By Shaun McManus — Working landlord at Teal Farm Pub, Washington NE38. Marston’s Partnership operator. Level 4 Hospitality Management. 5-star EHO rating.
I took on Teal Farm Pub on my birthday three years ago. I didn’t know everything I needed to know. Nobody does when they sign. But I knew enough — and the gaps nearly caught me out in ways that cost time and money I didn’t have to waste.
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This guide is what I wish someone had handed me before I signed.
It covers everything: the agreement types, the financial reality, how to choose a pubco, how to assess a specific opportunity, what your legal rights are, and what to set up before you open the doors. Nothing is sugar-coated. The pubcos have their own marketing. SmartPubTools does the honest version.
If you read this entire guide and you’re still excited about taking on a pub, that’s a very good sign. Most people who struggle in year one skipped the research.
Is Running a Pub Actually Right for You?
Start here. Not with which pub. Not with which pubco. With this question.
Running a pub in 2026 is genuinely harder than it was ten years ago. National Living Wage increases have pushed labour costs up significantly — the UK benchmark is 25-30% of revenue, and many new operators hit 35%+ in their first year without realising until it’s too late. Energy costs remain elevated. Business rates relief has been patchy. Wet-led trade has softened in many areas.
None of that means it’s not worth doing. Teal Farm had its best revenue year in 2025. But you need to go in with clear eyes.
The honest questions to answer before you go further:
- Can you work 60-70 hour weeks, including evenings and weekends, consistently for the first 18-24 months?
- Do you have a minimum of £20,000-£40,000 in accessible capital beyond what you’ll need for the ingoing costs?
- Are you genuinely comfortable with financial uncertainty — weeks where cash is tight, unexpected costs, slow periods?
- Do you understand the difference between turnover and profit? (Many new operators confuse busy with profitable.)
- If you have a partner, are they genuinely on board — not just supportive in theory?
If you answered no to any of those, that doesn’t disqualify you. But it does mean you have work to do before you’re ready to sign anything.
What experience do you need?
The honest answer is: more than most pubcos will tell you. Most pubcos say “no experience necessary” because they want to fill pubs. The reality is that operators with relevant hospitality experience — even front-of-house work, management in bars or restaurants, retail management — do significantly better in year one than those coming from entirely unrelated backgrounds.
You don’t need to have run a pub before. But you need to understand how hospitality operations actually work. If you’ve never managed a team, handled a stock take, or dealt with a difficult customer at closing time, those skills need developing before you sign — not after.
The qualifications you legally need:
Before you can take on any pubco tenancy or partnership in England and Wales, you must hold a Personal Licence. This requires passing the Level 2 Award for Personal Licence Holders (APLH) and a DBS check. Cost: approximately £150-200 total. Timeframe: 4-6 weeks from starting the course.
Most pubcos also require you to complete the BII PEAT course (Pre-Entry Awareness Training) before signing any tied agreement. This is a legal requirement under the Pubs Code for tied agreements. It covers the basics of pub tenancy law, your rights, and the obligations you’re taking on.
Don’t skip either of these. They’re not just bureaucratic hurdles — they contain information you’ll actively need.
Understanding the Different Agreement Types
This is where most prospective licensees get confused. The terminology varies between pubcos, which makes comparison genuinely difficult. Here’s the plain English version.
Pub Tenancy
The traditional model. You pay a weekly or monthly rent to the pubco. In a tied tenancy, you must buy some or all of your drinks from the pubco’s approved list at their prices. The pubco owns the building and is responsible for structural maintenance. You run the business day-to-day.
Ingoing costs: Typically £5,000-£30,000 depending on the pub’s size and the pubco’s terms. This covers a deposit (usually returnable), the cost of buying the existing stock at valuation (SAV — Stock at Valuation), and any fixtures and fittings contribution.
Weekly rent: Varies enormously. Community wet-led pubs in lower-cost areas might start at £300-600 per week. Food-led destination pubs in stronger trading areas can be £1,500-3,000 per week or more.
