Bank loan helps Cumbrian restaurant grow after floods and snow setback

Owners of two Lake District restaurants have announced that their business is set to hit a £750,000 turnover this year after overcoming a 20 per cent drop in trading caused by the floods and snow at the end of last year.

Husband and wife team Gary and Shirley Mickelfield took over The Priest Hole in Ambleside in 2001 and opened Fat Olives Brasserie in Bowness on Windermere last March.

Both restaurants serve modern British and Mediterranean cuisine and employ 12 people between them, rising to 20 during the peak summer period.

However, six months after opening Fat Olives, the company’s growth was affected by November floods and then suffered a second blow when snow hit in December and January, causing turnover to drop by 20 per cent.

To support the couple, their banking partner Lloyds TSB Commercial provided a £10,000 on top the existing Enterprise Finance Guarantee (EFG) loan that was used to fund the second restaurant.

As a result, the business is now back on track to grow turnover to £750,000 this year, up 20 per cent on last year, and has introduced new promotions and discount cards for local residents to help further boost trade.

Shirley Mickelfield said: “The combination of flooding and then snow put us under significant pressure but thanks to the hard work of our team and support from our customers and suppliers, we’re now looking to a strong and successful future.

“Lloyds TSB Commercial has been fantastic and we couldn’t have got through it without them – ever since we switched to them, they’ve understood our ambitions and when we needed them most, they were there.

“Now, we’re preparing for a strong summer this year as the UK comes out of the recession and are confident that we’re backed by a banking partner who will support us in bad times as well as good.”

Steve Smith, relationship manager at Lloyds TSB Commercial, said: “Small, independent businesses in Cumbria were badly hit by a double blow of extreme weather conditions and had to take a proactive approach in order to overcome exceptionally tough circumstances.

“Shirley and Gary are a great example – they quickly looked at the impact on cash flow and approached us for a solution to short term difficulties that were beyond their control, which we were happy to provide.

“Shirley and Gary’s hard work has built a business with a good proposition and reputation and, by working closely with them, we were able to help them respond to the challenges they have faced in recent months to ensure they are now in an even stronger position.”