Originally posted on 29/01/2019. Updated on 15/03/2019.
If you’re considering investing in a franchise, you may have only explored traditional ‘safe bets’ such as restaurants, fast food outlets, convenience stores and retail outlets. However, there are now several bar franchises operating in the UK that have proven themselves a good investment, and could offer a healthy return on investment if managed efficiently.
Operating a bar or pub isn’t for the faint-hearted and involves late nights and great social skills. Because bars play an important role in any community, investors should make sure that they are ready to serve many different types of people, work hard and be devoted to their business. Running a successful bar can be not only personally rewarding but financially rewarding too.
Why start a bar franchise?
Although the franchise model is not traditionally associated with pubs and bars, in recent years it has become a popular way to expand businesses across the country. This change has occurred for several reasons. Most significantly, the cost of starting your own bar or restaurant has risen considerably, making it unaffordable for most investors. Also, the industry has had to evolve because of economic conditions in recent years.
What’s more, drinking habits have changed. While this could have had a negative impact on the industry, an increased demand for affordable food in pubs and bars has compensated for the decline in people drinking there. By providing cheaper meals, pubs have been able to grab the attention of a younger clientele who want to socialise but can’t afford high-end food. In fact, a recent YouGov poll revealed that under-25s and 25-34-year-olds were the two groups most likely to eat in pubs.
On the other hand, a different type of drinking establishment has also flourished by targeting higher-income, young professionals and those living in wealthier city neighbourhoods. These new bars focus on providing a stylish social experience that looks good and tastes fantastic. Here, we’re going to look at two franchises and explore why each can be considered an exciting opportunity for potential franchisees. While Lateo Boutique is at the beginning of its franchising journey, looking for franchisees interested in developing more sophisticated drinking establishments, Veeno demonstrates how franchising is enabling a very different type of bar to expand.
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Pub and Bar Franchise Opportunities
A fairly recent addition to Point Franchise’s catalogue is the premium drinks bar, Lateo Boutique, which offers high-end and artisan spirits, ales and coffee. Aiming to provide a space where people can sample quality alcoholic and non-alcoholic beverages, rather than being just another bar where people go to get drunk, Lateo Boutique boasts 60 different types of gin and hosts a selection of rare beverages that are difficult to come by elsewhere.
The bar franchise is really a drinks outlet of many guises - a bar by night but a café by day, where friends can meet in a relaxed atmosphere. As a result, it holds a number of different licences, including Lateo Bistro Bar, Lateo Café and Lateo VIP. Lateo Boutique can even cater for weddings and events, setting up a temporary bar to add a touch of elegance to your special day.
Looking to build on its successful franchise model, Lateo Boutique is actively looking for franchisees. Motivated and presentable applicants with an interest in retail and hospitality are particularly welcomed. With a minimum investment of just £10,000 and a total investment of £12,000, this bar franchise is eminently affordable, and can generate a revenue of £200,000 after two years, offering good value for money.
After investing, franchisees will gain access to the brand, licence support and marketing, but securing a site, infrastructure and stock will be further expenses. Franchisees will also benefit from initial and ongoing training, as well other forms of support like event days and seminars.
Ex-soldier, Gary Edwards has recently seen success after joining Lateo Boutique. After serving in Afghanistan, Edwards decided to further his career in the UK by opening his own Lateo Boutique franchise in South Shore, Blackpool. Believing that the area could be improved with the launching of new outlets, Edwards hoped to bring more people to the area to boost its reputation. Having accomplished his goal to open a successful franchise, Edwards is now looking to expand the branch by taking on more staff and introducing a food menu, something which he hopes to achieve in 2019.
Rather than building on the UK’s traditional drinking establishments, Veeno takes inspiration from European drinking cultures. Veeno states that its business concept focuses on creating a ‘gateway to Italian culture’ and has spent the last few years setting up Italian-style wine-cafés around the country. So far, this has been incredibly successful, allowing the business to grow by 800 percent in the last three years.
As the first wine bar franchise of its kind, Veeno has carved a unique space for itself in an extremely competitive market. By emphasising authenticity and staying true to its original aim of providing a genuine Italian aperitivo experience, Veeno has established itself as an alternative to the traditional British pub. It has achieved this by carefully vetting its franchisees, using strict criteria to select locations for its stores and maintaining high standards.
In terms of its franchising model, Veeno has tried to create a system defined by flexibility. Offering different packages depending on whether a franchisee is setting up in a small town or a big city, Veeno is committed to reducing obstacles to investment. This means that they’re willing to discuss franchise opportunities with those who may not yet have the funds to cover all the initial investment.
One of the most exciting aspects of the Veeno franchise model is its ambition. Though the business has spread quickly across the UK, there are still plenty of opportunities to open new bars and Veeno hopes to expand abroad in the coming years. With plans to open new establishments in Ireland, Scandinavia and the Far East, it’s clear that the Veeno franchise does not suffer from a lack of vision or determination.
Alice Tuffery, Point Franchise ©