Martin Roslyn, chairman, Pub Accounting Company
What you would need to consider is the pubco's situation on the unit. They obviously feel that £45k is the optimum rent for the unit - although this is probably a starting offer and negotiations could take place. If that is the case you should, in theory, be taking £375,000 a year.
First of all, you have to decide if you have developed
blinkers. It is very easy to become set in your ways and throw in the towel. First of all, call in the area manager - ask him to provide you with sample menus, the costings and get him to take you to other pubs that he is responsible for that are in a similar location to you and are providing a food offer.
Discuss with your accountant a cash-flow and profit-and-loss forecast, considering the new rent deal with food, and without. Check the net result and remember to include
staffing, utilities, advertising and original food purchase. Only then can you have all the facts ready to show the area
manager if you decide against providing food. Remember that the introduction of food could help improve your wet sales.
It is always worth listening to other people at pubs where this has worked. After all, if you are able to increase sales, you will make more profit. With regard to handing back the lease, this really would be a drastic option and one I would not recommend. There is a value in your lease, and it is worth exploring all avenues for sale before you hand it back.
On the issue of Brulines, there are many pros and cons to think about, but, basically, if you have nothing to hide, you have nothing to lose. There are many benefits - for example, you can have access to the reports to check stock loss.
Having recently used Brulines in an HM Revenue & Customs enquiry to great effect, I am aware that it can help prove your records are accurate to relevant authorities.
