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This is one to go in with your eyes WIDE open, this is not an expanding market . However if you still go ahead let me tell you that even if you have a rock solid pub with a good steady clientele you will never work so hard and long in your life.
In addition to requiring good people skills you will need to be extremely versatile as the job involves people management, stock management, financial management, catering, drinks knowledge, legal knowledge, marketing and excellent customer service skills.
If you still have the dream in your head after all I have said so far then you need to start making the decisions. There are a great variety of pubs types these days, You will need to decide whether your's will be a countryside-based local pub or a trendy, inner-city pub for a younger, night-time crowd. Of Course there are many other concepts in between these, but they are a good starting point .
The first decision to make is a lease or a freehouse.
Running a leasehold is the most popular option, as it is a much cheaper start up.
Leasehold as the name implies means that you buy the business and not the property, and the pub profits are yours. Pub leases can be in two forms, tied or free. Tied leases are the most popular because they are cheap but it means that you are tied to the one leassee or their nominated supplier(s) and cant shop around for the cheapest deals
A free of tie lease means you can max your profits on sales by shopping around for the cheapest deals, however the lease will cost a lot more at the outset, but the business is truly in your hands.
Just like most of the other business in the retail sector the three most important things are LOCATION, LOCATION and LOCATION, in other words, footfall, competition, parking and many other factors are critical, and never forget to make sure the building is sound and up to specification. My own brother in law took a lease on a pub some years ago, only to find out the kitchen had to be completely refurbished. The cellar flooded every winter, the fixtures and fittings were on their last legs and the brewery didn’t want to know. The result, they spent a a lot more money than they ever intended and within three years had to file for bankruptcy. He says it was the worst decision of his life and nearly cost him his marriage as well.
Prices for leasehold premises can be as low as zero and go up to the millions, but don’t get carried away if the lease cost is zero there will definitely be strings attached. Either the place will need a lot of money spending on it, the tied beer price will be high, or it may well be a business that has failed several times already.
Remember if it sounds too good to be true it usually is!
You will need an on sale license in order to sell alcohol, this is obtained through the local magistrates. You must be over 18 years old, have no criminal record and be able to prove you understand your legal and social responsibilities, (this is usually done by way of a training course run by The British Institute of Innkeeping and is called A National Licensee’s certificate), this is a good preparation for when you stand in front of the magistrate.
If catering is also part of your plan, you will need to register with your local environmental health department as a food preparation premises.
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