Best for: First-time operators who want a clear structure, defined costs, and pubco support. The tie limits your margin but reduces some financial risk.
Marston’s Partnership / CRP
Marston’s renamed their agreements “Marston’s Partnership” — previously known as Community Retail Partnership or CRP. It’s a turnover share agreement: you receive a percentage of net weekly sales rather than paying a fixed rent. Marston’s covers rates, utilities, and structural costs. You cover staff wages and day-to-day trading costs.
I run Teal Farm under this model. The advantage is lower fixed costs — in a slow week you pay less. The disadvantage is your income is directly capped as a percentage of sales — you can’t trade your way to high earnings without very high volume, and there’s no rental arbitrage if you grow the business significantly.
Marston’s currently offer three community partnership types:
- Your Local — drink-only community pubs
- Community Wet — drink-led with food option
- Community Food — food-focused family pubs
Plus Signature pubs for experienced operators wanting a more premium offer.
Ingoing costs: Typically £5,000-£15,000 for community pubs. Marston’s publish specific deposit requirements on their available pubs pages — unusually transparent for a pubco.
More details: How Marston’s CRP Rent Is Calculated | Marston’s CRP Review 2026
Pub Lease
A longer-term agreement, typically 5-25 years, where you take on significantly more responsibility — and more risk, but also more upside. You pay rent but often have more freedom on suppliers (free-of-tie options exist on longer leases). You may be responsible for internal repairs and dilapidations.
The key advantage of a lease is that you can build genuine goodwill value in the business that you can sell. With a tenancy or partnership, you can’t sell what you’ve built — you hand it back.
Ingoing costs: £20,000-£100,000 typically. The premium reflects the longer term and the freedom it provides.
Best for: Experienced operators with capital who want to build a long-term business with genuine asset value.
Freehold Purchase
You buy the pub. You own it. No pubco, no tie, no rent. Maximum freedom, maximum risk, maximum potential upside.
Cost: £100,000-£1.5m+ depending on location, size, and trading performance. Add legal fees, survey costs, and potential refurbishment. This route typically requires significant personal capital or commercial finance.
Best for: Experienced operators with substantial capital who want full control and the ability to sell the business as an asset.
Managed/Operator Managed
Some pubcos offer an “operator managed” model where you run the business on their behalf for a management fee or percentage of sales. You have less financial risk but also less upside — and less autonomy. Admiral Taverns’ Proper Pubs division operates on this basis.
The Financial Reality Nobody Explains Clearly
This section is the most important part of this guide. Most prospective licensees focus on the ingoing cost and the rent. Those are the visible costs. The invisible costs are what catch people out.
What You’ll Actually Spend Before Opening
| Cost | Typical Range | Notes |
|---|---|---|
| Ingoing deposit | £5,000-£20,000 | Usually returnable at end of agreement |
| Stock at Valuation (SAV) | £3,000-£8,000 | Buying existing stock from outgoing licensee |
| Fixtures & Fittings | £0-£5,000 | Varies by agreement and pub condition |
| Personal Licence | £150-£200 | APLH course + DBS + council fee |
| Legal fees | £500-£2,000 | Independent solicitor — do not skip this |
| Survey/Schedule of Condition | £300-£800 | Critical — protects you from dilapidations claims |
| Total ingoing | £9,000-£36,000 | Before you’ve opened the doors |
Working Capital — The Number Most People Underestimate
Beyond ingoing costs, you need working capital. This is money you can access during the trading period to cover:
- Staff wages for weeks 1-8 before cash flow stabilises
- Utility deposits (some suppliers require these from new operators)
- Unexpected repairs not covered by the pubco
- Stock replenishment beyond initial SAV
- Marketing and launch costs
- A contingency for the unexpected
Minimum working capital recommendation: £15,000-£25,000 accessible beyond your ingoing costs.
