MANAGED HOUSES

A managed house cannot be regarded as your own pub, and is therefore outside the scope of this book. However, for the sake of completeness a brief explanation of this type of pub operation is given below.

What is a managed house?

A managed house is a pub owned and operated by a brewery or pub company. All the staff are employed by them and they retain all profits. Managers are appointed by the brewery or pub company to run the pub on their behalf under strict guidelines and supervision. Managed houses tend to be high turnover, high profit pubs that the brewery or pub company want to maintain direct control over.

What’s good about running a managed house?

Running a managed house is an opportunity to operate a high turnover pub without the risk of business failure. You will receive a set wage and earn a bonus if things go well. Major decisions are made by the brewery or pub company and they are responsible for paying the bills. The pub is run to a preset formula which includes staffing levels, choice of suppliers and product range. Managers are recruited by the Managed House department of the brewery or pub company.

Managers undergo comprehensive training prior to appointment and on an ongoing basis. The skills, experience and discipline gained while managing a pub are extremely valuable. These skills can be very successfully applied to running a pub business, like a tenancy, lease or freehold.

Some managers do not want the pressures of being self-employed and are happy in their existing roles. The lack of risk and a guaranteed income are very attractive to them. They would rather manage a pub on someone else’s behalf than have one of their own. Professional pub managers are highly sought after and often enjoy long, rewarding careers with breweries and pub companies.

An employee

Running a pub as manager means you are an employee. You are employed and supervised by someone. You will not have the freedom or flexibility to make decisions or gain the rewards from building up or selling on a successful business. Your efforts may well be someone else’s rewards. You may also feel that the levels of supervision and rules and regulations are too stifling.

Whether you feel that managing a pub is appropriate for you will depend on your attitude and your circumstances at the time. Managing a pub will be your only option if you do not have sufficient capital to acquire one of your own.