How to Run a Pub

Dreaming of running a pub? Remember that you can’t drink while working and that you need to work hard to make sure that all of your customers are having a good time.^{[1]XResearch source} However, running a pub can be very exciting and financially rewarding. Make sure that you’re prepared before you start to help increase the chances of success.^{[2]XResearch source} Follow the advice in this article to make sure that your hard work translates into financial success.

Part 1

Part 1 of 4:

Planning Your Pub

1
Craft a business plan. Remember that a business plan is an essential roadmap for business success. Write a business plan that projects 3-5 years ahead and outlines the route you intend to take to grow revenues.^{[3]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source} Make sure to include the following information:
- A comprehensive description of your concept
- A description of your target customers
- An outline of your menu and potential pricing
- An explanation of how you plan to market your pub
- A plan to hire and train employees
2
Make sure that your business plan is realistic and detailed. Remember that a successful pub starts with a strong business plan.^{[4]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source}
- Use your business plan to help secure a loan with the bank. Don’t start a pub unless you can afford at least 6 months of expenses.^{[5]XResearch source}
- Remember that you’ll face competition from other bars and entertainment options.^{[6]XResearch source} Determine the demographics of the neighborhood and the audience that you’re trying to attract. Try to get advice from someone who has run a successful pub.^{[7]XResearch source}
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3
Prepare your finances. Don’t make any decisions about your pub before you know key information.^{[8]XResearch source}
- Seek guidance from a financial advisor. Determine how much money you have. Consider your savings and retirement accounts, any equity you might have in real estate, valuable vehicles or other belongings, along with any other investments you've previously made.
- Determine what you can afford. Determine if you need to take out a business loan from the bank. Find out what you need as collateral.
- Determine how much a liquor license costs in your area. Remember that they can be very expensive in bigger cities. Determine the cost of required municipal, state, and federal business licenses.
- Determine what you want to achieve and see if you can afford it. Look at similar locations to determine standard expenses and salaries in your area. Determine whether you can afford to buy or whether you’ll need to rent your property.
- Ask friends and family for help. Make sure to treat this as a business arrangement and to set its terms out in writing. Confirm that your friend or relative is aware of the risks involved in investing in your business.
4
Decide how you’re going to spend your money. Make sure that you can make a profit.
- Decide what you want to serve and how much it costs. Make sure that you don’t need to spend more than 30% of your budget on food and drink costs. ^{[9]XResearch source}
- Decide how many employees you will hire and what you will pay in salary. Consider what you want your hours to be. Remember that you’re paying for every hour you’re open so you want to make sure that customers are always there.
5
Choose the right location. Remember that your pub’s success depends upon your location. Look for the following:
- A place without too much competition that is still near lots of other businesses. Find a location with sufficient parking or easy access to public transportation during all of the hours your pub is open.
- The general demographics of the area. Consider trying to attract these customers.
6
Pick the right building for your pub. Make sure that this building is a good place for a pub.
- Look at a floor plan. Look through the building yourself so that you can identify any potential problems in advance.
- Determine whether or not the building meets all fire, safety and health codes. Remember that it is illegal to run a business that is not in compliance with these laws.
- Consider choosing a building that formerly housed a successful pub or bar. Don’t pick a building with a business that went under or customers may associate you with that unsuccessful business.
- Consider enlisting the help of an interior decorator. Ask for a recommendation from other bar and restaurant owners.
- Make sure that your bar has enough room to sell many different kinds of beers. Remember that pubs need to offer a wide selection.
- Make that you room for a kitchen in the back, room for bathrooms and enough space for at least a few tables. Make sure that you have appropriate seating at the bar and the tables.
- Choose appropriate decorations. Make sure that it is an inviting space.
7
Choose a name for your pub. Make sure that the name is a good match for the location, decor, clientele, and menu.
- Look at the names of other pubs for ideas, but make sure that the name doesn’t violate any copyright laws. Make sure that this name will attract the costumers that you want. Remember that the name cannot be easily changed after the pub has opened.
- Consider giving your pub a British sounding name since this is where pubs started. Pick a name of a famous a pub like Rose & Crown, Elephant & Castle, Red Lion or Fox & Hound.
- Consider giving your pub a name related to the food that you serve or the drinks that you sell. Follow the tradition of using puns as pub names. Pick one that is easy to remember, like Sir Loin & Beef and Hop Inn.
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Part 2

Part 2 of 4:

Taking Care of Legal Aspects

1
Choose a location with proper zoning. Don’t pick a location without researching local zoning ordinances and regulations first. ^{[10]XResearch source}
- Make sure that the location isn’t in a residential zone. Be aware that it is illegal to open a commercial property in a residential zone.
- Make sure that you know how zoning laws also regulate how you intend to use the space within your property, along with any renovations or improvements you plan on making.^{[11]XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source} Make sure that you pick a location that is zoned for alcohol use.
2
Make sure to know and follow safety laws. Once you’ve determined the location to be in the proper zone for a restaurant, you need to know how safe it is.
- Ask a local building inspector or code enforcement officer to walk you through all the safety requirements needed to pass a building inspection. Ask the code enforcement officer to look at the general safety of building to decide if it is fit to operate as a pub.^{[12]XResearch source}
- Consider asking an experienced pub owner whether or not you should start a pub here. Consider also asking an interior decorator to see if the space can be easily decorated.
3
Register your business. Be aware that it is illegal to run a pub without a business license. Contact your state's department of revenue to determine if you are required to register your business with the state.
- Go to the city or county office to apply for the business license. Complete an application and pay a licensing fee. Make sure that you have your food service operator’s license and any other documentation the health code requires.
- Take care of any licenses and permits. Be aware that you must obtain certain permits and licenses before opening the doors of your pub, including a health permit, a liquor license and a music copyright license.
- Be aware that most health permits will only be granted after the pub passes a health inspection by a health inspector. Schedule a health inspection at least 30 days before you open.
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Part 3