This is non-negotiable. Operators who go in with £5,000 working capital after paying their ingoing almost always struggle in months 2-4 when a boiler breaks, a key staff member leaves, or the first VAT bill arrives.
The Labour Cost Problem
Labour is the silent killer of new operators. The UK benchmark for pub wage costs is 25-30% of revenue. Many operators coming from outside hospitality budget 20% and find themselves at 35% by month three.
Why does this happen? Understaffing causes service problems. Service problems cause bad reviews. Bad reviews reduce trade. Reduced trade means less revenue but the same staff cost. The spiral is fast.
The solution is not cutting staff aggressively. It’s knowing your numbers precisely from day one — so you can see the problem before it becomes a crisis.
At Teal Farm, we run labour at approximately 15% of revenue — well below the industry benchmark. That didn’t happen by accident. It happened because we track it weekly and act on it quickly.
Pub Command Centre — the tool I built for exactly this. Real-time labour %, VAT position, and cash flow visibility from day one. £97 once. No monthly fees.
What Break-Even Actually Looks Like
Most community pubs take 18-24 months to reach consistent profitability. The first 3-6 months are the hardest: you’re rebuilding the customer base, training staff, finding your groove, and dealing with everything you didn’t know you didn’t know.
This is normal. It doesn’t mean the business is failing. But you need capital and nerve to get through it.
How to Choose a Pubco
The pubco you choose will shape every aspect of your business for the term of your agreement. This decision deserves more time than most prospective licensees give it.
The Major Pubcos — Honest Overview
Marston’s Partnership — 1,339 pubs, community focus, turnover share model. Strong training programme. Publishes weekly sales estimates and deposit requirements for available pubs, which is unusually transparent. Good for first-timers who want structure and support. Full Marston’s CRP Review →
Admiral Taverns — Approximately 1,600 pubs across the UK. Consistently tops the Pubs Code Adjudicator satisfaction survey (79% in 2025). Community pub focus. Strong BDM support reputation. Good for first-time operators. Admiral Taverns Review 2026 →
Star Pubs & Bars (Heineken) — Large estate with genuine investment. Heineken’s backing means strong brand portfolio. Satisfaction scores are mid-table. Good if you want a well-funded pubco with a strong drinks brand behind it. Star Pubs Review 2026 →
Punch Pubs — Large estate. Mid-table satisfaction scores. Good range of pubs including some strong food-led opportunities. Punch Pubs Review 2026 →
Greene King Pub Partners — Strong food-led estate. Good training. Higher satisfaction among food operators than wet-led. Franchise option available alongside tenancy. Greene King Review 2026 →
Stonegate Group — Largest pub estate in the UK. However, consistently scores lowest in PCA satisfaction surveys (43% in 2025). Financial pressures from their debt position have affected tenant support. Approach with caution. Stonegate Review 2026 →
Ei Group / Publican Partnerships — Good range of pubs, improving satisfaction scores, genuine free-of-tie options available. Ei Group Review 2026 →
What to Actually Ask a Pubco
Before committing to any pubco:
- What is your average BDM-to-pub ratio? (Lower is better — more support per pub)
- How many pubs in this region have changed operators in the last 12 months?
- Can I speak to existing operators in similar pubs?
- What does your investment programme look like for this specific pub?
- What happens to my agreement if you’re acquired or go into administration?
The answers — and how openly they’re given — tell you a lot.
How to Assess a Specific Pub Opportunity
You’ve found a pub you’re interested in. Before you get excited about the building, get hard-headed about the numbers.
The Questions to Answer Before Viewing
- What is the current weekly turnover? (Ask for 12 months of data — the pubco has it)
- Why is this pub available? (There’s always a reason)
- What is the Fair Maintainable Trade (FMT) estimate — and how realistic is it?
- What is the rent calculation based on — and have you had it independently verified?
- What capital investment is the pubco committing to?
- What is the schedule of condition — and what are you taking on in terms of dilapidations risk?
