This page is actively being updated, please bear with us whilst we type up all the answers to your questions!
What stage is the Business Plan at, what are its priorities and how much flexibility is there for this to change before it is submitted?
The business plan is completed in it’s draft form. We’ve incorporated data from numerous sources, multiple public meetings, one-on-one meetings with local businesses, the takings from bars and restaurants of a similar size, expenses of similar local businesses, public data in council surveys, and more. The aims of the project are set in stone, but the methods of achieving the aims are very flexible and the inn will always have to adapt and alter it’s strategy by listening to the local community and provide services that are needed.
What opportunities will there be to make further suggestions for uses for the building and business model? A traditional Pub/Hotel may not be the only solution.
For the type of funding we can apply for a community pub is the only viable business model. The project needs to be a social space, usable by all the community. With the inn being run by a Community Benefit Society (CBS) means that changes can be made in the future and use of the space can be adapted depending on what the Members of the CBS vote for at meetings.
Could the business model reinvest in the local community like the Community Shop does?
We need to ensure the economic viability of the building and that means smoothing out peaks of income over the year for the quiet season. That means it would be difficult to take profits out of the business before it might be needed to ensure it’s success. However we can operate a ‘shared tips’ scheme so all staff benefit as a result of the excellent service we aspire to provide. 25% of tips and gratuities would go to good causes in the area, encouraging our customers to be even more generous. The Community Shop model works really well as it currently is, and we’d keep encouraging locals and visitors to support it.
What other business models have been explored? For example, Kenmuir.
The Kenmuir Arms is a fascinating case study that started in 2019 with the New Luce Community Trust acquiring the building on behalf of the community. Once they purchased it they consulted with their community about the potential of the project. In October 2020 their extensive building plans were approved by the local council and phase one meant stripping everything back to the core building structure. Phase two was the massive renovation project in May 2021. After some more progress, it was then a full year before the trust could start to advertise for a tenant to run the building. The New Luce Community Trust spent over £1 million (PDF) to purchase and refurbish the building with the combination of money from the Kilgallioch Windfarm, the Scottish Land Fund, other public funds, and a rather large bank loan. It was finally opened in April 2023 with Chris and Beth running it as their business and they can choose to run it however they like as they pay a monthly lease to the Trust.
This tenanted approached works for the Trust as they will be getting paid every month, but the community ultimately has no say in the day-to-day running. Our approach is a Managed approach and is similar in that the Wigtown & Bladnoch Community Initiative will be attempting to secure funding to purchase the building, and the Wigtown Community Benefit Society will be managing and running the day-to-day aspects of the business. If the CBS fails to run the business properly and for the good of the community, the first port of call would be to replace the Directors of the CBS, and if that still proved unsuccessful, the lease can be withdrawn and the W&BCI can look into a tenanted approach by leasing the building to someone privately.
What is the timescale for submission of Round 1 funding? And what is the process after that, applications, timescales? If successful, when would it potentially open?
The deadline for applications to the Scottish Land Fund is May 13th and the Community Ownership Fund on June 15th. Results for those applications would be at the end of August. We’d then have to enter legal discussions with the seller and a whole host of work with solicitors. If everything went smoothly, potentially December time.
What is the proposed budget – both for the capital purchase (W&BCI) and the operation as currently being proposed (Wigtown CBS)?
The building is currently on the market at £340,000 and the W&BCI would be applying for that and initial setup costs. The forecast contained within the business plan has the first yearly budget of around £280,000 with £143,000 of that used for staff costs. The running costs are not set in stone as the business will adapt, expand, and contract where necessary in order to meet service provision demands in town.
What evidence is there that Wigtown needs everything The Plough is proposing? For example, the accommodation capacity in town, according to VS, means we still have a long way to go to reach full capacity and therefore increased demand.
After speaking to numerous accommodation providers, they do not believe the small offering of rooms at The Plough Inn will detrimentally affect their income. In fact, not having extra service provision such as additional eating venues has been a factor in repeat visitors no longer returning to stay. The goal has always been to increase the demand for Wigtown as a whole.
Bayview/Wigtown House Hotel already privately purchased – how will this effect accommodation numbers, demand and is there a plan for them to reopen as a hotel?
This was a concern of the CBS, as this hotel has the potential to also be a social hub, but the new owners of Wigtown House Hotel have said that they are pleased at the prospect of The Plough Inn reopening. Their offering won’t include a public restaurant or bar. They are spending a lot of time and money delicately renovating a building steeped in history and would like to see more options in town for their private guests.
Costs have trebled in the last couple of years so will it be able to operate all year? Is this realistic and fair alongside other businesses trying to survive the quieter months?
Costs are coming down slightly and one of our aims is to make the building more sustainable and economical to run. We understand that it’s not economically viable for private businesses to open all year round, and that is completely within their remit to only open when it’s profitable. We hope that increasing the service provision through the low season will encourage more visitors and The Plough Inn could share it’s occupancy data with local businesses to indicate whether or not it’s worthwhile for them to stay open. This collaboration will remove some guesswork and allow local businesses to make more informed decisions based on changing behaviour.
What is the business plan for the Church Hall? Is there an opportunity to reduce the risk by combining the space/uses?
