Another one bites the dust

[ringi]

I can't speak for the Marple micropubs but can for those in another area (in SE London). It's not so much as a new business model as an uneven field where the micropubs are set up on areas where premises can't get tenants, and often have been unoccupied for a long time. The micropubs them strike a very favourable deal with a desperate landlord for a fixed time period after which they are free to renegotiate but the expectation is the micropub will go and find somewhere else that is desperate unless they are offered another chance of a peppercorn rent. Other costs are often minimised e.g. with the local authority in exchange for moving into an area that needs revitalising.

Empty shops make it hard for the landlords to rent out any shops on the road; therefore getting tenants is well worth it.
Landlord also have to pay rents on empty shops, so any rental income is worth having, just to save the rate bills.   Often the flat over the shop rents out for enough to cover the mortgage.

The Milk Shake bar in Marple looks like it has now closed, maybe its cheap rent has come to an end, or no one wanted to buy cold drinks in winter.

[corium]

Perhaps the new business model works better 

I can't speak for the Marple micropubs but can for those in another area (in SE London). It's not so much as a new business model as an uneven field where the micropubs are set up on areas where premises can't get tenants, and often have been unoccupied for a long time. The micropubs them strike a very favourable deal with a desperate landlord for a fixed time period after which they are free to renegotiate but the expectation is the micropub will go and find somewhere else that is desperate unless they are offered another chance of a peppercorn rent. Other costs are often minimised e.g. with the local authority in exchange for moving into an area that needs revitalising.

[Dave]

I suspect the micro pubs are making an even bigger profit per pint than it may appear, because they will be buying their beer on the open market at much lower prices than those paid by pubs that are tied to a brewery.

Looking around Marple at what is going on at Robbie's pubs, it's not hard to see that there is some rationalisation afoot.  Some struggling pubs are being allowed to go to the wall - Travellers, Royal Oak (Strines) - while others are scheduled for investment and upgrading (Royal Oak and the Devonshire in Mellor). 

Let's hope it works. 

[Russ]

You bet it does!  Compare the likely rent and overheads of the new micro pub on Stockport Road, with the running costs of a normal pub such as the Royal Oak (Strines) or the Travellers Call!

Yes, the prices they charge must help as well.

If the Oak & Travs could have got away with charging similar they would have easily covered their overheads & made a healthy profit. More likely they would have closed sooner.

Any plans been put forward for the Oak building/land?

[Dave]

Perhaps the new business model works better than the old one.

You bet it does!  Compare the likely rent and overheads of the new micro pub on Stockport Road, with the running costs of a normal pub such as the Royal Oak (Strines) or the Travellers Call!

[mikes]

What will happen to the Royal oak now? I passed by yesterday & saw a for sale sign, for development.

All these pubs closing while the micro pubs are opening & charging quite a lot more.

Perhaps the new business model works better than the old one. 

[amazon]

What will happen to the Royal oak now? I passed by yesterday & saw a for sale sign, for development.

All these pubs closing while the micro pubs are opening & charging quite a lot more.

Will see how long the micro pubs last ,

[Russ]

What will happen to the Royal oak now? I passed by yesterday & saw a for sale sign, for development.

All these pubs closing while the micro pubs are opening & charging quite a lot more.

[sgk]

I drove past the Royal Oak on Strines Road this morning and noticed that all indications of it being a public house have disappeared. Has it closed down?

Looks that way.  Last update on their facebook page was 15-Nov
https://www.facebook.com/royaloakstrines/timeline


And its page on the Robbie's site has gone.
https://www.robinsonsbrewery.com/royaloakstrines


No reply from Robinsons either.

[Harry]

I drove past the Royal Oak on Strines Road this morning and noticed that all indications of it being a public house have disappeared. Has it closed down?