What to Look For On the Viewing
Look at the building, the competition, and the community — in that order.
The building: What’s the condition? What needs doing that isn’t covered by the pubco’s investment? What would you spend in year one to make it trade properly?
The competition: Walk the area. Count the other pubs, bars, and off-licences. Note the Wetherspoons location and pricing if there is one. Assess whether the market can support this pub.
The community: Who lives here? Who drinks here? Is the current customer base loyal or transient? What’s the employment profile of the area? Is there a major employer nearby — or did one recently close?
Full pub viewing checklist (25 points) →
The Financial Model
Before you proceed beyond the viewing, build a simple financial model:
| Line | Your Estimate |
|---|---|
| Weekly turnover (realistic, not FMT) | £X |
| Gross profit % (wet GP typically 60-65%) | 62% |
| Weekly gross profit | £X |
| Rent/turnover share | (£X) |
| Labour (target 25-30% of turnover) | (£X) |
| Utilities (£300-600/week typical) | (£X) |
| Other costs | (£X) |
| Weekly net position | £X |
If the weekly net position doesn’t cover your living costs and leave something for contingency, the numbers don’t work — regardless of how much you love the pub.
Your Rights Under the Pubs Code
If you’re considering a tied pub agreement, the Pubs Code 2016 gives you significant legal rights that pubcos must honour. Many prospective licensees don’t know these rights exist — and some pubcos won’t volunteer them.
Before you sign, you are legally entitled to:
✅ Independent Rent Assessment — You can have the proposed rent independently verified before committing. Use this right. An independent assessment that shows the FMT is inflated can be the difference between a viable business and a loss-making one.
✅ Parallel Rent Assessment — The right to be no worse off than a comparable free-of-tie tenant.
✅ P&L Projections — The pubco must provide their projected profit and loss for the pub, showing the assumptions behind their trade estimates. Review these critically — they are always optimistic.
✅ Schedule of Condition — A document confirming the agreed state of the property when you take it on. Without this, you have no protection against dilapidations claims when you leave.
✅ Tied Product Price List — You are entitled to the full price list for tied products for the first three months, in writing, before you sign. Use this to model your actual cost of goods.
✅ Pre-Entry Training Information — The pubco must tell you what training and support they commit to providing.
✅ Market Rent Only Option (MRO) — After year five of a tied agreement, you have the right to request a free-of-tie rent. This is a significant negotiating tool that many operators don’t know exists.
The Pubs Code Adjudicator (PCA) is your independent route of redress if a pubco fails to meet its obligations. Their website (gov.uk/pubs-code-adjudicator) contains your rights in plain English.
Get independent legal advice before signing any pub agreement. A solicitor who specialises in licensed property costs £500-£2,000 for a lease review. That is the best £500-£2,000 you will spend.
Setting Up for Day One
The week before you open is the most stressful week of the process. Here’s what needs to be in place.
Legal and Compliance
- Personal Licence held by you (or your DPS)
- Premises Licence transferred into your name
- Food Hygiene registration with your local council (free, 28 days notice)
- Food Safety in Catering certificate for anyone handling food
- DBS checks for relevant staff
- Employer’s Liability Insurance (legal requirement)
- Public Liability Insurance
- Buildings Insurance (check what the pubco covers vs what you need separately)
Financial Setup
- Business bank account (separate from personal — non-negotiable)
- VAT registration if turnover exceeds threshold (or register voluntarily for the cash flow management benefits)
- Accountant instructed
- Payroll system set up before your first wage run
- Basic bookkeeping system in place
Operational Tools
EPOS system: For a wet-led community pub, Epos Now or ICRTouch are reliable and cost-effective. For food-led operations, consider Lightspeed. Don’t buy until you’ve trialled it — most providers offer a demo period.
Stocktaking: Instruct an independent stocktaker before accepting the handover SAV. Your own count protects you from inheriting inflated stock valuations.
Financial management: This is where most new operators have the biggest gap. You need to see your labour %, VAT position, and cash flow position at least weekly from day one.
