Romero Insurance talks to Jim Dale, Founder of bottleshop The Hoptimist
Client Stories focusses on local businesses who have a special relationship with Romero Insurance Brokers – demonstrating how dedicated insurance professionals can positively impact their local area.
The Hoptimist in Guiseley, Leeds, is a popular bottleshop selling craft ales, ciders and spirits. Owner Jim Dale has funnelled his passion into the business, and regularly runs events to support local breweries and eateries. His knowledge of international best sellers and upcoming breweries inspires customers and is why he holds such strong relationships with his regulars.
Established just before the pandemic, The Hoptimist was originally purposed as a retail unit, but has a secondary use for drinking on the premises. They then experienced a major flood claim, and after a stretched out claims process with AXA, Jim approached Romero Insurance for guidance.
Nick Baister, Broker at Romero Insurance, met up with Jim Dale at his premises in Guiseley to discuss the story of The Hoptimist, the details of the their insurance policy and what financial challenges similar businesses are facing.
When did The Hoptimist kickoff?
Jim Dale:
I founded The Hoptimist in 2019. Originally I had designed to turn the business into a bar, but Leeds City Council wouldn’t allow the premises to change in use to a full-time bar. So I opened up after about seven months of taking on the lease as a bottle shop.
The Hoptimist opened in February 2020, just as COVID hit. And it was a blessing in disguise. We were an off license, which meant we could stay open – and we were really, really busy. The success pushed me in a direction of online retail as well, including national deliveries, which I originally never had plans to do.
And then when we came out the other end of COVID, I’d been negotiating with the council and finally got to a point where they’d allowed us a limited use of drinking on the premises under certain rules. The premises is still classed as a retail unit, but while I am here, I am allowed the secondary use of drinking on the premises.
What events do you host at the Hoptimist, or attend locally?
We do Tap Takeovers over the summertime. The first starts with Easter Bank holiday and we do five or six throughout the year.
To run a Tap Takeover, I purchase plenty of stock from a specific brewery and then invite customers to try a range of their beers or ales. I also involve a local food vendor, where the barbers next door kindly allow them to park a food-truck outside their premises. With the outdoor tables and chairs, I pretty much double footfall throughout an event.
Many of the UK’s best breweries have been featured in our Tap Takeovers – including Track brewery based in Manchester, named after the viaduct in Piccadilly Manchester and the owner’s music career. Another called Left Handed Giant, a brewery based in Bristol which was crowdfunded into existence and relies on independents. We also have a really good working relationship with local distributors, such as Meanwood Pizza.
The other major event is Leeds International based at Kirkstall Abbey. The event invites a large collection of breweries, as well as two shop vendors, ourselves and another business called Rainville. We set up very similar to the breweries. We have machines, lots of kegs, and pour a load of beer and let people have a good time.
Initially, I didn’t care if I lost money. The event was more for promotion and awareness. It’s quite exclusive – when I first got invited to it, I was always told I’d never get in – we’ve been there three years in a row now and we take consecutively more each year. £2500 year one, £5000 the second and last year was nearly £8000, so events are profitable.
What products do you stock at Hoptimist?
At The Hoptimist, there’s international stock as well as a lot of UK based brands. Sadly, not a massive amount of local Yorkshire based products. There was a time when Yorkshire breweries were really good at the craft, yet it’s petered out now. Manchester are growing, and there are other pockets around Bristol and London.
Internationally, we have 1000 different lines from brands the world over. During the Christmas period our stock is easily over 1200 lines.
Prices vary greatly but mainly concern the drink’s ABV and the brewing process. 3% to 4.5% ABV beer ranges from £3.50 up to about £5.50. And then the higher the percentage the higher the price. Store prices can reflect where the beers come from, shipping costs and popularity.
Some shops charge a pound to drink in. I’m not against it, but I’ve always thought: What are you gaining for that extra pound, really? I’d sooner keep the price down.
In fact, I’ve just got back from Iceland and found a new brewery, Malbygg Brugghús. They’re an Icelandic microbrewery, and because I thought they were really really good, I’ve now approached a wholesaler to source their product. Their beers were absolutely fantastic, and I suppose it’s the fresh spring water.
How much do you invest in marketing and promotion?
The easy answer is social media. Instagram’s massive for us – it’s an quite Instagrammable business. Any new beer that comes in is posted on social media. So for example; if I get five beers from Track, I’ll line them all up, take a photograph, and I’ll publish on Instagram what they are, what their percentages are, and what sort of beer it is. I don’t do a personal opinions. As a business, your opinion sometimes could be your undoing. I don’t do ratings or get too political. We just post on social media and publish on the website too for online orders.
We also run a points scheme, only available to online customers, which is quite unique for a business like mine. I initially set it up to compete competitively and reward customers for shopping with us. Points are accumulated online only. You log in to your account, do your purchasing as normal, and then the product gets shipped directly to their house.
I have one customer in particular, a teacher in Bradford who comes in pretty much once a week, who builds all his points up until Christmas then splashes out on a nice expensive bottle for Christmas. We have some expensive stouts in here from America at £50 a bottle. I love him saving points but also I hate it because he walks out with a good bottle for nothing – but he has spent a lot of money through the year.
How is the footfall at The Hoptimist?
