The Black SwanMonxton

To Be or Not to Be a Community Pub?

AGENDA – Proposal for the Community Purchase and ongoing Management of the Black Swan Pub

• Objectives of the meeting

• History of the Pub

• Survey results

• Recent activities by MPC with Enterprise Inns and TVBC

• Overview of current premises

• Proposed new layout

• Proposed Investment approach

• Proposed management strategy

• Summary - Next steps

Objectives of the meeting

• To provide enough information to decide if the project looks viable enough at this stage to raise the money required

• To agree as a community we want to buy the pub as a community

• To confirm that local villagers are prepared to provide money to support the Fighting fund – target £20,000

• To ascertain who would be prepared to commit to buying shares in the new Community company which will purchase the pub

• To confirm who has the skills required for the first phase of the project to undertake Due Diligence and negotiations with Enterprise Inns

Survey results to dateHow important is a pub in the village?

• 80% of respondents feel a pub is important or very important in the village

How often would you use the pub?

• 39% of respondents would use the pub at least weekly, & 58% at least fortnightly

What additional services would you like the pub to offer?

• Coffee/teas/cakes during the day, take-aways, private dining room, live music, kids’ meals, village shop, library, quiz nights

What type of catering would you like to see at the pub? (multi-choice)

• Small, quality menu with local/seasonal, simple pub food; kids’ menu; gluten free options; frequent menu changes

Would you be prepared to help in any way?

• Fund-raising, volunteer; buy shares, offer professional advice, join the steering group, donations or loans, etc. Only 3 people don’t want to help

Key Issues To Consider Running A Community Pub

• Why did the existing pub fail and finally close?

• Can the community sustain and support the pub?

• A significant investment is required and need local investors?

• Are there needs for other local services which could be supported at the pub e.g. village shop?

• The role of the villagers and any volunteers to undertake any works FOC or serve on the steering group/board

• Investors and financial returns

Parish Council & The Community Assets• Community Asset orders placed on the Car Park and Village Green - signed off by TVBC

• Community Asset orders placed on the Pub - now in process

• Monxton Parish Council have requested a moratorium on the sale of the pub (package), which allows time to raise funds, create a plan to acquire the assets, create a business plan, get restructuring costs, hire personnel, etc. etc

• All other buyers are effectively blocked until 5 January 2017

• Any change of use application would be likely to fail on several grounds• De-licencing pub against TVBC policy

• Pub is a listed building and any changes would be subject to stringent consents and unlikely to succeed

• There is a SSE sub-station at the rear of the car park which would cost thousands to relocate

• Permitted development rights are removed for Assets of Community Value

Community Right To Bid – Village Assets

• Created in the Localism Act in September 2012

• Communities can ‘stop-the clock’ on the sale of valuable local assets and amenities

• Gives community time to put in a bid and protect it for the wider benefits of the

community.

• The owner is not bound to sell an ACV pub to a community group but must weigh that

against the risk of bad press and reputational damage.

• The owner is only bound to give time to the community group to bid for the pub. An

ACV will potentially have an impact on timing of a sale and at worst it will constrain

the ability to convert a pub to alternative use.

Work To Date• Letters of confirmation from MPC issued to TVBC to put into effect the moratorium for six months to the

5th January 2017 on the sale to enable a Community Bid to be assembled

• Photo Survey undertaken and PowerPoint walkthrough created and used for discussion with potential

partners/suppliers and grant funders

• Discussions undertaken with Head of Planning TVBC of proposed Community pub and changes required

to the building

• Pre-App advice request obtained for submission following creation of outline drawings

• Architects contacted and site meetings were arranged on the 19/8/16

• Heritage specialist contacted for Impact Assessment required for TVBC Listed building planning

application and site meetings were arranged on the 19/8/16

• Professional Pub management contacted for input on the Business plan/cost estimates/overheads/cash

flow projections meeting week of 15/8/16

The Future for the Pub

Current Layout• Kitchen at front – small and unsuitable

• Cellar area to left is wasted space

• No kerb appeal from outside due to layout

• ‘Lower bar’ is thoroughfare to other areas

• Main bar is small and jostled

• Rear dining area is unwelcoming

• Distance from kitchen to dining areas via customers at bar problematic for waiters

• Garden is not ‘embraced’ by the building

• Courtyard currently unused

• Staff areas split up and not easy to access

• Staff accommodation has no kitchen and is in poor condition

Next

Possible Future Layout• Enclose central courtyard for bar

• Bar area becomes ‘hub’ of pub

• Move kitchen to rear dining room

• Current kitchen becomes seating area around large inglenook fires

• Current cellar/store becomes small ‘snug’

