Can you make money running a pub?
Can You Make Money Running A Pub?
So, you've found the pub you want to run but is there potential to make a healthy profit?
The short answer is yes. With the right strategies, running your own pub business can be not only fulfilling but also financially rewarding.
Although it's a sociable job, the key is to treat your pub business as you would any other.
Let's look at some of the key considerations...
Do I Need A Business Plan?
The foundation of a profitable pub lies in good planning and the first step in this process is to have a sound business plan. This will help you explore how to make your business profitable, allowing you to crunch the numbers so you can see what you need to do to generate the income you want to achieve. Fortunately, with Greene King Pub Partners, you don't have to do this alone. With the support of your accountant and your designated Business Development Manager (BDM), you can develop a solid financial plan for your pub business and identify what money is needed and where it needs to be spent.
This process will also help you better understand what revenue is required to make a profit and where (and how) this revenue can be generated.
Will I Have Support from Greene King?
Each of our tenants is paired with a dedicated BDM whose role is to provide ongoing support and advice. Our BDMs bring a wealth of experience to the table, many of them having run hospitality businesses themselves. This means they truly understand what it takes to make a pub profitable.
Your BDM is there to help you, so we encourage our landlords to make good use of them as they can provide useful ideas and industry insight. In addition to their practical experience, they also have a vast amount of knowledge about running a pub business. As they are dealing with pubs of all kinds, they can often spot opportunities that could work for you too.
How Can I Grow My Pub Business?
In the words of Einstein, "Life is like riding a bicycle, to keep your balance, you must keep moving." The same can be said of creating and maintaining a successful pub business. It is important to continue moving your business forward by exploring new ideas. At regular intervals, take a step back and evaluate your business; look at which activities and events have been profitable and which products are selling the best. There is no point running an event repeatedly if the uptake simply isn’t there. Learn from your failures and successes, and speak to your customers. They won’t hold back from telling you what they want.
Aim to come up with a few new ideas every week and discuss them with your team to engage their input. Trial the best ideas to see if they take off with your customers. If so, repeat them with a new theme or twist each time.
Keep abreast of new trends and tap into them. How can you leverage the current trend for Gin for instance? Why not introduce a Gin tasting evening as something a little different.
Expand Your Revenue Streams
If your pub is well placed along a busy road, opening for coffee, afternoon tea or breakfast could drive business during quieter times.
Letting rooms to visitors can be another useful channel for growing your income, particularly if your pub is located in a popular tourist area.
Open Another Site
Once you're confident you know the ropes of your business and have it running like a well-oiled machine, look to expand your enterprise. Opening further sites is a great way to increase your profits. Many of our partners become multi-site operators after gaining experience running one successful pub.
Whatever your business model, it is important to regularly check your progress against your business plan. This will enable you to see whether you are on track to meet your projected profits or whether you need to make some adjustments.
Equally important is local awareness. Keep track on what is happening in your area and be prepared to react to any local change.
Hard work and innovation can improve the fortunes of your pub business and generate a good, long-term income.
Are You Interested In Running A Pub With Us?