When we do tap takeovers here in summer, I’m permitted seating out the front. Technically, it’s not a pavement – it’s more akin to putting out some patio furniture. We are very busy in the summer and outdoor seating is ideal. Whereas January and February are more challenging months, similar to any other business.
Applying for outdoor seating was never an issue with the council, who have been very helpful – yet often I feel as if the departments of Licensing and Building & Planning are at odds. Licensing are interested in PubWatch, CCTV and our capacity, whereas Building & Planning are focussed on any possible impact upon the local area. Both departments affect operations at The Hoptimist, and yet they seem to want to talk to one another.
How important is understanding your cyber risk?
I imagine many small business owners won’t have the knowledge of cyber risks unless they’ve done the research, or faced an attack. Lots of years working in hospitality has taught me that there are necessary boxes to tick and hoops to jump through, and cyber security can’t be missed.
While we operate online, we don’t collect data any further than names and addresses. All our payment processes go through Yorkshire Payments and we don’t retain any user information.
What are the financial challenges impacting The Hoptimist?
Alcohol duty on higher ABV beers is a financial challenge for us, reducing the frequency of more expensive purchases. Currently anything over 3.6% is taxed significantly higher than anything under 3.5% ABV, and there is another jump for beers over 8.5%. So anyone who enjoys an imperial stout or other strong beers such as Belgian beers or drinks from independent breweries, they are paying disproportionately more.
In fact, you’ll find many larger breweries are reducing the ABV of their beers in order to get a tax break, but they then won’t lower the price for customers. They say they are tweaking the flavours, when in fact it’s just taxation. The big breweries are saving money, but not passing on the savings to customers, so the gap between large and small breweries keeps getting bigger.
The larger the well-known breweries get, the worse off the industry is for small microbreweries. They are slowly putting microbreweries, and bottleshops like mine, out of business.
Six years ago when we first opened, an 8% double IPA would have been about £5.95 to £6.50, which back then that’s a lot of money to some people. They’re now closer to being £8, £8.50, £9! That’s a big jump. It’s an additional taxation that’s forced that to happen, not just your normal interest rates and cost of ingredients.
Business rates is another pressure. I know of breweries, small businesses drinking-holes and bottleshops that are seeing up to 300% increases in their rates. It depends upon the valuation of the premises. It’s scary. Pubs are getting some relief, but it’s not universal, and other affiliated businesses need relief too, and they need it now.
Ultimately, there’s a limit on what customers will spend. Customers have got no money therefore the shops can’t survive, And when the shops are empty the person that’s going be paying the business rates will be the landlord.
No one in the Government has any business acumen. They do not know how to run a business – and what they see as being good and beneficial absolutely kills the small man; the hatchery. For example, I’m growing and still interested in finding another premises and starting a bar, but where’s the incentive for me to do that at the moment? There isn’t any.
What is the future of the Hoptimist?
I don’t want to change the Hoptimist; instead I would like to find another premises to open as a bar. It would ideally be in partnership with somebody that is willing to take on that responsibility. Owning a bar was always my intention upon becoming a business owner.
Long term, I do have a large area downstairs where I would like stick some extra soft seating. At this time of year, if we do get busy, it’s full, and then there’s nowhere to sit. So renovating the cellar would be ideal but I’m not currently in a position to do that financially and it would only benefit the landlord long term. However, the landlord is aware I would consider purchasing the premises if he ever chooses to sell.
I, like many small business owners, pay myself a minimum wage. My wife has a good job and she supports us. If she didn’t have that income, I would probably have to sell up and go back to my old career. Most of my income goes back into growing the business.
Have you experienced an insurance claim at the Hoptimist?
Yes I had to make claim before I was insured by Romero Insurance. So we held a retail insurance policy with AXA initially when I first opened up, and at the time it was believed to be suitable. But then COVID hit, and the council permitted us to start having people consume drinks on-site.
When all the restrictions with COVID had been dropped we continued with the drinking on-site. Then a year later, one evening, I closed up at about 9pm – and I came back the next morning to water gushing out the back door! Unfortunately, a pipe had burst in the flat above. I knew I would have to claim.
The water flooded the shop, damaged all the floor, and downstairs in the cellar. There was this consideration for the timbers, which the landlord’s insurance took care of. But I had to claim for loss of earnings and damage to stock and delivery boxes.
However, due to issues with AXA and also my accountant at the time, the claim went on for over a year. Eventually, I had had enough and got in touch with Romero Insurance after a customer recommended them. I wish I had done it sooner as Romero said they could enquire with their contacts at AXA and see if the claim could get sped along.
Romero Insurance took away my headache, and I felt so well looked after that when my policy came up for renewal I approached Romero Insurance because I knew they would set it up properly.
My initial premium was hefty as I had made a claim, but in my second year I’m happy to say the premium has dropped to only around £800. I am now specified to insurers as a wine-bottle shop, there’s no grey areas and all my operations are specified.
My experience with Romero Insurance is fantastic. Insurance is something you have to have but hope you never have to use. So obviously, you always want it as cheap as possible – but at the end of the day, you want the peace of mind knowing you’re covered properly. Claims can be a life-changing, and I’m happy I have Romero supporting me and my business.
Thank you to Jim for his time and taking part in our Client Stories campaign. We really enjoyed visiting The Hoptimist again, and your business every success in the future.