Top things to consider when you’re managing a pub
Do your research and think location
Getting on the path towards becoming a pub licensee isn’t something you do on a whim. It’s something you’ll likely think about, and plan for a long time before taking the plunge. Finding the right premises in the right location is the key to your success so don’t rush this stage.
If you’ve already got your eye on some premises, think carefully about its location and who your clientele will be. If you’re considering a rural site, will you be relying on passing trade or is there a local community waiting for a central hub to meet at? Alternatively, you may be looking to open a live music venue in your own town centre, because your local knowledge tells you that there’s a niche for it.
Whatever your plans are, do your research. If you can, it might be worth talking to the current licensee and asking why they’re leaving, what the average turnover is and what condition the building is in. It may look like your dream premises on the surface, but it could turn into an expensive nightmare if there are major plumbing or structural issues.
Choosing between a Tenancy and a Freehold
Different types of pubs require different levels of upfront costs as well as capital for the future. So, let’s take a look at which one could be right for you.
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Tenancy
For anyone new to the pub industry, tenancies are the most popular way to start. This option means you’re running a pub for a brewery or hospitality chain. You’ll need to pay rent but otherwise, upfront investment is lower because you’re moving into an existing pub with glasses, furniture and equipment already there. The only potential downside is that you will only be allowed to sell products supplied by the brewery which is called a beer tie.
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Freehold
If being tied to a brewery isn’t for you, you’re looking for a long term commitment, and you have capital to invest, a freehold option could be for you. Freehold means you will own the business and therefore have freedom to choose what you sell. While perhaps not a risk-free choice, if you have plenty of capital to invest, you will have the freedom to mould your pub to match your vision.
What are the requirements when managing a pub?
Premise Licence
To be able to sell alcohol, you must have two licences. The first is a Premise Licence which, as it sounds, is just for the premises, and authorises alcohol to be sold there. This licence also comes with three other obligations which are that you will provide free drinking water, promote responsible drinking and have an age-verification policy which all staff must adhere to.
Personal Licence
A Personal Licence authorises you and your staff to sell alcohol. Licences are only available after completing a course from accredited providers.
Our APLH Award for Personal Licence Holders course is an online BIIAB Accredited APLH e-learning course and remote examination which has helped thousands of people gain their qualification and get their plans and ambitions underway. Once you have this qualification, you must legally declare yourself as DPS - Designated Premises Supervisor - and you will be responsible for the sales and supply of alcohol and be the first point of contact for Police and local government matters.
Even if you are new to the pub trade, you’ve probably got some transferable skills to bring to the role that will help you run a successful pub business. Accounting skills, stock management and customer service training are just some of the many hats you’ll need to wear as a licensee, but are there gaps in your knowledge and experience that you need to fill?
Our Essentials of Pub Management course has been designed to give new and existing licensees core knowledge and training in areas such as finance and planning, employment law and cellar management. When completed, you’ll feel confident and competent about meeting the demands of your new role.
Pub management - hiring the right people
Your employees are the people who will make your business thrive so recruitment should be viewed as an investment. As a general guide, you will need to hire bartenders, a barback and cleaning staff but ultimately, staff numbers and job types will depend on the size of your business, opening hours and whether you plan to sell food.
Managing a successful team is an ongoing process which requires a mixture of support, training and development. So, here’s a summary of what training you will you will need to consider to keep your staff motivated, healthy and working efficiently:
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Bar training and customer service
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Health and Safety - especially safe working in cellars
In such a fast-paced environment, it’s vital you have appraisals and team building plans in place. If your staff feel valued and part of a team, they’re more likely to stay and help your business reach its goals. In an industry with high rates of staff turnover, it’s important to focus on this. Similarly, research rates of pay at other pubs in the area and make sure you’re at least paying the same as, or better than the competition.
Managing finances
How much do you need to make each week to cover costs such as rent, utilities and staff wages? Carefully calculating your cost of goods sold will tell you how much money you’re taking each week against the cost of goods you’ve had to buy. The difference between the two will help you make informed choices about adjustments you need to make to your prices.
Stock control when managing a pub
Thinking about what drinks you’re going to sell from your premises depends mostly on the type of customer you are hoping to attract. If your focus is on a younger audience, you may want to stock up more on pre-mixed drinks, bottled bears, spirits and mixers. However, if you’re the proud tenant of a cosy country pub which prides itself on a relaxed atmosphere for people to chat and relax in and a beer garden that boasts views of outstanding natural beauty, you may need to focus more on IPAs, wines and gin menus.
Good, experienced bar staff will be able to update you on what’s selling and what’s not but an ePOS system will give you the details of what is selling and when. It will also allow you to set rules to trigger an alert when stock is about to run below a preset quantity so you can reorder before anything runs out.
Cellar management for pubs
Cellars are an important part of your stock control system, so key staff should be trained how to look after kegs, maintain pipes and store goods properly.
CPL’s training course in Cellar Management will demonstrate how to keep beer in optimum condition to reduce waste and manage costs, as well as other practical knowledge about maintaining a hygienic cellar,
An experienced hand will be able to tell whether a keg is half full or a quarter full and an experienced eye will be able to tell you whether you have enough bottled goods to meet the demands of a busy weekend or celebration. As already mentioned, skills such as this come with experience so when looking for staff to start your venture, treat recruitment as an investment - it could save you a lot of money in the long run.
Marketing your pub
Knowing your customer base, how old they are, what they’re prepared to spend, and what experience they’re looking for from your pub or bar venue is the difference between success and failure. Make sure your marketing plan supports your business objectives and entices your customers to return time and again with the right product offering. Here are some marketing ideas to help build and maintain your pub’s appeal:
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Get social - use social media to reach your customers with short messages, pictures and videos to update them on upcoming deals and events. Think carefully about which platform your customers are most likely to use.
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Create a blog for customers to follow. This could be a mix of menus, new drinks, developments, funny stories and seasonal event updates. A blog could create an online community for customers to regularly check back on and also boost visibility through search engines.
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Think - are your customers looking for themed nights? Tasting events and live music can draw customers and boost sales figures.
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Run happy hours throughout the week - they’re a tried and tested way of encouraging customers to return.
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Share your menu online so customers can plan ahead. Offer fixed price deals to entice customers on quieter nights.
Becoming a licensee means you are legally obliged to promote responsible drinking so any promotions and events you host should be mindful of this. While ‘responsibility’ needs to be the watchword of any event, you can get creative about marketing your pub to your target audience.
Pub management - one for the road
As you’ve read in this article, managing a pub, like any business, relies on managing staff, stock, customers, premises, regulations, finances and marketing and doing it well. Finding the right pub, tenancy and staff are just the beginning of a fulfilling and rewarding long-term career in the pub industry.
Like finding the right premises, finding the right training provider will help you reach your ambitions sooner. Essentials of Pub Management provides a blended online and in-person learning package to build or enhance pub management skills.
If you’re ready to take the first step on the road to pub management, talk to us.