Wednesday, December 07, 2011

Add 15% contingencies to all your most pessimistic cost estimates and if you see your cashflows & P&L's still working out then consider why it's too good to be true. And walk away from any tied lease because the TRUTH is the ONLY people who make a tied premises 'work' are those who are hugely overtrading against the pubco's most optimistic expectations. Every Pubco's job is to make sure THEY take ALL the profit from every single site they own. It's YOUR job to do ALL the work for them while they take NO risk. If there's any slack left financially with the publican it's ONLY because YOU are doing a MUCH better job than the pubco can imagine anyone doing. IF you're making a decent living in terms of the amount of money coming in at the end of the year - don't feel good about it - you are still being ripped off. Your margins are shite because you're being charged DOUBLE what you should be for your beer and anything else the pubo has a finger in. You may be cash rich but that's just because you're selling more than your landlord thought was possible from your pub and they haven't got around to rolling you over at rent review. You might think I'm being disingenuous here but I'm not. Pubco's are in existence to kill you financially. YOU ARE BEING RIPPED OFF.

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