How to open a pub in the UK: a practical guide to running a pub (2026)

To open a pub in the UK, you first choose how you'll run it: as a manager, a tenant or leaseholder of a pub company, or by buying a freehold. Then you need three licensing pieces in place (England and Wales): a premises licence for the pub, a designated premises supervisor (DPS) named on it, and a personal licence held by that DPS. Add food registration if you serve food, plus insurance, a music licence and a solid business plan.

Most first-time publicans don't build a pub from scratch. They take on an existing one. This guide explains each route, what the "tie" means, what it costs and how to run the pub well once the doors open.

Ways to run a pub: managed, tenancy, lease or freehold

Costs are typical estimates for 2026 and vary hugely by pub and region.

What does "tied" mean?

A tied pub must buy some or all of its drinks (usually beer and cider) from the pub company that owns or leases it. In return, the rent is often lower than a free-of-tie rent.

The trade-off: tied drink prices are usually higher than you'd pay on the open market. That squeezes your drinks GP. Before you sign, compare the tied price list with free-trade prices and work out what it costs you per year.

The Pubs Code (England and Wales)

The Pubs Code has applied since July 2016 to pub-owning companies with 500 or more tied pubs in England and Wales. It gives their tied tenants rights to:

• clear information before signing or renewing,
• a rent assessment at least every five years, and
• in certain situations (such as a rent review or renewal), the Market Rent Only (MRO) option, which lets them move to a free-of-tie agreement.

The Pubs Code Adjudicator enforces it. Smaller pub companies aren't covered.

Scotland has its own law, the Tied Pubs (Scotland) Act 2021, fully in force since 24 June 2024, with a Scottish Pubs Code and a Scottish Pubs Code Adjudicator. Ask the pub company whether your agreement is covered.

Licences you need to open a pub

England and Wales (Licensing Act 2003)

1. Premises licence. This licenses the building to sell alcohol (and often to provide music and late-night food). Most existing pubs already have one. When you take over, the licence is transferred to the new holder. A brand-new pub, or big changes to hours or layout, needs a new application or a variation. Neighbours and the police can object.

Premises licence fees depend on the pub's rateable value:

Source: Licensing Act 2003 (Fees) Regulations 2005, as set out on gov.uk Alcohol licensing fee levels. Transferring a premises licence and changing the DPS cost £23 each.

2. Designated premises supervisor (DPS). Every pub selling alcohol must name one DPS on its premises licence. The DPS runs the pub day to day and must hold a personal licence. One person can be DPS for several premises, and the DPS doesn't have to be on site at all times, but should be contactable.

3. Personal licence. This lets a person authorise alcohol sales. To get one in England and Wales, you must:

• be 18 or over,
• pass an accredited qualification, such as a Level 2 Award for Personal Licence Holders,
• provide a basic criminal record check (DBS) and declare relevant convictions, and
• pay a £37 fee to your home council.

A personal licence in England and Wales doesn't expire. Staff behind the bar don't each need one, but every alcohol sale must be authorised by a personal licence holder.

Mandatory conditions apply to every licensed pub. These include no irresponsible promotions, free tap water, an age verification policy (most pubs use Challenge 25), smaller measures available (half pints, 25ml spirits, 125ml wine), and no sales below the cost of duty plus VAT.

Late night refreshment: selling hot food or drink between 11pm and 5am needs to be covered by your licence.

Scotland

Scotland uses the Licensing (Scotland) Act 2005, run by local licensing boards. A pub needs a premises licence and a named premises manager who holds a personal licence. Scottish personal licences last 10 years, and holders must complete refresher training within 5 years or the board must revoke the licence.

Northern Ireland

Northern Ireland's system is different. Pub licences are granted by the courts under the Licensing (Northern Ireland) Order 1996, and new pub licences have long depended on an existing licence being given up (the "surrender principle"). In practice, most new NI publicans take over an existing licensed pub. The system has been under review, so check the current position with an NI licensing solicitor.

For a full walkthrough of applications and timelines, see our pub licence guide.

