Running a successful brewery starts with a great product. However, what can you do if you have too much of a good thing? One answer is to sell it yourself. Taprooms based at the brewery may not work for everyone, so one obvious answer is to sell your beers via your own pub. In this article, we ask ourselves the question: How hard can it be to become a publican? Here are some of the questions you may want to ask yourself. 

Premises

So, you have decided to sell your keg and cask directly to an eager beer-drinking public. The first decision is: Do you take on an existing pub, or convert something into one? The former may seem simplest. After all, it is all there and ready to go. But is that always the case? Consider the following: 

• If you are leasing a pub from a landlord (especially if you are taking an assignment of an existing agreement with a pub company), will you even be allowed to sell your own beer e.g. are you likely to be ‘tied’ into buying the landlord’s products? 
• What are the terms of the lease? Are you responsible for repairs as well as rent? What will be expected of you when returning the pub to the landlord at the end of the term? 
• Will you have the right to put up your own branding and if so, would any rights to that branding revert to the landlord at the end of the lease? 
• Whether you are buying the freehold or an existing lease, make sure that you do proper due diligence and searches, especially around planning, to ensure that the permitted use is properly covered and there are no hidden conditions restricting use or hours of operation. 

Current premises licence

When taking on an existing premises, it is essential that you obtain a full copy of the premises licence, including the plan attached to it. Ensure the plan matches the layout, in particular that any external bars or function rooms are properly shown on the plans and licensed where necessary. Secondly, check the conditions on the licence are acceptable and you can work with them. In particular, will you be required to put on door supervisors, or adhere to restrictive conditions that require you to either spend money or change how you want to operate?

It is worth thinking about whether you are changing the style of operation of the premises, such as taking a pub known for live music and turning it into a craft beer and a pizza place, as this might indicate whether you will want to change conditions on the licence. If you do, early consultation with the police, environmental protection and licensing authority will give you a good indication as to whether they will support such changes- which if they are, will make the whole process much easier. 

It is also worth checking whether you will hold the premises licence, or whether your landlord will. If it is the landlord, you might be responsible for costs of making changes, such as change of layout or changes to the designated premises supervisor. If you are, make sure you know what you will be charged for.  

Starting with a blank slate

There is a lot to be said for putting location at the heart of what you do and if there isn’t an existing pub that you can take on, converting another premises for that purpose. Firstly, there is a much larger stock of buildings and sometimes more interesting ones than the pubs in the area. Secondly, if you are renting the space, landlords may be more willing to offer rent-free periods or help with works if you are re-inventing a space for them. That being said if you go down this route, consider the following: 

• What planning permission does the building have and will it need changing to allow for it to be used as a pub? Is the building listed? 
• Are there residential properties in the area that might take exception to a new pub opening near them? 
• Are you looking in an area where local council policies clearly state that they do not want any new alcohol led premises in the area- either in their planning strategy or in their licensing policy?
• Is the building suitable in terms of structure for what you are looking to do? For instance, don’t overlook simple things like where a cellar would go and how will you fit sufficient toilet provision into the premises. 
• Is the premises is a conservation area where there may be issues in terms of putting up signage outside the premises?

Just so it is said, none of these things may be insurmountable, and indeed the fact that you are willing to invest in an area can be a very strong draw for the local authority and residents. However, it is good to go in with eyes open to avoid issues in the future. 

Timing can be key…

One of the likely factors, should you find yourself in a position to choose between options, is how quickly do I want to be up and running? Often buying an existing pub, even if you need to do works to fit it out, is much quicker than starting from scratch. However, ask the question: what is more important? Moving quickly or getting the right premises. Sometimes you can find both; but like with everything in life (except the quality of what you are brewing) there is often a compromise to make. 

Good advice from the outset is key

This is one area where trying to limit costs at the start can backfire. Leasing or buying buildings for use as hospitality premises requires specialist knowledge. Having someone who understands what is needed to protect you from problems further down the line will pay dividends later. Remember, this is a long-term investment, so the consequences of poor decisions early on may not be obvious until much later.  Likewise, planning (if needed) and licensing advice (essential) will help you to ensure that by the time you pour that first pint of your latest brew in your new pub, it tastes all the sweeter.  

Piers Warne is a legal director specialising in licensing at TLT solicitors and part of their specialist hospitality team.