Many people dream of owning their own pub one day.
And while we all know the last few years have been tough for the licensed trade, it is still undoubtedly a sector where individuals who have done their homework, are prepared to work hard and have the right ideas and attitude, can have a successful and enjoyable lifestyle business.
As business brokers we have dealt with many sales of pubs and inns over the years. If you’re considering buying your first pub, this beginner-friendly guide covers some of the key steps to help you make informed decisions and build a thriving business.
Do Your Research and Prepare
- What type of pub do you want? Is it a traditional local, a gastro pub or food-led venue, a city-centre or sports bar, or perhaps a character-rich historic inn in a rural location?
- Understand the market. Study the location to understand local demographics, footfall and demand; assess the competition – are there gaps in the market?
- Determine your budget. Be clear on what you can afford. Factor in upfront costs (purchase price, legal fees, surveys, licences) as well as ongoing expenses (staff, stock, utilities, maintenance, insurances).
Finding the Right Pub
- Get in touch with a specialist pub business sales broker such as Kings Business (England and Wales) or Bruce & Co (Scotland). We focus on the sale of hospitality and licensed businesses right across the UK.
- All our pubs for sale can be viewed online here.
- Assess potential. Does the pub fit your requirements? Evaluate: Location – is it well-established or up and coming? The building and facilities, customer base, trading history, financials and potential for future growth.
- Check what’s included in the sale (stock, furniture, kitchen equipment, etc).
Legals
As with any business purchase you will need to instruct a solicitor to handle the necessary legal requirements. Ideally you should work with a lawyer who specialises in business purchases and has knowledge of the licensed sector. You will need to consider:
- Due diligence. An important aspect of the acquisition process, you will need to conduct thorough due diligence including a review of finances – turnover, profit and any outstanding debts or liabilities; legal checks on the property’s title; existing leases; operational issues including staff and employment matters.
- Licences. Ensure you have the necessary licences such as a premises licence and personal licence for selling alcohol, music licence if appropriate, be registered to sell food if this will be part of your service offering, comply with H&S regulations and so on.
- Leasehold or freehold? Decide if you want to buy a pub’s freehold (owning the property outright) or leasehold (renting the premises from a brewery or landlord under a commercial lease). Each has different costs and responsibilities.
Your Business Plan and Marketing
Develop a detailed business plan outlining your strategy for developing the business including financial projections, marketing strategy, operational plans. Consider a marketing campaign to introduce or relaunch your pub under new ownership and plan for future marketing activity which might involve advertising, use of social media, local promotions and events.
A targeted marketing plan is an opportunity to gather support from existing customers whilst also attracting new and future visitors.
Staff and Customer Service
Of course, a successful pub relies on great customer service, with friendly, efficient staff that provide a warm welcome. Your staff will play a key role in developing the atmosphere you want to develop for your successful business. You will need to consider the skills required – the mix of experienced v new staff, chefs and catering staff and on-going training requirements.
Handover
If you are able to work alongside the previous owner for a transitional period, this will be a great opportunity to learn some of the basics of day-to-day operations and will help maintain continuity for the business.
What Next?
Buying a pub often involves external funding and you will need to explore your finance options including business loans, commercial mortgages, tied loans from breweries etc. It is a significant investment that requires careful planning and due diligence. With thorough research and planning you can successfully navigate the process and enjoy a rewarding business venture.
We have a wide-ranging portfolio of pubs across the UK you can download, or talk to one of our sales negotiators about your requirements. Alternatively, you can explore pubs for sale online here.