The Black Swan Monxton. To Be or Not to Be a Community Pub?
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1 The Black Swan Monxton To Be or Not to Be a Community Pub?
2 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
3 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
4 Survey results to date How 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
5 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
6 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
7 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.
8 Work To Date Letters of confirmation from MPC issued to TVBC to put into effect the moratorium for six months to the 5 th 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
9 The Future for the Pub
10 Current Layout Next 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
11 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 covers Possible private dining area, if required Staff access is separate to customer access Refurbish staff flat and add kitchen
12 New Orangery Bar - Enclosed Courtyard Example pictures from Prime Oak Buildings
13 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)
14 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
15 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
16 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
17 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
18 Marketing: actually doing some for the 1 st 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 ers based on collection of addresses
19 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)
20 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
21 Example Business model? Example based on research to date: The Red Duck COSTS: Finance Annual costs Purchase 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 Rental 18, ,000 Rental 24, ,000 Rental 30, ,000 Rental 36,000
22 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
23 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!
24 Thank for your time
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