Anyone here own a pub?

[smilerbaker]

If so, do you mind answering some questions I have, ta

[sleep envy]

Landlord does

[speedy_thrills]

smilerbaker said:

If so, do you mind answering some questions I have, ta

It's traditional to post your questions as well so we can answer them?

[okgo]

Post them up, sure many people here have been involved with pubs one way or another

[10 Pence Short]

A very good friend of mine runs a pub 3 doors down, she's been in the pub trade for 30 years in a variety of places. I might be able to help, if not she might.

[smilerbaker]

its also tradtional for PH members to rip the piss out of everyone and everything!!

OK here goes

For a freehold pub.

What are, and how much the hidden running costs, eg public liability insurance.

What profit do you make on a pint?

What (if any) qualifications do you need

pro's and con's etc

ta

[scotal]

You do know how many pubs are going to the wall at the moment right?

[10 Pence Short]

smilerbaker said:

its also tradtional for PH members to rip the piss out of everyone and everything!!

OK here goes

For a freehold pub.

What are, and how much the hidden running costs, eg public liability insurance.

What profit do you make on a pint?

What (if any) qualifications do you need

pro's and con's etc

ta

I mean this in the nicest possible way- I have seen a lot of people take on the idea of trying a new career and buying a freehold pub. After a couple of years they are physically exhausted, sick of being nice to pissed people at 11.45pm and wondering how it could be that the property they have bought is worth half what it would be as a normal residence.

The margins on wet trade are not great and only work out if you do reasonable volumes. If you want to make a decent profit then you're going to need food and, even better, rooms for rent. If you do food you're going to need to budget at least £20,000 for a 'chef' if you're not going to do it yourself, of course.

It certainly isn't a business I would go into!

[smilerbaker]

scotal said:

You do know how many pubs are going to the wall at the moment right?

I do

[speedy_thrills]

scotal said:

You do know how many pubs are going to the wall at the moment right?

Maybe that's why he wants to buy.

A good bar or pub can make a fortune, but it really needs to attract people all the time. It could be good with a few nice female staff and being paid to spend your days "down the pub".

[smilerbaker]

10 Pence Short said:

smilerbaker said:

its also tradtional for PH members to rip the piss out of everyone and everything!!

OK here goes

For a freehold pub.

What are, and how much the hidden running costs, eg public liability insurance.

What profit do you make on a pint?

What (if any) qualifications do you need

pro's and con's etc

ta

I mean this in the nicest possible way- I have seen a lot of people take on the idea of trying a new career and buying a freehold pub. After a couple of years they are physically exhausted, sick of being nice to pissed people at 11.45pm and wondering how it could be that the property they have bought is worth half what it would be as a normal residence.

The margins on wet trade are not great and only work out if you do reasonable volumes. If you want to make a decent profit then you're going to need food and, even better, rooms for rent. If you do food you're going to need to budget at least £20,000 for a 'chef' if you're not going to do it yourself, of course.

It certainly isn't a business I would go into!

Yep, I know most of the con's, having owned a retail business in the uk before.

Decent profit isn't the motive, as I can buy a place debt free.

plans for food etc are in hand.

[davemac250]

You will need to do the Bristish Institute of Innkeeping exams for starters.

Basic Food Hygiene qualification as well.

Pass the police/council suitability (basically a CRB check.)

Obtain personal licence from the local council - pubs are not licensed as such, the licence is now down to the licencee.

If you get staff and plan to have then running the place, one of them should be the primary licence holder.

[Landlord]

smilerbaker said:

its also tradtional for PH members to rip the piss out of everyone and everything!!

OK here goes

For a freehold pub.

What are, and how much the hidden running costs, eg public liability insurance.

What profit do you make on a pint?

What (if any) qualifications do you need

pro's and con's etc

ta

:straightenstie: It looks like my thread has arrived...

• What are, and how much the hidden running costs, eg public liability insurance.

I'd have to give it more thought than I have time for right at the moment but the answer is "it depends". My pub insurance, for example, is in the order of £1,500pa. There's also things like PRS (performing rights society) license. Fire equipment maintenance and inspection and so on.

