The Mag on LL

[nonold]

The decision on who will take over the Mag is being taken later this week. There are 3 candidates, 2 chains and myself, an ED resident!! Any local person (s) interested in getting involved?

[Earl Aelfheah]

I didn't know it was closing, what a shame. Do you know who the chains are? Really hope it stays indi. Good luck.

[Sue]

Involved in what way?

[DulwichFox]

Sue Wrote:

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> Involved in what way?

Money...

Fox.

[Sue]

Mark Dodds posted this on the Cherry Tree thread (29 October):

"Someone above recommended to Chris and Antonia that the Magdala/Magnolia is for sale and they ought to take that on. That is an action NoT To BE Recommended: It's an Enterprise Inns tied lease. Any more info wanted about this toxic kind of leasehold - message me or ask Jamie at the Palmerston. They bought their freehold from Enterprise and have a lot of experience of that company's behaviour."

ETA: I don't know how to link to a single post, or even if it's possible to do that, but it's on this page:

http://www.eastdulwichforum.co.uk/forum/read.php?30,987030

[Sue]

nonold Wrote:

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> The decision on who will take over the Mag is

> being taken later this week. There are 3

> candidates, 2 chains and myself, an ED resident!!

xxxxxx

Are you able to divulge which chains, if you know? Or is that confidential information?

[Earl Aelfheah]

I have no information, but would guess that Youngs might be one of them.... Based only on thier apparently relentless mission too spread bland overpriced identikit pubs all over south london. Hope not though.

[Sue]

rahrahrah Wrote:

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> I have no information, but would guess that Youngs

> might be one of them.... Based only on thier

> apparently relentless mission too spread bland

> overpriced identikit pubs all over south london.

> Hope not though.

Xxxxxx

Hope not too, I don't like their ale much: (

[Sue]

Any info on this yet?

[Mark Dodds]

Briefly - if it's the lease, rather than the freehold which is being taken on at Magnoliadala then it's extremely unlikely to be Young's or any other 'brewer' or pubco - they will not sign up to being fleeced by the terms of the beer tie and a fully repairing and insuring lease with Enterprise Inns. i.e. they are not stupid, gullible, inexperienced or naive enough to buy a dead cert loser.

There are some circumstances when taking on a tied lease will not lead to financial ruin but ONLY if it is sold on before the lease terms, the poor condition of the building and and the onerous beer prices catch up with you and squeeze you dry. I advise anyone interested in any tied lease, anywhere, to STOP, do some serious research, be alarmed at what you find, then walk away.

[char1i3]

I assume that the tied lease means a high rental cost, and an agreement whereby booze must be bought from the landlord at set prices so the pub operator doesn't have the freedom to seek cheaper suppliers.

http://www.caterersearch.com/Articles/26/03/2010/332831/buying-a-pub-going-public.htm

If Enterprise Inns is known to be a problematic landlord would this imply that the current owner of the Mag signed up to something that effectively makes the landlord rich, doesn't do himself any favours, and ends up in a situation where the pub closes through lack of profit?

Any more info as to what in the lease makes running the pub so difficult? Unpleasant rent rises? Complex calculations for pricing?

Charlie

[Mark Dodds]

That rather brilliantly lucid and insightful assessment of the Enterprise situation and the likely position of the incumbent lessor wouldn't be from the Daft House side of things by any chance Charlie?

[nonold]

well, actually the rent is comparable to most pubs this size. Most products have a release fee anyway, i.e, you pay x amount and can buy your own wine from whoever you want... The only exception being, of course, draft beer...

[nowittyname]

Do you have a business plan? I understand the rent is about ?40000 pa so you have to show ?769 a week profit just to pay the rent before you can take anything out of the business, is that right? Plus heating that great big space, business rates, water, electricity, music sub, 5 staff I think they had for the restaurant when that was open, bar staff, cleaning, building maintenance....what would the turnover have to be to make any kind of a profit? There's a three bed flat upstairs but the only way in is through the pub, which is not exactly ideal.

[nonold]

hi there, of course I have a biz plan, and yes, I am aware of the cost implications re staffing, rates, etc....The flat is not meant to provide rental income, but is really geared for staff accomodation. If you have a proper interest, I am more than happy to show you the plan!

[Jeremy]

My gut feeling is that the pub is just too big, given it's location away from the main "drag".

[StraferJack]

"My gut feeling is that the pub is just too big, given it's location away from the main "drag"."

That?s probably true

I still like to think there is room for someone with a bit of different thinking to so something with it

A proper sports bar (like Champs, in Eccy Road in Sheffield) would get people in I say

I think Capital pubs model is saturated in the area but given their track record it seems reasonable to suggest they would make it work better

Otherwise, and I?m no chain fan, I can see something like a Pizza Express working in a space like that (with a knock on benefit of creating more footfall between, say House of Tippler and Franklins)

[I hammer]

Please please please could we have sky sports. I remember the old Mag was busy whenever there was a game on. Great pizzas to take away and eat in. This place needs to return to former glories!

[DulwichFox]

Sky Sports and Pizzas will not Resurrect to 'Mag' nolia or dala..

The interia is distressed and requires a lot of work to make it appealing.

It is geographically disadvantaged.

Was ok when there was less/no competition.

Cannot see it being the peoples choice for those from outside E.D.

and could not survive relying on Local Trade.

Has not done so for a while now.

Certainly not a victim of it's own success by any means.

It would seem to me to be Hugh Finacial risk to take it on.

Cannot see any other use for the building in it's current form.

Fox.

[thecaptain]

Give this boozer a theme, a highlight,which people latch onto and I reckon it will be great. At the moment whenever I go in there I just feel mildly suicidal.

[I hammer]

I was assuming there would be a redecoration of some sort.

I think there is definately a gap in the market, - if done well - for a pub to succeed in its location, but i'm adamant sky sports would have to be shown.

I think the Mag probably suffers from the Great Exhibition, taking customers from the 'top end' of LL.

I think another Gastro pub..or restaurant would fail....it needs something different to pull in the customers...but I'm no expert, just giving a humble opinion.

The previous Mag did seem to pull in the customers quite a lot.

[Jeremy]

I will admit that a sports pub on LL would fill a gap. But the fact that so many places have gone the other way (scrapping the sports and going for food, softer decor, kiddy play areas, etc) suggests to me that the market isn't really there.

[DJKillaQueen]

Also, the licences for showing sky sports etc are costly. So that would have to be factored in.

[KidKruger]

Doesn't The Castle cover ED's sports viewing needs ?

If not - what's the gap ?

[Earl Aelfheah]

It's not that far from the main drag (a couple of minutes walk from Franklins).

It's a real shame it's closing down, although they haven't seemed to sell any food for ages now.

Anyone know what's happening to it now?