Why choose a pub tenancy?
Deciding to run a pub can feel like a momentous decision, especially if you don’t have any previous experience in the industry.
Where to start? Which ownership option is right for you? How do you choose the location? Which style of pub would best suit you and your lifestyle?
Here, we’ll take a closer look at what makes a pub tenancy different from the other types of pub ownership models and if it might be the right route for you.
How do I know a pub tenancy is right for me?
Taking a tenancy option is a fantastic way of getting started in the pub trade. A tenancy offers the opportunity to run a business without the responsibilities of a pub lease or freehold. They’re also relatively short – five years on average – giving you plenty of time to build a successful business but without a significant long-term commitment.
At Greene King, we do offer pub tenancies, leasehold agreements and franchise pubs – to find out more about the other options, please see here (add link to agreements page).
What are the benefits of a pub tenancy?
- It’s a great way to enter the pub trade - pub tenancies are the perfect introduction to the pub trade for people without previous experience. The support provided by a pub company, such as Greene King, combined with fewer responsibilities for the building itself, help new landlords get their pub business off the ground quickly.
- Smaller start-up costs - the costs of taking on a tenancy are much lower than buying a pubs freehold. Depending on the pub chosen, it can be as little as £20,000 to start up the business.
- Outgoings are lower - pub tenants are not responsible for structural repairs and maintenance to the premises, so your profits go further.
- Superb training and support - Greene King, offers fantastic training opportunities to ensure you have the skills needed to run a successful pub. Our Business Development Managers work closely with pub tenants to help them get the support they need and troubleshoot any issues. They are there to help you make your pub business profitable.
How does it work?
- Rent - you pay a monthly rental for the premises and, depending on the terms of your agreement, this may increase over the period of your tenancy. This generally does include accommodation however, so you will be saving money on household rent and/or a mortgage as you, as the pub landlord, can live on the premises.
- Upfront security deposit - when entering into a pub tenancy agreement, a security deposit is required which you’ll need to factor into your start-up costs.
- Property. You buy the fixtures, fittings and stock under the terms of a tenancy agreement. The pub company owns the actual building itself, so you won’t be burdened with any of the responsibility for structural repairs to the pub.
- Product ties. As a tenant, you will be tied to the pub company and will sell the beer and associated products provided by that company. This means that you don’t have to worry about arranging a supply to the pub, and you can even include soft drinks and wines depending on the terms of your agreement – so that’s one less thing to sort out!
A pub tenancy is a fantastic opportunity for the right person (or people). It allows you to run your own business with the support of a longstanding brewery and an experienced team. This means that you’re not alone. You may be the sole tenant, but you have a whole team of people backing you up and helping you make a great success of your pub.
As we’ve mentioned, pub tenancies are not your only option. You may want more responsibility and control over your business and therefore a pub lease might be more appropriate. Details of our agreements can be found here so you can see all the options available.
If you know that a pub tenancy is right for you, the next step is to find a pub. You can search our available pubs, or apply today to get the ball rolling.
Don’t worry, filling in the application form doesn’t mean you have to take on a pub! But it does mean we can start talking about the type of pub you’re interested in, and the type of business you want to run.
And further details about running a pub tenancy can be found in our helpful guide.