Punch launches new business scheme to attract lessees

Punch Taverns has launched a new scheme to encourage university graduates and entrepreneurial types to enter the pub trade.

'Capital Builder' is the pubco's latest project to entice talented individuals who lack the commerical expertise or financial backing to run their own pub, said Suzy Jackson, Punch's letting director.

Anyone joining the scheme has to undergo the pubco's 'Foundation for Success' training course, but could ultimately get to own their fixtures and fittings (F&F) as well as a cash deposit without stumping up any cash payments themselves.

Jackson said that on the basis of the pubs available - 236 sites so far - under the scheme newcomers could earn back around £18,000 over two years.

The pubs include city centre bars, 'mid-market locals' and food sites. Jackson said around a quarter of the pubs available through the scheme have earnings potential of between £20,000 and £30,000 in sales, with 12 per cent making more than £30,000.

"The new partner will need to provide funding for training and cash flow, but unlike other pub tenancy agreements, the individual is not asked to pay a deposit to secure credit terms or buy their F&F," she added.

"They will then build up capital based on the beer volumes they sell until they reach the point that they own the F&F and the deposit."

Jackson went on: "Capital Builder is a valuable investment that will help us to set the right people up for long term success, incentivising them to perform well. Ultimately, we want to retain talented, committed licensees who are right for their pub and passionate about developing their business.

"We're confident that this will give us a strong route to attract talented people into the industry so that we can capture new ideas and grow our pool of talent."