Tenancy case studies

The Prince of Wales, Reigate

Licensees Theresa and Keith Wild are reaping the rewards of a £120,000 revamp at their pub. The couple have been at the Prince of Wales in Reigate since 2003, and decided last year that it was time for a makeover.

They approached Shepherd Neame, and the brewery gave the go-ahead for the refurbishment last September. Once owned by British Rail, the pub, situated next to Reigate station, dates back to the 1850s, and was used in the 19th century to house railway workers.

Care was taken to keep the pub’s character and original features when undertaking the revamp, which included repainting inside and out, new furniture, new carpets and new wall furnishings. The pub also offers bed and breakfast accommodation, and its four en suite rooms boast a stylish yet traditional look.

Keith said: “I had managed a pub before but the Prince of Wales was our first as licensees. We picked it as it was in a great location, and there was lots of scope as it had a large beer garden and accommodation.”

The couple’s instincts proved correct, and they have enjoyed great success during the past decade, boosted in recent months by the makeover. Keith said: “It looks so much nicer outside, and as a result we are attracting a lot more customers, particularly women. Everyone has been really complimentary about the new look, and it is a great place to work.”

The success of the refurbishment has also inspired Theresa and Keith to expand their food offer. The couple previously only served traditional pub meals and snacks from noon to 2pm, but are now offering an evening menu, served from 5.30pm to 8.30pm. The Princely British Tapas menu features classics with a twist, including a hand-turned pork pie with home-made red onion marmalade, Spitfire sausage chunks with Houses of Parliament sauce, and a free range Scotch egg.

They have also been influenced by the pub’s railway heritage in the style of their new menu, with the starters section renamed the ‘Waiting Room’, and desserts titled ‘The End of the Line’. And for customers on the go, there is the new Gateaux Express, offering hot drinks and pastries to take away, including coffee created by bean-to-cup barista machines as part of the brewery’s new Coffee & Ale House Brand. Keith said: “The refurbishment didn’t just change the look of the pub, it completely transformed our business.”

Flying Horse, Smarden, Kent

From karaoke to cricket, the Flying Horse pub in Smarden, Kent, is at the heart of  community life in the picturesque village. While relocating your family to such an idyllic country setting may be a dream for many, Phil and Nancy Sheppard were under no illusions that they were opting for an easy life when they took over the Flying Horse pub in Smarden, Kent.

For the Sheppards, the tenancy with family brewer Shepherd Neame is an opportunity to raise their two young sons in a village environment at the same time as building a successful business. “Of course, running a pub is hard work, but there’s a great sense of community in Smarden,” says Phil.

Having previously worked as a manager at a busy Shepherd Neame city centre pub,  Patrick Casey’s Ale House in Canterbury, as well as managing pubs for Whitbread and Yates’s, Phil has no shortage of experience. “The Flying Horse is different in some ways; while it’s seen very much as ‘the local’ where people on the village come for a drink, it also has a busy food trade. Fortunately, we inherited a very good chef, and every pub I’ve run has done well, so I was confident about taking on a new challenge.”      

Patrick Casey’s Ale House more than trebled weekly sales when Phil managed the pub from 2001 to 2006. After a period away from the licensed trade during which he worked part time while looking after the couple’s first son, the roles have now been reversed. Phil, as licensee, is the front-of-house host at the Flying Horse, while Nancy, who has an accountancy background, combines managing the books with looking after the boys.

The centuries-old pub has a traditional feel, with oak beams and an open fire and is thought to get its name from a racecourse which stood opposite until 1863. The ‘Flier‘, as the pub is known locally, is a traditional rural community pub at the heart of village life. “Smarden is a very active community,” says Phil. “There are plenty of societies and organisations in the village, such as the WI, as well as a football and cricket team.”

While this strong sense of community means the village takes a keen interest in who runs their local, the Sheppard’s arrival has been welcomed. “There was a feeling in the village that the pub wasn’t particularly family-friendly in the past. We’ve put in few sofas to create a more informal area, and generally tried to make the pub more appealing to the whole community, including young families. The village has been very supportive of what we want to do here.”

Regular events at the pub now include a quiz night, karaoke, “which is very popular in the village” and live music, with plans to introduce an acoustic night. Minor refurbishments inside and out have included new outdoor furniture in the pub’s patio garden. “It’s not a huge area, but we want to be able to make the most of it when the weather allows,” says Phil.

