Pub Tenant Lease - what do I need to know?

Options
1235»

Comments

  • ACG
    ACG Posts: 23,728 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Options
    agrinnall wrote: »
    Ah well, that's different to what you posted, where the only prices you gave were 26p a pint and 4 pints for £1 (i.e. 25p a pint). That's a difference of 1p hence my calculation that a £3-4,000 loss would require the sale of 300-400,000 pints.

    When was the last time you seen a pint being sold at 25p? I made an assumption that people reading would realise the amount they lost was the difference between 26p and the normal selling price. We would hardly be getting one over on them knocking a whole penny off the price :rotfl:
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Smodlet
    Smodlet Posts: 6,976 Forumite
    Name Dropper First Anniversary First Post
    Options
    ACG wrote: »
    When was the last time you seen a pint being sold at 25p? I made an assumption that people reading would realise the amount they lost was the difference between 26p and the normal selling price. We would hardly be getting one over on them knocking a whole penny off the price :rotfl:

    Hell, it was more than double that when I first worked in a pub, back when I was a student and herds of stegosaurus roamed majestically across the plains... Almost 40 years ago.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    Options
    ACG wrote: »
    When was the last time you seen a pint being sold at 25p? I made an assumption that people reading would realise the amount they lost was the difference between 26p and the normal selling price. We would hardly be getting one over on them knocking a whole penny off the price :rotfl:


    Well, it was when I was at university in the late 1970s, but I have no idea when you were running a pub, the only clue was that it can't have been any earlier than 1971.
  • downhillfast
    downhillfast Posts: 968 Forumite
    First Anniversary Combo Breaker
    Options
    I've only just come across this thread and to be honest I've only had time to skim read it so many points may have already been covered.

    I didn't want to not post a reply though as I have had experience of leasing a Punch pub...

    DO NOT DO IT!!!

    If Punch have left it empty and not put a manager in then it's not worth it to them...

    If it is a standard Punch lease you will be tied to them for all beer products (including bottled beers that they have markers on the labelling so they can check if you are swindling them by buying elsewhere!)

    Their beer pricing (when I had my pub) was tiered and not competitive... and I also had the misfortune that I had 2 other Punch pubs nearby that had preferential prices as they sold more - I was fighting a losing battle from day 1 to keep my prices in line with the competition but to still make a profit.

    The lease on the building will be a 'fully repairing lease' and should you wish to sell up or leave you will be responsible for repairing anything that crops up in the compulsory survey.

    After 2 years of not being able to make a living or afford more than 1 full day off I ended up bankrupt as I couldn't even afford to leave. It was only after the dust settled that I realised how much the whole thing had petrified my family who could see it spiralling out of control but do nothing to help me.

    Think very carefully before you risk your money, your sanity, your freedom and your family.
  • TELLIT01
    TELLIT01 Posts: 16,489 Forumite
    First Anniversary First Post Name Dropper PPI Party Pooper
    Options
    If you want to get into the pub trade I would have thought the best route would be via a Managed House rather than tenancy. With a managed house the brewery carries the liability and therefore has a vested interest in making sure it works. With a tenancy the onus is entirely on the tenant and the brewery expect their payment irrespective of the profitability or otherwise of the pub.
    To be honest, it sounds as if you have the enthusiasm and some knowledge, but there is a massive difference between working for a business and running your own. I've never worked in the pub trade, but your thoughts of doing most of the work yourself sounds unrealistic.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    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!
    So wait for some other sucker .... and go bang on their door for a part-time job :)
  • joesab
    joesab Posts: 61 Forumite
    Options
    Are you still looking into this? If the pub is 'free of tie' (and I doubt it with Punch), it means you can buy your kegs of beer from any supplier. If its not free of tie, it will be that you have to buy from Punch and they are very expensive. If you buy from elsewhere, you will more than likely be in breach of your contract and they will charge you. And dont for one minute think that you can order minimum beer kegs from them then buy surplus else where (known as 'buying out'), Punch cellars usually have a device called Brew Lines fitted, link to the area managers computer - it monitors how much ale is going through the lines so the minute you start selling more than you have ordered they will be on you like a ton of bricks. The Punch Business Development Manager may well be smiley and friendly with you while youre considering the place but the minute youve signed that lease, he / she will change into the nastiest rent collector you are likely to meet. I would steer well clear.
  • DigForVictory
    DigForVictory Posts: 11,906 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Options
    Punch are not a pub company (no matter what they tell, let alone sell, you) but a Property Company.

    Keep a sharp eye on that point. It doesn't matter to them if you put every ha'penny of your inheritance & every awake hour for weeks or years - they own the site & they will sell it or cease your tenancy as & when it suits them.
    They have form for rolling several landlords through a pub, gradually building it up, (whilst wiping out the would-be landlords' funds) then selling to a property developer or a favoured colleague.

    Running a pub is a tough gig, there is a lot of paperwork let alone food and drink and hygiene and HR and as soon as you move in, you are shackled as you probably won't be able to afford another address for long. At which point, they have you.

    You have fond memories? Hang onto them & leave this "opportunity" for the next bright-eyed punter.

    I have to say this goes for anyone going into the pub trade with Punch. I've yet to see a contract of theirs that doesn't sign you up to take a beating.
  • joesab
    joesab Posts: 61 Forumite
    Options
    Blue Star , formerly Scottish and Newcastle, have a similar record
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards