Pub Tenant Lease - what do I need to know?

Les79

QuackQuackOops wrote: »

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.

That being said, it does not necessarily rule out the possibility of taking on the pub.

I think OP would be worthwhile constructing a business plan, of which there are templates available online.

Look into the bottom line stuff like:

- Overhead costs (Stock, staff, gas/electricity, assets+depreciation, rent)

- Paperwork (registering as company with HMRC? Accounts, daily/weekly receipts, stock recording/monitoring, arranging deliveries, H+S compliance, rates - ie stuff which an owner will be bogged down with)

- Projected income and sources (food/alcohol. Maybe other sources?)

- Projected initial expenditure (to get the place compliant with rules, like H+S for example, and decoration and stock and advertising)

- Where the business would fit in with other local businesses and whether you have a unique selling point (not strictly necessary, but if you copy the template of a local pub then you may experience fiercer competition for business)

I'm sort of erring on this side of you having this idea after a few cans of Stella rather than a legitimate business venture. Who knows though!

ACG

Find out how much they will want for Fixtures and fittings.
How much rent they want.
Where you have to buy:
Beer,
Wine,
Spirits,
Mixers,
Postmix,
Nuts,
Food

The less you buy from the brewery the better your profit margins will be.

When we had a pub we had to buy Lager and Ale (bottled and draught) from the brewery.
Why are Punch not putting a manager in there?
What are business rates.
What protection is there for you? (see below).
Who covers reparations inside and out?

You will need staff, you can not do 11-12 hour days both bar and food on your own and clean and so on. Our staff levels varied between 6 and 13 in addition to myself and the other 2 owners when we had a pub but it was a big pub. It was overstaffed when we took over.

Think about all of the negatives:
Your weekends will be gone.
You live upstairs from the business - staff will think you are on call 24/7.
What happens if the local nutter walks in kicking off? Do you leave it to the staff/go and sort it out?
What happens when you have 3 lads on the roof with hammers and crowbars (this happened to us).
Are there any personal guarantees? If it does not pan out, are you on the hook for losing anything of value?


We have had a pub, loved it, made lots of friends, learnt loads of new skills - but the best day was the day we moved out.

I would never in a million years manage or live in a pub again. I remember the day we moved out, I slept for 12 hours and woke up wondering what I would do that day because I could get up when I wanted, go to bed when I wanted - I did not have to stay up to lock up because there was one man in the corner nursing a 3 hour old pint.

C_Mababejive

I know nothing about running pubs. What i do know though is that a lot of the the best "pubs" are actually decent restaurants that by chance happen to sell alcohol as well. I also know a man who ran a pub as a tenant for several years, worked very hard,and was overjoyed when he managed to sell it on and get the heck out of it.

t0rt0ise

Have you read their website? You will have to attend a course with them and take two exams before starting. You also have to have quite a bit of money behind you in order to start. They will explain it all if you call them and ask. But you do sound like the sort of person that could do it so don't let those here put you off. You could do worse than call into a pub and have a chat with the owner/manager to get more of a picture of what it's really like.

I'd never heard of Punch Taverns either. There aren't that many of them, none where I live.

ADaffodil184

I know a lot of you seem concerned I've not heard of Punch taverns, and therefore am talking drivel. There are many, many breweries and management companies, and no, I truly hadn't heard of Punch Taverns. This doesn't make my experience null and void.

I'm also more than aware that I will need staff - I've never seen a place run on one person alone! It's just a case of how many and when. As the business wasn't exactly thriving when it was closed for renovation, it would no doubt be daft to employ a full quota of staff until we knew when they were needed. Plenty of flexible workers in the area, too.

I am putting together a business plan just to see if it is workable, but I think the romantic image of running a pub is certainly rose tinted, and given this particular pubs most recent trading state I'm not sure I want to be the one to try and drag it back up! I will have a chat with an accountant and get their opinion, too.

The majority of pubs in the local area are freehold, so far fewer restrictions. This in itself may cause issues re pricing etc.

For what it's worth, I tried calling Punch Taverns 3 times yesterday, completed an online enquiry sheet and emailed, and have not heard back from them, so I'm not instilled with confidence!

gardner1

ACG......asked " Why are Punch not putting a manager in there?"

Answer because it doesn't take enough money or make a profit

OP......"The pub in recent years has fallen into disrepair and has been abandoned somewhat "

Answer because it wasn't making any money/profit


It will take an awful amount of money/hard work to make a go of it......it sounds like you've already made your mind up but just make sure you take those rose tinted glasses off before you commit

gettingtheresometime

Have had no experience of running a pub but I see how empty the pubs around where I live to know that that's one business I wouldn't even consider running / owning

Blackbeard_of_Perranporth

I do not give financial advice, but have highlighted an important factor in you pipe dream!

ADaffodil184 wrote: »

The pub in recent years has fallen into disrepair and has been abandoned somewhat, so it would take a lot of hard work to get the locals back.

ADaffodil184

Thanks all - that's the reason I've not 'registered an interest'. I think childhood memories of playing in the garden are muddying my thoughts some what!

It's a wonderful, romantic idea, but I am definitely starting to believe it's just not worth the risk..!

Takeaway_Addict

ADaffodil184 wrote: »

Thanks all - that's the reason I've not 'registered an interest'. I think childhood memories of playing in the garden are muddying my thoughts some what!

It's a wonderful, romantic idea, but I am definitely starting to believe it's just not worth the risk..!

Its probably a wise choice but don't let that put you off running a pub, just be more criticial and cold hearted when looking at the facts and figures on any pub that is on offer