Currently, if a pub has more than 200 customers a special licence is required to play or host music. This is changing in the spring to “up to 500 customers between 8am and 11pm” without a special licence. Also, wrestling for an audience of up to 1000 will be allowed. All due to be introduced in the spring as new de-regulations kick in.
Of course that's great news for pubs that want to play Oasis whilst Evil Fred and Wicked Billy wrestle in the corner.
However, whilst all of this is being introduced a local council has won a case to insist that a certain pub plays music at a “barely audible level” (a level whereby an adjoining property cannot discern the lyrics, musical instruments, base beats and tunes”).
This is the same council which approved planning to convert a commercial premises into a residential house next to the very pub in question! (Which has been playing music for many years!).
So in the brave new world customers in this particular pub will struggle to discern the lyrics of any song playing but I’ll bet will hear the grunts of Fred and Billy.
Perhaps the council involved should have said when allowing the planning permission; “Approval for this new residential property will be next door to a pub that plays music (and has done so for many years). We therefore allow planning provided only that sound proofing be installed in the property prior to inhabitation, so that the music from the pub will not offend and provoke further complaints”.
Shame that this bit of common sense was not thought of. The consequence being that once again the poor landlord and his customers suffer!!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Showing posts with label training. Show all posts
Showing posts with label training. Show all posts
Monday, 27 October 2014
Friday, 12 September 2014
UK Alcohol Consumption Down But Publicans Are Far From Out
The Portman Group, an organisation established in 1989 by the UK's leading alcohol producers, with a role to promote responsible drinking; to help prevent alcohol misuse; has reported strong evidence to show that ‘we’ (the great British public that is) are changing our relationship with alcohol!
The politicians of course, ever seeking to boast of their wisdom, try to take all of the praise for achieving this; with alcohol consumption falling, underage drinking falling, breath-test positives falling and alcohol related accident numbers and violence also declining.
However, the real praise should go to those great British Publicans who through greater professionalism, training and education ensure that alcohol is sold responsibly in the 50,000 + pubs in the UK.
The dramatic growth in food sales in pubs has changed the whole atmosphere in so many pubs; legislation has also forced pubs to comply with more and more red tape and stringent penalties for any irresponsible alcohol retailing activity. I just hope that drinking at home (where consumption is totally unsupervised) is not taking too much out of our treasured world famous ‘British Pub’ heritage! ‘Pre-loading’ at home often sees intoxicated customers arriving at the pub having not bought a single half of bitter there! Leaving the publican to deal with the consequences.
The reported trends are of course good news, whilst I have no doubt that other reports to counter this published evidence are on their way and will show we are all on our way to Armageddon through ‘the evils of drink’.
The anti-alcohol brigade is alive and well and will latch onto any shred of a statistic proving alcohol to be at the root cause of all societies problems!
Watch this space!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
The politicians of course, ever seeking to boast of their wisdom, try to take all of the praise for achieving this; with alcohol consumption falling, underage drinking falling, breath-test positives falling and alcohol related accident numbers and violence also declining.
However, the real praise should go to those great British Publicans who through greater professionalism, training and education ensure that alcohol is sold responsibly in the 50,000 + pubs in the UK.
The dramatic growth in food sales in pubs has changed the whole atmosphere in so many pubs; legislation has also forced pubs to comply with more and more red tape and stringent penalties for any irresponsible alcohol retailing activity. I just hope that drinking at home (where consumption is totally unsupervised) is not taking too much out of our treasured world famous ‘British Pub’ heritage! ‘Pre-loading’ at home often sees intoxicated customers arriving at the pub having not bought a single half of bitter there! Leaving the publican to deal with the consequences.
The reported trends are of course good news, whilst I have no doubt that other reports to counter this published evidence are on their way and will show we are all on our way to Armageddon through ‘the evils of drink’.
The anti-alcohol brigade is alive and well and will latch onto any shred of a statistic proving alcohol to be at the root cause of all societies problems!
Watch this space!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Friday, 5 September 2014
Drugs Awareness Pub Training - Online Mock Exam
This online test contains 15 multiple-choice questions which are randomly selected and are typical of the exam subject matter and mirrors closely the type of questions which appear within the real Drugs Awareness exam – so you can test yourself again and again to help build your knowledge.
Available on all devices, from desktops to mobiles.
Best of luck!
Martin Read CMBII
Managing Director of Inn-Dispensable Pub Training Courses
Monday, 25 August 2014
Training Is Vital For Running A Successful Pub
I guess that most of you know that taking on a pub is the dream of many people, and you’ll certainly know that all of the doom and gloom merchants say “Don’t do it, Stupid”.