• Increase dining areas to allow 60-70 covers

• Possible private dining area, if required

• Staff access is separate to customer access

• Refurbish staff flat and add kitchen

New Orangery Bar - Enclosed Courtyard –

Example pictures from Prime Oak Buildings

Black Swan – The Future• To have a pub that is the centre of the community – in every sense

• Provide a warm, welcoming and friendly atmosphere

• Serving quality, simple, seasonal food, locally-sourced where possible, at a reasonable price

• Well-kept cask & real ales, quality wines, interesting range of spirits and non-alcoholic drinks

• Different areas to sit, eat, drink, talk, socialise - in summer & winter

• To continue over 360 years trading as The Black Swan in Monxton

• To preserve and improve a historic building for future generations to enjoy

• Environmentally sustainable (e.g. solar PV panels, air source heat pump, LED bulbs etc)

Options For Managing The New Pub?

•Volunteer staff and management• In-house professional management team •Tenancy: sub-let to a professional operator

• Steering group/board for strategic decisions with community input

• Day to day operational decisions undertaken by Tenant• Monthly income stream from lease of pub• Risk bourn by the tenant and repairs their responsibility

Steering Group• Project-focussed initially and would then become the Management Board

once in business as usual mode

• Following skills required include:• Hospitality business experience (managing pubs and restaurants)

• Project management

• Digital Marketing

• Architects

• Commercial property

• Listed Building/design

• Financial

• Legal

Management of the Pub: Options

Employ a Manager & Chef on a PAYE basis

• Pros• More control for the

community committee

• EIS tax refund available

• Cons • HR issues with tax/employment

laws/pensions

• Typical one month notice for staff

Appoint a Tenant/Landlord on a long term lease with break points

• Pros• Risk lies with the tenant to the

greater extent

• Steady lease income stream

• Minimal HR issues

• Cons• Less control of the business

• NO EIS available

Other Services To Offer?

• Serve afternoon teas/morning coffees

• Library/book exchange

• Children’s Suppers (early evening)

• Creche evening – children to be looked after/entertained in snug whilst parents socialise in the pub

• Parcel delivery/collection point

• Village Shop – test concept in small front room, and if successful then dedicated building on car park/green

• Music/bands etc

• Take-Aways

Marketing: actually doing some for the 1st time

•New Web site using new domain names already purchased

• Facebook, Twitter, TripAdvisor, Google

• Special lunchtime deals for the Army HQ & senior citizens

•Brown signs on the key roads at strategic points: A303, 100 Acre roundabout and Salisbury Road

• Emailers based on collection of addresses

Fighting Fund – target £15k: pre-project costs

Based on the experience of others:

• Legal• Premises: surveys: historical assessments etc• Structural surveys• Detailed design docs to enable quotes to be obtained• CBS setup costs• Share issue• Loan applications• (Donations & grants)

How do Community owned pubs suddenly become profitable?

• Ability to source own beers and wines• Current low costs of financing• Community share offerings• Community support as volunteers & customers

Characteristics of community pubs looked at so far:• Substantial discounts to advertised pub sale prices• Modest refurbishment costs < 25% • Low levels of competition• Ability to raise +/- £150,000 from local community

Example Business model?

Example based on research to date:The Red DuckCOSTS: Finance Annual costsPurchase price: £300,000 Mortgage £200,000 £9,000 (Base +4%)Improvements: £50,000 Shares £150,000 £ 3,000 (2% interest)Total: £350,000 Total £350,000 say £15,000 Total

Pub operated by tenant:Rental paid usually pitched at +/- 12% of turnover

Annual Turnover: £100,000 Rental £12,000£150,000 Rental £18,000£200,000 Rental £24,000£250,000 Rental £30,000£300,000 Rental £36,000

What next?Hopefully we will have 6 months from the date the pub is listed as an ACV in which to consider making an offer for the pub, car park & village green.

Based on our discussion with other community groups:• We need a community group to run the project• Skills/experience and time needed at the moment:

• Due diligence process• Business Plan and Co-ordination• Property development• Pub management• Legal• Finance• Raising funds

The important thing is to make the right decision for Monxton - both now & longer term

How Can You Help?

• Funding – buy shares (minimum £50 – maximum £25,000)

• Funding – donations to the Community Benefit Society

• Assistance with obtaining grants

• Volunteers (specific skills required) – for the Steering Group

• Volunteers – to assist with renovations

• Community suggestions, enhancements, ideas

• Use your pub & encourage others to do the same!

Thank for your time