The Church Hall is under the remit of the W&BCI and whilst this might present opportunities in the future, there hasn’t been any communication around combining the offering that The Plough Inn presents.
What reassurance can W&BCI/Wigtown CBS offer that the business model will not undercut existing independent businesses for the long-term – not just promises made for the purposes of a funding application. Several comments had been made about similar community buyouts locally that are causing independent businesses to struggle – Sanquhar and Whithorn.
The main factor in this is the future lease agreement between the two parties. This is documented in Section 3.5 of the business plan – but a brief summary of the most fair and favourable lease agreement is one based on turnover minus staff costs with a minimum payment. This approach looks at the total income of the business, minuses the staff costs, and applies the lease percentage to the outcome, typically 9%. This incentivises employment and as other expenses aren’t taken into account, it isn’t subject to being manipulated by arbitrarily moving large expenses to higher turnover months to reduce lease payments. At the same time this guarantees a lease payment is due to the W&BCI each month. The inn would always pay a minimum amount in the low season but is incentivised to keep a base level of staff throughout the year to ensure service provision to the town.
Monthly example: (£35,000 sales – £12,000 staff costs) x 9% lease = £2,070 lease payment
How does the project meet the objectives of W&BCI to save community assets when The Plough is not the last/only pub/restaurant or accommodation provider in the town?
The Plough Inn was the last inn in town. (Bit of a mouthful!) An inn by definition is a pub with accommodation. Although there is another bar in town and other businesses providing accommodation, the local feedback we have received strongly indicates there is ample scope for a complementary offering: a larger space which can provide evening food service and expand service provision when the community requires it. The current owner is also drawing up plans to turn the building into flats and due to the nature of that cost, it would not be affordable accommodation, nor would it be economical to turn the building back into an inn, and the long history of the listed building would be changed forever.
Will all job opportunities be publicly advertised and subject to open, transparent recruitment?
Absolutely. There have also been no job offers or contracts given out to anyone other than for the work needed to complete the building surveys.
Are the rumours that jobs have already been promised to some people true?
Nope! See above.
Will job opportunities be offered in line with the fair work agenda – subject to real living wage and no zero hours contracts? Public funding should not be detrimental to other local businesses but will have a different set of rules.
Absolutely, Section 5.5 of the Business Plan goes into more detail but we are determined to be an employer of first choice from the outset and will seek to register as a Fair Work First employer at the earliest opportunity. All employed staff will be paid the real living wage which is currently set at £12 per hour. We will establish a strong ethos and culture that all our staff will be expected to buy into and reflect. We will ensure the voice of all staff and volunteers informs the development and delivery of our offer.
What criteria are or will be in place for being a member of the Wigtown CBS? Concerns over the proportion of non-permanent residents and how this might affect ability to respond in a timely manner.
Section 3.5 of our Model Rules document this:
There shall be two constituencies of Members: Community Members being members who reside within the community of benefit as defined in rule 9.2; and Supporter Members from elsewhere who support the objects of the Society. Community Members shall at all times comprise a majority of the total membership.
Tourism-tourists are here in summer months but not the winter period. Only so many people that can support these come winter. Where are customers going to come from?
As the building will be open all year round we hope that it can be used as a base to grow visitors in the low season. We’re aware of how difficult this is but we’ll aim to identify profiles of potential customers and utilise effective marketing campaigns and package experiences of the area in collaboration with other local business or organisations that have a unique offering. Maybe Winter Whisky Tours or Winter Woodworking Classes, or Winter Woolen Sock Making. Not all experiences would have to begin with a “W” though, and as you can see, we’ve got some marketing fine-tuning to do.
How will/can The Plough help support businesses over the winter months – higher footfall for all rather than dilute the share number of visitors already coming?
See above, the goal is to grow the number of people visiting, not take away from existing businesses.
Should not take jobs or contribute to the closure of existing businesses.
The Plough would run with employees who would be paid the Fair Wage at a minimum. A range of full and part time jobs would be created to cater for service provision. Training and apprenticeships will be an important aspect of running the business and that will increase the amount of skilled local workers in hospitality. We would hope that this meant similar local businesses could be confident in having access to a larger pool of potential candidates if they were hiring too.
Although we think it’s good to look for capital funding to purchase the asset for the town, the funding climate is also very tough and it would be important to be able to make the Plough work without relying mainly on revenue grants once it opens as revenue grant funding is likely to continue to shrink.
The Plough Inn would have to work as a business and be economically sustainable, it would not be able to access revenue funding to pay for staff or expenses, the same way that other businesses are unable to.
Scotland lost 76 pub closures last year, compared to 56 in 2022. This has resulted in permanent closure in the sector accelerating at double the rate in Scotland compared to England. Only 4 pubs are not for sale in the local area – why? If they can’t survive, what will The Plough do differently to ensure it does.
Nobody can guarantee business success, if it was easy everyone would do it. It has also been a very rough period for businesses recently, resulting in pubs and buildings being up for sale. Some are struggling to sell because the cost of the initial capital and the ongoing costs are too much of a risk together. We have an opportunity to save a building by applying for capital costs, and we will do everything to ensure that the business can break-even. We don’t need to pull profit out of the inn, but we do need to ensure costs are under control from the beginning.