Tatton Estate – Review the current business model and profitability

ASSIGNMENT

The Trustees from the Tatton Estate in Cheshire commissioned Generation for Growth to undertake an independent audit and market appraisal of their four commercial businesses:-

• Tatton Film studios and estate location sites
• Short stay holiday lets known as Tatton Stays
• Stock Farm wedding venue
• Ashley Hall parkland used for public events

Purchased by the Brooks family from Lord Egerton in 1958 Tatton Estate is just next to Tatton Park. Although the Park is renowned for hosting the annual RHS Flower Show the Estate is a completely separate entity.

Within the 6,000 acre Estate with Peover Hall as the family home only thirty minute drive away from both Liverpool and Manchester. For many years the Estate derived the majority of its income from residential, commercial and tenanted farmers. However five years ago, the family decided to diversify and invest into various underutilised dormant assets focusing their energy on the hospitality and the commercial sector. As a result they converted a number of Barns, two into Film studios as well as Stock Farm into a Wedding venue.

With the outbreak of COVID-19 including a number of other commercially related factors the Trustees decided that they wanted an independent review on how each of those businesses could recover. They had already recognised that future investment would need to be considered and sought external advice on which of those businessess would benefit whilst delivering a measurable return over the next five years.

During this assignment our Consultants reviewed the Estate’s financial accounts, evaluated the immediate competition, completed a mystery shopping exercise which included qualitative research with a number of Film Location Managers and Development Producers. When reviewing the short-term holiday lets business ‘Tatton Stays’,  we evaluated their marketing strategy and considered alternative website platforms as part of a cost-benefit analysis exercise.

OUTCOMES

As a result we put forward a very broad range of recommendations and general observations which included some radical changes in the way those businesses should be operated. The main points were:-

FILM STUDIOS 

• With increasing demand from both US streaming Entertainment service companies and Film production companies to ‘film ‘in the UK we recommended to the Trustees that the Tatton Estate should invest and build an additional 16,000 sq. ft. Film studio. In addition upgrade the electrical supply, improve the overall  ‘service’ delivery, provide further parking with better access and increase WiFi connectivity across the site, which would then attract leading Film companies including Netflix, Disney and Universal Studios to seriously consider Tatton.

• With our recommendation that a five-year Business & Marketing plan was required, we also recognised that the Tatton Estate needed to recruit a full-time TV and Film professional. The ‘Film world’ is a very close-knit community and to sustain that future growth, it requires building long-term relationships with both Location Managers as well as Development Producers.

HOLIDAY LETS

• With a portfolio of sixteen properties of which seven were on the Estate, the business had been managed effectively by one person for a number of years. However after undertaking further due diligence and qualitative research we recommended as an alternative option that the ‘management and servicing’ of those properties should be outsourced to a leading self-catering holiday property lettings agency. 

• Although every property is quite unique in character and design we identified that a selected number required additional furnishings and decorations to create that more ‘personal touch and homely atmosphere’. From an operational point of view we recommended that a more streamlined booking operating system should be introduced which would deliver more efficient ‘real time‘ reporting.

STOCK FARM WEDDING VENUE

• Although the Barn conversion into a Wedding venue was undertaken a few years ago, it became evidentially clear the venue was at a significant disadvantage when comparing against other similar styled Wedding Barn venues. From a design and operational perspective considerable investment was required to both the interior and exterior of the venue. We also recommended the construction of a civil ceremony structure in the garden and additional features in and around the courtyard area which overall would enhance the ambiance and upsell the wedding venue.

• To increase the overall profitability for the business we recommended that an agreed commission structure should be put in place with all suppliers, drone footage of the venue as well as the introduction of a ‘minimum’ food and beverage spend policy for all clients. Although the Estate employed a social media expert, we strongly recommended a three-year Marketing, PR and Social Media digital plan should be created involving a closer collaboration with their suppliers.

ASHLEY HALL PARKLAND 

• With the parkland located next to two nearby villages and despite good access, there were considerable constraints in particular ‘noise’ (i.e. musical concerts), however in our opinion the biggest concern was the location. Based on extensive knowledge in working with ‘leading public event organisers’ one of the most important aspects for delivering such events is offering an impressive stately home ‘backdrop’. In this case we recommended that all future events should be moved to the lakeside and parkland area at Peover Hall, which would be a far more impressive location.