How Much Money Do You Need To Open A Pub?

You know that feeling when you’re in a great pub and wonder, “could I do this?” Well, maybe you can! Running your own pub isn’t just for seasoned professionals or those with years of experience or deep pockets - it’s for anyone with passion, people skills and entrepreneurship. With the right planning, understanding your pub start-up costs and a clear road map, you can turn your dream into a reality.

So, Will It Cost A Lot Of Money To Open A Pub?

The short answer? It will cost less than you might think. Opening a pub can mean different things depending on your agreement type. With Greene King Pub Partners there are two main routes to your goal, each with its own start-up costs and level of responsibility: tenancy or franchise. So, let’s unpack them…

Tenancy: A tenancy allows you to run your own pub under a shorter agreement - typically around five years - with less responsibility for the building itself compared to a traditional lease. It’s a great option if you have big ideas and a clear vision for how you want your pub to look and feel. You’ll have the freedom to shape the business your way and will handle most of the day-to-day running costs, but unlike a lease, you won’t be able to sell on any goodwill when you decide to move on.

Franchise: This is the ‘ready-to-go’ option and a great choice if you want a head start. Greene King sets up the pub using one of its tried and tested business models, Hive or Nest, and you then focus on running it. You’ll hire your own staff and manage the daily operations, all while benefiting from Greene King’s trusted brand, expert training and ongoing support. To take on one of our franchise models, you will need pub or hospitality management experience, but it’s a simpler, lower-risk way to step into pub ownership with the backing and marketing muscle of an established name.

What Are The Different Franchise Options?

If you’re considering a turn-key option, financing a pub franchise can be far more accessible, with the required cost considerably lower than setting up an independent business from scratch. Greene King offers two franchise models to choose from.

Nest Pubs are our lively, wet-led venues, often found on busy high streets or in bustling areas. They are known for great value drinks, a friendly atmosphere and plenty of live sport. Each has a distinctive identity and serves up simple, crowd-pleasing pizzas to keep things easy behind the bar.

The ethos behind the Hive brand is being the dependable local - the hub of the local community. They serve great food, offer regular entertainment, and show live sporting events. Whether it’s a family meal, after-work pint, or a gathering to watch the big match, Hive Pubs do it all.

Let’s Talk Costs - What Are The Typical Start-Up Costs For Each Franchise Option?

Financing a pub franchise can be more achievable than many people realise. Nest Pubs start from around £3,000 plus £2,000 - £3,000 in working capital, while Hive Pubs require an entry cost of around £5,000, again with the same £2,000-£3,000 to support those early weeks of trading. Both options offer an accessible and affordable way to step into running your own business, even if you don’t have significant savings behind you.

What Are The Start-Up Costs For A Tenancy Agreement?

For a tenancy agreement, start-up costs can vary depending on the size and location of the pub. You will need capital to cover essentials such as the deposit, fixtures and fittings, stock, legal fees, induction training, broker’s fees and initial working capital.

It’s also important to consider ongoing expenses, including rent, maintenance, insurance and utility bills, as well as third-party costs like staff wages, business rates, accountancy and legal fees, tax and VAT. But don’t worry, Greene King provides a clear breakdown of all costs during the recruitment process, so you’ll know exactly what you’re committing to before signing any agreement.

You can also benefit from special deals we’ve arranged with key suppliers, using our buying power to get you the best value. Plus, our business plan template is designed to guide your budgeting and ensure you’ve accounted for all the essentials, giving you confidence that nothing has been overlooked.

Ideally, your entry costs should come from unborrowed capital. This helps ensure you start from a strong financial position, allowing you to focus on building relationships with your locals rather than stressing over repayments.

I’d Love To Know More - What’s The Next Step?

To get a deeper insight into pub life with Greene King, watch our case studies featuring current Pub Partners. These first-hand testimonials give you an honest, behind-the-scenes view of what it’s really like to become a Greene King Pub Partner.

If what you see inspires you, get in touch by calling 01284 843200 or emailing pubpartnersrecruitment@greeneking.co.uk to start the conversation.