Lesley Watmough Divisional Director
Whilst the lease model has its critics, there are thousands of people who have used the leasehold format to grow hugely successful businesses. Depending on your agreement, the leasehold can be an arena where, for a small investment, entrepreneurs can build spectacular businesses.
There are many benefits to the lease/tenancy model which shouldn’t be overlooked.
To start with how about…
* A Home
* A Job
For you, your partner and probably your kids/parents
* A Way of Life
In the heart of the community
With unemployment rising and mortgages hard to get (even for residential properties) it is now time to reconsider what a leasehold/ tenancy pub can offer. For as little as £30,000 an individual can transform their life and improve the prospects for other family members by taking a leasehold or tenanted pub. With the right opportunity and a good degree of hard work this specialist trade can be richly rewarding.
The key to success for most is going in to it with eyes wide open and doing the right deal at the outset to reflect the investment, risk and the hard work required.
It’s worth saying from the outset that the life of a Publican is not for everybody. It requires hard work, long hours and dedication. It is not a 9-5 job. You are however your own boss, you don’t answer to anyone (your partner and the tax man excepted) and you are directly responsible for your own rewards.
What offers better value for £30,000 – a car and a holiday or a home, a job and a way of life?
Don’t pre judge leasehold pubs. Judge each opportunity on its merits, take professional advice, get all the facts and you will make the right decision. It could be your first step towards a new life.
Innovators enjoying the rewards and awards
There are many examples of innovative and inspiring public house operators in the market – just look at the category winners/finalists in any of the past or present industry awards. e.g. Ye Olde Sun Inn at Colton near York or the Appletree at Marton, Pickering.
There are also many examples of operators who have achieved great success and become multiple operators of high regard. For example, Peach Pub Company, Fat Cat, Classic Country Inns, Massive Pub Co and Real Pubs. What these businesses have in common, and what is far too easily overlooked, is that they all started off in the pub trade with a tied lease pub as their first business.
This is because the fully fitted leasehold pub offers great choice and an easy and relatively cheap point of entry to the trade. It is one of the great benefits of our industry and a breeding ground for entrepreneurial flair. When compared with entry costs into many well known franchise agreements like Burger King or Dominos, where minimum entry costs can be £100,000-£250,000 against the £30,000-£50,000 public house start up costs, the difference can be clearly seen.
This opportunity is not being overlooked by today’s multiple operators, at all levels.
Recent deals have included Mitchells & Butlers who signed up to a free of tie lease from a national Pubco in the North East; Welcome Taverns who have 2 Pub Co leases in the North West and the Cheshire Cat Company, which is a multiple operator of tied leases in the North West.
So don’t overlook the advantages and opportunities the leasehold/ tenanted pub provides, whether that is tied or free of tie, just consider the potential and the deal on its own merits.
It could be the first step to much bigger things!!
When comparing entry costs into many well known franchise agreements, with public house start up costs, the difference can be clearly seen
|NR BILLERICAY, ESSEX
|PUDSEY, WEST YORKSHIRE
|FARMBOROUGH, NR BATH
|FURNACE END, COLESHILL
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