There is a lot to think about when you first start to consider running your own pub, but before you tackle that bar menu it's a good idea to look at buying options for your boozer. This quick guide looks at the three standard ways of running a pub: tenancy, leasehold and freehold.
As with a residential tenancy, with this option, you would not own the pub but would rent it from a brewery/ pub company on a rolling contract. The standard initial length of tenancy is three years after which the tenancy will be reviewed and potentially renewed. The advantages of a tenancy are that you have a high level of flexibility with the ability to move on from the business when the tenancy expires. Disadvantages are that it does not offer much stability. Often pub owners have performance targets, should you fail to meet theses targets in your tenancy period, they may decide not to renew your contract.
In this case, you would own the pub for a stipulated lease period, which usually runs for a number of years. This arrangement offers a certain level of stability and gives you more of a free hand in the running of your pub, though it is obviously more costly than a tenancy arrangement. Pub leaseholds are usually non-assignable meaning that after two years you would be able to leave. However, if you have bought the pub from a brewery or pub company, you must have their approval on any future sale within your lease period.
In this case, you would own the pub outright. It offers stability and flexibility to run your pub however you wish. However, freehold pubs are quite a rarity these days and are not usually found in city centres. You will not have the support of a brewery or pub company which means that, although you have more control of the profits, you will also have complete responsibility for the success of your business. Look for pubs for sale.
Running a pub is in many ways a dream job, but it is a good idea to look at all of the buying options before taking the plunge. As with any big purchase, you need to do your research. Look at the existing customer base and consider local competition from nearby bars and restaurants. Familiarising yourself with the facts will help make your boozer the best it can be.Share
27 July 2016
My wife is heading up to Bali for some sort of health retreat, so me and the rest of the husbands are planning our own retreat - to the coast with fishing rods and beer. Everyone relaxes in different ways, and we love to spend time together having a beer and swapping stories of the biggest fish we've ever caught. We are planning a few different spots to make the most of the time we have away from home as it's rare that we can all go on holiday together like this. You have to make the most of the opportunity!