Sir Reo 'Argyros' Stakis

(From the Obituary, Daily Telegraph)

SIR REO STAKIS, who has died aged 88, arrived in Britain from Cyprus in 1928 with a suitcase of his mother's lace to sell; over the next 70 years he built an empire of hotels, health clubs and casinos which in 1999 was sold to Ladbrokes for £1.2 billion.

Like Charles Forte, Stakis was associated with many of the milestones in postwar popular catering. At his chain of steakhouses, he was credited with introducing Glaswegians to such delights as gammon with pineapple and Black Forest gateau. He was among the first to provide good quality, affordable hotels - serving hearty Scottish fry-ups, including square sausage and haggis, but not much more - and opened Scotland's first casino, The Chevalier, in 1967. His combination of business cunning and genuine modesty made him a role model for would-be entrepreneurs.

The eldest of six children, Reo Argyros Stakis was born on March 13 1913 in the small mountain village of Katorydys, Cyprus. "Everyone worked hard," he recalled, "but all we had to support us were the lemon and olive trees and the lace the women made."

Reo's father was a farmer; his mother organised the village lace-makers, designed the lace and sent it off to Britain to sell. In 1928, Reo's grandfather, the village priest, suggested that they might sell more if they took it directly to the British people and young Reo was nominated to go.

Aged 15, and never having previously travelled further than Larnaca (where he attended the American Academy), Reo deemed it a great honour to be entrusted with this task and he promptly set off by small boat to Piraeus. There he boarded a passenger ship to Marseilles, and after travelling up through France by train he eventually arrived at Victoria station. Almost immediately he began lugging his suitcase from door to door, selling the needlework that his mother and her friends had made.

Over the next 10 years, Stakis travelled the length of Britain selling consignments of lace and sending half his earnings back to his family. He ate out almost all the time but soon gave up trying to get an edible meal at an affordable price, making do instead with a roll and cheese at the roadside. He soon figured that "if you could offer people good food at reasonable prices in comfortable surroundings you would be sure to succeed".

Stakis felt most at home in Scotland, where he found the outspoken, hospitable and hard-working people not dissimilar to Cypriots. In 1947, he bought a share in a restaurant in Hope Street, Glasgow, and soon set up on his own around the corner in St Vincent Street. In the spirit of the times, he named his first restaurant Victory.

Food was still rationed, but Stakis's emphasis on friendly service and value for money soon reaped dividends. In the late 1950s, when the block on which his restaurant was situated was put up for sale, he was able to buy it himself after borrowing £220,000 from his bank. "Sign the cheque, Reo," his banker John - later Lord - Erskine - told him. "Then we'll have lunch."

During the 1960s, Stakis opened a chain of steakhouses before branching out into casinos. The Chevalier was an immediate success, the first of an eventual chain of 22.

Next he moved into hotels, at a time when the government was subsidising hotel building to boost the tourist trade; hotels could also get around Scotland's strict licensing laws, which forbade drinking on Sundays. Seeing that people were choosing to drink in his hotels rather than the grim Glasgow pubs, he decided to open better ones and became known as "the man who took the sawdust out of Glasgow bars".

Stakis was careful not to overstretch his finances, ensuring that every business he bought had a direct investment of cash. He did take chances though, reckoning that "a 60-40 bet is good enough" - but he never gambled his own money in casinos.

The Stakis company went public in 1972, and four years later Stakis stood down as managing director while remaining chairman. The company found itself in dire financial trouble in the early 1990s after an ambitious expansion overseen by Stakis's son, Andros. This was soon straightened out, however, and the experience made it easier for Stakis to reconcile himself to the sale of his 54 four-star hotels, 22 casinos and 70 health clubs to Ladbrokes in 1999.

Reo Stakis's main recreations were shooting and fishing. On August 13 1971, at the Hilton Hotel in London, he left a note in every guest's room reminding them that the grouse season had begun the previous day and that grouse would be served at lunch. He charged £3.50 a bird, thereby undercutting the £4 charged by Claridge's and the Savoy.

His guiding business philosophy was: "Do only what you know and do it well." He also once remarked: "You need to be tough sometimes, but not ruthless."

A man of simple habits, he did not use credit cards and neither drank nor smoked. His favourite food was bread. He quietly gave away much of his money to charity.

He was knighted in 1988.

He married, in 1946, Annitsa Petropoulos; they had two sons and four daughters.