What I know is that for some it will work out brilliantly, for some it will be a disappointment - and yes for some it will be a disaster. But surely that mix should not take away the dream?
The one thing I do know without reservation is that ‘going in blind’ is a recipe for the disaster zone.
There are so called ‘industry experts’ who condemn Pub Companies for leading new entrants along a path of taking on ‘no-hope pubs’, and yet I know (there’s a lot I know, I know) that pub companies take enormous care, face high costs and show great commitment to ensuring all new entrants to their pubs have as much information as possible to prepare them for each pub. This preparation is no guarantee of success of course, just as preparing any athlete to run the 100 metres at the Olympics would not guaranteed them a Gold Medal. It would however point out the reality of the contest and the challenge ahead - the rest is frankly ‘down to them’.
Well, I want to put the record straight … new entrants into the tenanted and lease sectors get fantastic support, advice and training prior to taking their pubs - and I want to share with you some recent feed back from delegates on our latest 5 day course run for one of the largest pub co’s in the UK.
Here goes (all verbatim):-
Follow your dream say I, create your own future say I. Be aware however that there are no guarantees for success, BUT failing to prepare is preparing to fail!!
Here endeth the lesson.
Martin Read CMBII
Managing Director of www.inn-dispensable.com Personal Licence Courses
What I know is that for some it will work out brilliantly, for some it will be a disappointment - and yes for some it will be a disaster. But surely that mix should not take away the dream?
The one thing I do know without reservation is that ‘going in blind’ is a recipe for the disaster zone.
There are so called ‘industry experts’ who condemn Pub Companies for leading new entrants along a path of taking on ‘no-hope pubs’, and yet I know (there’s a lot I know, I know) that pub companies take enormous care, face high costs and show great commitment to ensuring all new entrants to their pubs have as much information as possible to prepare them for each pub. This preparation is no guarantee of success of course, just as preparing any athlete to run the 100 metres at the Olympics would not guaranteed them a Gold Medal. It would however point out the reality of the contest and the challenge ahead - the rest is frankly ‘down to them’.
Well, I want to put the record straight … new entrants into the tenanted and lease sectors get fantastic support, advice and training prior to taking their pubs - and I want to share with you some recent feed back from delegates on our latest 5 day course run for one of the largest pub co’s in the UK.
Here goes (all verbatim):-
- “The entire course has been relevant and extremely practical, very impressed”
- “I found the course very helpful as I am just starting out”
- “Very good course, the tutors were wonderful”
- “The course has been relevant and extremely informative and has cleared many questions and issues I could see prior to taking my pub. It has shown me issues in the pub that have to be addressed as soon as possible. All sections of the course have been explained in clear concise terms by the tutors. I strongly recommend using the training available so that I can pass all onto my staff”
- “This was a brilliant course, a brilliant week”
- “Good to come on the course before getting into my pub so that I can take what I have learnt into my new business”
Follow your dream say I, create your own future say I. Be aware however that there are no guarantees for success, BUT failing to prepare is preparing to fail!!
Here endeth the lesson.
Martin Read CMBII
Managing Director of www.inn-dispensable.com Personal Licence Courses
Friday, 7 March 2014
Training Is Valuable, Stupid
No surprise to me that one of the key elements of the survey "training support" showed progress. There is little doubt that the more enlightened companies believe that training plays a vital role in improving results and creating partnership engagement.
We as a company have the pleasure of delivering many courses to pub company licencees and staff, covering a wide range of subject matters, all designed to raise standards and commercial performance within their pubs. Training itself provides not only new knowledge and skills; it also creates motivation and employee loyalty.
An unwise (stupid) person once said, "I don’t spend much on training my staff because it costs me money and then they leave me", a much wiser person replied "Have you ever thought how much they cost you by not training them and having them stay with you?". An even wiser person once said "Give a person a fish and you will stop them being hungry, teach a person to fish and you will ensure they never starve"!
There is clear evidence in the survey however that tenants will be demanding even more from their pub companies going forward to ensure that they have the tools to compete in an ever-competitive trading environment.
Let’s hope that training becomes a major element of the continued support.
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Tuesday, 7 January 2014
2014s Hospitality Growth Area Predictions
And so another year begins, 2014 and all of that. Here are a few hot trends on the positive side (let's at least be optimistic for the first few weeks of the year!)
The eating–out sector will continue to grow (slowly) as more disposable income is available in many households. 'Casual Dining' outlets will be the main benefactors with consumers trading down from more formal dining; competitive pricing, more varied menus, flexible serving hours and great customer service will be the key. Pubs can certainly take advantage of this forecast.
