Thoughts on Running a Pub?

brummie_boy

Firstly, I have to declare a slight interest here as I do work for a pub co!!!

However....I'd be interested in gauging the opinion of savvy MSE's on here as to the pub industry....would you consider it, have you, did you get burnt or have you made money in it?? On the tenanted and leased side of things, rather than managed.

Also of interest as I'm potentially looking at a change of career direction...and this is one possible route!

:beer:

elite_2

No experience, but I couldn't face the late nights (I don't like working til 7.30 3 nights a week).

sweetmoneysaver

It really does depend on your situation ... are you single, a couple, have young children? I have worked in and run pubs and my parent's owned one. It can often be gutty work and the hours are long. With the recent smoking ban the whole pub game has changed. You need to look at it's location and customers. Do you get good passing trade, is there a good call for food (this is more profit making than the 'wet' side), is there a strong regular crowd, what age groups - i.e. is it very young or is it a mixture of ages, do you have good staff, ete, etc, etc.
A lot of people make the mistake that it is very social and that you can socialise ... this is not the case ... it is hard work, often 18 hour days when you take into account bottling up, cleaning and cashing up. It can be really good fun but remember that whatever your worries they stay upstairs and you must always have a smile on your face and listen to everyone else's woes!

lindsaygalaxy

Having dated with someone who ran a pub, personaly I hate it.

They work very long hours, are constantly there, a nightmare at christmas etc, and very little reward depending on lease cost and i you are tied to a brewery.

If you are single and have no kids, give it a try, if you have a family i would move away from the idea, you will never see them and if you live there, they will not have a proper home. Ofcourse im sure its different for some people who have ran one.

COOLTRIKERCHICK

i have never run a pub, but used to work in some when i was younger......i have worked in 3 local pubs ...all with the same catchment crowds.....and boy was there a diff in turnover..... all down to the pub being 'flavour of the month' so to speak......and the personality of the landlord/lady..

all i can say is think really hard as a lot of people who have been in the trade are saying its getting harder and harder..... also when you lease/rent etc you might be tied to the brewery to buy ALL your drinks including shorts etc.. which can be a lot more expensive than buying from the supermarket......

every body thinks that to own or manage a pub is the best job in the word and you earn mega bucks..... but in reality.... you could just be another slave for the brewery and the bank manager.....

all i can say is think hard and really do your homework...and then think some more......

sorry to be negative, but when interest rates goes up and there is money worries going out to the pub for a drink is the first thing that people stop doing.....

Rachie_B

lindsaygalaxy wrote: »

Having dated with someone who ran a pub, personaly I hate it.

They work very long hours, are constantly there, a nightmare at christmas etc, and very little reward depending on lease cost and i you are tied to a brewery.

If you are single and have no kids, give it a try, if you have a family i would move away from the idea, you will never see them and if you live there, they will not have a proper home. Ofcourse im sure its different for some people who have ran one.

youre kidding ?! xmas day was the best thing about our 9 month stint of running a pub!

we took £1500 in 2 hours on xmas day ........... that paid for a very well deserved holiday in January !

this was in 2003

i would have a go at running a pub again,it was wrong pub ,wrong time for us

we had 2 children under 7 and it was bloomin hard

hubby had always had a background in working in / running pubs ,but it was my first time of even pulling a pint !

i did enjoy it though overall, and we met some fab people during our time there,that we stayed in contact with

we werent treated very well by the brewery :mad: :rolleyes: and this is why we mainly left

chriseeboy

Hi Brummie_Boy,

For the last 12 year I have worked in the Leisure Machine industry, (Fruit machines, Quiz machines, Pool tables, Jukeboxes, etc). I am an account manager to all the major Pub Co's including S&N, Greene King, Punch, Enterprise, Fullers, M&B as well as Free of tie pubs and clubs. Before this I owned my own Licensed Members Club for 7 years so I am in a reasonable position to speak with good experience of the Licensed Trade.

Most of the posts, and with good reason, offer opinions on the cautious side and for most part, I agree with them. Rachie B's comments about making loads in a couple of hours whilst probably true, are a touch naive. The income you generate in Christmas week only makes up for the income you dont make in November, January and February because people are either spending for Christmas or recovering from Christmas. But to be fair, Rachie B at least put a positive and fun spin on things.

This summer has been a disaster for the trade with such terrible weather and on top of the smoking ban. Some tenants that have good gardens and rely on good summer and weekend trade may not recover from this spell.

It is true to say that there is no rhyme or reason to trade. You can be busy when unexpected and quiet when anticipating a busy spell. This makes beer and food ordering difficult and affects cash flow. Even arranging entertainment can be a minefield.

It would be fair to say that more people are getting out of the trade than there are going in and this leads me to the Pub Co's.

Some of the lease terms, in fact most of them, simply mean you are in fact working for the Pub Co. I know one such Pub Co take 20% of your share from Condom machines and Fag vending machines. This is ridiculous but f people sign up to such leases then who are the fools.

The best leases are to be found with original brewers who are mostly regional based. They allow for an entrapenereal spirit and tie you into beer and maybe spirits only. Some even beer only!

If I were to offer advice it would be on three points.

1) The more rent you pay the better income you make for yourself. For instance; an annual rent of @£60,000 should see you to a personal income of £30,000.

2) The rent to gross income ratio should not exceed 15% to give yourself a fighting chance. 10% of your income going to rent is great but 12% is still a result. However, these terms are difficult to find as Pub Co's try to secure 18-20%.

3) Have a substantial amount of working capital when you enter the pub after you have paid your ingoings. Consider refurb costs and improvement costs. Establish the affect the outgoin tenant will have on your business with customers going elsewhere for the shor-term.

Many tenancies become available in the months after Christmas. There are deals to be had in this time but remember you will have no significant custom in the winter months but in this time you could close for a complete re-dec and relaunch with a new style/theme to create maximum impact on your potential market place.

By and large, Pubs with a good food trade, good garden and ample parking are doing reasonably well and will in fact, thrive on the no smoking ban.

It is hard work and unsocial hours but done properly it can provide a good living and contented lifestyle.

Good luck.