Tenanted or Leased Pub

Local residents, families eating out, sports fans, groups celebrating and visitors passing through. Some pubs also take bookings for functions and private hire.

Income comes from drinks, food, accommodation or events if offered. You pay rent and usually buy some or all drinks from the landlord company on agreed terms, so check how that affects your margins. Monthly takings vary widely with location, size and whether you serve food, and they are turnover before rent, stock, staff and other costs.

• Managing and motivating staff
• Customer service and handling difficult situations
• Budgeting, stock control and pricing
• Marketing to the local community

• Read lease and tie terms carefully, including rent reviews, the beer tie, repairs and who pays for what. Take professional advice first
• A premises licence and a licensed person in charge are needed. In England and Wales this is usually a designated premises supervisor with a personal licence. Check the rules in Scotland and Northern Ireland
• Register as a food business with your council if you serve food, and check food hygiene and allergen rules
• Public liability and employer's liability insurance, plus stock and contents cover
• Business rates, fire safety, music licences and staff costs such as pensions and holiday pay
• Long, unsociable hours and running costs that continue even when trade is slow

Startup costs are typically around £15,000 to £60,000, depending on the pub, the agreement, stock and any fit-out. These are estimates, so take professional advice before signing.

Monthly revenue is typically estimated at around £12,000 to £45,000, depending on location, food offering and events. Running costs continue when trade is slow, so check your figures carefully.

Read the lease and tie terms carefully, including rent reviews, the beer tie and repairs, and take professional advice. Check premises licence rules, a licensed person in charge, food business registration, insurance, business rates and music licences.