Shepherd Neame made taking on the tenancy very straightforward, he adds. “We were very clear about our business plan, and we’ve had very good support from our district manager, John Barnes. As we develop the business during the year ahead we’ll be calling on specialist support from Shepherd Neame as we need it.”

Shepherd Neame offers a wide range of specialist support for licensees in tenanted businesses. Food development and digital marketing, including free access to a web site to promote the pub, are among the services recently added. This enhances existing support, which includes wine, cellar management and beer quality, training for both licensees and staff, and professional services including legal, licensing and financial advice.

Bear Inn, Faversham, Kent

Chris and Marie Annand are licensees of the oldest pub in Faversham - The Bear Inn. Dating back to 1478, the intimate Shepherd Neame pub still retains its traditional look and character, and offers a tranquil haven from the busy market place outside.

Chris and Marie have been with Shepherd Neame for 16 years, and at The Bear Inn for the past three. It is their second time running it after choosing to return following a six year stint at a country pub.

Chris said: “We took our first pub with Shepherd Neame in 1998 - the Mechanics Arms in West Street, Faver-sham. We ran that for nearly two years, then moved to The Bear in 2000. We left here in 2005 to take on The George at Newnham, as it was bigger and more food-led. In 2011 we came back to The Bear as temporary licensees for what was meant to be a three month period, but within two weeks we realised we liked it as much as the first time, and decided to stay. It is a really traditional pub, with a friendly, community atmosphere which we love.”

The couple’s hard work to maintain that welcoming feel was recognised in the summer when they received the Heart of the Community Pub of the Year award at the annual Shepherd Neame Pub Awards. Judges praised the large number of events they have organised or hosted, from charity golf days and sports quizzes to themed food tastings, WI meetings and Scrabble, darts and crib events.

Chris said: “We were delighted to be honoured by the brewery. As demonstrated by the length of time we have been with Shepherd Neame, they really are a fantastic company to work for.” Chris cites the support provided by their Business Development Manager Chris Gouldson as a key element of the pub’s success.

Chris said: “We run The Bear Inn as a partnership. It is my business but anything I need, he is there straight away. I’ve never had any problems with any of my BDMs during the past 16 years with Shepherd Neame. ”

They also attribute the quality and variety of the Shepherd Neame beer on offer as a major draw for customers. Chris said: “As you would expect from a brewery, the standard of the beer from Shepherd Neame is superb, and it is delivered here in a fantastic condition. We get a lot of support from the brewery‘s Trade Quality Service team, who send round a representative every six weeks to check that the cellar temperature is right and our beer quality is of the highest standard.

“We also really benefit from the choice of beers on offer. In addition to the classic range they offer all year round, such as Spitfire, they offer a monthly seasonal beer of their own and every couple of months they offer a choice of six beers from microbrewers all over the country.” The Bear Inn serves traditional homemade lunches every day, with evening meals also available from Tues-day to Thursday. Marie and Chris source their meat from award-winning Faversham butcher A.J.Barkaway, with fruit and vegetables from Macknade Farm Shop in the town.

Chris added: “We feel it is important to support the local community not only by hosting a range of events, but by taking advantage of the wealth of great local produce available.”we make to support our tenants in developing their businesses. In some cases we joint-fund projects by matching tenants’ investments.”


Duke of Cumberland, Whitstable, Kent

The licensee of a busy Shepherd Neame pub in trendy Whitstable is relishing the opportunities provided by taking a tenancy with Britain’s oldest brewer.

Tony Tarrats, of the Duke of Cumberland, moved from a freehold restaurant to become a Shepherd Neame licensee and has not looked back.

Tony runs the historic town centre pub helped by fellow licensees Sarah Smith and Annie Foreman. The pub’s popularity is due to their hard work and enthusiasm – and the continual support of Shepherd Neame.

The tenancy model gives licensees the opportunity to take charge of their own business for relatively low start-up investment, providing Tony with the opportunity to develop a significant business in the heart of the popular seaside resort without having to buy an expensive freehold.

“Thanks to our tenancy agreement with Shepherd Neame, we have a fantastic building which is the best in the town and includes a hotel, restaurant and the biggest bar in Whitstable,” said Tony.

The business partners need not concern themselves with an issue that frequently plagues freeholders: the maintenance of such an old building. There has been a pub on the site for more than 300 years and the current structure dates back to 1878. While they are responsible for interior décor, fixtures and fittings, Shepherd Neame’s property team provides expert care for the main fabric and exterior.

