Selecting the right pub: the key to success

Finding the right site is key, especially in a crowded place. There is the perennial ‘chicken and egg’ question that lies at the heart of a successful acquisition and that is the offer.

Without understanding the retail offer and the potential customer base, it’s incredibly difficult to source the most suitable site.
This seems obvious to most national companies, which know their offers and audiences ‘inside out’, but many independent and smaller operators may
not have this in such a rigid format.

This actually has its advantages.

A few key elements to consider include:

Location & competition​

It is critical to establish the circuit, and this will change during the day and night, although we are seeing operators increasingly being able to flex their offer throughout the day.

It is also essential to inspect target areas at different times of the day to see how they change during the week; visit competition to understand when they are busy and why they are successful, or not. Depending on the offer, it’s not always an advantage, or cost-effective, to be on the main circuit and it can suit some operators to be the ‘hidden gem’.

Property​

Understand what you require in terms of covers, turnover rate and spend per head because this will affect the location, physical characteristics and requirement of the building.

Again being able to change and alter an offer can allow you to make a real point of difference in a crowded area. Think about what could set you apart from rivals such as a statement staircase, vaulted basement or roof terrace. Also consider the constraints of a building such as extraction, bin storage and deliveries.

Terms​

The terms of any occupation is critical. Is it freehold or leasehold? Understand, above all, the repairing liability, lease length, break clauses and renewal mechanism.

In a competitive market, you may have to offer personal or company guarantees and provide rental deposits. Understanding the landlord’s outlook of tenant mix may also give you a competitive advantage.

Planning & licensing​

Be aware of national and local planning guidance that can often promote licensed activity in certain areas, or allows permitted change of use. Also the restrictions in cumulative impact zones, or areas with late-night levies.

Understanding the parameters of the offer and where there might be flexibility will give you a competitive advantage in a crowded market place.

Tom Nichols is managing director at Everard Cole​​