Cannon Gateshead

435 Durham Road, Gateshead, NE9 5EX

  • Cannon Gateshead
  • Cannon Gateshead
  • Cannon Gateshead
  • Cannon Gateshead
  • Cannon Gateshead
  • Cannon Gateshead
  • Cannon Gateshead
  • Cannon Gateshead

Cannon Gateshead

Popular Community Pub - Refurbishment Planned

The Cannon is located in the Low Fell area of Gateshead. Gateshead is a town in Tyne and Wear, on the southern bank of the River Tyne and opposite Newcastle. Leafy Low Fell is one of Tyneside's most desirable residential locations and the pub sits on a corner plot on Durham Road, the main thoroughfare through the area. The Cannon is Low Fell's oldest pub dating back to 1826 giving it real history and is in a busy area alongside other bars and restaurants. The already popular community pub is due to undergo refurbishment in late 2019, early 2020, which would see it transformed into a premium local and allow the pub to diversify it's appeal to include a more upwardly mobile customer base including professional couples and families.

The pub is currently 100% wet-led with a more value led offer and is known for being very lively at the weekend. The pub has a catering kitchen and post refurbishment Star Pubs and Bars would like to see a good quality food offer introduced along with a complimentary drinks offer, including a premium spirits range and cocktail menu to broaden the appeal of the pub and provide an additional income stream.

Operator with Food Experience and Local Knowledge Wanted

We are looking for an operator who has good local knowledge and experience in introducing a food offer. You will have experience in operating a successful pub business and be ready to work with Star Pubs and Bars to allow the Cannon to reach its full potential.

Pub Features

  • Rolling Tenancy
  • Function Room
  • Refurbishment Planned
  • Catering Kitchen
  • Live Sports
  • Outdoor Trade
  • Pub Games
  • Weekly Billing

Trading Area & Facilities

Currently the Cannon is a traditional style pub sitting on a corner plot and has a well maintained traditional interior. On the ground floor is the main bar area featuring a horseshoe bar with mixed seating surrounding it and a pool table. Upstairs is a function room with 2 more pool tables. The kitchen is also upstairs and can cater for approximately 50 covers. There is an attractive beer garden to the rear, which adds extra appeal in the summer months.

Post refurbishment the Cannon's interior will be transformed and showcase a refreshed, contemporary interior decor complete with new or revamped fixtures & fittings and soft finishes throughout. The outside will also undergo a facelift, which will see much improved kerb appeal through a new lighting & signage scheme.

Applicants should be aware that all refurbishments are subject to final board approval which will be determined as part of the leasing process. Where a significant investment is made in a pub by Star Pubs & Bars, an "Investment Exemption" will be required. The exemption means that the option of a Market Rent Option lease won't be available at rent review for a period of up to seven years for this site, as per The Pub Code (2016).

Private Accommodation

There is no private accommodation.

Premises Licence Details

Please refer to the Premises Licence for full details.

Premises Licence Opening Hours

Mon Tue Wed Thu Fri Sat Sun
10:00 - 23:00 10:00 - 23:00 10:00 - 23:00 10:00 - 23:00 10:00 - 00:00 10:00 - 00:00 10:00 - 23:00

Financials

Annual Rent £
67,500
Estimated Annual FMOP (Licensee Profit) £
67,978
Representative HEINEKEN UK Brand Discount Per Barrel £
150
Estimated Annual Turnover £
802,682
Estimated Annual Barrelage
361

“The above figures are provided as a guide only and will be finalised as part of the commercial agreement (please download the rent model from Trading Information section for full financial details).

** All figures quoted are exclusive of VAT

*** FMOP = Fair Maintainable Operating Profit

Investment

Ingoing Costs
Estimated Licensee Fixtures & Fittings Value £
56,000
Estimated Fixtures & Fittings Valuation Fee £
250
Estimated Stock Valuation £
6,000
Deposit Amount £
16,875
Rent In Advance £
1,298
Training Fee £
1,000
Estimated Designated Premises Supervisor / Manager Fee £
50
Premises Licence Fee £
295
Rates Assessment Fee £
55
Estimated Legal Fees £
650
Estimated Total Ingoing Costs £
82,368
Estimated Minimum Ingoing Costs £
19,445

In order to ensure a successful start-up, all applicants must have a minimum £10,000 un-borrowed funds.

The Estimated Licensee Fixtures & Fittings (F&F) Value assumes that the pub will be let on a Rolling Tenancy or Business Start-Up Agreement, where we own the majority of the F&F. The F&F Value for Full Repairing & Insuring Leases will be significantly more.

The calculation of the Estimated Minimum Ingoing Costs assumes a minimum deposit of 1 month's rent or £3,000 (whichever is greater) and that fixtures and fittings (F&F) are rented. The subsequent deposit build up and F&F rental costs are not included in the rent model or ongoing costs below.

Other SP&B Ongoing Charges
Estimated Annual Buildings Insurance £
2,578
Estimated Annual Maintenance Compliance Charge £
1,473
Estimated Annual Accountancy & Stocktaking Charge (including tills) £
6,108

The above figures are provided as a guide only and will be finalised as part of the commercial agreement (please download the rent model from Trading Information section for full financial details)

* All figures quoted are exclusive of VAT

** Deposit build up will be payable over a maximum of 24 months

*** Fixtures and Fittings annual rental fee should be estimated at 15% of the F&F value. The actual F&F value will be determined on the day of entry

**** Maintenance Compliance Charge relates to the fees for various statutory inspections

***** Estimated Legal Fees is a charge applied to your account by SP&B for creation of your Lease. You are required to engage and pay for your own solicitor - your solicitor's fees are not included in the above estimate

****** The above figures assume that rent is billed weekly in advance and that Star Pubs & Bars retain ownership of large fixtures and fittings. Initial costs for a Fully Repairing and Insuring lease will be higher as rent is invoiced monthly in advance and all fixtures and fittings must be purchased