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Idea 15

Licensing a pub is licensing a kitchen you cannot see.

The Farmer’s Dog works because of an all-British sourcing rule, a hundred and forty staff and a landlord who is there. Two of those three do not travel, and the one that does is the one most likely to be quietly dropped in year two.

The argument

What would actually be licensed, and what would not.

  1. The sourcing rule travels. It is the only thing that does.

    Every ingredient from these islands is a rule that can be written down, audited and enforced from a distance. It costs a licensee eight to fourteen per cent on food cost and it is verifiable from invoices without setting foot in the building.

    It is also the only part of the proposition a customer can check, which makes it the only part worth protecting.

    License the rule, not the recipes.

  2. The kitchen does not travel.

    A menu is a set of instructions carried out by people you did not hire, at a standard you cannot see, on a Tuesday when it is quiet. Every pub group in Britain has discovered this and most of them have responded by simplifying the food until it can survive anybody.

    That works and it produces a pub that is fine. Fine is not what this is.

  3. And the landlord definitely does not travel.

    The single largest factor in whether a pub is any good is whether the person running it is in it. A franchise model selects for people with capital, and capital and presence are not the same quality and are frequently opposites.

  4. So the honest structure is a licence with a very short leash.

    Three-year term, one two-year renewal negotiated fresh. Quarterly invoice audits on the sourcing rule. Immediate termination for a sourcing breach with no cure period. Ninety-day sell-off, not eighteen months. And a cap of about six sites, because seven is where somebody starts talking about a central kitchen.

    The clause that decides a licence is the sell-off period, and it is the one nobody reads.

Side by side

Three ways of doing it.

FranchiseLicenceManaged
Capital required from us None None All of it
Control of the food Contractual Contractual Total
Speed of rollout Fast Fast Very slow
Sourcing rule enforceable
Kitchen standard enforceable
Damage if it goes wrong Severe Severe Contained
What we would actually do
If it existed

What a licensee would have to accept.

ClauseTerm
Sourcing Every ingredient from these islands, audited quarterly from invoices
Audit Four unannounced visits a year, at our cost
Term Three years, one renewal of two, negotiated fresh
Sell-off on termination 90 days. Not 18 months
Breach of sourcing Immediate termination, no cure period
Menu approval Every dish, in writing, before it goes on
Suppliers Yours, not ours, and no commission to us from any of them
Sites Capped at six across the whole licence
Central production Prohibited entirely
Named operator On site, and named in the agreement
The honest bit

A pub licence is the fastest way to turn a good pub into a chain of adequate ones, and the sourcing rule is the only part of it robust enough to survive the journey. The defensible version is six sites, three-year terms, ninety-day sell-off and unannounced invoice audits. The indefensible version is the one that pays better, and it is the one that gets offered.

Idea 15

The pub licence, at a glance.

Six sites, capped

Seven is where a central kitchen appears.

Three-year term

One renewal, negotiated fresh.

90-day sell-off

The clause that actually decides it.

Not available

This is documentation, not an offer.

The bigger version of the question.

What the name is worth and what it costs to get back.

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