5 steps to securing a pub lease

Taking on a pub lease is a big commitment and one that’s not to be taken lightly. But knowledge is power and ensuring you understand all the elements involved can help to ensure that the process will be as smooth as possible.

Here we’ll take you through the five key steps to kick-start the lease process.

Step 1 – Is a pub lease the right option for me?

Before you secure a pub lease, the first thing to look at is what sort of pub ownership model you would like to undertake.

The most common options are:

+ Become a self employed pub manager (the pub owning company owns the building, the fixtures and fittings and covers most of the running costs – so you can focus on running the pub)

+ Buy a pub freehold (which means buying the building, as well as fixtures and fittings)

+ Secure a pub tenancy (this is where you rent the pub from a reputable pub company or landlord, and run the pub as your own business)

+ Acquire a pub lease (where you purchase the lease of a building from a pub company or from the existing leasee and have a higher degree of control over both the pub premises and the business itself)

Understanding the differences between pub agreements is critical, especially tenancy, lease and self employed manager agreements (franchise agreements with Greene King) – so you can be sure that the option you choose is the best way for you to run a pub.

More in-depth details on the agreements Greene King offer can be found here.

 

Step 2: What type of pub do I want?

Now you’ve decided what type of agreement that is right for you, you can narrow your search down to pubs that fit those criteria.

Within that search bracket, there will be all different types of pubs, attracting all different types of customers.

Some offer huge potential for growth and expansion, whereas others are more suited to licensees who want to continue running the business in the same manner.

Pick a pub that’s personal to you and your dreams!

 

Step 3: Do the numbers add up?

Running any business involves a level of start-up costs, and leasing a pub is a big investment. So, you will need to ensure you have sufficient capital to secure the lease and any ingoing costs that will be required.

You’ll also need a robust business plan that demonstrates how you’re going to generate revenue and make the business a success. The numbers have to make sense to make it a viable business proposition, and you need to be realistic about what’s achievable in year one, year two, year three, and so on. You should also take independent financial advice from a suitably qualified professional to ensure your business plan is sustainable.

 

Step 4: What’s on the market?

Just like viewing residential properties, it’s a great idea to get out and see as many pubs as you can – this will give you a strong sense of what you’re looking for (and what you want to avoid!). The majority of pubs on the market will still be open and trading, so visit as a customer yourself to get a sense of what the pub is like.

It’s worth registering with local and national pub companies and breweries to start your search and take advantage of all the support they can offer.

At Greene King Pub Partners our team will work with you to help identity the right opportunities for you and ensure you’re viewing the right pubs.

 

Step 5: Have you done your homework?

Before you can actually take on a lease, there are several important elements that you need to do. These include applying for a personal licence and completing compulsory training (pre-entry awareness training, known as PEAT)

You can also supplement this with additional training courses offered by your pub company to help ensure you get off on the right foot, and that you have everything in place for when the right pub comes along.

You’ve got nothing to lose by applying to run a pub with Greene King today.

There’s no commitment at this stage – it’s just getting the conversation started, so we can discover what your plans are, what stage you are at and how we can help you make your plans a reality.

Get in touch today if you’d like to talk to us – 01284 843200 or send us a message via our contact form.