Dreams dashed

Michelle Perrett warns against rogue recruiters exploiting potential licensees.

To a person wanting to get into the pub trade their ideal may be to run an East End boozer such as Eastenders' Queen Vic or a country pub like the Woolpack in Emmerdale. It is often people's dream to become a landlord and run their own pub.

Being a pub landlord can be a very rewarding career and there really is very little that can beat being your own boss. But don't forget the hours are long, or that you need to be multi-skilled in everything from pulling a pint to managing accounts while also being a friendly face.

And be aware that there are several rogue operators looking to take advantage of people's inexperience. The Publican has been inundated with complaints from potential licensees who have dealt with rogue recruitment companies. These ask people to part with thousands of pounds for the promise of training and a placement in a pub of their dreams - and their failure to come up with the goods causes upset and distress.

Many people say they are still waiting to be placed and some say they have been offered lists of pubs that are not even trading or were in a very bad state of repair. Some have paid up to £7,000 to then find themselves out of pocket as some of these companies have taken the money, gone into receivership, then set up again elsewhere.

Most potential licensees have been trained in the National Certificate for Licensees by an external reputable firm but the practical training these recruitment companies offer means working salary free for another licensee. It is not the full training they would receive from a reputable pub operator and if they are eventually placed in a pub, it is generally not of the type promised.

The new licensee is expected to pay a bond up front for stock - which means forking out at least another £1,000 - and many find that instead of a steady job they are on a Tenancy at Will. This is a contract in which they can be asked to leave at any time - meaning they would then be jobless and in many cases, homeless as well.

The recruitment companies generally do not own their own pubs but may act as a manager for a small group of pubs from one of the larger pubcos. The problem is that for a pubco to farm out these pubs to a management company generally means they are failing pubs with little future within their estates. Most pubcos have agreed not to use these companies, but some still continue.

In an industry that has a skills shortage, and pubcos constantly on the lookout for new operators, these methods are hitting the trade hard.

It is not all bad news, however, as the Department of Trade and Industry (DTI) has launched a probe into such companies following The Publican's investigation at the end of last year. It has already wound up the first such company. The DTI believes these companies are breaking employment law and has said it will consider looking at any pubcos that use them.

Be on the alert for these rogue recruitment companies - they may advertise in the national press. They rely on people who are desperate to enter the pub trade and naive enough to be taken for thousands of pounds. There are easier and more cost-effective ways to get started in a pub than to pay out large sums of money simply to be offered a rundown boozer, in any case.

Advice​

People complaining to The Publican about training companies have lost up to £7,000. A potential licensee would be better off investing that money into a tenancy agreement.

To avoid the pitfalls:

• Never pay money up front to a company offering services such as training and recruitment
• Ask to see lists of the pubs available and then check them out. Many people calling The Publican say pubs on lists they have been given by these companies are not actually available
• Speak to people who have been through the procedure and check they are happy
• Get a solicitor to look through any agreement you are about to sign.

An essential guide to the pub business​

This is an extract from the Run Your Own Pub guide, which has been published by The Publican. This is the guide for anybody wanting advice on getting into the trade, taking on a pub, or information on financing your venture.

To find out more, click here​ or call Mark Ratcliffe on 020 8565 3094.