Public house
Introduction
So you've decided you want to run your own pub. Maybe you've been working in someone else's pub and feel the time is right to go it alone or maybe it's something you've always dreamed of doing. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Sector trends
During the last decade or so there have been a number of developments affecting the licensed trade:
- an overall decline in the number of pubs - the economic downturn during the late 2000s increased the number of closures each year
- the emergence of pub chains, owned by non-brewing pub companies
- a trend towards very large pubs, often fitted out to a theme
- pubs targeting a particular market, for example, families or young people
- a significant increase in the number of pubs offering meals and snacks - and the increasing popularity of the 'gastro pub'
- a decline in beer consumption
- relaxation of licensing legislation
- increased regulation of catering activities and pressure from the government to provide healthier meal options
- increased competition from other leisure venues
- legislation to ban smoking in pubs and other public indoor spaces. Many pubs have set up extensive heated outdoor areas to attract both smokers and non-smokers
- the introduction of national registration of door supervisors
- concerns over late night disturbance and disorder
- the introduction of of new mandatory licensing conditions in England and Wales which ban irresponsible drinks promotions
- an increase in alcohol-related violence
- strong competition from supermarkets selling cut-price beer and wine
- proposals to introduce minimum prices on alcohol and to give local authorities more control over permitted opening hours
There have been many casualties in the licensed trade as a result of overcapacity in the sector - smaller pubs in particular may find difficulty in competing against the large, managed 'superpubs'.
You will have to decide whether:
- demand will be high enough in your area to support your business. If your pub is in a rural area there simply may not be enough customers unless you can offer something special to attract them from further afield
- your local economy is healthy enough - if your area has suffered from many business failures and factory closures recently your customer base is not likely to have much disposable income
1.1 Keeping up to date with developments
There are a number of trade associations representing the interests of the licensed trade, including the Federation of Licensed Victuallers Associations, the British Beer and Pub Association and the British Institute of Innkeeping. The British Beer and Pub Association website contains guidance on the alcohol licensing regime and the recently introduced mandatory licensing conditions.
The Home Office is responsible for alcohol policy and licensing. You can read about the government's proposals to overhaul the Licensing Act on the Home Office website.
'Morning Advertiser' is a weekly journal published by William Reed and the Society of Licensed Victuallers which contains features and articles of interest to those running a pub. 'Pub Chef' magazine caters specifically for pubs that offer food.
Visit the Publican website to keep up with news of the licensed trade and to sign up for regular email newswires.
