Investors information

There are several routes to bring the Cross Guns into community ownership, and the most likely way for us will be to use community shares. These are well-established and used by the majority of the 200+ pubs that have already been successfully taken into community ownership. They give communities the flexibility to raise funds for important projects like community pubs and shops, and let the community take ownership of assets that might otherwise be lost.

Our business plan will include the aim of paying interest on our shareholdings BUT this might not be in year one (or even later) as we seek to invest in the building and grounds of the Cross Guns for the community’s benefit. We hope you agree that creating a vibrant village hub in the Cross Guns is more important in the short term than financial returns.

Pros of community ownership and doing something 

1. Strong community support: The venture is often driven by residents who have a vested interest in its success, leading to guaranteed patronage and active participation.
2. Reduced startup costs: In a community-owned model, initial capital is shared among members, often raised through community shares, donations, and grants. This can result in lower overall debt compared to buying a pub privately.
3. Make the pub what you want: Community ownership is the only way to ensure the pub is representative of the community of Pant. Functioning as a community hub. It’s also a way of securing its long-term future. 
4. Built-in customer base: You inherit a loyal and committed clientele who see the pub as “theirs.” This creates a reliable revenue stream and fosters a strong sense of community and belonging,
5. Operational flexibility: If not tied to a brewery, community pubs can negotiate better prices with suppliers. They can also diversify their services to reflect community needs, such as adding a cafe or meeting space.
6. Financial stability: With shared ownership and diverse income streams from grants and fundraising, community pubs can be more resilient during economic downturns. The Campaign for Real Ale (CAMRA) notes a high success rate among community-owned pubs.
7. Protects a community asset: Buying the pub can save it from being sold for redevelopment, preserving a vital local meeting place and economic pillar for future generations.
8. Refurbishments: When purchasing the pub, we will have to pay VAT @ 20%. This will be refunded after the first quarter and could be used to cover operating costs and for minor refurbishment, such as the toilets. 

Cons of community ownership & doing nothing 

1. Losing a village pub: For some people, the village pub is the only way they can socialise and interact with the local community. These things are essential to combat loneliness in our older population. Let’s bring back community lunches, giving the ageing community the chance to meet up.
2. House prices: It is widely reported that villages that lose their local pub can expect to see property values drop by up to 10%. With the average price at around £350k to £400k, can the village afford to lose the pub?
3. Threat from developers:  The potential for the building and land to be acquired by a developer is high. The land will likely be turned into housing, and the pub car park, which is used as an overflow for the school, will no longer be there.
4. Extreme time commitment: Pub management is hard work with excessively long and unsociable hours, often requiring you to work evenings and weekends. It will be essential that we find the right manager and offer them a good package.
5. Staffing challenges: The hospitality industry has a high staff turnover, which can make finding and retaining reliable employees difficult. We could provide jobs and training for local people, giving people a rewarding employment opportunities’ 
6. Demanding regulations: Pubs are subject to strict legal requirements concerning licensing, health and safety, and food hygiene. Navigating these rules and keeping up with evolving legislation can be complex and ongoing. However, we have a lot of support from local people who have experience in all this.
7. Managing community dynamics: While support is a major pro, it also comes with the complexities of managing different expectations from shareholders, volunteers, and customers. Running the pub by a committee can lead to difficult decisions and internal conflicts.
8. Ongoing operational costs: Pubs have high running costs, including expensive energy bills, food and drink stock, and maintenance. Many older premises may require extensive and costly upgrades to plumbing, heating, or electrical systems. So it’s vital that the community support the pub with their patronage.