There’s just something so satisfying about running your own pub, pouring drinks, and becoming the local hotspot. But before you get too excited about chatting with regulars, remember that opening a pub involves much more than just serving beer. The business side involves complexities that may come as a surprise if it’s your first time.
Licensing laws: more than just a piece of paper
You’ll need an alcohol licence at the very least, but the paperwork doesn’t end there. You’ll also have to understand the rules around operating hours, outdoor seating, and live music – each requires its own type of license or permit. Getting it wrong can lead to hefty fines or even the closure of your pub.
For example, the alcohol licence permits you to serve alcohol during certain hours, but you’ll need additional licenses from organisations like PPL PRS if you want to host live music or play recorded music.
Suppliers, stock and the strange world of deliveries
Handling suppliers and stock can be overwhelming at first. You’ll need to juggle multiple suppliers for drinks and food. The challenges start when deliveries don’t arrive on time or products are unexpectedly out of stock. A delay in your beer delivery or a missing order can throw your entire service off track.
One practical way to manage this is by building strong relationships with your suppliers. This ensures you can rely on them when problems arise. It’s also a good idea to keep a backup list of alternative suppliers for emergencies.
The risk factors: fires, floods and Friday fights
Opening a pub comes with inherent risks, just like any business. Whether it’s a fire in the kitchen, a water leak or a customer injury, you never know when the unexpected can occur. These incidents can quickly escalate and potentially cost you thousands of pounds if you’re not covered. A solid pub insurance policy can provide a layer of protection against unexpected financial strain should something go wrong.
The hidden costs of running a pub
While the public image of a pub may revolve around pouring pints and hosting quiz nights, behind the scenes, there are hidden costs that can catch you off guard. From utilities to maintenance, the operational costs can add up quickly. You might also need to reinvest in the business to keep things fresh and exciting for customers, which could include renovating or upgrading equipment.
Getting a good grasp of your financial situation before opening will help you avoid unexpected setbacks. It’s not just about knowing your initial investment; you’ll need to manage cash flow on an ongoing basis. Understanding your profit margins on drinks, food, and other services is key to keeping the business sustainable.
