Tuesday January 9th, 2024 -
For our first coffee break of 2024, we sat down with Richard Ferrier, Heartwood’s new CEO. Richard joined the leading UK hospitality and pub group in 2011 and held the roles of Operations Director of Brasserie Blanc and Chief Commercial Officer before becoming Managing Director in February 2020 and most recently being named, CEO. Richard spoke with us about Heartwood’s growth journey to date, how it ensures its Inns are always full of charm and character, the exciting launch of its latest site – The White Horse, situated in the heart of Dorking’s medieval high street – plus much more!
Home to Bronze Age burial grounds and the birthplace of English writer Daniel Defoe, Dorking is not short of historical attractions. But, if you had to recommend just one ‘must see’ in the area, what would it be?
Dorking is located in the Surrey Hills which is designated as an Area of Outstanding Natural Beauty so you really are spoilt for choice when it comes to must see attractions. To get a feel for the overall beauty of the area, you can’t beat Box Hill. A haven for cycling enthusiasts with its challenging ascent, it also boasts stunning views across Dorking, the vineyard and for miles around. Jane Austen fans may also recognise Box Hill as the setting for the famous picnic scene from Emma.
The White Horse is a Grade II 17th century listed building located on the High Street. How important is it to you to preserve the history of the building and pay homage to its original features?
One of our strengths is taking historic buildings and not only restoring them sympathetically but also preserving them for future generations and re-establishing them in the heart of their local community. The White Horse is not only a historic building but it also has strong literary connections to both Charles Dickens and Jane Austen so it is important to preserve not only the integrity of the building itself but also respect its wonderful history.
Is it difficult to breathe modern life into old buildings – how do you strike the right balance between modern and period to ensure guests have a comfortable, yet unique experience?
We’ve had a lot of experience in restoring old buildings and we work with a wonderful team of contractors who know exactly how to achieve the balance between restoration and modern comforts. The White Horse is a great example of how we can achieve this balance. The room concepts have been created with a view to ensuring that the original features are preserved and showcased whilst ensuring that the guest has the amenities they require such as USB charging points and super comfy beds as well as the extra touches to make their stay in a Heartwood Inn truly memorable. We pay great attention to details such as the colour schemes, the fabrics and textures used to create an environment that is warm and welcoming for our guests whilst overlaid with our signature quirky Heartwood style.
Heartwood Inns are always full of charm and character, much like their surroundings. How does the external location impact the interior of each residence?
We are mindful of the area in which we are located and pay attention to the history of the area and local attractions. Guests will find subtle nods to the local area in the décor whether it is a collection of vintage photographs, the old pub sign or the details in our new pub sign. The sign for The White Horse pays homage to not only Charles Dickens but also the infamous Dorking chicken!
Jellied eels, devil’s eggs, or pork scratchings. If you had to sell just one of these pub snacks, which one would it be and why?
Pork scratchings! Totally accessible.
How do you choose the locations for Heartwood Inns, is there certain criteria the location must meet?
We have a model that we apply to any new sites that we are considering that takes into account a multitude of factors from population demographics, local competition and local footfall. The process is thorough and is multi-departmental to ensure that the site works for us practically and will be financially viable for the long term.
The Dorking Inn is having its ‘sensitive refurbishment’ as we speak. Investing in buildings, especially older ones, can be expensive and time intensive. What’s the value for you as a business in this approach and how does it support your future success?
We love older properties and to be honest, the more ‘unloved’ the better. This gives us the best chance to put our stamp on the property. We want to create an environment that attracts the right team initially and then the right guests. We always feel that we can add the most value to these sorts of properties which also offers the most upside potential for us.
The hospitality sector has faced unparalleled challenges over the past few years. It first needed to overcome the coronavirus pandemic, then battle through staffing and supply-chain struggles, eye-watering energy prices, and not least soaring inflation. What has been the biggest challenge for Heartwood and what steps do you take during times of adversity?
All of the above. Unfortunately, we are not immune to these cost headwinds and the trading environment generally has not been favourable. The biggest challenge tends to be government regulation, whether that is increases or changes in duty or National Living Wage rises above inflation. However, we have a highly skilled group of people that are particularly adept at navigating these challenges. We also have an affluent guest base that is less susceptible to the cost of living crisis.
Despite the turbulent times, you’ve still managed to grow, and Heartwood Inns is in a period of exciting expansion. What has been your biggest advantage over competitors in your sector, and why do you think you’ve still managed to expand while others pull back?
Our greatest advantage is the length of service of our people. Our General Managers have been with us on average 4.7 years and our Head Chefs have been with us on average 7.1 years. Our highly skilled model enables us to be fleet of foot when cost pressures are felt on food and drink items. We typically buy raw ingredients when our competition tends to buy part finished goods. This gives us maximum flexibility and ensures that our margins are protected.
Your new pub with rooms, The White Horse in Dorking, will open spring 2024. What initiatives do you do to support the local economies of your inns?
For us, it is vital that any pub we open, whether it has rooms or not, becomes the heart of the local community. For us, building partnerships and relationships with local businesses is key to the success of a site. Dorking has some wonderful local businesses and is not only a thriving town for its residents but is also a destination for tourists that is a stone’s throw from London. With its excellent transport links and beautiful location there is something for everyone from cycling to antiques shopping to wine tasting. We are starting to build some wonderful partnerships with the local community and the Dorking BID has been invaluable in helping us to understand the needs of the town alongside supporting us as we establish ourselves in the area. Working with local businesses to enhance our guests’ experience is beneficial to all parties.
OakNorth supported the launch of the Dorking location with specialist financing. A lot of businesses can feel apprehensive about taking out debt to support their growth. How did you know this was the right time and decision for the business, and how did OakNorth work with you to help you achieve your wider goals?
We have an ambitious growth plan to increase the number of sites we have to over 60 by 2027 with over 600 rooms and a turnover of £133m. We were confident that we had the right support from OakNorth as well as the right infrastructure within the business to grow. By ensuring the foundations were right we were able to look at a strategic acquisition plan that was not detrimental to the existing estate.