| Pubs are central to British life. Just look at the country's most popular soaps; both Coronation Street and Eastenders have a traditional boozer at their heart. If you ask any foreign tourist, young or old, about the attractions of this country, pubs will undoubtedly be mentioned. After all, there are over 60,000 public houses in the UK. The ideal country pub, complete with ivy and timber frame, is probably the dream of many in the industry.  | | THE COUNTRY PUB IS THE IDEAL OF MANY | However, the entire licensed trade in Britain has undergone a revolution over the past decade – mainly in response to the increased importance of women and young couples within the trade. The solitary Carling pump has been replaced by a variety of British and foreign beers. The ancient bottle of cheap wine has vanished, and in its place there is now an extensive wine list. As Britain's culinary tastes have improved, many pubs have begun offering restaurant-quality food, which can draw punters from further afield. Nevertheless, this process is still in motion. There are still huge numbers of run-down boozers in every corner of Britain. Every week, they are bought up by eager visionaries and transformed into successful businesses. A freehouse gives the entrepreneur complete freedom in running the pub, but it is beyond the reach of many. Prices are high, with independent buyers competing with the big pub companies, who are always desperate for space, and, as house prices have rocketed, residential developers. With so many prospective buyers having substantial equity in their houses, hope is not lost. John Gower, Operations Director of SBS Commercial, explains: "If you buy a freehold you have the long-term property appreciation. Banks are happier lending on a property-based rather than a lease-based business, and will lend up to 70%." Gower adds that the vast majority of freeholders have had experience of the pub trade, with most seeing tenancies or leaseholds as the first step on the ladder to their own free house. The traditional 'tie' between larger breweries and tenants was cut by the 1989 Monopolies and Mergers report, but some smaller operators do still run the traditional tenancy system. Tenants – who usually sign up for a three-year period – are obliged to sell the brewery's own products, so the opportunities to use your own initiative are limited. The long leasehold Pub companies such as Punch offer a long-lease system, which gives potential publicans far more latitude in running their business. It is ideal for those who lack the experience or funds to acquire their own pub. Gower estimates gross profits on leaseholds at around 45%, compared to 60% for freehouses. Unlike the traditional tenancy, the lease is transferable, so there is a greater opportunity to make money on the business. "If you decide on a leasehold, the 'ingoings' are a lot lower, but you do need to look carefully at the terms of the lease. You do have a lot more support from the pub operator in the way of training courses and so on. It allows people to get into running a pub at a lower capital outset." Typically, the potential leaseholder pays an initial premium, which can range from four to six figures, and then an annual rent of perhaps £10,000 to £50,000. Costs are highest in central London and other affluent parts of the south east. John York, Southern Recruitment Manager for Punch Pubs, has a clear vision of his ideal candidate. "For leasing and tenancies we are looking for business partners with entrepreneurial flair," he says. "There are a number of other desirable skills – people skills, handling money, and working unsociable hours. People have a number of backgrounds – but enthusiasm is vitally important. The whole industry has become more service-orientated." "As a pub company, there is a move towards bigger outlets and the need to develop food or accommodation. Improving the offer is often linked to the segment of the population you're trying to attract. It might involve converting an old boozer to a lounge-led food operation, which is more female-friendly." "Running a pub is a fabulous and sociable way of life" He adds that, although some have direct experience, most business partners had worked unsociable hours at some point in their lives, whether as milkmen or merchant bankers. Gower has a similar warning. "Don't buy a pub just for the social life. A lot of people have the dream of retiring, buying a pub in the Lake District and living a quiet life. "But the brewery will deliver first thing in the morning. Bar opening hours are lengthy, and you will have to stay half an hour after closing time. You have to organise your orders. The nearest comparison is the hotel industry," he says. Managing money and accounts is also a vital skill in such a cash-heavy business. "It is a way of life, and for the right person, it is a fabulous and sociable way of life. I've met many people who've been in the industry for 20 or 30 years and have thoroughly enjoyed it." So the message is clear: that idyllic, rural freehouse could be yours – but only with hard work and a clear vision.
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