Star Pubs tenancy review: What you need to know

Last updated: 2 May 2026

Most people signing a Star Pubs tenancy agreement focus on the rent figure and miss the real cost entirely. The monthly rent you see in the paperwork isn’t where your money actually goes — it’s the beer tie, the tied services, and the way the business model is structured that determines whether you can build real profit or not. I’ve navigated a Marston’s CRP agreement from the ground up at Teal Farm Pub in Washington, and I can tell you the difference between understanding your numbers and learning them the hard way is genuinely the difference between surviving and thriving. This guide breaks down exactly what a Star Pubs tenancy review means, what it costs, what support you actually get, and the financial reality you need to prepare for before you sign anything.

What Is a Star Pubs Tenancy Agreement?

Star Pubs is one of the UK’s largest pub operators. A Star Pubs tenancy is a form of tied tenancy agreement where you operate a pub on behalf of the company, but you do not own the property. You pay rent to Star Pubs, and in return, you are typically required to purchase beer, soft drinks, cider, and sometimes food from their approved suppliers at fixed or formulaic prices. This is the “tie” — it’s the core of how pubcos make money beyond rent.

Unlike a free of tie arrangement, where you can buy stock from anyone you choose, being tied to Star Pubs means your supplier options are limited. This isn’t necessarily bad — it can simplify ordering and guarantee consistent supply — but it does mean your gross profit margin on drinks is determined by the pubco’s pricing structure, not the market. I’ve run my Teal Farm Pub under a Marston’s CRP agreement, which operates on similar principles, and the discipline of fixed pricing can actually help with cash flow planning, but only if you understand the full picture before you commit.

Star Pubs tenants can range from solo operators running small community pubs to larger establishments with multiple staff. The agreement typically includes clauses around trading standards, licensing compliance, food hygiene, maintenance responsibilities, and behaviour expectations. The pubco retains the right to conduct audits, inspections, and reviews — and they use these to decide whether to renew your tenancy, increase your rent, or ask you to leave.

The Real Cost of a Star Pubs Tenancy

This is where most new pub operators get caught out. When you’re evaluating a Star Pubs opportunity, you’ll see a rent figure. That’s only part of the story.

Rent and Service Charges

Your base rent is straightforward — it’s what you pay each month for the property. But Star Pubs may also charge additional service fees for things like waste disposal, water, utilities support, or administrative costs. These aren’t always clearly separated in the initial breakdown, so you need to ask for an itemised list before you sign. In my own ingoing process at Teal Farm, I learned quickly that clarity on what’s included in the base rent versus what’s added as extras is absolutely essential.

Tied Product Pricing and Gross Profit

Tied product pricing directly determines how much gross profit you can make on wet sales. If Star Pubs prices their beer kegs at £X, you’ll typically apply a standard markup and sell to customers. The difference between what you pay and what you sell it for is your wet GP. But because the pubco sets the buy price, your margin is constrained by their margin expectations. This is why knowing your pub profit margin calculator figures before you take on the tenancy matters — you need to reverse-engineer whether the wet GP percentage they’re offering will actually cover your operating costs plus a reasonable profit.

Most Star Pubs operators work on wet GP targets of 60–70%. If you’re running a community pub with quiz nights, sports events and food service (like I do at Teal Farm), you need to be confident that margin is achievable given your customer base and trading patterns.

Other Direct Costs

Star Pubs may charge for:

• Mandatory training (APLH qualifications, safeguarding, compliance updates)
• Compliance audits and inspections (food safety, health and safety, licensing checks)
• Till system rentals or software fees (if you’re required to use their system)
• Marketing contributions or local promotions
• Maintenance and repair costs (depending on who’s responsible under your lease)

These aren’t usually presented as a single line item — they accumulate over the year. When I passed my NSF audit in March 2026, I’d already budgeted for the compliance costs associated with it. If you don’t account for these upfront, your actual P&L will look very different from the one the pubco outlined when you took the tenancy on.

Support and Reporting Structure

What you actually get for your rent and costs is a business relationship with a Business Development Manager (BDM) — this is your primary contact at Star Pubs. The quality and frequency of support varies significantly depending on your location, your pub size, and whether you’re meeting your trading targets. A BDM should help you with:

• Stock ordering and supply chain management
• Compliance support and training
• Performance benchmarking and financial review
• Marketing and promotional guidance
• Dispute resolution if issues arise

However, be realistic: your BDM is not a full-time business mentor. They’re managing a portfolio of pubs. If you’re performing well and compliant, you’ll see them regularly. If you’re struggling or breaching compliance, you’ll hear from them regularly too — but often in a formal capacity. I’ve learned that the relationship works best when you’re proactive: send regular trading data, flag issues early, and don’t wait for problems to escalate.