• What profit do you make on a pint?

Again, "it depends". How much do you buy it for? This will depend on how much you sell (therefore the quantity discount you can get etc.). Also, how much do you sell it for? Are you talking ex-vat (you should be), are you talking after all expenses (staffing, lighting, heating, glass-cleaning, glass purchasing, breakages, ullage [waste], pipe-cleaning, equipment purchase, etc. etc.). If you're talking "simple" profit - it's about 100% - that is, you buy it at £1 a pint, sell for £2 a pint. Of this £1 profit, you'd probably get around 55p in your pocket.

• What (if any) qualifications do you need

You need a premises license plus at least one person needs to hold a personal license. Then, this personal-license holder will need to be the DPS (designated premsises supervisor) on the premises - this is someone for whom the buck stops, legally (under-age sales etc). Your pint-pullers don't need a license. There's a bit more to it than I have time to go in to here.

• pro's and con's etc

fking loads of cons, very few pros.

Mail me and I'll help you more.

EDIT: 10 pence short has it nailed, by the way.

Edited by Landlord on Friday 21st November 10:43

[walm]

smilerbaker said:

Decent profit isn't the motive, as I can buy a place debt free.

Awesome - a charity pub.
You could call it, "The Free Pint." I am sure it would be popular.

You clearly don't know the first thing about pubs, either tenanted or managed - how on EARTH can you claim to know that you can buy a place debt free? How do you know how much it would cost?

Just to refresh you on business 101 - if you don't make a profit then you will tend to be MAKING A LOSS.
So the pub you just bought with your infinite resources will start eating into them very fast.

Why do you want to do this? For retirement?

[smilerbaker]

walm said:

smilerbaker said:

Decent profit isn't the motive, as I can buy a place debt free.

Awesome - a charity pub.
You could call it, "The Free Pint." I am sure it would be popular.

You clearly don't know the first thing about pubs, either tenanted or managed - how on EARTH can you claim to know that you can buy a place debt free? How do you know how much it would cost?

Just to refresh you on business 101 - if you don't make a profit then you will tend to be MAKING A LOSS.
So the pub you just bought with your infinite resources will start eating into them very fast.

Why do you want to do this? For retirement?

A really helpful post, well done, Re-read my reply, I can afford to buy a place OUTRIGHT, so no mortgage, the profit it makes will be mine, not used to pay startup costs etc, hence I don't need to be making huge profits.

I know how much pubs costs thanks, I know how much stock cost, what I don't know are the 'hidden' costs, hence the question.

But feel free to comment on a subject you obvioiusly know nothing about.

[Landlord]

walm said:

smilerbaker said:

Decent profit isn't the motive, as I can buy a place debt free.

Awesome - a charity pub.
You could call it, "The Free Pint." I am sure it would be popular.

You clearly don't know the first thing about pubs, either tenanted or managed - how on EARTH can you claim to know that you can buy a place debt free? How do you know how much it would cost?

Just to refresh you on business 101 - if you don't make a profit then you will tend to be MAKING A LOSS.
So the pub you just bought with your infinite resources will start eating into them very fast.

Why do you want to do this? For retirement?

Blimey - quite a vitriolic response... I think you missed the first word of his sentence.

I presume he means he'll be purchasing the place un-mortgaged.

Making a "profit" isn't that hard... what is a fking royal pain-in-the-arse, is getting decent, reliable, hard-working staff and keeping them. One has to remember that this is an industry that attracts the "lower" end of the employment spectrum (lower academically, lower ambitious-ly and lower attitude to alcoholism/morally).

[ph1l5]

I have just sold my pub. It was killing me quiet literally

[Landlord]

ph1l5 said:

I have just sold my pub. It was killing me quiet literally

Freehold?

[ph1l5]

Landlord said:

ph1l5 said:

I have just sold my pub. It was killing me quiet literally

Freehold?

No leased from Punch.

[PD9]

The OH's Mother and Father own around 30 pubs/hotel I guess you could call them inns? They get moderate reviews on trip advisor so I'll hold back asking them for advise... I'm to nice to tell about the trip advisor thing though..