Ale Hub is a family-owned business, set up in September 2020 by the McDiarmid family, to offer a different and distinctive pub experience.
Our goal is to revitalise the local pub scene and provide the community with a choice of refreshing and well-kept beverages in a relaxed and friendly environment. We do not have TVs or fruit machines, but instead we have a focus on building a local community, where customers who start out as strangers become friends after spending many an enjoyable night with us.
There are no longer enough good quality wet-led pubs in the industry, with most of the larger corporate chains being more focused on selling food. This is why there is a gap in the market for a great quality pub.
Now expanded to 9 bars in and around the West Midlands area, Ale Hub offers a range of craft ales and quality lagers, together with gins, wines and cocktails, in a traditional ale bar environment. Ale Hub bars are generating in excess of £1.5million (net of VAT) per year as per latest accounts (end of March 2024).
The opportunity
This is an exciting opportunity to join a family-run business in an area of hospitality that is thriving. Our pubs are not bland corporate pubs, they are vibrant and a great place to go to make new friends. A positive attitude and great people skills are a must in order to build the community feel that we want.
Through our own trial and error we have worked out the perfect formula for how your Ale Hub needs to look and feel. While all Ale Hubs are slightly different we will provide the framework for the layout and location.
We have unique data and metrics to help you locate your ideal Ale Hub site. Our team will be able to help you through every stage of the fit out process and advise on what everything should cost. This ensures you are not being overcharged by any contractors.
Due to providing a premium product we are therefore able to price accordingly, which allows us to preserve our margins when other pubs are losing theirs. We also operate in smaller units which allows us to keep overheads low which makes us more durable if there are any surges in energy bills or other economic challenges.
Our executive team will be there every step of the way to help you build your Ale Hub into a successful business. We want to integrate you into the Ale Hub family and enthusiasm for the industry is a must.
Benefits of buying a pub franchise over a pub tenancy
- Own a business that you can sell for an EBITDA multiplier. In a tenancy you give the pub back to the brewery when you want to end the tenancy, or you can attempt to sell it to somebody else. With a franchise you own the whole business so can get a much better price.
- Achieve a better work/life balance, work as many hours as you feel comfortable with. Most tenants work 50-60 hour weeks to make ends meet and can’t afford to put a manager in as well. With an Ale Hub Franchise you can put a manager into the pub and still earn a living.
- Keep 100% of your profit. Most tenancy’s are profit share agreements with the brewery being able to adjust the agreement in order to take more profit for themselves or set higher targets for the tenants.
- Build your customer base from the ground up. As a new business you can create a space for your ideal clientele, as opposed to taking on a tenancy with an existing clientele which may not be what you are looking for.
- Brand new pub built from scratch so no historic negative reviews or preconceptions. Existing pubs will have preconceptions from customers from past tenants so it may be tricky to win back old customers if the previous tenant did not do a good job.
- Choose location that suits you (with our approval). We are building a brand new pub so can choose the location, a tenant will have to move into a pub that has a vacancy which may not be in area they want to travel to.
Investment
The average start-up cost is £81,300+VAT.
This includes:
- Franchise Fee - £25,000*
- Deposit for property lease - £5000*
- Premises license and planning permission - £1300
- Pub fit out costs - £50,000
*Special introductory offer - we are reducing the Franchise Fee for the first 3 partners to join to £17,995 + VAT. This brings the average start up cost down to £74,295+VAT.
Our ongoing management fee starts at 10% but is on a sliding scale which reflects the yearly increase in revenue.
We have established relationships with banks and other sources of business finance that can provide up to 50% of the initial start-up costs. You will also require £5,000 working capital to cover the cost of the initial stock order prior to opening.
**This figure is based on a 3 month rent deposit for a standard unit, your unit cost may vary.
What can I expect to earn?
Based on the performance of existing Ale Hubs, a typical revenue of £200K with costs of £178,200 would give a profit of £21,800. And revenue of £300K with costs of £231.900 would give a profit of £68,100.
These figures are not a guarantee but for illustration purposes only as it will depend on franchisee performance. It is however possible to earn significantly more depending on the effectiveness of the marketing and how quickly word spreads about the new Ale Hub.
Also, the costs figure includes the wages of a manager working 40 hours per week, so if the franchisee works in the business themselves, they could add a further £25,000 to their earnings.
Ideal Partner
No hospitality experience is required. A positive attitude and great people skills are a must to build the community feel that we want.
Interested and want to know more?
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