UNLOCKING OPPORTUNITIES IN A DOWNTURN—CROUCHERS ORCHARDS HOTEL

Crouchers Orchards is a family-owned hotel and estate set in the West Sussex countryside near Chichester. Having survived two recessions, a financial crisis and global pandemic, it is a prime example of how innovation and creativity can see a business through the hardest of times.

Starting life as a B&B in the 1990s, the business has developed into a renowned multi-purpose local destination, with a bar, pizzeria, restaurant, wedding venue and holiday cottages on-site, alongside its extensive collection of hotel rooms.

Like most hospitality businesses, the pandemic came as a real shock. “Lockdown struck just at the moment we were opening our new cottages and pizzeria,” Carol to diversify the business will help it remain strong. “People are certainly going to start spending their money differently. As utility and supply costs rise, it will be tough for a lot of hospitality businesses.

“Thankfully, Crouchers Orchards is in a good position. The fact that we have multiple income streams has been vital— we even started growing our own food, which has helped protect us against price rises and supply chain challenges!”

Banks Need To Follow Suit

You’d have thought the business’ performance would have made it an ideal customer for lenders. That’s not the experience of Carol and her team, though.

van Rooyen, co-owner of Crouchers Orchards, explained. “It hit us really hard, especially as the construction work meant we had been operating at half capacity.

“Fortunately, our new pizzeria business meant we could continue to trade as a takeaway business during lockdown. It was a real stroke of luck, and it meant that we could keep many staff at work, rather than on furlough.”

After lockdown, Crouchers Orchards enjoyed an incredibly strong 2022 as it got back to full capacity and gave its new pizzeria restaurant the grand opening it deserved.

Looking ahead to 2023, with recession looming, Carol is confident that its efforts

Crouchers Orchards initially took a mortgage in 2018 to purchase land surrounding its estate, on which it built its new pizzeria and holiday cottages. However, in early 2022, the business was told it’d need to find a new lender, as its existing bank was exiting the UK.

“This was frustrating; just as we were building the hotel back up after Covid, we suddenly had to find a new lender. And the list of banks willing to talk to hospitality businesses at the time was tiny, regardless of the strength of our business.”

Carol ended up seeking help from Chris Richards, a hospitality specialist at Swoop Funding. “Crouchers Orchards is a fantastic family-owned business. It had never been over-leveraged and had shown it knew how to manage the business in tough times,” said Chris.

“There will always be a lender willing to work with a strong business like Crouchers Orchards. You just need to know where to look, how to make an approach, and manage a client’s expectations throughout.”

Chris introduced Carol to Ben Green, Allica’s BDM for West Midlands. “I knew this was exactly the kind of business that Allica likes to support, and that Ben’s collaboration and can-do attitude would make sure it got over the line,” Chris said.

And we were happy to help. “Banks shouldn’t disregard a business just because of the sector they’re in,” Ben said. “Allica is so pleased to support a strong local employer like Crouchers Orchards. Its resilience is undeniable, and a fantastic example of how to futureproof a business.”

Talking about the deal, Carol said: “We were so relieved to get it done—at times, it felt like no one would touch us except Allica. It means now we can turn our attention to getting on with running our business.”

No surprise, the team is already thinking about how else they can expand Crouchers Orchards. “We’re always coming up with ideas. Next we want to use our available farmland to open up a high-end glamping site!”

Watch this space…