What can Pubs in each tier do?

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The tier overview for Pubs as on 26/11/2020

Tier 3

No mixing indoors. People can only meet outdoors in limited places such as parks and public gardens.

Pubs and restaurants must close, with the exception of takeaway sales.

Tier 2

No mixing indoors, apart from support bubbles. Up to six people can meet outdoors.

Pubs and restaurants can open, with last orders at 10pm and closing at 11pm – but alcohol can only be served with a substantial meal.

Tier 1

Up to six people can meet indoors or outdoors.

Pubs and restaurants can open, with last orders at 10pm and closing at 11pm.

Go Free of tie?

One major thing is that for tied pubs renting from the regulated pub companies in England & Wales, the tiers are an MRO trigger – you can go free of tie!

If you want help going free of tie, contact us here and request your MRO > Contact

 

For a list of all Tiers see our other blog post here

National Restrictions and Tiers for Pubs

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National Restrictions and Tiers for Pubs

 

Note: for any tied pubs renting from the regulated pub companies in England & Wales, the tiers are an MRO trigger – you can go free of tie!

If you want help going free of tie, contact us here and request your MRO > Contact

 

Link below for a list of Tiers (note the demand is crashing the official site) if you do find out your tier you can post underneath.

https://www.gov.uk/find-coronavirus-local-restrictions

For what Pubs can do In each Tier see our new blog post here

Pubs Advisory ServicePubs Advisory Service Ltd

Lockdown 2

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The new regulations have been published and there are specific areas related to activities Pubs can undertake.

PAS sought advice from leading barristers to help understand what can be done, the summary can be downloaded here> Lockdown 2 – Pubs

If you like what we do please support the service here > https://pubs.expert/about-us/ex-gratia/

Beer Duty

Business Plans for Pubs

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BUSINESS PLANNING FOR PUBS

A guest blog post

COMMON MISTAKES AND HOW TO AVOID THEM

We can all sit down and come up with some ideas for the ‘Dog and Duck’, no problem! A glass of red wine and the creative juices just flow. That Pubco ‘tied’ pub has been waiting for you to appear on the scene. That may be so, and you may be the ‘square peg to fit the square hole’. You probably have some great ideas. But why does the ‘Dog and Duck’ suffer the ‘revolving’ doors syndrome.  Every 12 – 18 months it has entered your inbox as another ‘outstanding’ and ‘fantastic’ opportunity. I am the chosen one!

The starting point is the business plan for an application. Often seen by some Pub Companies & Brewers (PubCo’s) as a document on a tick list that has to be part of a regulatory file, that then accumulates dust!. A mandatory process that rarely gets the attention it deserves. Yet if completed diligently it can really identify if you should be applying for the ‘Dog and Duck’. What are the potential risks? What are the potential rewards?

The nitty-gritty revolves around the numbers.  Half a dozen people could sit around a table and put some numbers into an accounting model. The result would be different with each analysis. The saying is that you can get numbers to say anything. PubCo’s will issue what they think the numbers are. The numbers of course state an applicant will make a handsome profit. You cannot argue with facts like that!!

Over the last 30 years, I have interviewed and appointed many tenants as a former PubCo BDM and subsequently assisted many business plans for would-be PubCo tenants. I have seen, advised and created a plethora of business plans to support aspiring tenants. There are some fundamental things that you must do to create a cohesive business plan that can act as a blueprint for realistic projections. Here are some common faults that I have encountered during my career in the licensed trade, this list is not exhaustive:

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  • A pet hate of mine – Accepting recommendations from PubCo BDM’s to appoint chosen ‘panel’ accountants to assist with business planning and ongoing accounting services.

    • Let me examine the last of these points. In my experience, pub panel accountants do receive ‘leads’ from PubCo’s. Therefore, that could cause an independent observer to conclude that there may be a conflict of interest. That conflict could potentially lead to the creation of a business plan that vindicates the analysis provided by the PubCo. The theory is that the ‘panel’ accountant wants to continue to receive PubCo referrals. Such a relationship could also lead to the ‘panel’ accountant providing conflicted advice when trading. Will a ‘panel’ accountant with such potential vested interests argue a case for a rent reduction?  Improved discounting? Can you guarantee that the ‘panel’ accountant will not share your information with a PubCo without your knowledge? I have encountered situations where this has happened.  I am not saying all ‘panel’ accountants act in such ways. But, can you take that risk? There are many accountants and trade consultants who can advise impartially. Professionals who have a practical operational and accounting backgrounds. No conflicts of interest.

    It is inevitable that during the coming months that many tenants will encounter financial difficulties and will need to be well advised in the financial management of the business. Many pubs are likely to become available. Covid19 has changed the pub landscape. Politicians talk of ‘new normal’. Therefore, the business plan that accompanies a ‘new normal’ is even more important.

    We specialize in assisting with focused impartial business planning services for ‘tied’ tenants. Our experience extends to middle management roles with large Pubco’s, working with panel accountants, PICAS arbitration, and operating pubs with managers. We, therefore, feel uniquely placed to offer the impartial advice that you need. Often this advice will lead you to ‘walk away’ from the opportunity. That can save a lot of expense and grief. Sometimes to negotiate and have a go.

    What you already know is that we are not conflicted, and we do not accept any PubCo referrals or instructions. We only work in the tenants/potential tenant’s interests.