Shepherd Neame has a tenanted estate of around 300 pubs and hotels across the South East. It offers prospective licensees a huge choice of properties, many listed, from country inns to bustling town centre bars, community locals to seaside hotels and gastropubs to established live music venues.

They are encouraged to develop each pub’s individual offer, while remaining confident that they have the backing of a team of experienced professionals, committed to the success of their business.

Tony said: “We have lots of our own ideas and it’s refreshing that the brewery lets us do things our way.”

Tony’s cites his relationship with his business development manager, (BDM) Mike Davies, as another reason why the partnership succeeds. Business development managers are in regular contact with their licensees, offering help and advice.

In an independent survey by Elliott People, 88% of Shepherd Neame licensees said that they were happy with their relationship with their BDM.

The brewery supplies a wealth of technical support, including web-based marketing and licensing support, plus facilities to create bespoke promotional literature such as menus and table cards.

There are also workshops on a range of subjects, including customer service, sales and merchandising, liquor and food management. In a him! survey, 90% of licensees agreed that brewery training courses were useful, helpful, relevant and well-conducted.

Tony’s business has access to a range of wines sourced direct from carefully-selected family vineyards, many exclusive to Shepherd Neame. The Wine Development Manager advises on wine range, pricing and promotions as well as providing wine menus and tent cards.

Licensees also have the advantage of being able to offer their customers distinctive traditional Kentish cask ales and international lagers, including sought-after brands such as Spitfire, Samuel Adams and Asahi.

Licensees are able to tap into Shepherd Neame’s economies of scale, obtaining favourable terms on a number of products and services, including food and snacks, catering equipment, uniforms, dishwashers and dispensing gases. To assist in marketing, point of sale and display materials are also made available.

Tony said: “Shepherd Neame listens to what we say, gives advice if we need it but allows us to follow our own business path. I like the fact they are a family brewer, because our business ethos is run along family lines, too.”

Belle Vue, Pegwell Bay, Kent

Award-winning licensees Tony and Shirley Pearson are on top of the world after landing their dream pub on a clifftop overlooking Pegwell Bay.

“I have always had an eye on the Belle Vue Tavern,” said Tony. “It is in a stunning location with wonderful views and is a great pub, the only one I would have made the move for.”

Tony, from Wimbledon, and Shirley, from Margate, met after Tony moved down to Kent and “fell in love” with the county. Tony started in the licensed trade 22 years ago in Hythe, working forWhitbread, and went on to open several restaurant pubs for them before joining Morlands in Oxfordshire.

The couple returned to Kent to run a very successful restaurant pub in Kingsgate for 13 years, where they won many awards including The Publican’s Family Pub of the Year, The Morning Advertiser’s Managed House of the Year and The Publican’s Good Food Children’s Menu of the Year.

Now Tony and Shirley, both 54, are bringing that winning formula to the 17th century Belle Vue Tavern “Our aim is to improve the food and bar trade with a view to getting listings in the major pub and food guides,” said Tony. “We have brought a young chef with us, Steve Harris, who has worked for us for eight years. His creativity and presentation are coming on in leaps and bounds and we are bringing in a second chef to help him.”

The menu of good quality traditional pub food is all freshly-prepared on the premises and uses fresh, seasonal produce whenever it is available.

“We get most of our vegetables from Nash Farm, two miles away, our meat from butcher Keith Young in Newington and cod, sole and skate from local fishermen whenever possible,” said Tony.

The Belle Vue Tavern has a 32-seat restaurant with magnificent sea views and is refurbished in contemporary style with wooden tables and high-backed leather chairs.

There is also room for casual dining in the pub’s country kitchen style bistro area off the comfortable and cosy bar which is warmed by a log fire.

Grove Pantry Pub & Inn, Canterbury, Kent

How we got here

We started the business back in July 2006 and it took us until September 2007 to find our first site, the Wiremill in Felbridge, Surrey. We hit the right note with this one and, in late July 2009, acquired our second site, the Grove Ferry, this time in Kent. It’s a rural mansion house built in 1831 which sits on the Stodmarsh Nature Reserve in the Stour Valley, eight miles from Canterbury and six miles from Herne Bay.
The building had great character, but had been neglected over the years and the business was on its knees. The whole place was tired, boring and didn’t give you a feeling that you wanted to be there. Food covers averaged 150 per week, net sales were £3,000 on a good week, the concept was dated and the food microwaved.
We have invested more than £200,000 replacing all the carpets and inside furniture, renewing the kitchen equipment, bar fittings and pumps and installing new log burners. The roof had to be renewed at a cost of £100,000, funded by Shepherd Neame. We have also just spent £10,000 upgrading our six bedrooms.

