New publicans: The Next Generation

Beer DUTY is crippling, breweries are pushing up prices, banks are closing their doors. Supermarkets and the smoking ban are keeping punters at home, and then there's the recession. Why, at a time when 39 pubs a week are closing, would anyone want to become a licensee?

Well, there are plenty who do. It's a new year, it's a new decade and with the number of pubs closing, down from 52 at the end of 2009, there is good news for the trade. National newspaper headlines may have painted a gloomy picture of the industry, but it hasn't put new blood off taking on pubs.

And if you want to take the plunge and are lucky enough to have the savings or cashflow not to need a bank loan, the recession is a blessing in disguise. Extras can be bargained for and rents agreed at knockdown prices. The key is finding the right pub.

We caught up with three licensees who are not only new to their pubs, but new to the trade to see what had attracted them to the pub industry, and how it was going.

Paul and Liz Jackson, the Crown Inn, near York

Paul Jackson and his wife Liz took over the Crown Inn in December last year, on a 15-year free-of-tie lease with Wellington Pub Company.

"My wife and I met in a restaurant 12 years ago, although we've only been business partners for a month or two," says Paul. "We have 25 years' experience between us of running restaurants, both chains and independents, and each has its benefits. Chains are very structured, and teach you a lot about paperwork and costing. Independents teach you to think on your feet. So I've had to learn cellar work, but most other skills we can transfer from the restaurant trade.

"We'd been looking for a pub for four years, but only seriously for seven or eight months. The Crown had previously been the Yorkshire Life magazine pub of the year, but had failed after it switched licensees at the end of 2004. In taking over, all we needed to do was give it some TLC and put in 150 per cent to give it a comeback.

"Pubs that are closing are ones on overpriced rents set five years ago. Now, you can negotiate the rent. The recession meant we got a good deal, and when things pick up, we'll still be on a reduced price. We also negotiated for all the fixtures and fittings, and got them for 25 per cent of the original asking price. We didn't borrow any money to start the business - we piled all our savings into this.

"One hiccup was that we had planned to lease kitchen equipment but couldn't because we were a new business. We didn't budget for it, so we had a small panic. But in the end we negotiated to buy the existing equipment from the lease company, for 10 per cent of what it's worth.

"We changed the business plan because of that extra cost - it ate into capital, so we had to open quickly. We were originally thinking January, but we did up the whole place in three weeks. After getting the keys on November 26, we opened on December 21.

"This is the right village, the right pub, the right people and the right rent. People moved to this village for the pub 10 years ago, so they want it to be open. Everything is in place for us to be a success."

Jenni Sherratt, the Woolpack, Elstead, Surrey

Jenni Sherratt and her husband Peter took over as tenants of the Woolpack in early December last year.

"This is something I'd always wanted to do, and perhaps had been thinking about for the past 20 years, but the opportunity never arose, and my career went in a different direction," says Jenni.

"At the time we were keeping our options open, looking for another business opportunity, and this pub had potential - the Woolpack is on the green of a large village in a thriving Surrey community. We've known it for years and live in the local area.

"It used to be busy here, but for the past four or five years it's not lived up to its reputation.

"Neither me nor my husband have a background in the pub trade. For the past 10 years we've been in business together in the shop-fitting industry. Our backgrounds mean we already have business and finance skills. In terms of cellar work, Punch Taverns does a course, and we also have a good cellarman.

"We got the keys to the pub on December 10. The previous tenants wanted to leave very quickly and so instead of moving in January as planned, we had to step in early in December, meaning we've not had an opportunity to start changing things.

"This meant we inherited some problems. But in retrospect it was a blessing and we benefited from the extra income. Lots of people visited at Christmas too, so we got to meet a lot more of the locals than we might have done.

"We're local to the area, so that was a motivation too, but our main hope is that any business we take we're able to turn around and make viable."

Nigel and Janet Matthews, the Prune Park, Bradford

Nigel Matthews leases the Prune Park from the Punch Taverns, and moved in on November 2.

"I've come from the plumbing and tiling business. Prior to taking this place I'd run my local pub for three months in the evening through a tenancy-at-will agreement. It got me into it, and I gradually wound my other business down," he says.

"I've swapped my early mornings for late nights. But I like not having to get up at the crack of dawn and drag myself out into the cold. It's a lifestyle change, but it's nice not to be crawling about on my hands and knees all day.

"The road we're on is a rat-run between Allerton and Wilsden. Because there are no nearby houses it's been a bit more difficult to get people in, but we've put posters up at either end of the road to help.

"We got the keys to our place on November 2. Over the Christmas period takings fell because eight inches of snow meant our road was closed. We opened on Christmas Day, but takings were lower than we'd expected. This isn't make or break for us though - we'll have a cushion from the sale of another property once it goes through.

"We chose this place because it has a restaurant, a bar, a games room and a function room, plus an outdoor area. It's nice to run a big pub with a mixture of areas. We also have free wi-fi, and advertise it, because people come here for business meetings, often from the hospital nearby. We can board off the function room downstairs to use it as a meeting room.

"I enjoy the people aspect of this most, but it's amazing how much work there is behind the scenes.

"I do a lot of that work myself, and although that means I do more, I'm able to keep my overheads low for things like plumbing and decorating. I can often fix the kitchen equipment without calling someone out.

"Plumbing and tiling is all about how you sell yourself, and it's the same with pubs. It's like they say, a pub is only as good as who runs it."