Ale Hub Franchise

Ale Hub is a family-owned business, set up in September 2020 by the McDiarmid family, to offer a different and distinctive pub experience.

Our goal is to revitalise the local pub scene and provide the community with a choice of refreshing and well-kept beverages in a relaxed and friendly environment. We do not have TVs or fruit machines, but instead we have a focus on building a local community, where customers who start out as strangers become friends after spending many an enjoyable night with us.

There are no longer enough good quality wet-led pubs in the industry, with most of the larger corporate chains being more focused on selling food. This is why there is a gap in the market for a great quality pub.

Now expanded to 9 bars in and around the West Midlands area, Ale Hub offers a range of craft ales and quality lagers, together with gins, wines and cocktails, in a traditional ale bar environment. Ale Hub bars are generating revenue more than £1.5M a year (net of VAT) and have shown steady growth.

The opportunity

This is an exciting opportunity to join a family-run business in the thriving hospitality industry. Our pubs are not bland corporate pubs, they are vibrant and a great place to go to make new friends. A positive attitude and great people skills are a must in order to build the community feel that we want.

Through our own trial and error we have worked out the perfect formula for how your Ale Hub needs to look and feel. While all Ale Hubs are slightly different we will provide the framework for the layout and location.

We have unique data and metrics to help you locate your ideal Ale Hub site. Our team will be able to help you through every stage of the fit out process and advise on what everything should cost. This ensures you are not being overcharged by any contractors.

Due to providing a premium product we are therefore able to price accordingly, which allows us to preserve our margins when other pubs are losing theirs. We also operate in smaller units which allows us to keep overheads low which makes us more durable if there are any surges in energy bills or other economic challenges.

Our executive team will be there every step of the way to help you build your Ale Hub into a successful business. We want to integrate you into the Ale Hub family and enthusiasm for the industry is a must.

Investment

The average start-up cost is £81,300+VAT.

This includes Franchise Fee, deposit for property lease, premises license and planning permission, and pub fit out costs.

Our ongoing management fee is 10% of revenue, however this operates on a sliding scale so the higher the revenues of the Franchise, the lower the management fee percentage is.

We have established relationships with banks and other sources of business finance that can provide up to 50% of the initial start-up costs. You will also require £5,000 working capital to cover the cost of the initial stock order prior to opening.

We are doing an introductory offer so the Franchise Fee for the first three Franchisees is currently only £17,995 as opposed to the usual £25,000.

What can I expect to earn?

A typical revenue of £200k with costs of £178k would give a profit of £22k. A typical revenue of £300k with costs of £231k would give a profit of £69k. The costs figure includes the wages of a manager working 40 hours per week, so if the franchisee works in the business themselves, they can add a further £25,000 to their earnings.

It is possible to earn significantly more in Year 1 depending on the effectiveness of the marketing and how quickly word spreads about the new Ale Hub.

*These figures are based on the performance of existing Ale Hubs and are not a guarantee.

Ideal Partner

No hospitality experience is required. A positive attitude and great people skills are a must to build the community feel that we want.