Other legal requirements for opening a pub business

• Food business registration: if you serve any food, register free with your council at least 28 days before you start (or when you take over).
• Food hygiene rating and allergens: you'll be inspected. You must be able to tell customers about the 14 allergens in your food. Keep an allergen matrix behind the bar.
• Music licence: playing recorded or live music usually needs TheMusicLicence (from PPL PRS).
• TV: a TV licence, plus a commercial (not home) subscription for sports channels.
• Gaming machines: pubs with an alcohol licence for drinking on the premises can have one or two category C or D machines by giving written notice to the licensing authority and paying the set fee (Gambling Act 2005, s.282).
• Tips: under the Employment (Allocation of Tips) Act 2023, from 1 October 2024 you must pass all tips and service charges to staff in full and fairly, and have a written tipping policy.
• Employment: right-to-work checks, National Living Wage, payroll, and employers' liability insurance (a legal requirement once you employ staff).
• Fire safety risk assessment and health and safety basics, including cellar gas safety.
• Business rates (check for hospitality relief in your nation), and VAT registration if turnover goes over £90,000.

How much does it cost to open a pub?

Typical estimates for a tenancy or lease of a mid-sized community pub:

Typical estimates only. Pub companies publish an expected "ingoing" figure for each pub. Ask for it in writing.

Big ongoing costs: rent, drinks and food stock, wages, energy, business rates, repairs, insurance, music and TV licences, and card fees.

Running a pub: what makes the numbers work

Know your GP

Gross profit (GP) is what's left after the cost of the drink or food, as a percentage of the price excluding VAT.

• Wet (drinks) GP depends heavily on whether you're tied. As a typical estimate, many pubs aim for 55–70% across all drinks.
• Food GP targets are often 60–70% (a typical range, not a rule).

Work out each product's GP with our free drinks GP calculator and food GP calculator.

VAT: drinks and food served in a pub are standard-rated at 20%. Small pubs on the VAT Flat Rate Scheme use a 6.5% pub rate. See our VAT guide for more.

Food lifts takings

A good food offer brings in families, midweek lunches and Sunday trade. If you don't want to run a kitchen, a kitchen residency (a chef or street food trader runs your kitchen and keeps food sales) adds food without the risk. See our pop-up restaurant guide.

Make ordering faster

Busy Friday nights lose sales at the bar. Customers give up on a second round if the queue is long.

Order at the table with a QR code. Guests scan, order drinks and food from their phone, and the order goes straight to the bar and kitchen. Menuthere offers table QR ordering with bill joining, so a group can add to one tab. Each dish can carry its 14-allergen tags and calories, which guests see when they open it. QR codes and allergen tags are on the Free plan, with 0% commission. Card payments go to your own Stripe account (Lite plan and above). Menuthere sits alongside your till; it doesn't replace your EPOS. See our pub ordering system and order and pay at table.

Take pre-orders for big days. Sunday roasts, Christmas menus and match days sell out faster when customers pre-order. Pre-orders and table booking are on Menuthere's Lite plan (US$17 a month, with a 7-day free trial; a card is needed to start).

Fewer queues, bigger rounds. put a QR code on every table.

Create your free ordering page

Plan your staff

Wages are usually your biggest cost after stock. Build a weekly rota around your busiest hours with our free staff rota maker.

Running a pub with no experience: is it possible?

Yes, but start with a low-risk route.

1. Work in a pub first. Even six months behind the bar teaches you stock, cellar work, cashing up and dealing with customers.
2. Take a course. Pub companies covered by the Pubs Code must advise new tenants without pub experience to complete pubs entry training, and many other pub companies ask for it too. Industry bodies such as the BII run these courses. You'll also need the personal licence qualification.
3. Start with a management partnership or short tenancy. You'll put in less money while you learn.
4. Talk to current tenants. Ask other publicans of the same pub company how the tie and support really work.

How to open a pub: step by step

1. Decide your route: managed, partnership, tenancy, lease or freehold.
2. Get experience and training, including the personal licence qualification.
3. Find a pub. Look at pub company listings, specialist pub agents and freehold sales.
4. Write a business plan with a three-year forecast. Show drinks and food sales separately (the "wet/dry split").
5. Check the numbers. Compare tied and free-trade prices, rent, rates and energy costs.
6. Get advice. A licensing solicitor for the agreement, an accountant for the plan, and a surveyor for the building.
7. Apply for your personal licence (£37 in England and Wales) and arrange the premises licence transfer and DPS change.
8. Register your food business with the council if you'll serve food.
9. Sort insurance, music and TV licences, and suppliers.
10. Set up your tech: till, card machine, QR table ordering and an online ordering page for pre-orders.
11. Plan a relaunch and tell the community. Locals decide if a pub lasts.