Bentley Community Pub Ltd - The Case Is Altered

Business Plan Company Summary Bentley Community Pub Ltd is registered as an Industrial and Provident Society with the Financial Conduct Authority (Registration Nº 32163R). The Society exists in order to carry on business for the benefit of the community. Assets owned by the Society are locked in the IPS, and will be used solely for community benefit. Both the Pub and the shop are covered by the Bentley Community Pub IPS Rules, available on request. The membership of the Society is made up of its shareholders, with one vote per shareholding, regardless of size. The present management committee is made up of seven Bentley residents whose personal profiles are in Appendix 1. The committee will: Stand down en bloc at the first AGM, as obliged under the constitution, when individuals may offer themselves for re-election. Be selected by members’ votes at the AGM each year. Provide an annual report of activities and finances to all members, and an annual return to the FCA. Provide monitoring information as required by any grant bodies. Work Completed to Date Following the closure of the Pub in March 2013, a small group of villagers got together over the course of late spring and early summer to establish the viability of a community purchase of the Pub. They realised that the only way to safeguard its future was to own and run it as a community asset. They took advice from the Plunkett Foundation, from Babergh District Council, and other bodies. They also carried out a survey of all the households in Bentley, to establish need and appetite for such a venture, and held a Public meeting to announce the results of the survey on 1st July. With the market for the venture clearly established, and with a small grant from the Bentley Parish Council, the working party held a second meeting to establish a formal committee and sub-committees to start detailed work on the project, electing volunteers to take on specific roles. Initial research concentrated on the operating parameters of the Pub, as the highest risk. The committee includes an experienced Pub manager, and we have been able to track down some previous tenants and managers of the Case is Altered to get their view. We are indebted to Pubs including the Sorrell Horse at Shottisham, the Green Man at Toppesfield, the owner of two Pubs in Cambridge, and many more, for their generous help in informing our decisions on the kind of Pub that can thrive in the village. The owners of the café at the Place for Plants in East Bergholt have also been generous with their time and advice. We have also had tremendous help and support from community shops, including the Stutton Community Shop, Great Ryburgh shop in Norfolk, and the forums on the Plunkett Foundation’s website. We will send out a final questionnaire to villagers to get a better idea of stock lines required, closer to opening day. We anticipate that some of the funding for the purchase of the Pub, and most of the funding for the shop, will come from grants. We have had a pre-feasibility grant from the SIB Group, to enable us to have a building survey and a business valuation survey done, as well as meeting other early costs. Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 6

Business Plan Marketing Strategy The process of community engagement commenced in June 2013, several months after the Pub closed, and around 18 months after the Pub was put up for sale. In the first few months, our campaign focused on consolidating and building community support for the project and membership of the co-operative. We have distributed questionnaires and flyers to every household in the village and followed that up with Public meetings. We already have a loyal Facebook and Twitter following, have set up a website (www.thecasepubbentley.co.uk) and we are developing a growing mailing list. We regularly post updates on the village website and publish reports in the village magazine and those in surrounding villages and will continue to use these to promote the Pub as a going concern. We have organised photo opportunities outside the Pub for the local press and this has resulted in articles in the local papers. We will continue to update local press as the project develops and plan to approach local radio, newspapers and TV stations with the story as we hit major milestones. We have supported the Bentley Family Fun Day by running a ‘pop-up’ Pub at the event, and hope to repeat that at other events with the objective of encouraging engagement in the project and positioning the Pub at the heart of our community. CAMRA are supporting us, with frequent mentions in their newsletters, as well as advice. We plan to offer a loyalty scheme to generate regular customer support and repeat business once the Pub re-opens. We are also exploring the idea of marketing campaigns for special deals on food for regular groups or village societies, theme nights, music nights etc. Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 7