Beer sales will continue to decline but the huge growth in Craft Breweries will continue (up some 80% in 2013). Local products produced by local people for local consumption, that’s the key, I have a great mate who runs a small craft brewery in the Cotswolds, he and his family team are going from strength to strength, check it out; North Cotswold Brewery. And of course; the chancellors decision on beer duty in the forthcoming budget (increase or not) will have a major impact on sales in 2014.
Coffee sales (in my view: amazingly) will continue to grow and the consumer will become more discerning, so investment in the top range of coffee machines and beans is vital (no more instant cups for £1).
Nightclubs will come under increasing pressure to thrive: new legislation, curtailed hours, late night levies, all conspiring to make it more difficult for them, especially as more pubs offer night club type environments without a door charge!
The 'Grey Pound' will continue to offer great opportunities as the population ages and most live longer and have more disposable income.
The B & B and hotel sector will show growth as corporate business grows and once again the +60 year old market will bring more business as they travel more and more.
The big generic trend will be in the growth of marketing via technology. Cashless payment, bookings via mobile phones, pre-ordering apps, digital marketing tools, loyalty apps, social media marketing, smartphone apps, etc. All designed to make it easier for the customer to find your outlet, see what you have to offer and compare it to others; Book a meal or room or drink, then pay for it!
What will remain the same for success in the hospitality industry? Great service, great products, great standards, great staff, great knowledge, great prices, great toilets, great smiles, great thanks and most of all great training!
A very Happy and prosperous New Year to you all!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
The eating–out sector will continue to grow (slowly) as more disposable income is available in many households. 'Casual Dining' outlets will be the main benefactors with consumers trading down from more formal dining; competitive pricing, more varied menus, flexible serving hours and great customer service will be the key. Pubs can certainly take advantage of this forecast.
Beer sales will continue to decline but the huge growth in Craft Breweries will continue (up some 80% in 2013). Local products produced by local people for local consumption, that’s the key, I have a great mate who runs a small craft brewery in the Cotswolds, he and his family team are going from strength to strength, check it out; North Cotswold Brewery. And of course; the chancellors decision on beer duty in the forthcoming budget (increase or not) will have a major impact on sales in 2014.
Coffee sales (in my view: amazingly) will continue to grow and the consumer will become more discerning, so investment in the top range of coffee machines and beans is vital (no more instant cups for £1).
Nightclubs will come under increasing pressure to thrive: new legislation, curtailed hours, late night levies, all conspiring to make it more difficult for them, especially as more pubs offer night club type environments without a door charge!
The 'Grey Pound' will continue to offer great opportunities as the population ages and most live longer and have more disposable income.
The B & B and hotel sector will show growth as corporate business grows and once again the +60 year old market will bring more business as they travel more and more.
The big generic trend will be in the growth of marketing via technology. Cashless payment, bookings via mobile phones, pre-ordering apps, digital marketing tools, loyalty apps, social media marketing, smartphone apps, etc. All designed to make it easier for the customer to find your outlet, see what you have to offer and compare it to others; Book a meal or room or drink, then pay for it!
What will remain the same for success in the hospitality industry? Great service, great products, great standards, great staff, great knowledge, great prices, great toilets, great smiles, great thanks and most of all great training!
A very Happy and prosperous New Year to you all!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Thursday, 17 October 2013
Pub co or Freehouse?
This one is a long (long) read but worth getting to the bottom!!
Fred and Mary have always (for as long as they can remember) wanted to run a pub, they have no experience of running any sort of business what so-ever but as Fred has just lost his job and he is in his mid forties, they both reckon this is a good time to pursue that dream.
Mary, also in her mid forties, can easily give up her job behind the till at the local supermarket (when the time is right) not least because the £12k a year she earns for her full time duties has always seemed to her a poor reward for the effort she puts in.
Fred has been a store-man for a number of years at a local warehouse and his £19k pa is now lost, the company have however given him a redundancy package of £7k.
The three kids are at various stages of their education, with Sally doing A levels, Bert in year 9 and Rebecca in year 6. The combined wages of Fred and Mary over the past few years have been just about adequate to live quietly in their three bed semi, holidays and luxuries however have been sparse to say the least. They have maintained a mortgage on their property and have build up an equity stake of around £35k, they have little or no savings and so their fund to seek the pub of their dreams is around £40k.