I built Pub Command Centre specifically because nothing else on the market gave a community pub operator real-time visibility on the numbers that actually matter. It costs £97 once. That’s less than one emergency callout. Less than one week’s over-spend on labour that you didn’t catch in time.
The Timeline From Enquiry to Opening
What most pubcos won’t tell you: this process takes longer than you expect.
| Stage | Typical Timeframe |
|---|---|
| Initial enquiry and viewings | 2-4 weeks |
| PEAT course completion | 2-4 weeks |
| Personal Licence application | 4-6 weeks |
| Pubco application process | 4-8 weeks |
| Legal review and negotiation | 2-4 weeks |
| Premises Licence transfer | 2-4 weeks |
| Stock valuation and handover | 1-2 weeks |
| Total: enquiry to keys | 3-6 months typically |
Build this timeline into your planning. If you’re planning a specific opening date — for a seasonal opportunity, a personal milestone — work backwards from it and start the process earlier than you think you need to.
Finding Available Pubs
Where to Look
Pubco websites directly — always the first stop. Most pubcos publish their available opportunities on their own careers or partnerships sites. Marston’s, Admiral, Star Pubs, Punch, Greene King all have dedicated pages.
SmartPubTools Pub Directory — our growing database of available pubs across all major pubcos and agents, with independent editorial assessments of each opportunity. Browse available pubs →
Specialist agents — Fleurets, Christie & Co, Sidney Phillips, and Guy Simmonds handle freehold and leasehold opportunities. Morning Advertiser publishes regular listings.
Daltons Business, RightBiz, BusinessesForsale — general business marketplaces with pub listings.
What to Do When You Find One
- Read everything available about the specific pub
- Research the area independently — not just the pubco’s materials
- Check the pub’s Google rating and reviews (tells you about current customer sentiment)
- Check food hygiene rating (tells you about current operational standards)
- Request the last 24 months of trading data from the pubco
- Visit as a customer before viewing as a prospective operator
- Talk to locals — they’ll tell you things the pubco won’t
The Honest Summary
Taking on a pub in 2026 is genuinely possible and genuinely worthwhile — for the right person, with the right pub, and the right preparation.
The people who succeed are not necessarily the ones with the most experience. They’re the ones who did the work beforehand: understood the financials, chose the right agreement, got independent legal advice, built their working capital, and knew their numbers from day one.
The people who struggle are almost always the ones who fell in love with the idea before they understood the reality. They signed too quickly, under-capitalised, over-estimated turnover, under-estimated labour, and found themselves in a financial hole within 6 months.
This guide was written to help you be the former, not the latter.
Before You Sign Anything, Know Your Numbers
Most operators who struggle in year one didn’t fail because of the pub. They failed because they couldn’t see the financial warning signs until it was too late.
Pub Command Centre gives you real-time labour %, VAT liability and cash position from day one. Built by a working pub landlord who went through exactly what you’re about to. £97 once. No monthly fees. 30-day money-back guarantee.
Get Pub Command Centre — £97 once →
More Guides for Prospective Licensees
- Is Running a Pub Right For You? The Honest Assessment →
- How Much Does It Cost to Take On a Pub UK 2026? →
- Marston’s CRP Review 2026: A Working Licensee’s Assessment →
- Admiral Taverns Review 2026 →
- Best Pubco for First-Time Licensees UK 2026 →
- Pub Tenancy Ingoing Costs UK 2026 →
- What Is the Pub Code UK? Your Rights Explained →
- How to Assess a Pub Tenancy Opportunity →
- What to Look For When Viewing a Pub →
- Best Pub EPOS System UK 2026 →
- Browse Available Pub Opportunities →
Shaun McManus is the licensee of Teal Farm Pub, Washington NE38, operating under a Marston’s Partnership agreement. He is also the founder of SmartPubTools and RankFlow. This guide reflects his personal experience and independent research — not the views of any pubco.