. We bar-backed, tended bar, cooked and cleaned. We got the accounts incredibly wrong, then worked out how to get them right,” says Beckett. Both agree that it’s essential to have this hands-on experience when you manage a venue. “If you see really good managers in this business, they’ve done time behind the bar or on the floor, they’ve done shifts in the kitchen, they know how the accounts department works. They’ve got a grasp of every corner of the business,” explains Beckett. 

The Redchurch opened in 2003 and by the end of 2004 Beckett and Gott were ready for something new. For nine months they tried to open a member’s club in the City. “That didn’t happen,” says Gott. “But we learned an awful lot in terms of raising money, talking to banks and assessing sites, so in hindsight it was valuable.”

At this point they realised that a bar opposite The Redchurch was going under. “We suggested to the landlord that since we had experience of running a nice place in the area we were probably his best candidates for taking it over,” says Gott. And so Green & Red was born in November 2005.

Green & Red
“With Green & Red we saw an opportunity to do decent, authentic Mexican food and have some fun with tequila,” says Gott. “We didn’t want to steal The Redchurch’s customers, so we were looking to draw people from further afield and we intentionally looked to do that through the drink.” To this end Beckett and Gott worked with tequila aficionados Henry Besant and Dre Masso of the Worldwide Cocktail Club (see db June 2006).

The concept wasn’t an easy sell. “We set our stall out to be really different, but by being really different, we probably made it as difficult for ourselves as possible,” admits Beckett. “Both Mexican food and tequila have a very bad image in the UK, so we were having to challenge people’s preconceptions,” adds Gott. Business started off slowly. “Not everyone liked it,” says Beckett. “But those who did, loved it.”

Green & Red was also a hit with the critics, though Beckett believes that awards can be a mixed blessing. While they generate interest, make a venue busier and boost staff morale, punters don’t always believe the hype. “An interesting thing about the Evening Standard award was that on-line reviews suddenly changed – almost to the day,” he says. When Green & Red was undiscovered, people had no expectations. “They’d go, be really excited and write an amazing review. But suddenly it’s Evening Standard Bar of the Year and everyone expects a mind-blowing, life-changing experience.”

Staying power

Gott and Beckett are clear on this point; their venues aren’t intended to be transient successes, big today and gone tomorrow. “There is a danger for venues that focus on things like interior design and are just attracting celebrities or cool people,” says Gott. “Once the inside becomes too dated or people decide to move on, they’ve lost their selling pull. We’ve always focused on the product. I think if you’ve got really good drink and food, then people will always like going there.”

This was the aim for the pair’s next ambitious double opening of a gastro-pub and a cocktail bar/steakhouse earlier this year. “We found two venues, the Marquess Tavern and Hawksmoor, at the same time,” explains Beckett. “And if you want a quote – don’t open two venues at the same time.” But these openings were easier financially as banks were now willing to lend money. “It made a big difference that we already owned places,” says Beckett. “Unless you have some kind of track record, landlords, banks, wholesalers – anyone who might extend you credit or a loan – sees you as a financial risk rather than a potential way of making money.”

Team players  
By now the two had also developed a distinct way of working together. “Huw’s much more front of house, concept, décor, lighting, the food, cocktail lists,” says Beckett. “I deal with the unseen stuff. I take the staff meetings, hang out with the accountants, go and see lawyers, go to council meetings. That seems to be the split. Then we’ve got staff who are good at other things, so we can delegate.”

According to Gott, this is one of the reasons for their success. “I learned from my mum’s approach to her business,” he says. “She has to be involved with everything, but I was very keen for us not to do that. I wanted us to get the grounding in all the different areas, but not become bogged down with the details, and to trust people to manage and make decisions. I think that’s really helped us grow quickly.”

Capitalising on this growth, Underdog Group is now consulting on other venues. “We felt that there were a lot of good consultants out there who could help with a concept or the drinks list or an amazing menu. But we had knowledge right from the beginning to the end,” says Beckett. “Setting up a business plan, where to go to look for finance, whether your business qualifies for government help, finding sites, putting together a concept. Then moving on to back of house, health and safety, training staff, management, accounts and making sure your GP is right. The important thing is: don’t lose sight of the fact that you have to make money,” he adds.

Helping hands
Their first client, Tom Allerton, opened Hideaway bar in North London at the end of last month. “Tom wanted to open his own place, but to feel that he wasn’t going into it alone. He has a certain amount of money and he’s putting all of it into this bar. It would be risky – if he was doing it on his own,” says Beckett. “But we helped him find a site and negotiate with the landlord. I’ll go through back office files, GP sheets and staff rotas with him. Huw spent an afternoon with him talking to suppliers, so he can get the same price structure as we do. It helps with cash flow, it makes sure your GP is right from the start.”

Underdog will be actively involved in Hideaway for its first few months of operation. “Then we’ll be available at the end of a phone for the first year,” explains Beckett. The plan is to grow the consultancy organically, taking on new projects as others get up-and-running. “We work with some amazing people across our bars,” says Beckett. “Consultancy has traditionally been a nice way for really talented people in the industry to add more variety to their work. So we would be interested in seeing Underdog expand and take more people on.”

But what next for the boys themselves? “We’ve got about a year’s consolidation to do,” says Beckett. “I think long-term we’d like to choose one of our sites and roll out a concept to another individual place. We envy the big operators who can roll out a concept!” Though, as Gott points out, “We’re very keen not to lose the independent feel of the venues. The important thing is to do a good bar, but make sure it’s a sound business as well. And that’s really the challenge.”

UNDERDOG’S ADVICE 

Find the right site
“Find a site within your budget. Somewhere that you can walk in and get a decent idea of what kind of take you can get there. You also need a site that’s going to fit your concept.”

Know the market
“It’s really important to see what everyone else is doing. I had a night out around Shoreditch yesterday, going to some new places, seeing what they’re doing interior-wise, what customers they’re getting, what music they’re playing.”

Know the figures
“Don’t pretend to yourself that it’s going to cost you £100,000 if it’s going to cost you £150,000 – because if haven’t got
that £150,000 you’re closed before you’ve opened. Then know your margins and what your staff costs should be.”

Invest in your staff and training
“The on-trade doesn’t pay amazing wages and venues tend to come and go. So in terms of stability and career progression, it’s difficult. It’s important to create an atmosphere where staff have some individuality, but still know the parameters. They need clear communication and an idea of career progression.”

© db December 2006 / Julie Sheppard