Applejack Hospitality

Over seven years, Applejack Hospitality has established a portfolio of venues across Sydney. We speak to cofounder Ben Carroll about the challenges of launching new concepts and what the future holds for the group.

By Brittney Levinson.

Applejack Hospitality was born in 2011 with the opening of Bondi Hardware, a small bar and dining venue in Sydney that Ben Carroll and Hamish Watts had been dreaming of for several years.

“We saw an opportunity in the market and believed we had what it took,” says Carroll. “I think we found out pretty swiftly that we didn’t have what it took, but we learnt very fast.”

But it seems they were doing something right, going on to open another five venues in the space of five years and consulting on a number of other venues across Sydney. After making the difficult decision to sell Bondi Hardware earlier this year, Applejack has a renewed strategy that suggests a promising future for the group.

Carroll and Watts were working together at a pub group when the idea of Bondi Hardware came about. “We saw a big change in the hospitality industry, particularly the small bars that were coming in and the customer movement away from the big pubs,” says Carroll.

Opening their first venue came with its fair share of challenges, but the pair were determined to make it work — even if it meant asking for help along the way.

“I don’t think you can ever go into a new business and nail it straight away; there’s always going to be that period where you’re learning on your feet and learning constantly,” says Carroll. “I think it’s those first few months where you’ve got to drop the ego and arrogance and absorb everything you can.

“Fortunately, we had a really great local customer base that we got to know well and they’d give us feedback. Where appropriate, we would amend our operations and make sure we were providing what the locals wanted.”

Applejack went on to open a new venue each November over the period of five years, starting with The Botanist in Kirribilli. SoCal in Neutral Bay, The Butler in Potts Point, Della Hyde in Darlinghurst and Endeavour Tap Rooms in The Rocks followed. In the midst of opening their own venues, the team also engaged in a range of consulting gigs, working with AccorHotels and Veriu Hotels & Suites to infuse their style and expertise into a number of venues, including Hacienda in Circular Quay. “Consulting was something we fell into,” says Carroll. “There is a huge demand, but we are slowly moving away from consulting so we can focus on our own venues and growth.”

While you can’t deny each venue has an Applejack look and feel, Carroll says it wasn’t their intention. “It’s not that we aimed to make Applejack venues feel part of Applejack; I think it’s the amount of care and detail that goes into the branding, the interiors and the service standards,” he says.

Applejack aims to create a cohesive aesthetic that translates seamlessly from when customers look at a venue’s website to when they physically step into the bar or restaurant. “From graphic design to interior design, no element is missed,” says Carroll.

As for the food and drink offering, diners have become accustomed to fresh, colourful dishes that showcase seasonal produce. “The offering changes depending on the location of the venue, but the general policy is using topquality produce and reputable suppliers,” says Carroll.

Customers can provide valuable insight to a business, and listening to feedback has been integral to the success of Applejack’s venues.

“The restaurants we own are mainly focused in community areas,” says Carroll. “If you look at The Botanist in Kirribilli, SoCal in Neutral Bay or The Butler in Potts Point, they’re really community-based venues. Having strong attachments to the local area and listening to our customers is really important to us.”

While their roles as directors are separate, Carroll and Watts know it’s important to keep learning in order to grow their business. “When you stop learning, you start to get bored,” he says. “Hamish and I set up our tasks as directors and we try to keep them quite separate, but we swap our tasks around so we can both learn different aspects of the business.”

In order to maintain a healthy, positive workplace culture across Applejack’s team of 150 staff, Carroll says it starts at the top.

“Although the days of [Hamish and I] waiting on tables are few and far between, we are in the venues as much as we can be,” he says. “We attend staff meetings and communicate with staff about why Applejack is here and what we’re all about.”

Like many venues, one of the biggest challenges Applejack faces revolves around the skills shortage. And while Carroll says people might be tired of hearing about it, it’s a real issue within the industry.

“It started with the kitchen side of things and a lot of people were talking about that, particularly when the 457 visas were changing, but now you can see it among front of house managers and staff in general — there’s a real shortage,” he says.

In order for the situation to improve, Carroll believes we need to look at how the industry operates in other parts of the world. “I don’t think Sydney is up to date with some of the other major cities around the world such as New York or London where hospitality is seen as a career,” he says.

“A lot of people in hospitality in Sydney have fallen into the industry rather than getting taught skills around hospitality from school and university — I think that’s key to changing people’s perception about what hospitality can do for your career.”

With the restaurant group going from strength to strength, Applejack made the decision to let go of Bondi Hardware earlier this year, selling it to a restaurateur in an off-market sale. When a restaurant broker approached Carroll and Watts with interested buyers who were looking for a way into Bondi’s thriving hospitality scene, the pair felt it was the right move, albeit a tough one.

“Selling a business is always emotional, particularly when that business was your first,” says Carroll. “Hamish and I looked at the business model, looked at where we’ve been and where we’re going, and that’s when we decided to sell. Bondi is just booming at the moment and there’s a big demand for new businesses to come in.

“With Bondi Hardware showing strong revenue and very healthy books, we saw this as a promising exit strategy so we could focus on other areas of our business.

“We put as much effort into Bondi Hardware as we do some of our larger venues, and as you’d expect with the larger venues, you’re getting a larger return, so there was a financial reason [behind the sale] — our money could work harder for us elsewhere.”

Looking ahead, Applejack is going for a quality over quantity approach. “We have a growth strategy in place that doesn’t focus on a number of venues but on quality establishments that have higher turnover,” says Carroll.

But that doesn’t mean further expansion is off the cards. While details are still slim, Carroll says it is “likely” the group will open a new venue in the near future. Watch this space.