What is a Tenancy?
You run the pub as your own business. You pay us rent and buy your draught and packaged beer, lager, cider, stout and flavoured alcoholic beverages from us. The people that work there are your employees.
What is a retail agreement?
You run the pub as your own business, but income is based on a percentage of the pubs weekly sales, so the more you grow the business the more you earn.
What will it cost me?
To invest in your own business you will need some money, known as ‘ingoings’, which comprise of:
1) A security deposit that varies dependent on the pub and agreement
2) Working capital for running costs after you have moved into your pub.
How much rent do I have to pay and when is this reviewed?
We assess the business potential of a pub based on fair maintainable trade (FMT), which is how profitable that pub is likely to be when run by a reasonably efficient operator.
We will advertise the rent for the property (or will disclose on application), which comprises an agreed percentage of the potential net profit known as ‘divisible balance’.
Your rent is subject to an RPI increase each year on the anniversary of your tenancy. In the 3rd year you will undergo a full rent review.
Do I have to buy all of my products from the Brewery?
No, you must buy draught and packaged beer, lager, cider, stout and flavoured alcoholic beverages from us (known as the ‘brewery tie’) but you are free to purchase wines spirits and minerals from wherever you choose. As a Hydes Operator you can also boost your buying power by using our suppliers, and take advantage of Hydes Preferential Supplier rates.
Who is in charge of the insurance?
Hydes insurance covers the building [including the fixed bar and fixed seating], and this is provided free of charge to the Operator. The Operator is responsible for all internal insurance including fire, theft employee and public liability. We have a nominated insurer who will provide you with the appropriate level of cover at a very competitive price. Should you be able to source similar level of cover more cheaply, we will reimburse the difference
Am I responsible for building repairs?
Hydes is responsible for in general terms the exterior and structure. The tenant is responsible for the interior plus some other routine maintenance/minor repairs. and you would be responsible for everything else.
Will I need an accountant?
Yes you are required to employ and pay for the services of a Company nominated Accountant for at least the first year of your agreement. The Accountant will share your financial information with us so we can assist you in building and maintain a successful pub.
How much will I make?
This is different for every pub, but from the start we will provide you with a set of accounts that will give you an indication of how much your pub could potentially make for you.
What do I do next?
Take a look at our Current Vacancies, register your details and we will contact you to discuss your application in more detail.