Business Plan Monetary and Social Returns Share Offer The share offer will run from 19 October to 30 November 2013 and is designed to give investors the opportunity to contribute financially, on a long term basis, to the business of Bentley Community Pub Ltd. We expect most shareholders to come from the local community but welcome contributors from further afield. The target amount we wish to raise from this share offer is 350,000. This is the total amount required to buy (the current sale price is in the region of 240,000 plus VAT), refurbish and reopen the Pub, and to have a contingency fund. The minimum amount to be raised is 230,000. Below this amount, the offer would be deemed to have failed and we would not make an offer for the Pub. At this point all subscriptions would be returned without loss. Should we raise between 230,000 and 350,000, we would seek additional finance via loans of up to 120,000, assuming a current interest rate of 5%. The maximum amount we are prepared to raise is 400,000. Any amount raised between 350,000 and 400,000 would be used to reduce the holding period for shares from the current five years to no less than three years, and/or to bring forward improvements to the Pub. In the event of share subscriptions exceeding the 400,000 maximum, shares would be allocated on a first-come-first-served basis. Profitability Objectives The Society is committed to re-investing profits for the benefit of the community. The Membership determine what proportion of profits is to be re-invested in the Society, and the level of interest that is to be paid to shareholders (this is capped at 3% above the Bank of England Base Rate per annum). We have assumed that no interest is paid in the first two years, and that no more than 50% of net profit is paid as interest in any year. We have registered with the EIS scheme, which allows investors to reduce their tax liability by 30% of their investment, provided the shares are held for three years. HMRC monitor the activities of the group over the course of three years, to ensure we are carrying out allowed activities. Following an application by Bentley Community Pub Ltd, HMRC has issued advance authorisation for our share issue to qualify for EIS status. Once we are trading, we will be assessed four months after opening to ensure that we are meeting the HMRC rules. Assuming we are granted approval at this stage, taxpayers can then reclaim 30% of their share price against their tax liability, for either the current or previous year. Note that pre-approval is not a guarantee of approval – although it is a strong guideline. If we fall outside the rules at any time during the first three years of trading, HMRC may reclaim any tax rebate paid to individuals. We may need to take out a commercial loan to buy the Pub, dependent on the success of the share issue; we expect to pay this off in preference to interest payments to shareholders. Should the Society fail, after paying off its loans and creditors, and repaying all share capital, any remaining assets must be transferred to a community enterprise that satisfies the same community benefit criteria as the rules governing the Bentley Community Pub. The membership chooses the recipient. Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 8

Business Plan Social Returns Early in the 20th century Bentley was served by three Public houses; the Tankard Inn, which closed in 1928, the Railway Tavern, which closed in the mid-1900s, and the Case is Altered that closed in March 2013. A similar decline in shopping facilities within the village has taken place, with the loss of first the bakery, then the village shop, some 10 years ago. Population figures from Babergh District Council give the following population breakdown, for one and three miles’ radius of Bentley: Population Total Under 18 18 18 - 64 65 Total Within 1 mile 776 139 637 428 209 Total Within 3 mile 9605 1947 7658 5406 2252 This has interesting implications for both the Pub and the shop, with the immediate village demographics leaning more towards a middle-aged and retired population, who will form a significant part of our customer base, but a more balanced over-18 population available on our doorstep. The demographics of the village are clearly indicated by the responses to our market needs survey, with the largest group of people being retired, but with a significant number of children now in the village. Similarly, the services required by the villagers reflect the need for good, local services. Although most villagers own a car, many people rely on the infrequent bus service to Ipswich or Colchester, making the simplest trip for daily necessities a major challenge. Question 10: Age Range 152 160 140 124 120 100 80 83 75 60 40 27 20 0 0 - 16 17 - 25 26 - 45 46 - 65 Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 9 Over 65

Business Plan 6. What services would you most like to see? 180 153 160 140 124 123 120 100 109 92 86 80 60 48 40 29 20 IT / WIFI Café Post Office Newspapers Groceries Catering Live Music Family Area 0 When the Bentley Community Pub Society successfully acquires The Case is Altered, the whole community should benefit by feeling part of the project that saved their ‘local’ and take an active interest in the future prosperity of the Pub, increasing village cohesion. Around 40 villagers – around a fifth of all households – volunteered to help run the Pub or the shop on the initial questionnaire. Further investigation will be required to establish what commitment people would be able to make, and where they are prepared to help out. We anticipate that this community enterprise will: Provide a meeting place for the community, both in terms of a traditional Pub but also where groups such as a mother-and-toddler group could meet and have a coffee during the day. Fulfil daily and ‘emergency’ shopping needs for the community, particularly for those without easy access to such services (not to mention giving our children an opportunity to learn how to handle pocket money). Offer an opportunity for people to volunteer, to feel that they are directly helping the community in a very tangible way. Spark a ‘can-do’ attitude for other social enterprises in the village, providing increasing numbers of people willing to serve on such bodies as, for example, the Parish Council. Maintain a positive impact on property valuations. We will measure the social success of our venture in terms of the number of villagers supporting the Pub and shop, either as customers, or as volunteers. Villagers who are shareholders will have a direct say in the future of the society, through Members’ meetings and representation on the Committee. We will also actively encourage other communities to follow our example, and will be delighted to offer support to similar groups. Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 10

