HE never drank, never gambled and seldom ate out, yet Reo Stakis is credited with changing the drinking, gaming and dining habits of generations of Scots.

Sir Reo, who died in hospital yesterday at the age of 88 after suffering a stroke, was born Argiros Anastasis in the tiny village of Kato-Drys in Cyprus in March 1913. He was just 14 when his father died and he travelled to Britain to seek his fortune.

Legend has it that he viewed London as the place where he would prosper, but when a thief nearly managed to run off with his suitcase of his mother's hand-made lace, he decided to move north and felt at home in Glasgow.

At the end of the war, despite the fact that he had no experience in the catering trade, Reo Stakis recognised that Scotland was not well served for restaurants.

He opened a 40-seater restaurant in Hope Street, Glasgow, which he named the Victory, in keeping with the times.

Expansion soon brought three more establishments and ultimately a chain throughout Scotland.

The Stakis organisation grew quickly and diversified into hotels like the Normandy at Renfrew and the Tinto Firs in Newlands, Glasgow, before spreading to England and prestigious hotels like St Ermin's in London.

Casinos, starting with Chevalier, soon followed and became a major source of revenue for the company.

His lowest period came in the 1990s when his son Andros was given a place in the boardroom and friction with the other directors followed.

History will show whether Andros tried to take the company in the wrong direction or he was the victim of a boardroom stitch-up, but the facts are that the company hit rock bottom.

It was saved by company doctor Sir Lewis Robertson and a whole new board and grew again only to be snapped up by the predatory Ladbrokes, owner of the Hilton chain, in 1999.

It employed 15,000 people throughout the UK.

David Michels, now chief executive of Hilton plc, said yesterday: ''It is with regret that we hear of the loss of Sir Reo Stakis, a man of great foresight and humility who has left an indelible mark on British hospitality.

''We owe him a great deal. Our thoughts go to Lady Stakis, his extended family, and many friends at this very sad time.''

Alex Mosson, the lord provost of Glasgow, said: ''I was extremely sad to hear of Sir Reo's death and our thoughts and prayers are with his family and friends at this terrible time.

''Sir Reo revolutionised the eating habits of generations of Glaswegians, as well as introducing good quality, affordable hotels.

''He loved Glasgow and his imagination and skill made an indelible mark on this city. He will be greatly missed.''

Sir Reo lived in the grounds of Dunblane Hydro, a former Stakis hotel, with his wife Anna, whom he married at the end of the war.

He is also survived by four daughters, two sons and nine grandchildren.

His funeral service will take place next Tuesday at St Luke's Greek Orthodox Cathedral, Dundonald Road, Dowanhill, Glasgow, followed by burial near his home at Dunblane.

Jack Webster, whose biography of Sir Reo was published in 1999 to critical acclaim, said: ''I remember a small, balding man who was always modest and quiet spoken.

''He was perhaps the least likely entrepreneur you could imagine. When we returned to Cyprus to research the book, he was totally at ease with the local people of his village.

''He seemed still to be the little lad who had left Cyprus 70 years before and who just happened to have become a hugely successful businessman and a millionaire.''

Duncan Tannahill, chief executive of Glasgow Chamber of Commerce, said: ''Sir Reo Stakis from humble beginnings became an icon of Scottish business and an example to everyone who wants to become involved in business life.

''He had a huge influence on the eating and hotel habits of Scotland and the rest of the UK,'' he said.

''We have to face the fact that eating out before he came along was a choice of fish and chips or a big posh meal.

''He introduced the idea of a decent steak and a bottle of wine becoming available to the widest possible audience.''

rag trade to riches

1913 born Argiros Anastasis, eldest of six children in the village of Kato-Drys, 22 miles from Larnaca in Cyprus.

1928 heads to Britain to seek his fortune with just a suitcase of his mother's hand-made lace.

1946 marries his childhood sweetheart Anna Petroopoulos.

1948 sees a gap in the Scottish restaurant market and opens the first of what would become of modestly-priced eating houses, the Victory in Hope Street, Glasgow.

1951 has opened a dozen restaurants and 24 bakery shops as well as launching a property company and moving into pubs.

1964 The Chevalier becomes the first of Stakis casino chain.

1972 company goes public with seven million shares at 36p each.

1978 the company is hit by a disastrous fire at the flagship Grosvenor Hotel which is made worse by the fact that Glasgow's firemen are on strike.

1986 son Andros Stakis moves in and sparks a boardroom war which will see directors storm out or be sacked.

1992 Sir Lewis Robertson comes in as company doctor as the company teeters on the brink of disaster.

1999 firm is taken over by Ladbrokes in a deal worth more than (pounds) 1 billion.