Franchise options - Whats right for me?

Running a franchise pub offers an exciting opportunity for somebody with pub or hospitality management experience. Franchise offers natural progression and the potential to achieve great things.

But there are different franchise options available so here we will dive deeper into the routes you can take, and help you decide which one might be right for you.

What franchise models are available to me?

Most pub operators offer differing franchise models but the two most common are food-led community pubs and wet-led urban pubs.

At Greene King, we offer both of these concepts – known as Hive (70/30 drink/food split) and Nest (95% drink-led). Hive and Nest have low in-going costs, and both provide you with a pub that’s ready to trade.

I’ve managed a pub but not my own pub – what’s the difference?

Franchise offers the perfect next step for your career. It provides you with a tried and tested formula so you can focus on growth and driving sales for YOUR pub, but with all the support and backing of a reputable pub company.

How much experience do I actually need?

For both of our concepts, the ideal candidate must have experience of pub or hospitality management – that’s the base level requirement.

Other desirable attributes are ambition; the self-motivation to succeed. And any candidate with a positive attitude that delivers great customer experiences and wants to make their mark on the local community would be a fantastic addition to the Greene King franchise team.

Do I need any formal qualifications?

For any of our franchise options, you will need to complete the British Institute of Innkeepers online Pre-Entry Awareness Training. You’ll need to hold a personal licence too.

How much capital do I need to provide upfront and what’s my projected return?

For Hive pubs, we will ask you to invest £5,000.

Once you have opened the pub, you will be guaranteed a minimum income of £20,000 per annum – but in essence, that’s the very lowest return you will receive and there’s no ceiling! If you are motivated, passionate and proactive in controlling costs and driving sales, then your earning potential is vast.

For Nest, it’s an even lower cost of £3,000 to open your wet-led pub. However, there is no guaranteed income with this type of agreement – that’s because it offers a simple food offering (pizza and pies) that doesn’t require the expense of a kitchen team, significantly reducing your overheads.

For both franchise concepts, additional income will also come from:

+ A percentage of the Net Weekly Turnover (variable by pub)

+ Quarterly percentage of business profits (variable by pub)

+ Up to £7,500 annual bonus for meeting compliance audits for Hive & up to £5,000 annual bonus for meeting compliance audits for Nest.

Which start-up costs will be covered?

Every Hive and Nest pub undergoes an extensive refurbishment before you are handed the keys. So, you are effectively starting your franchise journey with a fresh new pub and can get on with the important business of serving your customers straight away.

All your running costs are covered along with repairs, plus all the food and drink for the pub is supplied – even down to the allergens and food specs books, and food order guides.

Your training and on-going support is included, and so are your systems such as tills, EPOS and ordering systems.

Marketing support such as your website, printed menus and point of sale items are all supplied for you as well.

Can I live on-site at the pub?

Both of the Greene King franchise models provide live in accommodation* with bills and maintenance covered. The only bills you need to worry about are council tax, TV licence and insurances (such as public liability and contents insurance for private accommodation).

* If there’s no private accommodation available, you’ll receive an increased guaranteed income of £25,200 per year for Hive pubs and a guaranteed income of £5,200 per year for Nest pubs.

So, who pays for what once we take over the pub?

As mentioned, you’ll need to cover council tax, tv licence and your insurances. You also need to factor in staff wages.

It will be your responsibility to employ and pay the staff, including employee National Insurance contributions, and other statutory deductions.

Greene King covers everything else – your utility bills, your business rates, any repairs or maintenance, even your Sky/TNT Sports subscriptions.

And that’s why franchise is such an attractive proposition for those looking to get into running their own pub!

How many members of staff will I need?

For both Hive and Nest, you will need front of house staff to serve behind the bar and provide your customers with exceptional service so that they keep coming back.

For Hive, you will also need a kitchen team to deliver the franchise food menu that’s provided for you.

But for Nest, the food offering is a simple pizza oven that can also cook hot pies; all of which can be prepared by your front of house staff behind the bar.

Can I put on my own events?

Absolutely! Hive and Nest pubs are seen as the heart of the local community so creating events that drive footfall into your pub is essential for success. This could be anything from family-fun afternoons and Easter egg hunts to live singers, darts tournaments and karaoke nights.

Greene King will supply an entertainment budget to help fund these events, but the amount of budget will vary from pub to pub, dependent on offering and the audience.

What if something goes wrong with the building?

Don’t worry! You’re covered. As part of your franchise agreement, Greene King will look after the building and any necessary repairs – much like a landlord at a rented residential property, for example.

Who do I turn to for help and guidance?

You’re never alone on your journey – Greene King is by your side every step of the way.

Hive and Nest models have dedicated Business Development Managers (BDM’s) who will work closely with you and be there when you need them, but will also give you the freedom to be your own boss.

Your dedicated BDM will be on hand to help with any problems you might incur and will be proactive at suggesting solutions to help improve operations. They’re your point of contact and a safe pair of hands to lean on.

Sounds good, where do I sign?

We’d love to hear from you and discuss next steps!

Please give us a call on 01284 843 or use our Live Chat functionality to discuss further.