Are you thinking of making that move in the hospitality trade and taking the plunge and opening your own pub? It can be a daunting process but our guide on how to open a pub will help you make it a success.
We’ll look at the options available to you across the spectrum of management to opening your own freehold pub. But let’s start with an overview.
What licenses do you need?
To open a pub you’ll first of all need a personal alcohol licence (APLH). This is a short course and exam that will get you up-to-speed with licensing law and important information around the area. Our course finder will help you find your perfect APLH course.
Depending on the type of establishment you are opening you may need a premises license. This is done through your local council.
Find your perfection location
We all know that old saying that success comes down to:
location, location, location.
Opening a pub is no different! You can sell all the craft beer and pay attention to your shabby chic light fittings but if you aren’t in the right place you won’t become a success. When finding your perfect establishment take in to account the market around you, are there pubs right next door, is there a thriving evening crowd. Paying attention to the little things at this stage can save you headaches later.
Choose the right ownership model for you
The pub market is thriving in the UK and there are many routes to getting your foot in the door. The right route for you to open a pub will depend on a few different things.
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Initial money
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Experience
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Risk
Sitting down and working out which strategy works for you at an early stage will help you make the right decision for you.
Managed House
Whilst this is not technically running your own pub this can be a great way to gain experience and learn the ropes of owning your own pub.
In this model you are paid a salary by the brewery and have no financial responsibility for the running of the pub.
Tenancy
This is the cheapest way to open a pub. This makes it great to dips your toes in the water of pub management. The main drawback of this model is that with building the business and making it profitable you are unlikely to see the benefits as this isn’t your business.
Leasehold
In this route to open a pub you own the business but not the property. This means that if you build up the business in to a profitable enterprise you can sell the business on and make a good profit. There are two main variations of a leasehold; tied and free-of-tie.
Tied
In choosing this option your choice of drinks will be limited and a considerable amount will have to be bought from the brewery.
Choosing this option is a great way to start out as it drastically reduces your initial costs but also limits the profits you can make from your beer. Under a tied agreement food and soft drinks aren’t tied and so your profits can come from these areas.
Free of tie
The more expensive leasehold option but this allows you to buy your drinks from anywhere. This means that you can negotiate prices and get the best deals to maximise your profits.
Freehold
The most expensive way of opening a pub and definitely not one for those without experience. In this model you own the business and the property. This means that you are free to negotiate all drink buying and have full ownership of everything. This places you at the centre, and means that all risk is yours. But become successful and you can be made for life.
Making the right decision for you
Using this information can help you assess your options and decide the best route to having your name above a pub door. Proper forward planning can help you minimise the risks going forward and ensure that your business is a success.
Your journey to owning, or managing, your pub starts with an APLH course. Our course finder helps you find the best local trainers at the best prices. All courses are covered by the Get Licensed training guarantee.
How to get a Personal Licence
Thinking of applying for a Personal Licence? The Personal Licence Training Course teaches individuals about the law and legal responsibility of being a licence holder and is part of the process for obtaining a Personal Alcohol Licence.
Once you have passed the Personal Licence Course, you will then be able to apply for a Personal Licence.
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