Pubs - weekly turnover?

[tenpenceshort]

spikeyhead said:

GlenMH said:

Interesting - I wonder if he factors in the cost of the capital to own the buildings in to the profit calcs?

Should he also figure in the rise of property value as that has been outstripping most other investments in recent times?

Enterpise and Punch might tell you it was a risky punt to assume this...

Pubs are not easy to turn into things other than pubs due to planning laws. A pub might have to sit for sale at market value for a year or so before you can convince them it's no longer viable. You now also have 'community asset' rules where locals can force owners into giving them time to find funds and have first refusal. If the pub's books are crap, and the building cannot easily be turned into something else, the value of the bricks and mortar also suffers.

[spikeyhead]

tenpenceshort said:

Enterpise and Punch have done a great deal to bugger up the UK pub trade

EFA

Once upon a time, a brewer would own the pubs, and as it grew it would buy more pubs, setting up a lovely vertical supply chain that ensured a good market for its products as well as being able to control its sales volumes. Eventually, some time back in the 80s, it was decided by our government, under pressure from CAMRA that have six big brewers was not providing fair competition, so the brewers were made to sell off lots of their pubs. Greed meant that lots of people bought lots of pubs, but most were bought by pub management companies that needed to pay off their loans, so needed to charge the pub managers more rent than the pub could reasonably sustain. A downwards spiral commenced, aided by stricter enforcement of drink driving, more social awareness of liver and other alcohol related damage, and with the smoking ban putting in a last nail in the coffin of many a good boozer.

Now most sit at home drinking wine rather than spend evenings in the pub enjoying social banter.

[POORCARDEALER]

spikeyhead said:

Should he also figure in the rise of property value as that has been outstripping most other investments in recent times?

One owes him 160K with refurb, the other 110K....on the face of it they were both good buys


Ps. He is selling some beers at £2.20 a pint that he buys for 60-70p, not sure of they are short date, but nice margins

[Thankyou4calling]

Chrisgr31 said:

Well if you assume an expenditure of £100 a trolley in a supermarket you need 10,000 to hit £1,000,000, easily achievable in even a small supermarket.

A small supermarket won't take a quarter of this. A million a week is Superstore territory.

[fridaypassion]

I think pubs are always something people go into without having any idea how hard they are to run. Our local was taken over after being run down over 10 years by a lazy landlord who took it from a thriving business into a shell of a building. New people took it over and initially it was hugely successful but the manager they have in is not right at all and its steadily gone back to a shell again.

The key is getting a professional manager but even knowing people with pubs and working in the industry I've rarely heard of anyone lasting more than a couple of years.

Its not a business I would want to get involved with. The most successful pubs are good money earners but you can bet that to keep up the levels of service and standards that it will completely take over the owners life. Not good!