Achieving business growth

The idea was to roll out the same concept we’d delivered at the Wire-mill. Shepherd Neame had confidence in us, as we had the track history, but they didn’t believe the concept could work at the Grove Ferry. We were sure it would and it has.
Word of mouth is the strongest piece of marketing in any industry, but especially in ours. People think they have to be on Facebook, have a Twitter account, have an all singing and dancing website, which is true, but I think they forget that people do still talk.
So, we get people talking about us by doing something to make them smile, such as going into the towns dressed as cows, or by going the extra mile, by creating little bags of waste bread for visiting kids to feed the ducks. Our view is similar to that of Starbucks; we are the third place after work and home.

Standing out from the competition

We are never happy and are always picking holes in the business, months before our customers comment. We stand out because we are true to our offer; nothing is hidden behind the scenes. What we do is honest and people appreciate that.

Bar talk

We are tied to Shepherd Neame, so limited on lines we can stock, but they offer enough of a range to keep us interesting. Cask ales are also a big feature for us and customers can buy any of the ales they have tried in the pub to take home. Lagers include San Miguel, Oranjeboom and Peroni.
In terms of wine, we offer 37 bins including British and New World, ranging from an entry level price of £11.95 up to £34 a bottle. With the exception of a few of the top-end varieties we also sell all of our wines by the glass.Menu philosophy
Our menu is British and consists of a mix of more unusual dishes and classics.
We feature cooking times on the menu, to manage expectations. Our freshly-cooked meals take 25 minutes to prepare. It’s been a really difficult learning curve for customers, which we have almost cracked at the Wiremill, but still have some way to go with at the Grove. The menu changes seasonally.

On the menu:

Oven-baked rainbow trout stuffed with crayfish tails and tomato salsa (£14); slow braised beef and ruby beetroot in a Guinness sauce with a horseradish crumble topping (£14); butter-roasted supreme of chicken with wild mushrooms and bubble and squeak cake served with a banana shallot and tarragon sauce (£13).

Best-selling dishes:

Starters: soup (£5) chicken liver and wild mushroom parfait (£5.50); cranberry and apricot Stilton cheesecake (£5.50).
Mains: Fish and chips (£11); beef Wellington (£16); roasted best end of pork (£14).
Desserts: Triple chocolate brownie (£5.50); cinnamon and apple sponge (£5.50); seasonal cheesecake (£5.50).

Two most profitable dishes:

Fillet steak and roasted best end of pork.

Best food event:

Our menu tasting sessions. We don’t really do events as they take time to organise and don’t really deliver anything exceptional to the bottom line, but we do hold a secret open house for our menu tastings. These are normally on a Sunday night when all the staff, their families and the locals come in. We get to show off our new dishes and customers get the chance to have their say before they appear on the menu.Ten best ideas

Butcher’s block deli counter

We had a large empty space, unsuitable for seating, so we decided to extend the kitchen out by offering our meats on display on a counter. We bought some butcher’s block counters and then created a shop using the ingredients we needed in the kitchen, but also adding things like chutneys, eggs, sauces and local cakes to the offer. The counter is open every day and has grown and grown in recent months to the extent that we are looking to have an in-house butchers shop selling meats to go, including Christmas turkeys.

Steak service area

The butcher’s block concept is giving a twist to our steak offering. We found some amazing local farms, via Preston Family Butchers, and decided that it would be great to offer customers a choice of steak, size, cooking style and accompaniments. The butchers’ block is a great piece of theatre.

Desserts on a stick

We sold 10,000 take-away ice creams, such as Magnums and Feasts, this summer, making 80p net profit on each one.


Offering pregnancy-friendly dishes is beginning to make us a name locally and with foodie magazines. It came from personal experience. When my partner was pregnant she would look at a menu and say “can’t have that, that or that,” making us realise how little thought is given to pregnant women. Our menus are designed to be inclusive so we decided to create some dishes that could also be enjoyed by the pregnant amongst us.