Fred now has time on his hands and so starts his exploration of the various pubs available on the market and the various ways in which he and his missus could enter into the trade. He scours the web and finds there are “thousands” of pubs available and to his surprise finds there are many different ways in which to take one on, Free house, Tenancy with a tie, Tenancy without a tie, Free-house- free of Tie deal, Lease deal with a tie, Lease deal without a tie, Shared equity deal, Pub Management; all a bit confusing!
So he seeks advice, starting with his bank manager (same bank manager who told Richard Branson he would never make any money)who tells him to take up llama breeding in the Himalayas rather than take a pub, onto his solicitor (also Branson’s solicitor)who tells him he would be better off staying at home, getting hold of his cash and burning it in the fireplace as it would save time and effort in losing it. Undeterred however Fred does take one piece of advice from his solicitor; that as an entry point and first task he needs to get himself a Personal Licence (bit like getting a driving licence before you buy the car). Being equipped with this he is advised will at least have a bit of credibility with those who can asses his seriousness about taking on a pub.
He again scours the web and finds more “thousands” who deliver the course but settles on the most attractive looking company which offers not only the course but an on-going relationship should he eventually take on “The Dog and Duck” and yes you have guessed it he chooses Inn-Dispensable.
The course is brilliant, the tutor great and the result a pass for the BII Award for Personal Licence Holders, Inn-Dispensable then carry out his application for an actual Personal Licence and he is now “fully qualified” to take on a pub (well that is the only legal requirement!!)
Fred and Mary now decide it would be a good idea to again get in touch with that splendid tutor from Inn-Dispensable and learn about all of the upsides and downsides of the various ways in which they might invest their £40k and which of the bewildering options might best suit them.
Before Jack from Inn-Dispensable offers his advice he gently points out to F & M that “there is more to running a pub than pulling a few pints” “Really” say F&M, “what like”, well says Jack, “It is a business first and foremost and if you want to have half a chance of making it work, you need to be very expert in the following:
· Health & Safety/Risk Assessment
· Duties & responsibilities for Health & Safety at Work
· Risk Assessments
· RIDDOR
· First Aid
· C.O.S.H.H
· Fire regulations
· Manual Handling
· Employment Law
· TUPE (Transfer of Staff)
· Retail Legislation
· Consumer protection
· Mandatory conditions
· Weights and measures
· PRS & PPL
· WiFi
· Crime prevention
· Equality Act
· Smoking & Drugs
· Violence
· Finance Management
· Net & Gross Profit
· Book Keeping
· Gross Profit Calculations
· Sales Price Calculations
· Stocktaking
· Profit & Loss
· Cash flow
· Dish Costing
· V.A.T
· Budgets
· Breakeven
· Stock Control
· Stock taking
· Stock reports
· Ordering
· Security of cash
· Catering
· Menu planning
· Dish costing
· Food safety
· Enforcing agencies & legal requirements
· Storage, production and service of food
· Food Hygiene
· Legislation
· Gaming & Machines
· Legislation
· Maximising machine income
· Marketing & Merchandising
· Marketing Mix
· SWOT analysis
· Customer Occasions
· Business Trends
· Internal & External communication
· Customer Service
· The service profit path
· Effective service of products
· Selling skills
· Customer service path
· Business Planning
· Mission statement & action planning
· Market position – SWOT/TOWS
· Competitor visits
· Modern Marketing Mix
· Pricing strategy
· Promotions diary
· Event planning checklist
· Setting C SMART objectives
· Retail standards and offer
Blimey says F &M how do we go about learning that little lot. Well says Jack, if you take the Pub Company deal ,they will put you on a course to cover it all, but if you take a Free-House , you will be on your tod! You will have to find it all on the web or pay a consultant to take you through it.
“Look” says Jack “I think the best thing you can do is to refine your search for the pub of your dreams along the lines of “what you can afford, where you want it to be, what sort of pub you want to run, how the kids can finish their education and what your lifestyle expectations are, then come back to me and we can work out the numbers and the way forward”.
Off go F & M, 500 miles and two months later they come back with two pubs they really want to pursue, one a Free house, the other a Pub Co lease.
Jack takes a look at the Balance sheet and Management Accounts of both pubs and what do you know they are identical with a turnover figure of £250k pa (ex VAT), bottom line profit of £30k (net of rent or finance charges), both around 180 barells a year, same wet /dry mix, same margins, same wage costs, just about the same everything other than; the Free house is on the market for £400k and the Pub co lease is available for an ingoing of £22k plus a rent of £25k pa.
“We don’t mind either pub” says F & M , which is the best deal?
Well lets look at the numbers says Jack, but before we do I need to tell you that this is broad brush stuff, we as a company, do not offer accountancy advice, you will need to see your accountant to get a full appraisal but I can point out a few principle numbers, You would also be well advised to go onto our website and take the BII PEAT (Pre Entry Awareness Training) course.
