Opening a Pub post pandemic

Chewylawwd

Hi All,

I just wanted to jump on here and ask a couple of questions to people who have opened a pub and are trading.

I’ve been in the hospitality industry for almost ten years and have been keeping and eye out the last number of years for a worthy premises worth leasing.

I have came across a premises in a busy town (mostly weekend trade). The rent on the premises is right, the premises is turn key. Of course it will need an uplift with a lick of paint etc.

if I was to go for this premises it wouldn’t be until September before I could afford my time to get stuck in.

I know the past tenant of the pub and he has informed me that the pub has so much potential. He told me the figures the pub was doing in the past and they were very attractive.

he closed because he had another business and Covid had taken its toll on the business but his heart wasn’t in it anymore.

the pubs capacity is 700 people and I’m trying to get an idea of the costs in opening it.

Deposit - 5000

rent - 600 p/month

insurance- unsure

cost of setting up a company - unsure

stocking the bar- unsure (will Diageo and Heineken, classic drinks give credit to a nee business to open?

lighting and heating water - unsure

Accountant - unsure

staffing - 10. 50 -11 an hour is the going rate in the area.

any advice on this would be appreciated.

antoinolachtnai

Can you get a long lease? Otherwise you're just developing the business for the benefit of somebody else.

If it is a busy town, then why isn't there weekday/daytime business? There may be a good reason for this. But it is important to understand fully what the premises' potential is. You could try doing counts at various times of the day.

Diageo and Heineken are not banks. They are unlikely to be interested in financing venture capital to you. They will sometimes do advances where there is some marketing or commercial advantage.

It is unrealistic to think that you can hire good bar staff to establish a new premises and work two or three shifts a week for 11 euros/hour.

I think you will need to make an investment of some sort in marketing. It is great that you have reports of it being a strong location, but that is not enough in itself to get people in rapidly when you open up.

I also think you need to think in terms of giving your pub a 'differentiator', a reason to come.

Can you form some sort of 'partnership' with the previous operator? With the understanding that you will do all the work and take the responsibility for operations and that he will be bought out?

HBC08

Don't know much about the pub trade but I'm guessing.....

You won't get experienced staff for minimum wage.

Cost of setting up a limited company is not significant (I set one up in 2015 for about €300 I think)

Cost of accountant for limited company (we payed about €1000 a year but I strongly advise you get a good accountant which will likely be more)

The guy saying he had a strong trade is basing that off before Covid? Pub habits have changed and things are a lot different now.

Light and heat will have gone up significantly and are only going one direction.

As mentioned though I don't know a whole lot about the bar trade!

L1011

700 is a huge pub. 600 a month is abnormally low rent for that size of premises if it has any chance of ever being full.

I'd be very worried that you'd be just re-establishing the place for the owner to take it back after.

It will be expensive to insure, heat and just basically maintain at that size - those costs are all before you have poured a single pint

Mrs OBumble

Are there actually any staff to be had? Lots of hospitality businesses are struggling, unless they are really looking after their staff.

macvin

If the pub can take 700 people the heating bill will be gigantic as will insurance and rates.

Staffing. Min €12 an hour, add in holidays and bank holidays and employer national insurance (or equiv in the south) and you are about €16 an hour.

The reason his heart isn't in it is its lightening his wallet

heffo500

I'm in the industry, Heineken and Diageo will operate on payment upfront beforehand etc.

Could you go into the business with someone more experienced? if you go ahead could you keep areas of the premises closed to reduce heating and lighting costs while you try to establish the business?

Its also very difficult to get staff now, so that will present a challenge.

Chevy RV

https://www.boards.ie/discussion/comment/118868815#Comment_118868815

The rates bill could be anywhere from €4,000 to €6,000 and the insurance, if you can get it, is probably going to be around €6,000, especially if there is any type of dancefloor in the place. Talk to previous tenant on those two overheads in particular...and I would definitely agree with his last line - "The reason his heart isn't in it is its lightening his wallet" i.e it's losing money. Why do you think he is leaving it?

thomas 123

Would you consider food or is it equipped for food even?

SebastianDahl

You actually got a very good place with low rent and a big capacity, although for pubs, it might be all about location. You know how it is, you can have a great place but if there won't be any people around it won't work. I would definitely say to go with it but be sure you will have enough potential visitors. Frankly speaking, I had a lot of hesitations myself in a similar situation. I have lived in Sweden for a long time, and during the period of COVID I started my own business I gathered a small group and together we worked on different design projects. Last year, in September, I started thinking about haven a small office for our team. COVID trend was going down, so I decided, why not? I found a beautiful office at Kontor Malmö, but I am still curious is this a great idea? As I know, many people like working from home, but I still think that we would be more productive working together(at least in communication). Currently, I postponed my idea, because I want to know if they are really ready and not just saying "OK" to my and thinking "No way".