Taking over a Pub, advise please?

Queries

I agree with others on this site, taking over a pub is not a good idea in this financial climate. A pub near me changed hands recently. The new landlord thought being in a student area would attract custom, it has not. It is closed at weekends and whenever I walk past during the week it is either empty or it has two people in it.

Also, the smoking ban has caused a lot of pubs to close their doors for good.

Pennywise

I have to disagree with the sweeping statements not to do it. There are plenty of pubs that are viable. You just have to do your homework properly, check out the lease and your liabilities, have a realistic plan for developing and growing it, check out the area, etc. In many (maybe most) cases, it's not going to be viable, but that's why you should do your research - you may end up missing out on a gem if you discount it because of general sweeping statements.

Same as the comment about garages - yes, a lot have gone out of business and a lot are struggling, but SOME are doing OK. There's one near me that was run down and near collapse, but with new owners it's now thriving again as they've changed the oil firm, scrapped the old, tiny, car sales and workshop areas and converted it to a convenience store and increased their opening hours. It's now turning a healthy profit.

Back to pubs, there are three in our village. 2 constantly change hands and are basically dead ducks, the other is a much better proposition, always busy, good food, a few B&B rooms, small car park, small function room for meetings, parties, etc. The two dead ducks are the old dingy type that have no function room, tiny kitchen, not letting bedrooms, no separate food area, no parking etc.

Atidi

Pennywise wrote: »

...Back to pubs, there are three in our village. 2 constantly change hands and are basically dead ducks, the other is a much better proposition, always busy, good food, a few B&B rooms, small car park, small function room for meetings, parties, etc. The two dead ducks are the old dingy type that have no function room, tiny kitchen, not letting bedrooms, no separate food area, no parking etc.

But is that successful pub a tied public house?

I suspect not.

antrobus

Pennywise wrote: »

.... There are plenty of pubs that are viable.....

Of course there are. However recent history would suggest that there are also plenty of pubs that are unviable.

The concern here would be that the OP is "currently going through the process of taking a over a lease at a bar from Punch tavern" but thinks it would be "nice to get to make a few contacts in the industry in time".

Someone who is contemplating taking on the lease of a licensed premises should really be in a position that they already have 'contacts in the industry'. The absence of such contacts suggests the OP lacks any experience or knowledge of the industry. A fact which might lead the casual observer to conclude that there is an increased risk that the premises in question falls into the 'unviable' category.

DigForVictory

+1 for don't. Blanket. Punch can afford libel lawyers, so I'll leave it there.
However, +1 for Ltd Co so you are not personally canned.

Whomever suggested taking on a tied pub as a good idea should not be on your Christmas card list.

patman99

My local pub only survives because the landlord already has a house elsewhere in the village, so rents-out the living accommodation above the pub.
This offsets what he has to pay to Greene King & as part of the rental agreement the tenants have to unlock for the cellerman to make his deliveries.

The food they do at weekends keeps the money coming-in and the pub in profit.

The one thing that is essential to a profitable pub is good staff. My local has a real moo working behind the bar, so all the locals have now drifted away to drink elsewhere when she is on.

morgani

There are the odd successful pubs but as yet I have not come across any. I run a firm of accountants and we have over recent years had many pubs/restaurants. Whether experienced at running pubs or completely new it has made little difference.
Most seem to lose money and those that have made money are less than minimum wage when you take into account the amount of hours worked.
For me simply why take on this level of risk just try and get a job instead.
This does not mean to say you have not come across a good pub but you really need to do some research and be aware of what you are taking on.

im-lost

I have to disagree with many of the comments.

Having worked in pubs and restaurants since the age of 16, albeit on the catering side, I had a fairly good grasp on the finances of every place I've worked in.

Not one ever made a loss, the owners were on a good wage, the staff paid well etc etc

I'm not saying it'll be easy to turn a profit and pay yourself well, but there is money there if you want to work for it, despite what the gloom pedlars may say.

The only pubs I've seen close locally are the wet led ones, the ones where all the !!!! heads drink, where it's all grimy and dingy.

The places that are thriving are food led, great profits on the food side if you get it right, good food, good atmosphere and a good following is all you need.

I'm sure if a bunch of us working can take 25k with the owners taking more, then it must be fairly profitable sector, no?

You wont make your millions doing it, but get the right staff in, get the right menu for the area, make it a nice place to go, and you really can't go wrong.

Would I take on a wet led pub at the edge of a council estate? Not in a million years. Would I take on a town centre bar? Of course not. Would I take on a village pub or country inn, that has some rooms to let out, has the potential to become a great eatery? In a heartbeat.

lincroft1710

im-lost wrote: »

I have to disagree with many of the comments.

You wont make your millions doing it, but get the right staff in, get the right menu for the area, make it a nice place to go, and you really can't go wrong.

Would I take on a wet led pub at the edge of a council estate? Not in a million years. Would I take on a town centre bar? Of course not. Would I take on a village pub or country inn, that has some rooms to let out, has the potential to become a great eatery? In a heartbeat.

Many village pubs which would have fitted your "success criteria" have in fact closed.

Do Punch Taverns operate the sort of pub you think can make the OP a profit. Because if not, although encouraging, your advice may not be correct for his situation

im-lost

lincroft1710 wrote: »

Many village pubs which would have fitted your "success criteria" have in fact closed.

Do Punch Taverns operate the sort of pub you think can make the OP a profit. Because if not, although encouraging, your advice may not be correct for his situation

Punch taverns run many different types of pubs, without knowing exactly what the op is going for its difficult to say. It's like saying getting in to retail is a bad idea because loads of shops have closed, but the other side of the coin is that there are many many profitable retail outlets out there.

Running a pub is more about the people running it than it is to do with being in the right location, having passing trade etc etc.

Being a tied pub, shouldn't be the basis of nnot taking on a pub, take a lot of them in Cornwall for instance, hundreds owned by St Austell Brewery, pretty much all of them extremely profitable, and rarely change hands.