About the numbers; here goes;
The operational costs of running either pub are identical, so it’s the capital cost we need to view. Effectively if you take the pub co lease you will shell out ~£22k pa in rent but you will pay around £80 a barrel more for your beer (allegedly, this could change at any time if suppliers reduce their discounts to the Free trade) so over say ten years you will pay out a sort of premium of 10 x £22k plus 10 x 180 x £80 per barrel = £364k. At the end of the ten years you can sell the lease on for whatever you can get but likely (certainly) no less than the £22k you paid originally so net cost of this deal around £342k. With the other deal if you borrow say £380k at say 6% (currently but will never be as low again? Could grow to 10% plus over the next ten years) = £22.8 pa plus ten year repayment at £38k pa = £50.8k pa first year and near to £500k over the ten years (but you get whatever you can achieve back when you sell it!
So “You pays your money and takes your choice!”.
Only one (major) flaw in all of this says Jack… “You haven’t got £400k to buy the Freehouse. Well, not unless you can borrow around £360k - go try and borrow it!”.
F & M return a few days later after seeing six bank managers and have discovered they could get easy loans to run the llama breeding centre in the Himalayas but naff all to buy a pub! “So it looks like the pub co deal for us?”, “I think so” says Jack “But we have heard so many bad stories and bad press articles about pub cos, what do we actually get from them compared to that if we really could have afforded that Freehouse?”. Well let me give you a list of the differences, you get the following from your pub co but not if you could have afforded the Freehouse (which you cant):
You get a low cost entry into running your own business which fulfils the dream you have always had
You get an induction course to give you every piece of information you need to run a successful pub
You get a dedicated Business management development manager free to support you.
You get promotional activity on an on-going way
You get invitations to company exhibitions and seminars
You get access to on-going training courses
You will get help with repayment of your trading account if you fall behind (if you were a Freehouse the suppliers will simply cut off goods if you do not pay on time)
And remember this, a pub co can only succeed if you succeed, they have a total interest in seeing you succeed, without you, they do not have a business”.
F & M go on to get the Pub co deal and live happily ever after.
The freehouse sold and went bankrupt 2 years later.
Fred and Mary have always (for as long as they can remember) wanted to run a pub, they have no experience of running any sort of business what so-ever but as Fred has just lost his job and he is in his mid forties, they both reckon this is a good time to pursue that dream.
Mary, also in her mid forties, can easily give up her job behind the till at the local supermarket (when the time is right) not least because the £12k a year she earns for her full time duties has always seemed to her a poor reward for the effort she puts in.
Fred has been a store-man for a number of years at a local warehouse and his £19k pa is now lost, the company have however given him a redundancy package of £7k.
The three kids are at various stages of their education, with Sally doing A levels, Bert in year 9 and Rebecca in year 6. The combined wages of Fred and Mary over the past few years have been just about adequate to live quietly in their three bed semi, holidays and luxuries however have been sparse to say the least. They have maintained a mortgage on their property and have build up an equity stake of around £35k, they have little or no savings and so their fund to seek the pub of their dreams is around £40k.
Fred now has time on his hands and so starts his exploration of the various pubs available on the market and the various ways in which he and his missus could enter into the trade. He scours the web and finds there are “thousands” of pubs available and to his surprise finds there are many different ways in which to take one on, Free house, Tenancy with a tie, Tenancy without a tie, Free-house- free of Tie deal, Lease deal with a tie, Lease deal without a tie, Shared equity deal, Pub Management; all a bit confusing!
So he seeks advice, starting with his bank manager (same bank manager who told Richard Branson he would never make any money)who tells him to take up llama breeding in the Himalayas rather than take a pub, onto his solicitor (also Branson’s solicitor)who tells him he would be better off staying at home, getting hold of his cash and burning it in the fireplace as it would save time and effort in losing it. Undeterred however Fred does take one piece of advice from his solicitor; that as an entry point and first task he needs to get himself a Personal Licence (bit like getting a driving licence before you buy the car). Being equipped with this he is advised will at least have a bit of credibility with those who can asses his seriousness about taking on a pub.
He again scours the web and finds more “thousands” who deliver the course but settles on the most attractive looking company which offers not only the course but an on-going relationship should he eventually take on “The Dog and Duck” and yes you have guessed it he chooses Inn-Dispensable.
The course is brilliant, the tutor great and the result a pass for the BII Award for Personal Licence Holders, Inn-Dispensable then carry out his application for an actual Personal Licence and he is now “fully qualified” to take on a pub (well that is the only legal requirement!!)
