Taking over a Pub, advise please?

mils

Hi all,
We are currently going through the process of taking a over a lease at a bar from Punch tavern and wondered if anyone could give some advice on a few areas please.


-Looking into EPOS tills, will be requiring 2. Anyone advice where to go? from my research there coming up at £1119 per till.


-Any companies that sell old pub tables/furniture, preferably the copper covered type tables


-anyone generally got any advise/experience on working with punch. I know they generally have a bad reputation being in so much debt too.


Ill leave it there for the moment don't want to ask too much at once. But im sure ill be back. It will be nice to get to make a few contacts in the industry in time.
any advise of help would be appreciated
Thanks, Paul

Savvy_Sue

The only advice I can usefully give is to make sure that you get all agreements checked by your own solicitor. You do have your own solicitor? I don't know how pub leases work, but I do know that leases for business premises are very very different to renting a home, and you have very little protection - you're expected to get things checked, and to argue over details if they seem unreasonable.

mils

thanks sue, yes we have a solicitor

Atidi

And in addition to all the excellent advice given by Savvy_Sue, I also know loads of pubs that are closing down.

Camra suggest its about 18 every week that are closing.

The old fashioned pub is a thing of the past I'm afraid. Its bars and bistros in town centres that are the only drinking houses that stand a chance currently ... and even that isn't easy. Around here, even the town centre places are changing hand extremely frequently.

Tied houses are even worse. How can you possibly compete when the tied brewery charges you more wholesale for your drinks than the supermarkets sell retail?
They'll just bleed you dry and eventually spit you out for someone else, whilst they compete in a very competitive market yet still trying to satisfy their shareholders demands for ever increasing returns.

Fish_n_Chips

ask yourself why so many pubs are closing each week.....?

colino

Simply don't do it. Pubs are a great way of losing money, Punch have already sold off hundreds and will sell off hundreds more over the next four years and cherry pick the core ones to be direct owned and managed. Despite their slash and burn approach to their portfolio, they managed to knock 25% off their profits last year.
Pubs have moved on, they are either short lived destination pubs that have to be remarketed and rebranded heavily every 2-3 years or are small owner-managed or tenanted units that end up the head barman has more income and security than the boss.
When taking legal and financial advice, take it from proper commercial professionals, not the people who sorted out your mortgage. Due diligence, and being able to see through the false peaks, are key.

SailorSam

I think buying a pub is like buying a garage'
Have a drive around and see how many deserted filling stations there are. The supermarkets priced them out of business, now they've done the same with pubs by selling cheap booze. People don't go out the same as they use to, and if they do it's only for the last pint after drinking at home.

silverwhistle

colino wrote: »

Simply don't do it.

I must admit, that was my first thought but nobody else had yet posted and I didn't want to be negative.. I know some pubs I've been in, they close, and you think "Well, that was no surprise". With others, hmmm. OK, so I'm lazy and like beer too much so wouldn't get a pub, but if I did it would be owned by myself and a free house..

This video is enlightening:
http://www.theguardian.com/commentisfree/video/2012/mar/16/pub-closures-pubcos-landlords-punch-video

Jordo

Did it for a year - don't do it!

Sounds good, but the truth is much more grim. It's literally 100 hour weeks for a licensee to run a busy pub, for what, £25k a year?

All your customers are drunks, down-and-outs, idiots, violent etc who will quickly turn your pleasant evening into one of terror at the drop of a hat. I ran a relatively nice place in a nice area and still feared for my safety quite serisouly three times a week.

If I could run another pub, it would be a foody type place, busier in the day than night, somewhere in the lake district where people bring their dogs and all complaints are dealt with by giving them a free meal!

If you do decide to take it on, I give my best, you'll need it!

Acc72

In addition to the previous comments, have you ever run a pub before ?

Do you have any experience of working in this industry ?

Do you have any experience of running a business ?

Are you required to make a payment ?

Will you be tied in for a specific period, with financial penalties if you leave ?

Will the brewery be able to "dismiss" you at any time, if so, aill their be any financial penalties on them ?

fc123

Whatever you do, do not sign any personal guarantees on the lease.
If they refuse to let you have the lease without one, walk away now.
Put the lease in a Ltd company.