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Batemans FAQ

We promise you cannot ask a daft question! This is a really important decsion you are making and we want to make absolutely certain that you are fully aware of the both opportunities and the consequences of making a decision to run your own Batemans pub.

Of course, running a Batemans pub is going to be very different to running another pub companies pub as we all work differently. But we promise that running through our entire business is the passion to work with you to make your business a success. Why?

Well, as I have said before, if your business is a success then so will ours be. We will sell you more great Batemans beer and you will be able to honour the rent agreement that is in place. See, it can't be simpler. We really want a win win situation.

Below are a list of frequently asked questions and answers, if your questions is not below please do not worry just email us with it; it also highlights that we need to go the extra mile to explain the process of taking on a Batemans pub.

1. What is a tenancy agreement?
The tenancy agreement lays out the obligations of both the tenant and the Brewery.

2. How long does the agreement last?
The agreement is usually for an initial period of three years but tenants are totally within their rights to renew their agreement every three years and remain at the pub indefinitely. We cannot give notice to terminate unless there is a breach of the agreement, however at each three year break the tenant has the right to leave the pub.

3. Is there a cooling off period?
If tenants wish to have a cooling off period in order that they have the ability to reconsider their future we advise them to take a six month agreement rather than an initial three year agreement. However this agreement is not available in all instances.

4. Do I need experience?
Some experience in either retail, business or pubs is beneficial but we have significant training facilities at the Brewery and a mentoring service to ensure those without experience can be successful.

5. What kind of pubs do you run?
We have pubs in Lincolnshire, the East Midlands, North Cambridgeshire and Norfolk. They vary from small village community pubs through to town high street pubs, accommodation houses and destination food houses.

6. How much will it cost me to take the pub over?
The tenant purchases the business which is at a value related to the potential profit from the pub. This amount is then returned when the tenant leaves the pub, minus the cost of any depreciation etc. The tenant also needs to buy the stock and glassware. The typical cost of going into a Batemans pub can vary from between around £5,000 up to £25,000. This is significantly less than most other breweries charge as they charge for the cost of the inventory ie the tables and chairs etc which is often completely out of kilter with the potential profitability of the pub.

7. Do I get my investment money back when I leave?
The next ingoing tenant will pay you for your stock and glassware and you will have the Profit Partnership Investment Fund, which you paid to the Brewery initially, returned to you minus the value of any depreciation and lost items from the inventory.

8. What background information will I receive about the pub?
We will give you the historical drinks volume data for what the pub has purchased, the actual fruit machine income for the last three years and our estimate of income from food and accommodation. This is all put into a projected profit and loss account which will give an indication as to what profit you will make. We also give details about the facilities of the pub and details about the trading area of the pub.

9. Would I need to take independent advice before signing one of your tenancy agreements?
Yes, we insist that each prospective tenant takes advice from an accountant or person of similar standing who can advise on the prospects of the business, the business plan and the potential profit.

10. What sort of income should I expect to generate?
This is entirely dependent upon the circumstances of each individual pub and will be discussed with any prospective tenant and demonstrated on the forecasted P&L. However turnover should vary between around £130,000 a year up to £0.5m a year with the profit being generated from the pub of around 10% of turnover, however you would need to take independent advice.

11. What support is available in times of financial difficulties?
If you are having difficulties then a full business review will take place which is known as a Business Blitz which involves two or three members of the Profit Partnership team visiting and going through the whole business before making recommendations. This can often take three or four hours.However if it is considered that the business is already being run efficiently, then various concessions will be made by the Brewery in order to alleviate the financial pressures. These may involve reduction of rent for a period, increase in discounts for a period and even payment of some of the tenant’s expenses.

12. What training do you give?
We provide our own Running a Pub Successfully course which is a two day course and is offered free to tenants and prospective tenants with them only having to cover their accommodation and food.There are nine modules in the course including: Introduction to the Industry, Basic Accountancy, Cellar Management, Customer Service, Health & Safety, Licensing, Employment Law, Stocktaking and Wine. We also offer a free one day Cellar Management course. On top of this we run the APLH licensing course and a number of British Institute of Innkeepers courses.