Yummy Academy

We have started a new staff training academy, across the two sites, in partnership with CPL Training. It’s an e-learning system that allows staff to be trained before they even enter the building on areas such as fire safety, customer service and food handling. It gives them access to everything the industry can offer and is beginning to make inroads into educating the whole team.


Our promotional team has a concept that is a bit off the wall — the team dress in cow outfits and drive around in a white 4 x 4 handing out flyers and newsletters — but it’s going down a storm. We use QR codes for people to scan and get prizes, stand in fields with billboards and play spot the cow competitions online. The next idea is to ride the trains between Canterbury and St Pancras handing out flyers to the commuters. Last time we did this the website received 10 times the daily traffic.

Stour Valley tourist outpost

We are home to one of the first outpost tourist information points in the country; a brand new initiative working with Visit Britain and Tourism South East to promote rural pubs to Europe and foreign visitors. The outpost is located in our outside toilet block (much nicer than it reads!) and Visit Britain have just been granted funding to support the project over the next three years.

River trips

There used to be a boat taking people up and down the river from the pub. We found it, derelict, on the Isle of Wight, so we teamed up with two retired policemen and bought it, created a new landing station at the pub and now run trips throughout the week for groups of up to 10 people. The boat is an eco-friendly electric launch and a fantastic asset to have.

Great British picnic

This was suggested by a member of staff as a great way to cater for the large number of private and corporate bookings we receive. Hampers are laid out on the tables with a selection of savoury scones, mini fish and chip cones, pies and burgers and a selection of British tapas. The concept allows us to cater for much larger parties as most of the food is pre-prepped and, at £19 per head, is going down very well.

Bike hire

We have invested in a local bike hire company so that, from next summer, we will have 40 bikes available for customers to hire to explore the local countryside. Plus we have people walking our gardens and the local area, drumming up business for both the bike hire and boat trips.

Pub facts

Tenure: Lease with Shepherd Neame
Website: www.thegroveferry.co.uk
Wet:dry:accommodation split: 37:55:8
GP food: 70%, but we work to cash margin as opposed to GP
GP drink: 55%.
Total covers: Inside, 140; outside, 300
Average weekly covers: Summer: 4,000; winter: 800

Castle Hotel, Eynsford

An enterprising couple have transformed the Castle Hotel in Eynsford with the help of Shepherd Neame.

Licensees Sharon and Gordon Thompson moved in last September, and took a bold approach to their new tenure by closing down for a 14 week, £90,000 refurbishment, jointly funded with the brewery.

Originally known as the Harrow Inn, the historic building dates back to the early 19th century, with the first record of the Castle Hotel in 1904.

Its decor had become tired, but the pub has now been lovingly refurbished to meet the demands of the 21st century customer.

The bar and dining areas have undergone a contemporary yet classic makeover, with comfortable leather Chesterfields sitting alongside re-conditioned furniture in soft tartans. The use of natural materials and subtle stag and antler motifs on cushions and light fittings complete the understated Caledonian chic and feel of a country house hotel.

A trained chef with previous experience as a property developer, Sharon designed and project-managed the refurbishment.

She said: “We have had pubs, restaurants and hotels all over the country for 26 years. We chose to take on this hotel as it is situated in the lovely Darent Valley and we saw the opportunity for a successful hospitality business in beautiful surroundings.

“Our aim was to keep the original features but make it a safe, light airy space.

“In an effort to be accessible, we are open all day, serving food all day, and everyone is welcome, including dogs.”

The couple have created a signature menu for the pub, putting their own spin on classics such as homemade beef burgers and beer battered fish and chips, and introducing a new selection of sweet and savoury sharing platters, all using locally sourced produce.

They are also completely refurbishing the pub’s seven bedrooms, which include standard doubles, a family room and a suite, in keeping with the pub’s contemporary, classic new look.

Gordon and Sharon currently have 10 members of staff, including their three adult children Leanne, Charlie, Elizabeth and teenage daughter Molly, but due to the huge surge in customer demand, are now taking on another trainee chef and more front of house staff.

Sharon added: “We have been incredibly busy since re-opening, but without that investment from Shepherd Neame there’s no way we could have been as successful.

“We were previously at the Kings Head in Wye, also a Shep-herd Neame pub, and have been really impressed with how much support the brewery provides for people like us who have an entrepreneurial vision but not enough financial backing to do it on our own.”