Fred and Mary now decide it would be a good idea to again get in touch with that splendid tutor from Inn-Dispensable and learn about all of the upsides and downsides of the various ways in which they might invest their £40k and which of the bewildering options might best suit them.
Before Jack from Inn-Dispensable offers his advice he gently points out to F & M that “there is more to running a pub than pulling a few pints” “Really” say F&M, “what like”, well says Jack, “It is a business first and foremost and if you want to have half a chance of making it work, you need to be very expert in the following:
· Health & Safety/Risk Assessment
· Duties & responsibilities for Health & Safety at Work
· Risk Assessments
· RIDDOR
· First Aid
· C.O.S.H.H
· Fire regulations
· Manual Handling
· Employment Law
· TUPE (Transfer of Staff)
· Retail Legislation
· Consumer protection
· Mandatory conditions
· Weights and measures
· PRS & PPL
· WiFi
· Crime prevention
· Equality Act
· Smoking & Drugs
· Violence
· Finance Management
· Net & Gross Profit
· Book Keeping
· Gross Profit Calculations
· Sales Price Calculations
· Stocktaking
· Profit & Loss
· Cash flow
· Dish Costing
· V.A.T
· Budgets
· Breakeven
· Stock Control
· Stock taking
· Stock reports
· Ordering
· Security of cash
· Catering
· Menu planning
· Dish costing
· Food safety
· Enforcing agencies & legal requirements
· Storage, production and service of food
· Food Hygiene
· Legislation
· Gaming & Machines
· Legislation
· Maximising machine income
· Marketing & Merchandising
· Marketing Mix
· SWOT analysis
· Customer Occasions
· Business Trends
· Internal & External communication
· Customer Service
· The service profit path
· Effective service of products
· Selling skills
· Customer service path
· Business Planning
· Mission statement & action planning
· Market position – SWOT/TOWS
· Competitor visits
· Modern Marketing Mix
· Pricing strategy
· Promotions diary
· Event planning checklist
· Setting C SMART objectives
· Retail standards and offer
Blimey says F &M how do we go about learning that little lot. Well says Jack, if you take the Pub Company deal ,they will put you on a course to cover it all, but if you take a Free-House , you will be on your tod! You will have to find it all on the web or pay a consultant to take you through it.
“Look” says Jack “I think the best thing you can do is to refine your search for the pub of your dreams along the lines of “what you can afford, where you want it to be, what sort of pub you want to run, how the kids can finish their education and what your lifestyle expectations are, then come back to me and we can work out the numbers and the way forward”.
Off go F & M, 500 miles and two months later they come back with two pubs they really want to pursue, one a Free house, the other a Pub Co lease.
Jack takes a look at the Balance sheet and Management Accounts of both pubs and what do you know they are identical with a turnover figure of £250k pa (ex VAT), bottom line profit of £30k (net of rent or finance charges), both around 180 barells a year, same wet /dry mix, same margins, same wage costs, just about the same everything other than; the Free house is on the market for £400k and the Pub co lease is available for an ingoing of £22k plus a rent of £25k pa.
“We don’t mind either pub” says F & M , which is the best deal?
Well lets look at the numbers says Jack, but before we do I need to tell you that this is broad brush stuff, we as a company, do not offer accountancy advice, you will need to see your accountant to get a full appraisal but I can point out a few principle numbers, You would also be well advised to go onto our website and take the BII PEAT (Pre Entry Awareness Training) course.
About the numbers; here goes;
The operational costs of running either pub are identical, so it’s the capital cost we need to view. Effectively if you take the pub co lease you will shell out ~£22k pa in rent but you will pay around £80 a barrel more for your beer (allegedly, this could change at any time if suppliers reduce their discounts to the Free trade) so over say ten years you will pay out a sort of premium of 10 x £22k plus 10 x 180 x £80 per barrel = £364k. At the end of the ten years you can sell the lease on for whatever you can get but likely (certainly) no less than the £22k you paid originally so net cost of this deal around £342k. With the other deal if you borrow say £380k at say 6% (currently but will never be as low again? Could grow to 10% plus over the next ten years) = £22.8 pa plus ten year repayment at £38k pa = £50.8k pa first year and near to £500k over the ten years (but you get whatever you can achieve back when you sell it!
So “You pays your money and takes your choice!”.
Only one (major) flaw in all of this says Jack… “You haven’t got £400k to buy the Freehouse. Well, not unless you can borrow around £360k - go try and borrow it!”.