Business Plan Proposed Scheme - Pub We intend to buy and reopen The Case is Altered Pub in the village of Bentley, Suffolk. This is currently owned by Punch Taverns PLC, and is on the market for 240,000 plus VAT. It closed as an operating business early in 2013, and the premises have been vacant since then. We aim to recruit a management couple to run the Pub, with one functioning as a bar manager, and the other as a kitchen manager. Further support staff will be required in the kitchen, serving, and as occasional cover. Finding the right management combination is absolutely key to the plan; they must be experienced and be willing to share and take part in the village’s vision. We are prepared to pay a percentage of net profits to the right couple, to incentivise them to grow the business. We expect to serve restaurant meals and bar snacks on six days per week, with a full range of beers, wines and spirits. We are exploring the potential of hosting a microbrewery, and intend both food and, where feasible, drink, to be as locally sourced as possible. We have a clear picture of the kind of Pub we want: A cosy, inviting place, with a wood burner back in a prominent position! Wooden furniture and a variety of seating will complement the classic country colours on the walls. It must be both family and dog friendly. Draft beer - at least three bitters – and we’re talking to a microbrewer about making one of them truly local. On the practical side, we want a comfortable area for smokers, and modern, attractive loos. We want to serve classic, simple Pub food, prepared with care, from fresh, local ingredients. It won’t be a long menu; quality comes first. We also want to mix it up a bit with theme nights, seasonal specials, and a regular change of menu. We will offer a children’s menu that has real food on it, and a regular Sunday lunch. We will also do sandwiches, snacks, and cakes, and you will be able to get a decent mug of tea or pot of coffee during the day. We might even do a weekend bacon butty breakfast! We want to make this a place for all the villagers, and are thinking about promotions such as loyalty schemes, OAP lunches, and meal deals. We want the Case to be part of village events such as the Bentley Family Fun Day, and to support local good causes. We’d like to liven the place up occasionally, perhaps with varied music events, or by holding quiz nights etc. We will listen to our customers! A lot of them will, after all, be our shareholders! Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 11

Business Plan Market Summary Our primary target market is the local community, from Bentley and the surrounding villages, as well as the towns of Manningtree, Colchester, Ipswich and Hadleigh, all within a 20-30 minute drive of the Pub. The nearest restaurant is in Manningtree, a 15-minute drive or a complicated bus journey away. Bentley has a well-known circular walk, for which the Pub is a convenient start and finish point. It is close to other short and long-distance footpaths, and is a popular stop for hikers and walking groups. There is no nearby café catering to this trade. The Pub’s position is also good for cycling clubs and individuals, as it is on the Suffolk B cycling route. Horse riding is a popular local pastime, with the local hunts occasionally passing through the village; welcoming this community might be beneficial. There has been a strong seasonal trend to trade, with the summer months, and Friday and Saturday evenings, being much busier. We believe that we can counter some of this imbalance with events such as music evenings and offering food “specials” on non-event nights. We also hope that our core customer base – the village community – will continue to support us over the winter. Customer Need A recent survey conducted by the Bentley Community Pub Society indicated that, should The Case is Altered reopen under community ownership, a moderate increase in Pub usage could be expected. Reasons cited in the survey for not using the Pub in the past, included ‘poor service and welcome’, ‘poor quality food’, ‘children not well catered for’ and ‘price’. The survey identified needs including a children’s play area, entertainment, events, activities for young people and senior citizen meals, as well as a café. Conclusions from the survey included, ‘there is demand for the Pub to continue serving meals’ and, that ‘we need to find the right people to run the Pub day-to-day, to foster a good welcome and congenial atmosphere’. How often did you use the Case before it closed? 113 120 100 80 60 35 40 20 0 3 Daily 20 21 6 2-3 times p.w. Weekly Fortnightly Occasionally Not at all How often would you use the Case if it reopened as a co-operative pub? 95 100 80 60 29 40 20 0 39 14 19 2 Daily 2-3 times p.w. Weekly Fortnightly Occasionally Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October 2013 12 Not at all

Business Plan Catering was another strong demand from the survey, with many respondents wanting restaurant meals as well as bar snacks and takeaways available throughout the week. What catering would you like to see the pub offer? 180 162 160 140 122 120 100 81 76 80 60 40 20 0 23 2 No food Snacks Bar meals Restaurant Buffet Takeaway When would you most likely eat at the pub? 94 100 90 78 80 65 70 64 60 50 40 33 30 20 10 0 12 Never Weekday lunch Weekday dinner Saturday lunch Saturday dinner Sunday lunch The community freehold nature of The Case is Altered will also benefit the community by way of more competitive product pricing and better product choice. The Pub may also provide employment for local people and business opportunities for the suppliers of local produce. Other local organisations may benefit through joint ventures and links with the Pub. According to Plunkett Foundation research, no community share model of Pub ownership has failed to date. We are very grateful for the on-going support and advice from the Plunkett Foundation itself, and from the many Pubs that have freely shared their expertise. Bentley Community Pub Ltd - Registered in England Nº 32163R Registered Address: 6 Highfields, Bentley, Ipswich, IP9 2BP Business Plan - Issue #1 / 8 October

Business Plan - Issue 1 / 8 October 2013 2 Business Plan Executive Summary 1. Background The Case is Altered closed as a Pub in early 2013, the last of three Pubs once open in Bentley. The village now has few amenities and is little more than a dormitory for Ipswich and Colchester. The Pub