Punch hands graduates the keys to the bar

Punch Taverns has launched an initiative to give graduates the reins of a pub for as little as £5,000.

The initial deposit goes towards training the would-be landlords in every aspect of pub life and provides them with a five-year lease.

236 pubs have been earmarked for the ‘Capital Builder’ scheme, over a quarter of which have potential earnings of £20,000-30,000 and a further 12% could earn over £30,000.

Suzy Jackson, Punch’s letting director explained: “We are keen to attract new talent into the industry and recognise that there are some great entrepreneurs out there who don’t have the commercial expertise or financial backing to take on a pub,"

“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 fixtures & fittings (F&F).

“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,” she said.

The scheme will allow licensees to build up capital at a regular rate. For example, every barrel of ale, lager and cider sold will see Punch pay £50 into an account in their name.

The budding entrepreneurs could earn up to £18,000 in as little as two years and end up owning the venue outright, once a certain amount has been reached.

At the end of the five-year tenancy the graduates will have the choice of either keeping the money and moving on or staying and converting to a long-term lease.

Punch Taverns is obviously hoping to hold on to those that prove themselves to have what it takes on the pub circuit.

Jackson continued: “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.”

Roger Whiteside, managing director of Punch Partnerships, the group’s leased business, added: “It’s aimed at anyone who is prepared to work hard and get their hands dirty running a consumer-facing business. It’s an exciting but very challenging environment.”

Rupert Millar, 09.03.10