F & M return a few days later after seeing six bank managers and have discovered they could get easy loans to run the llama breeding centre in the Himalayas but naff all to buy a pub! “So it looks like the pub co deal for us?”, “I think so” says Jack “But we have heard so many bad stories and bad press articles about pub cos, what do we actually get from them compared to that if we really could have afforded that Freehouse?”. Well let me give you a list of the differences, you get the following from your pub co but not if you could have afforded the Freehouse (which you cant):
You get a low cost entry into running your own business which fulfils the dream you have always had
You get an induction course to give you every piece of information you need to run a successful pub
You get a dedicated Business management development manager free to support you.
You get promotional activity on an on-going way
You get invitations to company exhibitions and seminars
You get access to on-going training courses
You will get help with repayment of your trading account if you fall behind (if you were a Freehouse the suppliers will simply cut off goods if you do not pay on time)
And remember this, a pub co can only succeed if you succeed, they have a total interest in seeing you succeed, without you, they do not have a business”.
F & M go on to get the Pub co deal and live happily ever after.
The freehouse sold and went bankrupt 2 years later.
Friday, 11 October 2013
The Personal Licence System Works. So, Why Ditch It?
As I blogged previously; the Government has launched a consultation on the possible abolition of Personal Licences. No idea where this latest government gem came from, but they claim it's about "reducing red tape". More likely it's about mending something that isn’t broken!
The proposal should be opposed, as the new idea they have in mind to replace the existing system is a potential disaster, and has attracted much criticism from just about all informed industry players.
HMG suggest that, in place of Personal Licences, they envisages that licensing authorities are given greater flexibility to impose conditions on premises licences at a local level, for example, for staff to undergo training. Imagine doing away with national vehicle driving licences and letting local authorities set local training for drivers? Good idea?
Some local Authorities might decide it would be best to drive on the right-hand side, and introduce training courses and qualifications thus to do. Now that would be really progressive (well, until you drive into the next 'LA' territory!).
Most industry players see the Personal Licence as one of the better innovations of the 2003 Licensing Act. It offers a national standard of knowledge, challenges bar staff to study and prove knowledge of the law and how to sell alcohol responsibly, gives them a step on the ladder of professionalism, protects customers from violence and drunkenness, protects children from harm and neighbours from nuisance - and is recognised across the country.
Pretty good objectives in my view! So why change it?
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
The proposal should be opposed, as the new idea they have in mind to replace the existing system is a potential disaster, and has attracted much criticism from just about all informed industry players.
HMG suggest that, in place of Personal Licences, they envisages that licensing authorities are given greater flexibility to impose conditions on premises licences at a local level, for example, for staff to undergo training. Imagine doing away with national vehicle driving licences and letting local authorities set local training for drivers? Good idea?
Some local Authorities might decide it would be best to drive on the right-hand side, and introduce training courses and qualifications thus to do. Now that would be really progressive (well, until you drive into the next 'LA' territory!).
Most industry players see the Personal Licence as one of the better innovations of the 2003 Licensing Act. It offers a national standard of knowledge, challenges bar staff to study and prove knowledge of the law and how to sell alcohol responsibly, gives them a step on the ladder of professionalism, protects customers from violence and drunkenness, protects children from harm and neighbours from nuisance - and is recognised across the country.
Pretty good objectives in my view! So why change it?
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Friday, 26 July 2013
Under-age Alcohol Sales Laws Courses
We've been running a few courses recently regarding "Prevention of under-age alcohol sales", with a wide range of delegates from pubs, supermarkets, garages and a number of Licensing Officers attending our training.
As a result, no confusion any more:
...and yes there are about 30 other laws and regulations about under age sales.
Want to learn more? Phone 02392 345 679. More courses planned!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Training
As a result, no confusion any more:
- No, you can't sell alcohol to a 16 year old when they eat a meal.
- No, you can't allow an unaccompanied under 16 year old in without an 18 plus year old to accompany them.
- Yes, a 16 year old can drink beer, cider or wine with a meal, providing it is purchased by someone over 18, and they accompany them whilst they eat the meal.
- Yes, a 16 year old can enter a licensed premises, unaccompanied.
- No, you can't purchase alcohol for anyone under 18.
- No, you can't send anyone under 18 to purchase alcohol.
- Yes, you can deliver alcohol to an under 18 year old, if it has been purchased by someone over 18.
- Oh, and yes, you can be fined up to £5000.
- Yes, you can be fined up to £20000 for persistent sales to under 18s.
...and yes there are about 30 other laws and regulations about under age sales.