The BDM will use your financial data to assess your business at each tenancy review. If you’re not tracking your numbers properly, you’re essentially letting them set the narrative. This is why using proper pub management tools from the start matters. I’ve evaluated EPOS systems for handling wet sales, dry sales, quiz nights and match day events simultaneously — because if your till can’t clearly separate different revenue streams, your management accounts will be inaccurate, and inaccurate accounts lead to poor review outcomes.

The Tenancy Review Process Explained

A Star Pubs tenancy review is a formal assessment of your business performance, compliance, and relationship with the pubco. It typically happens annually, but can be triggered earlier if there are concerns or significant changes to your circumstances.

What the Review Covers

Star Pubs will examine:

• Financial performance: Your turnover, GP%, labour costs, and profit relative to agreed targets or benchmarks
• Compliance: Licensing status, health and safety records, food hygiene, staff training records
• Stock and inventory: Whether you’re ordering stock appropriately, managing waste, maintaining quality standards
• Customer feedback and reputation: Reviews, complaints, local market positioning
• Lease condition: Maintenance of the property, any damage or outstanding repairs
• Tenancy agreement adherence: Have you breached any clauses? Are you trading within the agreed terms?

The outcome can range from a straightforward renewal to a conversation about rent adjustment, support changes, or in serious cases, non-renewal.

Preparing for Your Review

You should start preparing for your review months in advance, not days before. Pull together:

• 12 months of P&L accounts showing turnover, COGS, labour, overheads, and net profit
• Evidence of compliance: training certificates, audit reports, inspection records
• Stock and inventory records
• Staff records and payroll data
• Any customer feedback or local market data

If you’re running labour at 15% against the UK benchmark of 25–30%, that’s a story worth telling. My Teal Farm Pub achieved that through proper rostering, staff development, and using pub staff rota legal requirements as the foundation for scheduling. This isn’t just about hitting targets — it shows the pubco that you understand operational efficiency.

Financial Preparation Before You Sign

Before you accept any Star Pubs tenancy, you must conduct a serious financial due diligence process. The pubco will provide you with trading figures for the pub if it’s previously operated, or projections if it’s a new opportunity. Do not take these at face value.

Get Independent Verification

Ask for:

• The last 3 years of actual trading accounts (not projections)
• Month-by-month breakdown of turnover and costs
• Customer count and average spend data if available
• Rent history and any planned increases
• Details of all other costs (service charges, fees, mandatory spending)

Then model the numbers yourself. Work backwards from the turnover to your estimated labour cost (factor in at least 20–25% until you’ve proven you can do better). Subtract COGS based on the tied product pricing you’ve been quoted. Subtract all fixed overheads. What’s left is your theoretical net profit. If it’s not enough to live on plus reinvest in the business, the numbers don’t work — no matter how good the pub looks.

Know Your Real Numbers from Day One

The single biggest mistake I see new tenants make is not having real-time visibility of their P&L from the first trading day. Your EPOS tells you what sold. It doesn’t tell you whether you made money. Pub Command Centre gives you real-time labour %, VAT liability and cash position — all in one place, from day one. At just £97 once with no ongoing fees, it’s the single most important investment you can make before signing a tenancy agreement. When your BDM reviews your business, you’ll have accurate numbers to defend every decision.

I learned this the hard way when I took on Teal Farm Pub in Washington NE38 on my birthday three years ago. The first thing I did was establish proper weekly accounts tracking. My best revenue year was 2025, and that came directly from understanding where every pound was going and making decisions based on data, not instinct.

Common Mistakes Tenants Make

Not Understanding the Full Cost Structure

New tenants often focus only on rent and don’t account for service charges, tied product markups, and compliance costs. This leads to a cash flow crisis within the first 6–12 months.

Accepting Optimistic Turnover Projections

The pubco (or the previous tenant) may show you inflated turnover figures. These might be based on peak trading periods or include special events that don’t happen regularly. Always ask what the average weekly takings are across a full year, including quiet weeks.

Not Building a Safety Buffer

When evaluating whether the profit margin works, factor in a buffer for unexpected costs, lower-than-projected sales, and seasonal variation. If the projections only work if everything goes perfectly, they won’t work in reality.

Ignoring Compliance from the Start

Star Pubs will conduct compliance audits and use these results in your tenancy review. If you’re not maintaining proper records, staff training, or health and safety standards from day one, you’re building problems for future reviews. My 5-star EHO rating and passed NSF audit in March 2026 didn’t happen by accident — they’re the result of daily compliance habits.

Poor Communication with Your BDM

Some tenants only contact their BDM when there’s a crisis. Instead, build a proactive relationship: send monthly trading updates, flag any compliance issues early, ask for support when you need it. This matters when your tenancy comes up for review.

For more information, visit pub profit margin calculator.

For more information, visit retail partner earnings calculator.

For more information, visit best pub EPOS systems guide.