Hostel chain says pubcos are the obstacle to franchise vision
Journeys says it has spoken to several licensees who are keen to convert part of their pub into a hostel but have been unable to secure landlord’s consent to make adaptations to the building.
The company says its plan to offer franchise deals with pubs would increase footfall to the bar and add an extra stream of revenue.
Its founder says he wants to show the pubcos the strength of interest in his business model by offering licensees a template letter to send to their landlord.
Dean D’Eye said: “There are thousands of pubs out there with empty accommodation space that could be making a profit for the licensee and the pubco. I don’t understand why the pubcos won’t listen.
“I recently saw a pub where the licensee was all raring to go and the pub was perfect for conversion. With the accommodation upstairs and by reconfiguring the ground floor we could have fitted a 120-bed hostel in there and still kept a thriving bar. It was a good location and we would have had no problem filling that. But the landlord said no.
Innovation
“I see cases like this all the time. I’ve got a list as long as your arm of people at Punch and Enterprise that I’ve talked to but they’re just not interested in something new.
“I’m hoping that if enough publicans get in touch they will understand that there is real potential out there.”
D’Eye said the franchise model would involve help in obtaining finance for the conversion, which he estimated would cost £150,000, and would include access to the booking service. He said franchisee training, which takes approximately three weeks, would also be offered.
Journeys currently operates five hostels in London and the south east. D’Eye said his most popular in King’s Cross takes in £20,000 on a good week.
Success
He said: “The story of failing pubs is a very familiar one but this could be a real success story for the industry and a future model.”
No one from Enterprise Inns or Punch Taverns was available for comment when approached by the Publican’s Morning Advertiser.
To find out more about the offer and to read the template letter go to www.visitjourneys.com.
