The Pub Trade Information

thebigbiffo

Hi all,

I'm considering leasing a pub in a large town in county laois and although i have experience in the hospitality industry - i dont really know the ins and out of how to get the place up and running. If any body can help me out with these few questions or indeed give any advice, suggestions, warnings etc would be very much appreciated. some of the things i'm wondering are:

whats the average yearly lease on a pub in ireland - or the midlands area - at the moment?
what kind of start-up costs should i expect prior to begining trade - stock, deposits etc?
obviously pubs have been closing all over the country so is there a way to work out what turnover is generally needed to turn a profit? i know there's many variables but simply put is it turnover minus staffing minus stock minus vat/taxes = profit!?
are banks scared of pubs at the moment? can a decent business plan get credit?

Anyway, i'd say you get the idea! just looking for some advice/discussion on the pub trade.

Thanks in advance,

DoMyBooks

You will find there is a lot more than staffing to consider in your costs. Insurance, cleaning products, light, heat, TV subscription, waste, rates the list goes on.

thebigbiffo

i was just putting it simply. obviously there's a whole array of overheads but just wanted to see what people thought of going into the pub trade at this stage of the recession.

key money for example: has the last couple of years reduced the amounts looked for or eliminated it altogether? and i read somewhere too that's it's impossible to get an account open with brewerys unless your a signed up vintners member...is this true and if so, how quickly can you become a member and are you bound to selling beer at a certain price?

Southsider1

By the looks of it you have a lot to learn about it. I'll trya and answer some of your queries:

thebigbiffo wrote: »

Hi all,

I'm considering leasing a pub in a large town in county laois and although i have experience in the hospitality industry - i dont really know the ins and out of how to get the place up and running. If any body can help me out with these few questions or indeed give any advice, suggestions, warnings etc would be very much appreciated. some of the things i'm wondering are:

whats the average yearly lease on a pub in ireland - or the midlands area - at the moment? Depends on the size/location/previous or current turnover/ condition of property etc etc
what kind of start-up costs should i expect prior to begining trade - stock, deposits etc? Again depends on some of the above. Stock - how many customers can you hold? How much trade have you budgeted for???
obviously pubs have been closing all over the country so is there a way to work out what turnover is generally needed to turn a profit? Sure. Your business plan should give you a good indication.
i know there's many variables but simply put is it turnover minus staffing minus stock minus vat/taxes = profit!? You've a whole host of other costs to take into account. Again the P + L and cashflow projections from your business plan will help you here.
are banks scared of pubs at the moment? can a decent business plan get credit? On a lease? Doubtful unless its' doing a massive trade at the moment.

Anyway, i'd say you get the idea! just looking for some advice/discussion on the pub trade.

Thanks in advance,

Southsider1

thebigbiffo wrote: »

i was just putting it simply. obviously there's a whole array of overheads but just wanted to see what people thought of going into the pub trade at this stage of the recession.

key money for example: has the last couple of years reduced the amounts looked for or eliminated it altogether? and i read somewhere too that's it's impossible to get an account open with brewerys unless your a signed up vintners member...is this true and if so, how quickly can you become a member and are you bound to selling beer at a certain price?

You don't need to be a member of the VFI to open an account but it's extremely unlikely you'll get a credit account from them no matter what you're a member of! If you join the VFI they can't(by law) make you charge any specific prices but they take a dim view if you come in undercutting your neighbours.