Business Case

Business Case

Catering Conversion Opportunity

• Tebay South currently experiences a drop in catering conversion rates from 35% to 31% during peak months, driven by the challenges covered above. This represents a significant missed opportunity.

• Restoring conversions to 40% across the five peak months would generate an additional £634k in gross profit per annum (As per chart below)

• The proposed new outlets are designed to handle up to 1,000 transactions per hour, compared to the current maximum of 575.

• The capex required to deliver this is approximately £1 million.

• If, over time, we are able to increase conversions to 40% year-round—through a stronger food offer and improved throughput—this could deliver an additional £450k in gross profit annually. However, this more optimistic scenario has not been factored into the current business case, as this is our first major change to the catering model.

Car Park Expansion

• The current car park at Tebay South has 235 spaces, which is insufficient to support increased visitor numbers.

• Increase capacity by 149 spaces, bringing the total to 384.

• Estimated capex of £500k with a prudent return of £64k per annum.