Pub Licence, do you need one?

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Running a Pub

Have you ever dreamed of owning or running your own pub? There are various ways in which to end up behind the bar in your very own public house. Lets take a quick at your options available to you as individual, married couple or partnership.

Many pub companies offer various ways to obtain a public house (Pub) Here are a few various options,

  • Managed House
  • Club Steward
  • Tenancy Agreement
  • Leasehold Agreement
  • Free House

What is a Managed House?

A managed house is a pub owned by a brewery or pub company that pays you, or you and your partner a salary to run and operate the public house. To be a pub manager must hold a personal licence, the pub company or brewery will normally add your name to the pubs premises licence as the Acting Designated Premises Supervisor (DPS) or in Scotland the Designated Premises Manager (DPM).

Pub Managers normally live on the premises and are over seen my an area managers. Pub managers will generally have sales targets to achieve and staff budgets to manage, they will also be accountable for wet and dry stock, cash, financial transactions, reports and banking at the managed public house.

What is a Personal Licence?

A personal licence is a licence granted to an individual which allows them to sell alcohol under a premises licence or temporary licence.

A personal licence will also allow the holder to authorise other members of staff to sell alcohol at the licensed premises. However in Scotland Staff require basic mandatory training by law.

A personal licence will allow the holder to be named on the pubs premises licence as the acting DPS or DPM in Scotland.

What is a Designated Premises Supervisor/Manager?

In England & Wales a Designated Premises Supervisor (DPS) is the person in full control the licensed premises in other words the Licensee or Pub Landlord. This is the same in Scotland, however they are known as Designated Premises Managers (DPM).

What is a Club Steward?

A club Steward is an individual who looks after the bar and cellar in a members club, such as a local working mens club. A Club Steward does not require a personal licence as Social Clubs are licensed differently to pubs, however it is advisable for the Steward to have some formal training on the relevant licensing Act.

In some areas the local Police will insist that Club Stewards holds a Personal Licence or that staff have some from of training. This condition could be added to a Club Premises certificate after a hearing.

What is a Free House?

A free house is a pub that is managed by the owners and is generally free of any tie to a brewery. However some Free House's may have brewery ties or deals in place for cellar equipment rentals or brewery loans. Free houses may also be subject to a commercial mortgage or charge over the building. If you are considering purchasing a Free House a full structural survey is recommended.

Pub Licence, do you need one?

Running a Pub

Have you ever dreamed of owning or running your own pub? There are various ways in which to end up behind the bar in your very own public house. Lets take a quick at your options available to you as individual, married couple or partnership.

Many pub companies offer various ways to obtain a public house (Pub) Here are a few various options,

  • Managed House
  • Club Steward
  • Tenancy Agreement
  • Leasehold Agreement
  • Free House

What is a Managed House?

A managed house is a pub owned by a brewery or pub company that pays you, or you and your partner a salary to run and operate the public house. To be a pub manager must hold a personal licence, the pub company or brewery will normally add your name to the pubs premises licence as the Acting Designated Premises Supervisor (DPS) or in Scotland the Designated Premises Manager (DPM).

Pub Managers normally live on the premises and are over seen my an area managers. Pub managers will generally have sales targets to achieve and staff budgets to manage, they will also be accountable for wet and dry stock, cash, financial transactions, reports and banking at the managed public house.

What is a Personal Licence?

A personal licence is a licence granted to an individual which allows them to sell alcohol under a premises licence or temporary licence.

A personal licence will also allow the holder to authorise other members of staff to sell alcohol at the licensed premises. However in Scotland Staff require basic mandatory training by law.

A personal licence will allow the holder to be named on the pubs premises licence as the acting DPS or DPM in Scotland.

What is a Designated Premises Supervisor/Manager?

In England & Wales a Designated Premises Supervisor (DPS) is the person in full control the licensed premises in other words the Licensee or Pub Landlord. This is the same in Scotland, however they are known as Designated Premises Managers (DPM).

What is a Club Steward?

A club Steward is an individual who looks after the bar and cellar in a members club, such as a local working mens club. A Club Steward does not require a personal licence as Social Clubs are licensed differently to pubs, however it is advisable for the Steward to have some formal training on the relevant licensing Act.

In some areas the local Police will insist that Club Stewards holds a Personal Licence or that staff have some from of training. This condition could be added to a Club Premises certificate after a hearing.

What is a Tenancy Agreement?

A Tenancy Agreement is an agreement between you the pub landlord and the brewery or pub company. Pub tenancy agreements are generally over 3 years or 5 years, however most breweries and pub holding companies will allow a short hold tenancy agreement in the first six months of taking over a pub. This is done to ensure both parties are happy to continue with the agreement. Pub tenancy agreements generally include cost of rent and when rent reviews become due, a cost for fixtures and fittings, wet & dry stock and a deposit. You should also be aware of structural repairs and who is responsible for them! This could include drainage, roofing issues etc.  Most Pub tenancy agreements will also included a tie on draft and bottled beers, ciders, lagers and stout. Spirits are normally free of tie. Make sure you always check your agreement and check what notice you are required to give if the business does not work, if in doubt seek legal advice.

What is a Leasehold Agreement?

Most leasehold agreements are similar to tenancy agreements however the lease term is generally for a term of 10 or 15 years. This means that you are responsible for rental payments for the term agreed unless the lease is sold or transferred to another individual. Generally leasehold agreements include the term "fully repairable" which means the lease holder is responsible for all repairs to the property. It is a very good idea to get a structural survey conducted by a Surveyor who knows the pub industry.

What is a Free House?

A free house is a pub that is managed by the owners and is generally free of any tie to a brewery. However some Free House's may have brewery ties or deals in place for cellar equipment rentals or brewery loans. Free houses may also be subject to a commercial mortgage or charge over the building. If you are considering purchasing a Free House a full structural survey is recommended.

alcohol licence training

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