How to open a restaurant in a pub
As a chef, it can be incredibly difficult to secure your own restaurant and kitchen. Often working for years in busy environments, cooking what you’re told to and lining someone else’s pockets with your own hard work and dedication.
However, there is another option and many chefs are turning to pubs to realise their dream…
Take Tom Kerridge for example, who opened his first restaurant at the Greene King Hand & Flowers in Marlow. Within a year he had gained his first Michelin star – and has never looked back. He has even expanded, setting up different types of restaurants in other pubs (even a traditional butcher’s shop on site), as well as becoming a celebrity TV chef.
Are pub tenancies an affordable way of opening a restaurant?
A pub tenancy could offer a more affordable way, rather than raising finance to get a lease on premises. Costs are much lower, especially when compared to the costs of buying into and maintaining a high street site.
When searching through pub listings, it should highlight the pubs that already have restaurant/kitchen facilities which could reduce your initial costs further still.
You will be able to launch your business on a much reduced budget than if you were investing in a location without these facilities.
What if the pub requires refurbishment?
Depending on the pub you choose, you may be able to access a capital expenditure (Capex) scheme that will help with these refurbishment costs. Often pubs are marked for investment and improvement by the pub company, such as Greene King, so if you work with the team on your selected pub and join at the right time, you may be able to take advantage of those plans by tailoring the investment to suit your requirements.
A Capex scheme could extend the restaurant space, provide outdoor catering facilities, or upgrade the existing kitchen.
Will there be any support in place?
It’s no secret that start-up costs for any new business can be high. A new restaurant on the high street not only has to deal with the cost of premises, but also any re-fitting, equipment, uniforms, recruitment and furniture, as well as the initial outlay on food and drinks. Then there is the need for working capital and marketing costs plus legal fees and business rates.
Taking on an existing pub means that many of those costs can be reduced or avoided, as the site may already come with staff, facilities, infrastructure and a customer base. Not forgetting a supportive pub company and a training team ready and willing to support you on your journey.
There is also the question of licensing and permits. For example, you may need to apply for planning permission to change a retail space into a restaurant. This can be avoided when you take on a pub as most of these things will already be in place. You’ll need to get your personal licence and complete the BII Pre-Entry Awareness Training (PEAT), as well as getting Food Hygiene Certification and Food Premises Approval, but these are relatively straightforward compared to the rigmarole of applying for a ‘change of use’.
How will I get customers?
Taking on a pub likely means you already have a ready-made pool of prospective customers! Every person who comes into the pub for a drink is potentially a customer who may buy food as well. The key is making sure that your food offer matches the type of customer the pub attracts. It is much harder and more expensive to attract large numbers of new customers, than to encourage existing customers to spend more in your pub.
That means considering the demographic when you’re looking for a pub to let. Opening a restaurant in a pub is a logical move if you tailor your concept to match the customer base – it’s really important to keep your existing customers while encouraging new ones to visit. You certainly don’t want to alienate your audience.
How do I prepare for this?
Simply opening a restaurant and expecting customers to rush in will not create a successful business. Preparation is key. Having made the decision to open your own restaurant in a pub, you need a robust business plan.
Before they consider handing over the keys, a business plan will be required by the pub company, your financial advisors and any investors! But it’s also a very useful document for you, helping you to shape your ideas and keep focused on your objectives. If you haven’t prepared a business plan before, it can feel somewhat daunting which is why Greene King have a really helpful Business Plan template that you can use – download it here.
Who is there to support me?
Taking on a pub tenancy offers another big advantage than going it alone – you get a tremendous amount of help and support whenever you need it. Your Business Development Manager (BDM) is an invaluable source of assistance, being there to provide help and advice especially through those first weeks running your own business. It’s like having your own business mentor, but one that has extensive experience in the hospitality and pub industry working with people just like you.
If you like the sound of opening your restaurant in a pub and would like to find out more about taking on a pub tenancy or lease, please browse the current Greene King listings to see what might fit the bill for you or get in touch with us directly and speak to one of our team.