Want to learn more? Phone 02392 345 679. More courses planned!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Training
Friday, 7 June 2013
Providing Personal Licence Training for a Wide Range of Personalities
One minute we might be running a session at The Inner Temple of the Law Courts, the next minute in a skittle alley in the depths of who knows where. Then on to Les Ambassadors Club in the heart of Mayfair, London and the store room of an off-licence. We work with police officers, licensing officers, students, pub owners, club owners, a mobile "cut in half" Volkswagen owner, tea rooms, village halls, rugby, football, cricket, you name it clubs. And now and again a famous person.
Here's the latest:
Adam Henson, TV presenter and owner of The Cotswold Farm Park, recently commissioned Inn-Dispensable to obtain a Premises Licence and to train all of his staff when he recently began selling alcohol at the Farm Park.
And here is what Adam kindly said...
Adam commented "The professionalism and expertise of the Inn-Dispensable team was invaluable throughout the whole process".
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Thursday, 25 April 2013
Life Doesn't Have to Be Taxing – Says Octoganarian Businessman
85 years old, French, decorated with the Legion D’Honneur, war hero, rich, innovator, self-made and claims to have created 650,000 new jobs as a result of his campaigning! And that’s just a bit of his life story!!
Jacques Borel the name, inspirational the man!
His campaign, simple; reduce VAT on Food and Drink, up go sales and profit, up go jobs! Easy to summarise? Difficult to achieve? absolutely, but he has achieved it across many countries and now he is focusing on Britain!
If you want to be inspired, if you want to see real strategy designed to address cause not effect, do no more than read Roger Protz brilliant interview with “The Man” in the Publican/Morning Advertiser. Fantastic!!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Training
Jacques Borel the name, inspirational the man!
His campaign, simple; reduce VAT on Food and Drink, up go sales and profit, up go jobs! Easy to summarise? Difficult to achieve? absolutely, but he has achieved it across many countries and now he is focusing on Britain!
If you want to be inspired, if you want to see real strategy designed to address cause not effect, do no more than read Roger Protz brilliant interview with “The Man” in the Publican/Morning Advertiser. Fantastic!!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Training
Thursday, 11 April 2013
Fantastic Alcohol Course at Historic Brewery
I ran a course recently for delegates to take an ARAR qualification (Award for Responsible Alcohol Retailing) sponsored by the great generosity of SAB Miller and hosted by the great generosity of Hook Norton Brewery.
We were very kindly allowed the privilege of running the session in the oak-panelled, age-old, Board Room of Hooky, a board room which must have had on the agenda; creating a “tied trade” way back in 1859. The directors no doubt discussed the benefits such a system would bring to tenants who did not have the wherewithal to buy their own pubs! So whilst the tied system has its issues today, lets not knock totally a system that in this instance has been successful for over 150 years!
This is a fabulous traditional brewery in the heart of a country village, which was founded in 1849. SAB Miller was of course founded in Johannesburg in 1895, so a youngster compared to Hook Norton.
But my how these two brilliant companies have progressed, and how they both see the value of promoting and supporting “Responsible Alcohol Retailing”. The two businesses combine tradition with modernity and demonstrate the way an age-old industry needs to adapt to current matters.
I would mention that during a coffee break I peeked into the hand-written ledgers in the boardroom and could have stayed there all day fascinated by such history (and prices for a barrel of Hooky!)
A great day for the delegates (all of whom passed) - and a great day for me.
Thank you SAB Miller and Hook Norton, and thank you to the BIIAB for a great qualification.
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
We were very kindly allowed the privilege of running the session in the oak-panelled, age-old, Board Room of Hooky, a board room which must have had on the agenda; creating a “tied trade” way back in 1859. The directors no doubt discussed the benefits such a system would bring to tenants who did not have the wherewithal to buy their own pubs! So whilst the tied system has its issues today, lets not knock totally a system that in this instance has been successful for over 150 years!
This is a fabulous traditional brewery in the heart of a country village, which was founded in 1849. SAB Miller was of course founded in Johannesburg in 1895, so a youngster compared to Hook Norton.
But my how these two brilliant companies have progressed, and how they both see the value of promoting and supporting “Responsible Alcohol Retailing”. The two businesses combine tradition with modernity and demonstrate the way an age-old industry needs to adapt to current matters.
I would mention that during a coffee break I peeked into the hand-written ledgers in the boardroom and could have stayed there all day fascinated by such history (and prices for a barrel of Hooky!)
A great day for the delegates (all of whom passed) - and a great day for me.
Thank you SAB Miller and Hook Norton, and thank you to the BIIAB for a great qualification.
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
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