Punch Pubs pub boss defends plans to demolish White Horse in Felixstowe in face of objections

By Derek Davis

21st Jun 2021 | Local News

A Punch pub boss has defended its decision to try and demolish the White Horse in Felixstowe and replace it with a shop, flats and houses.

East Suffolk council planners have so far received more than 185 objections to Punch Pub's application to demolish the White Horse public house in Old Felixstowe and for the erection of a convenience store on the ground floor and four apartments on the first floor, and the erection of two bungalows with associated parking and landscaping.

The owners insist the 17th century pub is no longer viable and believe a shop and flats would be a btter use of the Church Road building.

Punch Pubs managing director, Andy Spencer said: "I can confirm that we have made the decision that the White Horse pub no longer fits within the long-term plans for our pub estate.

"We have applied for planning permission to change the use of the pub to that of a convenience store, which we believe will serve the community well.

"The planning process enables local opinion to be voiced."

Objectors to the plan point to the pub's community use, its historic links to the town, and position opposite a church and the pub's historic stables.

They also argue a shop and more housing wold bring about traffic and parking issues.

Punch argue a convenience store, which would be open between 06.00 - 23.00, seven days a week would be popular. It also argues there would be an increase of jobs from five full and part time to 11 full and 11 part time

The pub owners claim it can be demonstrated that the current, or alternative community uses are not viable and marketing evidence is provided which demonstrates the premises have been marketed for a sustained period of 12 months in accordance with the Commercial Property Marketing Guidance or the development would involve the provision of an equivalent or better replacement community facility either on site or in an alternative location in the vicinity that is well integrated into the community and has equal or better accessibility than the existing facility which meets the needs of the local population.

Punch claims the pub was suffering a declining trade, even before the pandemic lockdown, with a significant drop in revenue in 2019. Businesses such as the one run at White Horse have been unable to compete in the current market due to the lack of a food offering and declining wet sales resulting in the business as loss-making.

In its design statement Punch Pubs claimed the level of capital investment required to get the property into a condition in which it could attempt to trade competitively and maintain a sustainable level of trade, has been estimated at a figure of £131,246.

An ingoing operator may want to replace the existing equipment and fixtures and fittings within the pub. The likely start-up costs an operator would concur would be approximately £20,900. In addition, statutory compliance checks are required prior to re-opening the business and an allowance for new appliances is likely to be required. The cost of these is likely to be £1,850. The total capital cost required for the Property to trade competitively and maintain a sustainable level of trade, in the future exclusive of repairs or major structural works, is estimated to be in the region of £153,996.

From the total annual turnover of £221,620 calculated from annual barrellage and other income including wine, spirits, minerals, food/sundries and an AWP machine. A gross profit, if operated on a free of tie basis, of approximately £132,363 per annum, is estimated. The general costs of running the business inclusive of wage is estimated to be around £121,734 per annum generating a profit of £10,629 even before any rent. With market rent deducted the pub would be loss making. This clearly does not allow the operator to have a sufficient reward for his efforts.

A profit margin of 4.8% of net turnover before rent or interest payments is below industry benchmarks of typically 20 to 25% of turnover and no pub operator is likely to invest over £150,000 for this level of return.

     

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