Run an Admiral Pub, Red Lion, Derby

Admiral Taverns - Leased & Tenancy; Derby; On-site; GBP 26,000 - 35,000

Job description

Pub Layout

The front of the pub offers a warm welcome with carefully placed hanging baskets and external lighting, giving the pub curb appeal from day to night. Upon entry, you will see the large, L-shaped, wooden bar spanning across the whole trade area. The wooden beams on the roof give the pub a cosy, rustic atmosphere. To the right of the entrance, there is a dining area seating approximately 15-20 covers, featuring a cosy log burner for colder evenings and a television. There is also a small corridor providing access to the toilets, cellar, and private accommodation. To the left, the pub has been extended to add additional floor space for busy periods, this room still provides access to the main bar servery, complete with a pool table and seating for a further 10-15 covers. Double doors lead out from the extension to a good-sized car park and large external rear drinking area. With a proactive and enthusiastic tenant, there is potential for refurbishment in the future.

Trading Style:

The pub is currently predominantly wet led with 10% of sales being food. The current food offer consists of pizzas, burgers, and grazing platters. With two other pubs in the village well known for food, The Red Lion has established itself as a true, quality village local pub. The pub plays a key role in village life and attracts a strong local customer base with regular pub activities, music, and a great pizza offer. The pub has a strong premium drinks range and is well known for its choice of cask ales, especially Bass – which is an important ale to sell in this area.

Accommodation: Private Accommodation

The private accommodation consists of two bedrooms, kitchen, lounge, office, and bathroom.

Financial:

Annual Rent: £26,000

Security Deposit: £5,000

Working Capital: £5,000

Stock: £3,500

Business Rates: £Nil. Based on the April 2023 rating list, the Zero Rates Payable is based on small business rates relief being applied for by the licensee and the licensee only occupying one property for commercial purposes.

Fixtures and Fittings: To be confirmed upon valuation – funding options may be available for the right licensee.

Tie: All drinks categories are tied. For fully funded licensees on long-term agreements, we offer free-of-tie options for certain drinks categories in exchange for an annual fee.

For a breakdown on financial information, please refer to the ‘Additional Info’ tab.

BDM Vision:

The pub is available due to the planned retirement of the current licensee and represents a fantastic opportunity for the successful applicant to build on the foundations this licensee has built and further drive the pub forward. Admiral Taverns are looking for an excellent operator with a good knowledge of the area to take on The Red Lion. Maintaining a small food offer and a steady rhythm of the week will be crucial to this pub's success, as well as the sale and maintenance of the pub's Cask Ales.

Future Plans: Additional Information:

Annual Rent: This is our lowest rent figure associated with a Full Tie. If the tie is reduced, the effective rent (via Tie Release Fees) will increase. Rent is billed and paid for weekly in advance depending on the payment terms agreed. On occasion, our Business Development Manager will discuss a startup rent which is discretionary to an individual pub and can be discussed.

Security Deposit: This sum of money will be held on your account and will be returned to you on exiting of the pub based on your final account balance and the condition of the property. Our standard deposit is 25% of the headline rent. On occasion, we can negotiate a lower security deposit with the aim to build up to our full deposit on a long-term agreement.

Working Capital: This is a recommended amount required which will be used in the day-to-day running of the business.

Stock: This will be valued by an independent valuer on the day you take over the pub. This includes unbranded glassware, unopened bottles, wines, spirits, any unopened/opened kegs, and cask ale providing the container is unopened.

Fixtures & Fittings: This includes any item that is bolted to the floor or walls, and a fitting to be any item that is free-standing or hung by a nail or hook. This will also include furniture.

Tie: All drinks categories are tied. For fully funded licensees on long-term agreements, we offer free-of-tie options for certain drinks categories in exchange for an annual fee.

Training: £350.00 – Before signing a long-term agreement, you will be required to attend our 7 Steps to Sales Success training programme. Held online over two days, you will learn marketing and business strategies that will help you to grow sales in your pub – step-by-step.

Service Charge Cost: £63.33 per week – The Admiral Taverns Premium Maintenance Package will help take care of your compliance and statutory obligations with one simple fee, whilst giving you peace of mind about your boiler and cellar cooling repair and replacement. This also includes full access to e-learning for you and your staff.

*Zero Business Rates: Based on the April 2023 rating list, the Nil Rates Payable is based on small business rates relief being applied for by the licensee and the licensee only occupying one property for commercial purposes. Please note, this only applies to pubs marked with an Asterix.