The system requires all new lessees to set out a clear action plan for their first year in business, which will include the income they expect to generate on a monthly basis and how they expect to generate that revenue, an analysis of local competition and detailed cash flow projections.
The plans will have to be signed off by an independent accountant or business advisor. To this end S&NPC has negotiated a set £250 business planning and approval service with three separate accountancy firms.
Chris Sladen, head of business support for S&NPC, said the scheme will help new lessees to form “a more realistic view of running a pub”, and dissuade unsuitable candidates from entering the industry.
“We need business-minded operators who want to make the pubs their own and need [business development managers] to help them add value to their pubs rather than tell them what to do,” said Sladen.
“The level of planning involved will single out high calibre applicants who have the capability to take ownership of a business venture.”