Help entrepreneur wanted

[benjenbav]

Frogmogman/KevinV - would be good to have an insiders view. The blurb shows a nice looking pub (dont know it) rent of £423 pw with "snug" one bed accommodation and possible turnover of £300k+ Seems suspiciously cheap to get so there must be a catch or 3?

If you look at the detail there are a number of other payments.

Repair Fund
Fixtures and fittings
Release from tie

So for a free house I’d guess you need to budget £50k/year plus staff costs.

Against that the margin on the hoped-for turnover might be £?

 

[riverliver]

If you look at the detail there are a number of other payments.

Repair Fund
Fixtures and fittings
Release from tie

So for a free house I’d guess you need to budget £50k/year plus staff costs.

Against that the margin on the hoped-for turnover might be £?

the release from tie is an interesting one to an outsider. They say on the one hand they offer barrel discounts and boast of their size enabling them to get good deals and on the other you can pay them to get a better deal than they can offer?

 

[Frogmogman]

Frogmogman/KevinV - would be good to have an insiders view. The blurb shows a nice looking pub (dont know it) rent of £423 pw with "snug" one bed accommodation and possible turnover of £300k+ Seems suspiciously cheap to get so there must be a catch or 3?

My rule of thumb is that ideally rent shouldn’t be more than 7% of turnover, so £423/ week means your ex vat annual turnover needs to be IRO £312000. So if this pub can do the turnover they claim, that stacks up, more or less. It might be able to wash it’s face, but wouldn’t make you rich.

Gross margin you should be aiming for 65-70%

 

[KevinV]

Frogmogman/KevinV - would be good to have an insiders view. The blurb shows a nice looking pub (dont know it) rent of £423 pw with "snug" one bed accommodation and possible turnover of £300k+ Seems suspiciously cheap to get so there must be a catch or 3?

I'd not even bothered getting the calculator out - the rent is followed by and, and, and more ands - there's no way that is taking £1000/day average every single day of the year as claimed, supplies will limited by being on the island and getting good, local, part-time staff from a limited pool will be a constant struggle.

Unless working hard for others pleasure is your dream you're better getting a job on a supermarket checkout - same earnings, better conditions.