Refurbishing your pub and taking it to the next level
It could be simply repainting the interior or exterior, updating your furniture or resurfacing the car park. Perhaps you want to improve the garden and add an outside bar to grow trade in the warmer months? Maybe adding a pizza oven to increase covers?
Any reputable pub company will support your endeavours, as long as it makes financial sense – but refurbishing your pub is a big decision and needs careful thought and consideration.
How do I decide what to refurb and when?
We would advise not rushing into any big design decisions – work in the pub for a while and see how the different spaces are used (or not used as the case may be).
Your Business Development Manager (BDM) can also help. They will have years of experience working in the pub trade and can make constructive suggestions about the proposed nature of the refurbishment, and help you identify finance solutions to fund it too.
It’s worth considering the time of year that you want to undertake the work as well. If you are completely refurbing the inside of the pub, transforming the interior can take several weeks so you’re likely to need to shut the pub for some (hopefully not all) of the time. Choosing to commence the work right before your busiest period (i.e. Christmas) would be detrimental to the success of the project, and you also need to factor in any loss of trade during this time.
How will I fund the refurbishments?
This does depend on what you’re planning – you will need to check the terms of your agreement to identify specific responsibilities for the building and maintenance of your pub.
Pub companies such as Greene King may help fund your improvements in return for an adjustment to your rent – your rent would increase but only to a sustainable level, and as the improvements will be designed to improve profitability, the right balance should be struck.
Additionally, there’s often a “buy-back” option where a tenant funds their own investment and pub companies like Greene King buy it back for an adjustment in the rent. This is a cheaper way of funding it in the long run but it is more time-consuming and involved for the tenant.
It might also be the case that your pub company has already identified a pub for investment, recognising that changes need to be made. If searching for a Greene King pub, we earmark on our listings if an available pub is marked up as having potential for investment. And then that’s a conversation you can have before you even take on the tenancy.
How do I know who to trust to do the refurbishment?
Most pub companies, including Greene King, have their own trusted relationships with surveyors, architects, interior designs and contractors – they will be familiar with pub environments and know all the relevant legal requirements, making your task much easier as you know you can rely on their advice. Their knowledge and expertise can also result in suggestions and advice on ways to make your refurbishment even more successful.Your BDM will be able to advise on regional contacts that you can utilise and help you with this process.
You may find that you’re contractually obliged to use your PubCo’s approved professionals, especially if you’re planning any major alterations to the site. Remember, the PubCo or brewery owns the premises and therefore they must agree to any changes and ensure that work is carried out to a high standard. If you just want to repaint the pub, in most cases you can use your own local decorator or do it yourself, but check first to be sure.
What about my current customers?
You may need to be prepared for unsolicited feedback from your pub regulars – it might be that they feel comfortable and secure with “their” pub environment as it is so it’s key to get them onboard from as early as possible. You don’t want to alienate existing customers at the expense of attracting new ones!
Sharing plans by creating a mood-board within the pub, generating computer generated images (CGIs) to gain feedback, explaining your reasons behind any big decisions, sharing ideas on social media to engender excitement; all of this will help your current customers feel like they have been a part of the journey with you.
Will refurbing my pub increase my bottom line?
Refurbishing a pub can certainly make a major difference to trading and profitability.
A simple paint job will stop your pub looking tired and unloved and therefore help to retain customers and attract passing trade. Whereas a major refurbishment project could transform the space and provide opportunities to increase sales and profits, attracting new customers, increasing covers and taking your pub to the next level.
A conversation with your BDM is the first step when you’re thinking about making any changes to your pub. They’re there to help and at Greene King, we only undertake investments when we truly believe a partner will benefit and their profit will grow.