Pub Tenancy Options: What Will Work For You?
Date added: Mon, 06/03/2017 - 10:00
Many people dream of being their own boss, and running their own business. Achieving this is another matter. It takes ambition, and strength of purpose to step out into the world of small business for the first time.
Running a pub is a great way of doing this if you’re interested in hospitality and retail. You get the best of all worlds. You have your own business and you are responsible for its success, dealing with long-term strategy and day-to-day operation. Yet behind you, and providing support whenever needed, is a long established business that has been successfully operating pubs and a well-known brewery for generations.
Pubs can certainly provide a good return on investment. If you like people and are prepared to work hard, then a pub will bring in a good income and even form part of a larger business portfolio.
Pub Tenancy Agreements
Financing a pub tenancy may require less investment than you might expect compared to setting up a new business from scratch in any other industry. For anyone who has found themselves with redundancy money, extra cash from inheritances or the sale of property, a pub is a great investment. It is a thriving industry, with lots of potential for growth. Many new pub landlords have successfully developed small chains of pubs such as Andrew Macmillan of The Swan at Long Melford who grew from one pub to three pubs in order to create a family business.
Scope for business growth
Taking on a Greene King pub tenancy certainly offers scope. You are not constrained by any uniform layout or style of operation. You can develop the pub any way you want. Take James Morgan who runs The Antelope at Surbiton, who had a desire to operate a craft brewery. After mentioning this to his Business Development Manager, Greene King helped him to develop an on site craft brewery within six months of taking on his first pub.
Another good example is that of Tom Kerridge. A young chef wanting to open his first restaurant, he decided to focus on pub restaurant style. He has since expanded onto other sites and become a Michelin starred chef due to the quality of his food.
One of the best things about opting for a Greene King pub tenancy is that there are a variety of options from which to choose, rather than a one style for everyone.
Having made the decision to take on a pub – what do you do next? There are several options:
- Explore the range of pubs waiting for tenants that can be seen on the website, and see what appeals to you.
- Take a look at the Greene King website and study the different tenancy options available.
- Attend a Recruitment Open Day for prospective pub tenants at the Greene King Brewery in Bury St Edmunds.
- Talk to a Business Development Manager who will help you choose the tenancy that is right for you.
You can choose from a variety of tenancy options. It is very important to find the one that is right for you and will provide the greatest scope for developing the type of business that you want. After all, to be a successful entrepreneur, running your own business, you need to have the right conditions for growth and having a pub which meets your requirements will provide the stimulus you need.
So what type of tenancies are on offer?
A Standard Tenancy is the easiest way to start in the industry, especially if you have little experience in running a pub. Signing up for a standard tenancy only commits to a specific pub for up to five years. It provides an opportunity to gain experience and make sure that this is definitely the way forward for you.
You are self-employed, running your own business and responsible for hiring and managing employees. You are actively involved in every aspect of business operation including marketing, menus, building maintenance and constantly looking for new ways to generate more sales. This gives you on the job training in management skills and financial operation. It is a win-win situation, where you gain in every respect developing personal skills, business skills, and investing in a successful business.
Most entrepreneurs wanting to develop a long-term business opt for a standard lease agreement. This really gives you scope to develop and grow within the industry. Operating on a turnover agreement, with a fixed rent and a percentage of weekly net turnover you know what you are paying, and how you can develop sales and business opportunities. You are responsible for the pub, the buildings and how it develops yet still have the buffer of a larger organisation providing the economies of scale, with savings on food and equipment, business assistance and even marketing help from Go Create where countless artwork designs are ready to be used in any type of promotional activity.
Local Hero Tenancy Agreement
This is more specialist in style, focusing on specific styles of pub operation such as local provenance in food and drink, while having the advantage of all the other aspects of a standard lease.
Clearly, there is no such thing as a uniform pub agreement with Greene King! The flexibility and versatility provided by the range of pub tenancy options offers scope and growth for anyone wanting to be their own boss.