1. Introduction
The pub industry has always been an important part of the British economy and its culture. UK has more than 50,000 pubs, and the industry has been one of the oldest industries in the UK.
As a business owner, you should have a pub business plan written and ready for use. It serves as a guide to navigate the challenges of running a successful pub. A well written business plan can help you in different stages of your entrepreneurial journey . It can help you in securing funding, attracting investors and strategising priorities.
Pubs are a major contributor to the country’s economy. They are also a key player in the local community, ranging from traditional pubs to modern gastropubs. But the industry faces significant challenges in the form of high operational costs, rising inflation and taxes.
Therefore, it is imperative that you have a well-written professional pub business plan to aid you in your journey of running a successful pub.
2. Overview of the Pub Industry
According to IBISWorld research, the pub industry in the U.K. is estimated to be £27.5 billion. Some of the key trends that affect the pub industry today are:
- Premiumization: There is an emerging trend of customers moving to a premium segment of craft beers and local foods. Pubs that offer such unique and value adding experiences have seen far higher growth than normal pubs.
- Community Focus: Pubs have always been the go-to meeting places for all social interactions and community events. This has become even more critical in the post-pandemic world, where in-person interaction has become the need of the hour.
- Technology Integration: While pubs have been around for several centuries, pub owners are slowly realising the need for adapting technologies. These include Customer Management (CRM) and Point-of-Sale (POS) systems
Given these trends, a detailed business plan is more important than ever, if you are planning to run a successful pub. A well laid-out business plan not only helps in managing day-to-day operations, but also sets a direction for the business owner, for future growth and sustainability.
3. Market Research: The Key Section of Your Pub Business Plan
You might have heard people always say – “begin with the customer in mind”. Understanding the needs of the customer, the local demographics, and the changing market landscape is a key step in writing a successful pub business plan.
For example, an area where there is a high concentration of young professionals, there will be a demand for trendy bars offering craft beer and cocktails. Whereas in regions where the population is older, they might prefer a traditional pub with a focus on comfort and socialisation.
Once you understand your local demographics, the next step is to understand and define the target customers. We often hear people saying everyone is our customer. That is so wrong. If you aim at everything, you will end up hitting nothing.
The pub business plan will need to identify and split customers based on:
- Age
- Lifestyle
- Spending habits
- Annual income
Understanding these factors will help you determine your ideal customer profile. Once the ideal customer profile is clear, then you need to understand your competition.
4. Competition Analysis: Where Do You Stand?
A detailed competitor analysis is essential to identify potential gaps in the market that your pub can fill. Identifying competitors is the first step in understanding the competition landscape in your area.
Some of the key elements of competitor analysis are:
- Identifying local competition
- Understanding competitor’s pricing strategies
- Evaluating their strengths and weaknesses
- Reading their customer feedback to understand what worked, and what didn’t
- Determine competitor’s positioning so that your pub business plan can lay out potential gaps that you can fill.
A good competition analysis will help in positioning your pub correctly from a marketing standpoint. You also need to perform a benchmarking of your position versus that of the competitors. This will help you understand where you stand and identify areas for potential improvement.
5. Defining Your Positioning
Identifying your pub’s positioning and your Unique Selling Proposition (USP) is key to implementing a successful pub business plan. To identify the USP for your pub, you need to action the following items:
- Market research: Understand what other pubs are offering in the locality. Identify gaps or opportunities.
- Customer Insights: Understand customer behaviours and feedback to see what they value the most in a pub.
- Focus on Strengths: Focus on what you do the best – a unique drink, exception service, ambience or pricing
Once you have identified your USP, the next step is to work on the theme for the pub. The theme and concept play a vital role in attracting your target audience. It should cohesively align with your brand identity and your unique selling proposition.
Some of the common themes are:
- Traditional British Pub
- Modern Gastropub
- Sports Bar
6. Identifying the Location and the Environment
Choosing the right location for your pub is the most essential aspect of influencing the success of your pub business plan. The right location can go a long way in driving foot traffic, gaining visibility and attracting the target market. On the contrary, a poor location can hinder these aspects significantly.
You need to consider the following factors while choosing a location:
- Demographics: Does the area have sufficient concentration of your target audience?
- Visibility: Is the pub visible and accessible from main roads or pedestrian pathways?
- Competition: Is there a clear gap that you are out to fill from a competitive positioning perspective?
- Cost: Is the cost making sense from a financial perspective? Remember, the rental costs are usually fixed and could significantly impact the financial viability of your pub business plan.
Once the location is taken care of, you should focus on the layout, ambience and space utilisation of the pub. An efficient layout will ensure that your pub can accommodate the maximum number of customers.
Some strategies that can be helpful are:
- Optimised seating arrangement including booths, bar seating and tables
- Designated service areas for serving, preparation and other needs
- Accessibility to different types of customers – old aged, people with disabilities etc.
7. Developing Your Menu
Creating an attractive menu is a must for enticing and retaining customers. The drink menu should be designed in line with the overall theme of the pub, and the tastes and preferences of your target audience.
Some key considerations in designing a menu for your pub business plan are:
- Variety
- Signature drinks
- Seasonal specials
- Local specialities
The drinks should have:
- A mix of domestic, imported, and craft beers.
- A selection of red, white, and sparkling wines.
- An inclusion of vodkas, gins, rums, whiskies, and tequilas.
- Soft drinks, mocktails, juices, and coffee/tea options.
8. Financial Plan: The Most Important Section of Your Pub Business Plan
When you are writing a pub business plan, you need to keep in mind that the financial plan is the most important section. Starting a pub requires substantial investments to accommodate costs such as interiors, inventory, licensing and so on. Understanding these costs is crucial for a business owner when writing a pub business plan.
The initial costs of starting a pub include
- Rental deposits
- Initial inventory
- Staffing
- Working capital
- Licensing costs
- Interiors and signage
- Launch marketing
- Equipment and assets
Securing funding to pay for these costs can be done in different ways. You may raise a round from friends and family. You may put in your own capital. Or you may approach a banker or an investor to secure capital.
Once this part has been taken care of, you now need to sit and do a detailed financial projection. This includes:
- Income statements
- Cash flow statement
- Working capital statements
- Balance sheets
All these numbers should be thoroughly researched, well referenced and should be realistic. They should neither present a ‘rosy picture’, nor be too conservative that it makes the plan unattractive to investors.
Ready for the Next Step?
Are you ready to take the next step in opening your pub? At Synvest Capital, we specialize in creating great business plans tailored to your unique vision. Our team of experts will guide you through every aspect of planning, from market research and financial projections to marketing strategies and operational planning.
Don’t leave your success to chance. Contact Synvest Capital today to ensure your pub business plan is detailed, strategic, and ready to impress investors and stakeholders. Let us help you turn your dream into a thriving reality.
Get in touch with Synvest Capital now to start crafting your winning pub business plan!
