Pub Tenant Lease - what do I need to know?

Ozzuk

I've always held a romantic notion of running my own pub - maybe micro brewery as well. In reality as JCS1 states a huge number are failing.

Doesn't mean yours won't but I think you'll need significant money behind you, certainly for the first year. and this is on top of any funds needed to update the pub (which you mentioned it needs).

You could risk losing a serious amount of cash and not even have an asset to sell at the end.

Maybe look at other pubs for sale (there are always loads) and do some comparisions. It's great you have experience of working in that environment - but that can be very different from managing that environment.

Don't let me put you off, but certainly produce a full business plan, forecast budget/costs (all worst case). See if it adds up - you could be working 7 days a week (even when not actually working in the pub, as owner you'll still be mentally dealing with it, and doing other tasks) for very little return.

Or going back to my romantic view, nice income, nice live music, nice warm atmosphere, great lifestyle!

ADaffodil184

Thank you all!

My biggest concern is the number of pubs that are failing, I am not sure what support Punch Taverns give, if any. I imagine they just leave you to it and chase you for the rent if it all goes wrong.

I have worked in a busy restaurant kitchen, from bottom to top (pot wash is still my favourite!), doing an average of 80 covers. This pub has a small restaurant with up to 45 covers. I am used to working 16 hour days on my feet, so no hardship there, though I appreciate working for someone is far easier than doing it for yourself.

The pub used to be thriving, the other local pubs certainly are now, after a quiet couple of years, and only two in the last 5 years have closed. Though the majority are Freehold so that probably has a lot to do with it. There is certainly local trade - it is the only pub/restaurant in an ever expanding residential area. It used to be the go-to place in the 60s, right up to the early 90s when the family running it retired. It has since had a few different owners with little success.

The pub and kitchen is in an awful state decoratively, though is currently undergoing a refurb paid for by Punch Taverns.

I have all of my food safety certs, and could update them, I have also held a personal licence before so would be happy to reapply. I do some part time self employed work, so have some experience of VAT etc., though would probably need help with PAYE/NI etc. with staff involved, as I've only ever done this on behalf of a larger employer (so it's always been checked through an accountant).

I will certainly look around, it was just the idea of it being mine (and my parents!!) childhood/growing up pub! I do have some financial security behind me in the way of inheritance, but certainly don't want to throw all of that away on something that, it seems, would be more likely than not to fail.

Thank you all for your honest opinions!

PasturesNew

You can't set yourself up to do any of the jobs yourself - you'll need staff to do them all - because you'll have plenty to be doing yourself - and should only see yourself as "emergency cover".

First thing, is there enough food in the fridge/freezer, do the food order. Deliveries start turning up, so down into the cellar ... sign paperwork, put paperwork on right pile. Back to the food order, check/finish that, send it off. Representative of crisps/nuts/whatever's in the bar to see you.... what's the time?

Dash into the kitchen, empty the dishwasher, get food out for prepping. Phone rings... somebody wants to ask about the food, or book a table; put that down, get back to what you were doing, phone rings, somebody can't make their shift.

Sack off what you were doing - need to check the bar snacks levels and get another couple of boxes out of the storage as the member of staff that just called in normally does that at the start of their shift.

Quick wipe of the tables, what's the time?

No food prepped... no condiments out, no cutlery out ... bins weren't emptied by the cleaner, phone's ringing again - and it's time to open the doors....

eamon

There is a Punch Taverns FB page, not a pretty read.


However if you are serious then do research and loads of it. You need to understand completely how their business model works. Don't sign/agree to anything without getting the documents read and explained to you by your accountant and solictor. Could be the best £500-1000 that you have ever spent.

agrinnall

ADaffodil184 wrote: »

...and plenty of bar/pub/restaurant experience.

ADaffodil184 wrote: »

...it is with Punch Taverns (not heard of them until I saw this so will need to read up).

Given that Punch Taverns are pretty well known (I've heard of them and I have zero experience in the pub industry) so there seems to be a disconnect between your two statements. Do you really have as much experience as you seem to imply?

Savvy_Sue

I think PN has hit the spot. You'll need plenty of backup because especially in the early days you simply HAVE to be open when you say you will. Dog dies? Pub comes first. Migraine? Still got to open.

One tip: if you go for this, whenever you get a group booking, say 10+, don't be afraid to ask for choices in advance. Or even offer a simplified menu. Far better that than have 25 hungry walkers arrive, let them choose from an extensive menu, and then take an hour to produce any food. And get extra serving staff in for groups...

But really go in with your eyes wide open. Don't be sucked in by the nostalgia of memories. If you really want to run a pub, this may not be the best one for you.

A thought: is there a ready supply of people looking for flexible work? Students, for example. If not students, who?

lincroft1710

agrinnall wrote: »

Given that Punch Taverns are pretty well known (I've heard of them and I have zero experience in the pub industry) so there seems to be a disconnect between your two statements. Do you really have as much experience as you seem to imply?

I thought this strange that OP hadn't heard of Punch Taverns. I have minimal knowledge of the pub industry, but have known of Punch for some years.

kazwookie

Pubs are very very hard work.

Make sure you do your full research and get your ££ figures in a line, many pubs are currently failing, be very aware of this.

Check and recheck the lease on this pub, then check it again, some leases are very bad.

Owain_Moneysaver

ADaffodil184 wrote: »

No, no security, but a deposit, which I have from inheritance.

I assume Comms69 meant door staff!

QuackQuackOops

OP, there isn't a prayer that you can run a pub on your own.
Sure, you might physically be able to run around like a crazy person but that isn't what you need to do to run a pub sucessfully.

How can you clean the pub when its time to clean the lines and the cellar?
You can't prep food if the beer is being delivered.
Morning set up will take longer than you think due to all the morning phone calls that come in. Reps, deliveries, customers, staff phoning in sick, etc

Nice idea but be realistic. For something that size, you will need at least 7 or 8 staff plus a cleaner.