13. What training is needed before I enter the pub?
As a minimum you would need to have attended our Running a Pub Successfully course which has nine modules covering the major issues in running a pub.

14. Who is responsible for repairs?
The Brewery is responsible for the structure etc of the building and the tenant is responsible for minor repairs and the inventory, such as tables and chairs plus fixtures and fittings.

15. Who is responsible for the decoration, internally and externally?
The tenant is responsible for the decoration internally with us approving any colour schemes. We are responsible for redecoration externally. The tenant is expected to redecorate internally at least every three years and if the decoration is not in the same state of repair as when the tenant entered then a charge will be levied when the tenant leaves. It is normal for us to redecorate the outside of the premises when it is required but usually between every three and five years.

16. What happens if I want the pub refurbished?
If we agree to refurbish the pub then it is likely that 10% of the overall cost will be added to your rent however we do have an arrangement whereby you can invest the money and we will repay it to you with interest if certain pre-agreed targets are achieved.

17. Who takes the profit from the fruit machines?
This is shared between the Brewery and tenant .However the tenants’ income is not taken into consideration in the rent calculation.
Other arrangements are available .

18. Do I have to buy everything from Batemans Brewery?
We are a composite wholesaler and supply all of our pubs with all their drinks products on one delivery. This not only covers our own brands but also national brands including Coors, Heineken, Inbev, Britvic, Coca Cola. In return for purchasing drinks products from the Brewery, the Brewery charges each tenant significantly less than a market rent.

19. Are there any discounts?
Yes ,significant discounts are available.

20. Is there a volume incentive scheme?
Targets can be agreed and extra discounts given when achieved.

21. Do you offer discounts for other goods and services?
We have a Better Buying Guide which enables tenants to buy a number of other goods and services from suppliers and providers at special Batemans tenants’ rates.

22. Do you allow guest beers?
We have four guest beers per month available from the Brewery, delivered by us, which are normally quality micro brewers beers.

23. Do you sell a smoothflow keg beer?
Yes, all pubs are able to stock John Smiths smooth.

24. Who insures the pub and who insures the inventory?
The Brewery owns the bricks and mortar of the pub and takes on full responsibility for the insurance thereof. The insurance of the inventory, along with the maintenance, is the tenant’s responsibility.

25. How do you set your rents?
We agree a forecasted profit for the pub, including depreciation and take 45% - 50% of this figure as the rent.

26. How often do you have rent reviews?
We do not have rent reviews. The rent is set at ingoing and is only affected going forward by RPI adjustments.

27. Are the rents influenced by RPI?
Rents are increased or decreased by the rate of RPI annually.

28. What lagers do you sell?
The main lagers we sell are from the Heineken range ie Fosters, Amstel, Kronenbourg, although we do also stock Carling.

29. Why do you think I should take a pub with Batemans?
We are noted for our fairness and transparency which has resulted in us being the first in the industry to have our Code of Practice accredited and it being described subsequently as one of the best.
Also we stand by our Mission Statement ‘to help publicans make successful businesses with good innovative agreements, good customer service and good honest business values’, and our statements of intent ‘Good honest pubs run by good honest people’ and ‘We do what we say we’ll do’. All of which goes back to what Mr Harry Bateman said in 1953 ‘In your business don’t ever lose the human touch with your staff and tenants.’

30. Is there any chance of the Brewery being taken over or selling out in the near future?
We are a family owned company with a large chunk of the shares placed into trust for the family, to help ensure the continuance of the business for future generations, tenants and staff.

If the question you would like to ask is not here please feel free to email us with your question

JOIN US

If you think that running your own pub is for you and you have access to around £5,000 of available funds then please get in touch. This simple form enables us to give you a call or drop you a line and to start having a chat. Of course we will, if we take it further, need you to fill in the full Application Form within the Helpful Downloads page.

 

 

Drink Aware

Please note that alcohol can only be purchased by those aged 18years and over and at Batemans we urge all our customers to drink responsibly. For further information on suggested limits and how to drink responsibly please go to drinkaware.co.uk

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