Renting a pub

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HelterSkelter

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I have found a pub the owner is letting out. It has lots of potential, and is currently not in good shape. Now, if I rent it and make it successful and popular, what can prevent the owner from suspending the rental after a year or so, and go on himself with the successful client base?
 
HelterSkelter said:
I have found a pub the owner is letting out. It has lots of potential, and is currently not in good shape. Now, if I rent it and make it successful and popular, what can prevent the owner from suspending the rental after a year or so, and go on himself with the successful client base?
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Answer: A contract. PM me for my expert consultation fees.
 
I wouldn't really touch on this, if the owner was just the property owner and didn't really worry about what business it was, then I'd say fine. But since this guy is too lazy to make his pub a success and want to rent it out for the cash? I'd rather not bother since all those clients I painstakingly get in there that become loyal after a while would then have to put up with his **** after he suspends the contract (which any lazy douche would do after seeing how much of a success it is, some people just have a knack for running a business into the ground while piggy-backing off of others' hard work to make it successful)
 
A very good lease contract.

Go for it, just know that Pub's are a crap load of work...
 
OK, so the owner wants to give only 6 months notice, I want 6 months notice and at least 18 times the monthly net. The place is a dilapidated skeleton at the moment, so I am not going to build it up and work my butt off, to hand it over to him after six months notice.
Ah well, I am keeping my ears and eyes open, I am sure sometime I will run my own pub.
 
You mean a six month lease agreement? Tell him to go get stuffed. You want a 5 year lease, minimum. Sounds to me like he wants someone gullible to do all the ground-work for him. You can do so, on condition that he repays all expenses incurred at the end of the lease, which can be stipulated. Good luck managing that though. I'd steer well clear of this deal if I were in your position...
 
YingYang said:
Why not rent a building and apply for your own licenses, etc?
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+1, however, the license may take a while as well as finding the right spot.

Don't know why the owner said 6 months. He's losing money right now by keeping it empty/unused
 
YingYang said:
Why not rent a building and apply for your own licenses, etc?
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Costs and bureaucracy of applying for new liquor license for a pub, I assume. It is a nightmare. Far cheaper to retrofit in an existing premise with a license than finding new, appropriate premises and applying for licenses...
 
DJ... said:
Costs and bureaucracy of applying for new liquor license for a pub, I assume. It is a nightmare. Far cheaper to retrofit in an existing premise with a license than finding new, appropriate premises and applying for licenses...
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100% correct... especially if a gambling licence is also involved.
 
MickeyD said:
100% correct... especially if a gambling licence is also involved.
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And then you have the noise licenses too. They alone can kill a business if you're not friendly with your local ward councillor. Amplified music requires a license and evaluation by the local council...
 
DJ... said:
You want a 5 year lease, minimum.
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+1. AT LEAST.

There are a couple of things to consider, is the pub in a good location (suburb wise), as well as building wise? There may be another reason (besides his mismanagement) that the pub is not doing so well.

Also, be prepared to work your ass off. It is not easy and ridiculous hours. Almost impossible to find reliable managers, etc who won't rob you blind. I had a restaurant once, we made it a success and sold the franchise (3 restaurants), but within 2 years, the guy went bust. I wouldn't go into it again. Maybe when I retire, open a beach bar or something but other than that, no.
 
Pub is in very good location, even though the nearest other residential buildings are around 2km+ away, estimated guess. New developments, flats, cluster townhouses in the area, but still no closer than about 1.5km. Lots of residents with no or very little open space/entertainment areas. At the pub they can braai outside, swim and even fish.

The owner has lots of issues, the place went to the dumps, he ran it to the ground. For example the kitchen made me want to puke, but it has been at least a year since the pub last sold food I think.

The roof needs attention, the ceiling needs to be fixed, outside the braai area need attention, surprisingly the bathrooms only need a good amount of scrubbing and 5 litres of Domestos.

I've been working on and off in pubs since I left school and managed one even though the owners went for months overseas, now I want to do more my own thing. But not on this owner's terms.

I am currently looking for other suitable premises, but damn, this one has LOTS of potential.
 
HelterSkelter said:
Pub is in very good location, even though the nearest other residential buildings are around 2km+ away, estimated guess. New developments, flats, cluster townhouses in the area, but still no closer than about 1.5km. Lots of residents with no or very little open space/entertainment areas. At the pub they can braai outside, swim and even fish.

The owner has lots of issues, the place went to the dumps, he ran it to the ground. For example the kitchen made me want to puke, but it has been at least a year since the pub last sold food I think.

The roof needs attention, the ceiling needs to be fixed, outside the braai area need attention, surprisingly the bathrooms only need a good amount of scrubbing and 5 litres of Domestos.

I've been working on and off in pubs since I left school and managed one even though the owners went for months overseas, now I want to do more my own thing. But not on this owner's terms.

I am currently looking for other suitable premises, but damn, this one has LOTS of potential.
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Then work on terms that would be acceptable to you.. Present them to the current owner, if he refuses them.. you walk away and tell him good luck in trying to make ANY money.
 
I think I have found suitable premises, now the process of getting a liquor license. Thankfully the landlord is lenient, willing to discuss giving me a break from paying rent for a few months while I sort the liquor license out.
 
Well then that's a deal and a half. Do you have it in writing yet? ;)

Liquor license is a bitch. Good luck with that process...
 
HelterSkelter said:
I think I have found suitable premises, now the process of getting a liquor license. Thankfully the landlord is lenient, willing to discuss giving me a break from paying rent for a few months while I sort the liquor license out.
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Sounds good. Let us know when it opens we will come and show our support. :D
 
HelterSkelter said:
I think I have found suitable premises, now the process of getting a liquor license. Thankfully the landlord is lenient, willing to discuss giving me a break from paying rent for a few months while I sort the liquor license out.
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Good to hear....

We expect MyBB discounts of course :p

Which rough area is the pub in? (city will be good enough)
 
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