    Please contact us HERE for a free no-obligation chat or learn more about our services for business plans and pubs HERE

    Peter Mozelewski FBII

    Staff working in a pub

    Low earnings revealed

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    BREAKING NEWS: Risk and reward still not being delivered by Government to tenanted publicans.

     

    Stonegate / EI Group tells the Fitch rating agency that 83% of its tenants have an expected annual income of under £20k pa whilst making over 4 times that themselves.
     
    “according to the rateable value of each pub around 90% of the group’s L&T publicans are each eligible for £10,000- £25,000 government grants. Stonegate has also provided trade credit to aid initial re-stocking. These forms of support have provided liquidity to cover costs including re-start-up costs and pay accrued rent. Stonegate management reports that 83% of its L&T tenants received these grants, which (as represented to Fitch) amount to these publicans’ expected annual net income.” – see the full report see link at the end.
    The average of the hospitality grants: is £17,500  (£10k+£25k)/ 2
    EI reports from 2019 shows the Pubco made over £83,200 from each pub, the clear evidence of an 83:17 split of profit is far removed from the 50:50 profit stated in the RICS FMT / rent assessments put forward to tenants and worryingly highlights that huge numbers of RICS valuations are not upholding risk and reward fairly and are in fact delivering obscene profits to just one party the property owner. Further that the pub’s code regulator and small business minister are not delivering the transfer of profit as laid out in the Government impact study.
    This is laying bare why the trade was plunged so easily into crisis back in late March – tenants are making little to no profit because the profit is not being shared fairly by a combination of rent setting and the government is failing to level the playing field (PCA etc) and ignoring the deep-seated structural issues in the trade.
    It is high time that rent setting for public houses was regulated (at least) for the next 3 years
    PAS
    #ukpubs
     

    Summer Statement

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    Read more
    Pub Licensing

    Reopening Guidance

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    Government Guidance on reopening – 2021 HERE

     

    ………………….old advice below……………….

    Government Guidance on reopening – June 2020

    Guidance PDF         Free Poster PDF

    Note the above is guidance it is not yet backed by legislation – only the restrictions laid out in the Covid act or statutory health act can impose mandatory changes on how you operate / must conduct your pub business. Any failure to take steps to reduce the risk of transfer of covid 19 can be enforced by the HSE and local authority in the work place, inspectors are being used to check. The legislation will of course come later and may differ in language and content when it does. Please read the guidance with this in mind and when deciding on changes to your business and working practices.
    These are some of the headline issues – this is not the full list:
    • Published risk assessment if more than 5 employees
    • 2m,or 1m with risk mitigation where 2m is not viable, is acceptable, then it can come down to 1m, using screens, face masks, e.g. tables turned around can reduce mitigation.
    • Maximum 6 people per table
    • Capture customer details to assist with track and trace.
    • Table service – you may not stand at the bar, if standing around, social distancing must be enforced.
    • App service and or contactless payments recommended
    • Signage explaining your approach and what is expected of the customer
    • No live performances and back ground music/ juke box must be played at low levels to not encourage singing or shouting, sporting events are included in this.
    • Children’s play areas to stay closed
    • Regular published cleaning schedule
    • One way directional travel, recommended.
    • Hand sanitising stations at various points
    • Hand dryers or paper towels made available in toilets.
    • Cutlery and condiments brought to the table.

    .

    Join us here

    Regards

    PAS

     

    Food Profits Formula Day 5

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    Food Profits Formula Day 5

     

    An industry experts view on the top 5 things you need to be thinking about, when looking to re-start your food sales in your pub.

    You may recall my top 5 recommended actions that you can do now, to ensure you give yourself and your pub the best possible re-start to your pub food business. If not, click here to have a read and refresh your memory.

    In yesterday’s blog post, Food Profits Formula Day 4, we covered check point number 4 – Review and tweak your menu content to avoid wastage if trade is slow at the start and ensure you can cope with demand if you have trade peaks.

    As promised, here is the checklist for point 5.

    Get all your customer communications published and printed, so customers are 100% clear about your plans and tactics to serve great food in a safe way.

    • Work out what your key messages are that you wish to communicate:
      • New Covid 19 compliant processes in the pub such as; 2m distancing, hand washing, hand sanitising etc.
      • When you are serving food, what the opening menu looks like. Promote your top signiture selling dishes. Why customers have chosen you over your competitors in the past.
      • How to order and pay for food.
      • Any initial promotions or incentives.
    • Agree the best way to communicate the various key messages: How often you will re-issue? Update the messages via your marketing channels such as; Facebook, website, leaflet drop, external and internal posters and chalkboards etc.
    • Think about how best you can convey your message: How to set the correct tone to let your customers know that you care greatly about their individual safety. Let them know all you are doing to minimise risk, thereby creating confidence and trust for them to choose to return, knowing that you will look after them in your pub.
    • Set up some form of customer feedback suggestion box:  To capture positive customer comments that will help to reassure other customers. But, also to capture customer concerns so you can take appropriate action if needed.

    As previously mentioned, I would strongly recommend you view the re-start of your food offer as an opportunity to relaunch your food offer to both previous regular customers and potential new customers. We know big brands will have well thought out strategies in place to get customers into their pubs. Make sure you give yourself a fair chance to get your best share of the market! CUSTOMER CONFIDENCE IS CRUCIAL. You have one chance to get this right.

    Tony Aram (Pub Food Consultant).

    For more on independent help and training from food specialists, click here.