Run Your Own Pub

Pauline Bickell - Affectionately known as "The Duchess" has been running the Mitre in Brighton for nearly 30 years and is one of Harveys longest serving pub operators. It's a traditional drinker's local and Pauline makes all her regulars feel very welcome. For them the Mitre is a home from home.

"Harveys is the best brewery in the world! I should know as I worked for many other brewers before coming to the Mitre. I feel part of the Harveys family; they treat me as a friend as well as a colleague and give me all the support I need."

Peter Randall is Harveys youngest tenant and took over the Dorset Arms in the village of Withyham three years ago at the age of 23. He had worked there as a chef for the previous tenants and, despite no previous experience running a pub, Peter convinced Harveys that despite his youth he had what it took to make a great landlord. He was keen and ambitious and now both he and the pub are going from strength to strength. Peter cooks delicious food and likes to get his customers interested in his great selection of wines.

"Harveys had faith in me when no-one else might have bothered. I was a bit nervous at first but they gave me loads of support and I get visited regularly not only by Geoffrey Denne, who looks after the Harveys tied estate, but also Miles Jenner and Hamish Elder, the joint managing directors, who often drop in for a pint to see how I'm getting on and encourage me. I really love my job and being at the heart of our village community."

Pauline and Peter's tips for would be publicans:

• Get on with all sorts of people and accept them for what they are.
• Cellar work is a priority. If the beer isn't kept properly, customers will go elsewhere.
• Have a good sense of humour.
• Create a happy and welcoming atmosphere.

Technically, a tenancy is a lease, however in the pub trade a lease very often refers to a longer, "fully repairing and insuring assignable agreement", whereas a traditional tenancy is much less onerous but is not assignable.

It is an agreement that is for five years. It is outside the Landlord & Tenant act. (This means that at the end of the period the agreement has no automatic right of renewal). Although the rental terms are fixed, the Company conducts business reviews on a continual basis. Renewal of the tenancy agreement is a feature of the review. Openness and plain talking by both parties brings about clear understanding so there will not be any surprises during the fifth year.

The initial rent is based on the open market. This is what a willing tenant would pay a willing landlord in an 'open' situation. This figure is also based on comparable properties with the same style, same user clauses with similar trading opportunities in similar locations. The agreed rent is reviewed in September each year and increased by the Government's annual RPI (retail price index) inflation figure for June of that year.

Tied products were traditionally the brewer's beer and ancillary goods. Today the 'Harvey Tie' means that tenants must purchase all alcoholic and soft drinks from Harveys. But there is no Harvey tie for machine income (as is common in the trade); similarly the tenant may acquire all other saleable items, (including food), from sources of his own choice.

Tied products can be more expensive than those sourced in the free trade, however the wholesale supply of all drinks products enables the brewery to significantly subsidise the rent. It is an offence and a serious breach of the tenancy agreement if a tenant buys tied products from another supplier - and a breakdown of trust.

Incoming tenants will need to:

• Acquire the outgoing tenant's inventory, stock, small catering effects and any optional items for a sum agreed between brokers. (Between £5,000 and £75,000, depending on the pub).
• Pay the landlord's legal fees (£750 +vat) and the tenant's own legal fees.
• Settle broker's fees, stock taker's fees and independent advisor's fees.
• Deposit £5000 (held on interest) with Harveys.
• Finance working capital. e.g. staff wages, float etc. (say £2,000).
• Fund any desired/required development.
• Purchase any desired/required new equipment.
• Cover insurances (premiums).
• Consider other costs e.g. Transport?

Every pub is different, there is no fixed price, but realistically circa £40,000 is needed in cleared funds as a realistic start and should prevent anxiety about not making ends meet.

The Tenant is responsible for the general care, upkeep and maintenance of the building, along with the associated land, outbuildings, landlord's fixtures and fittings and the decoration of the inside in both trading and non-trading areas. The Landlord is responsible for the exterior decoration (five yearly), the physical structure of the building and any structural improvements.

Not necessarily, but running a pub means a major change in lifestyle. The hours are very long - pubs are normally open seven days a week. Nevertheless the tenant works for himself and reaps the reward. The downside is unless the tenant is totally committed to their pub and personal success, it can be stressful.

It is not in Harveys' interest to persuade unsuitable people to become tenants. Therefore we always emphasise that you fully consider the mindset and commitments that are required to perform this role well.

A tenant needs to be a beer enthusiast. A traditional brewer such as Harveys prides itself on it heritage in brewing and our ales so it makes financial sense if the landlord can share their passion for cask conditioned beer with their customers.

If the pub taken over by a tenant already has a successful kitchen then the answer is 'yes'. Relying on outside staff can be risky so being a cook makes more sense - but that doesn't mean ability to create posh nosh - making great bangers and mash can be a real crowd pleaser.

The interview process is a two-way street; therefore open honesty is the key factor. Harveys gives full facts of previous tenants and a full profile of the pub selected for a potential tenant. However, it is up to that potential tenant, if selected, to decide whether to take on the pub.

Harveys leaves the tenant free to make the business work but will always be on hand to give full support with cellar, wine, and administrative training.

In our opinion it is a great business to be involved with, we have 48 Public Houses - all different but all with the same aim; to simply be the best pubs.