Part 3 of 4:

Opening Your Pub

1
Make sure the building is ready for opening. Remember that customers will form opinions about your pub based on first impressions.^{[13]XResearch source}
- Make sure that you have an easily accessible bar, tables, and bathrooms. Make sure to have proper lighting.
- Make sure that your kitchen is large enough and that you have all necessary equipment. Make sure that you kitchen and bar are stalked. Make sure that you have enough food and alcohol.
- Make sure that everything is working properly. Make sure that finished pub meets all health and safety codes.
2
Hire your employees. A well-trained and professional staff is essential to the success of any pub.^{[14]XResearch source} Hire the following:
- Hire a manager. Make sure to pick someone with experience and enthusiasm.
- Hire a bartender. Make sure that your bartender is professional and has experience.
- Hire a cook. Try to find someone who has experience making the kind of food you wish to serve at your pub.
- Hire servers. Make sure that at least two servers are working each shift.
3
Train your employees. Schedule training days for all your employees and make sure to spend some time training with everyone individually.^{[15]XResearch source}
- Write up a list of rules and procedures for your employees to follow. Make sure to offer a reasonable salary and flexible hours for shifts.
- Consider asking successful managers, bartenders, cooks, and servers from other bars and pubs to help train your employees. Make sure that you are not in direct competition with their business.
- Make sure to follow all labor laws. Follow the laws set forth by the Department of Labor: https://www.dol.gov/general/aboutdol/majorlaws.
4
Advertise. Make sure that people know about your pub.
- Try to offer food and beverage promotions to entice customers. Offering promotions encourages people to try unpopular items and increases sales for those items.
- Advertise in the places where you’re most likely to reach the customers you want to attract. Make sure that your advertisements include key information like the name, the address, phone number, the hours of operation and opening date. ^{[16]XResearch source}
- Advertise on television, the radio, in newspapers, and in magazines. Try to get someone to do a story about the opening of your pub. Try to advertise by word of mouth as well.
- Advertise on social media. Use Facebook, Twitter, Yelp, and Foursquare. Promote social media activity and market your pub by offering special discounts on social media sites.
- Make a website. Consider hiring a website designer. Look at the webpages of other successful bars and pubs.
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Part 4

Part 4 of 4:

Operating Your Pub

1
Promote your pub. Convince people that they should continue coming to your pub.
- Try to attract your targeted demographic by offer specials and discounts specifically tailored to them. Give customers a reason to come to your pub instead of going someplace else. Make sure that your pub stands out from the others.
- Use social media. Market yourself on Facebook, Twitter, Yelp, and Foursquare. Promote social media activity and market your pub by offering special discounts on social media sites.
2
Evaluate your food and drink options. Be ready to change your menu as needed.
- Offer food and drink options that are appropriate to the theme of your pub. Consider traditional British pub food, as this is what most people expect to eat at a pub.
- Choose food and drinks appropriate to your targeted demographic.
- Create short, attractive, and easily readable menus. Get rid of food and drink options that no one is buying.
- Consider having a specials board. Make sure that customers can see the types of alcohol you offer at the bar. Consider making a signature drink for your pub. Have a happy hour.
- Make sure that you aren’t buying anything that is going to waste. Make sure to stock your bar and your kitchen.
3
Manage your pub. Make sure that things continue to go smoothly so that you can quickly resolve any problems.
- Make sure that all licenses and permits are up to date. Make sure that you continue to meet all zoning laws and licensure requirements.
- Let your manager handle minor problems, but take care of major issues yourself. Make sure that your manager tells you about problems.
- Monitor your finances.^{[17]XResearch source} Consider hiring an accountant.
- Make sure that the bar and kitchen are well stocked. Perform routine maintenance on all equipment.
- Make sure that your customers are satisfied. Listen to customer feedback. Find out what you’re doing right and what you could be doing better.
- Make sure that you’re not buying more food or alcohol than you serve. Be careful to eliminate waste. Remember that happy employees lead to higher productivity, lower turnover of staff and satisfied customers!
- Read online reviews about your pub. Focus on fixing any problem areas.
- Make sure that you don’t let the pub fail because you didn’t pay enough attention before opening. Don’t open before you’re ready.
4
Monitor your employees. Make sure that there aren’t any problems with your employees.
- Make sure that they are all doing their jobs properly.
- Make sure that no one is stealing.
- Make sure that none of your employees are drinking on the job.
- Make sure that all codes and laws are being followed. Make sure that no one serves alcohol to someone who is underage.
- Make yourself available to employees.
- Don’t serve anyone who is visibly intoxicated.
- Make sure that bartenders aren’t overfilling drinks.
- Motivate your employees by rewarding good work with raises, bonuses, and promotions.
5
Make sure that you’re not spending more money than you’re making. Keep track of your profits and expenditures.
- Get an electronic Point of Sale system to record sales. Compare your overhead with what you are spending on employees and products.
- Get rid of items that aren’t selling.
- Get rid of items that aren’t bringing in a profit of less than 70%.
- Reduce shifts if you’re spending too much money on employee salaries.
- Budget money to take care of unexpected situations such a natural disaster.
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