Why Community Pubs Work
Why are community-owned pubs thriving despite the challenging times for UK pubs?
Community pubs serve a dual purpose: they aim for financial sustainability by generating a modest profit surplus to ensure the business's long-term viability, and they provide significant social and economic advantages to the community. Community-owned pubs thrive by harnessing the collective energy, resources, and passion of the communities they serve, establishing themselves as more than just businesses, but as vital components of the local social and cultural fabric.
Community Support
Community-owned pubs often have strong local buy-in and support. They become more than just places to grab a drink; they become social hubs. They often host events, fundraisers, and activities bringing people together, creating a sense of belonging and camaraderie. The more Members the greater the likelihood of success. This support can translate into regular patronage, volunteer assistance, and financial backing.
Free Houses
Community-owned pubs are not owned by breweries or pub companies so they do not pay high rents and they are not tied to purchasing contracts. This gives them the flexibility to negotiate better terms and prices from the most competitive suppliers. They are also free to provide the catering menus they choose and to work with local suppliers.
Skilled Support
The Management Committee of a community pub benefits from having people with real-world experience and skills in business and across finance, marketing and operations. They work within a disciplined governance structure as committed executive advisors to the tenant. They are typically resilient in the face of challenges and are able to maintain a positive outlook.
Shared Ownership
When the community owns the pub, local patrons feel a sense of ownership and responsibility towards its success. This typically leads to increased engagement and commitment from members of the community, who may actively participate in The Society's decision-making processes and volunteer their time to help run the pub.
Support From Public Bodies
Experts such as The Plunkett Foundation help community pub leaders to get expert advice and guidance from those involved in the running of established community pubs, and they provide advice on supportive bodies and legislation.
Financial Stability
Community ownership can provide financial stability to the pub. Instead of relying solely on profit margins, community-owned pubs may receive financial support from members, grants, or community fundraising initiatives. This stability can help weather economic downturns or fluctuations in business.
Flexible Business Models
Community-owned pubs can be more flexible in their business models. They may be able to adapt more quickly to changing market trends, customer preferences, or community needs because decision-making is often decentralised and responsive to local input.
Long-Term Stability
Community-owned pubs are often motivated by more than just short-term profit. They tend to prioritise long-term sustainability, both environmentally and economically, ensuring that the pub remains a viable and valued asset for future generations