{"id":839,"date":"2024-11-20T14:25:03","date_gmt":"2024-11-20T14:25:03","guid":{"rendered":"https:\/\/www.rightmove.co.uk\/commercial-property\/news\/?p=839"},"modified":"2024-11-20T15:39:48","modified_gmt":"2024-11-20T15:39:48","slug":"thinking-of-buying-a-pub-some-top-tips-from-industry-experts","status":"publish","type":"post","link":"https:\/\/www.rightmove.co.uk\/commercial-property\/news\/thinking-of-buying-a-pub-some-top-tips-from-industry-experts\/","title":{"rendered":"Thinking of buying a pub: some top tips from industry experts"},"content":{"rendered":"\n

The pub is, of course, a British institution. In many places, the local pub forms the backbone of community life, providing a place to meet and socialise. <\/p>\n\n\n\n

For some, however, pubs are also sources of employment. Indeed, they can offer the chance to be your own boss. However, taking on a pub isn\u2019t for everyone. So, what do people need to think about when buying a pub?<\/p>\n\n\n\n

Most PubCos advise potential tenants to think hard about the realities of running a pub, including the impact it will have on their family and social lives. After all, pubs are at their busiest when most people aren\u2019t at work. <\/p>\n\n\n\n

\u201cAlthough being a publican can be hugely rewarding, you should take into consideration that running a pub can be a change to your lifestyle,\u201d Punch Pubs advises. \u201cIt won\u2019t just be the usual 9-5. You will need to work unsociable hours, including late nights and weekends.\u201d <\/p>\n\n\n\n

It adds: \u201cIf you haven\u2019t got pub experience, but you think running a pub sounds right up your street, you should think about getting a part-time role in your local pub \u2013 just to make sure it\u2019s the lifestyle for you.\u201d<\/p>\n\n\n\n

Startups.co.uk, which provides support to people starting small- to medium-sized businesses, adds that there are other risks to consider. \u201cSky high inflation may be coming down, but the cost of living crisis hasn\u2019t abated, and the price of a pint is up across the nation,\u201d it advises. <\/p>\n\n\n\n

Of course, while there are indeed multiple costs and challenges to be considered, there are also multiple opportunities to make money. Greene King points out that these extend well beyond pulling pints. \u201cOne of the key motivations to work for yourself is to be financially rewarded for your efforts,\u201d it says.<\/p>\n\n\n\n

\u201cSuccessful pub owners can make a good living while also diversifying their revenue streams by offering rooms for B&B, hosting events, providing catering services for local events and even introducing takeaway and delivery services.\u201d<\/p>\n\n\n\n

It also has to be said that not all the data paints a negative picture. With both interest rates and inflation coming down, demand for pubs appears to be increasing. According to Rightmove\u2019s lates Commercial Insights Tracker, covering Q3 of this year, leasing demand for pubs increased by 29% compared to the same period in 2023, which has obvious implications for capital values. <\/p>\n\n\n\n

Nevertheless, those seeking to purchase a pub are still well advised to ensure that they know exactly what they\u2019re getting into, according to Stephen Owens, managing director, pubs and restaurants at Christie & Co. <\/p>\n\n\n\n

\u201cIf you are looking to buy a pub, we recommend that you fully acquaint yourself with the business and its competition, by visiting the premises at various parts of the day to ensure that you fully understand the nature of the operation and trading characteristics,\u201d he says. \u201cYou should also obtain advice from suitably qualified professionals, including commercial property advisors, solicitors and accountants.\u201d<\/p>\n\n\n\n

Owens\u2019 colleague Neil Morgan, senior director, pubs and restaurants, agrees, adding that changes to the local economy also need to be considered. \u201cA full understanding of the strengths and weaknesses of the existing business is essential when buying a pub,\u201d he says. <\/p>\n\n\n\n

\u201cHas the seller a strong personal following or otherwise?  Have they maximised the full potential of the business?  Visual judgements need to be tempered with other criteria: what are the economic developments within the area?  Are there, for example, local factories opening or closing?\u201d<\/p>\n\n\n\n

He adds: \u201c[Are there any] new housing developments or any road changes which may mean bypassing the premises or giving rise to enhancement of trade? Before making an investment, a potential buyer should back their personal needs and preferences with a considerable expertise and advice from a specialist within the field.\u201d<\/p>\n\n\n\n

Things to consider before proceeding with a deal<\/strong><\/strong><\/p>\n\n\n\n

1. Consider costs in the round when drawing up a business plan<\/strong><\/p>\n\n\n\n

Kevin Marsh, head of department, licensed leisure, at Savills, advises potential purchasers to think carefully about all the outgoings that need to be factored into their thinking. \u201cThink about what you want to achieve and how you are going to achieve it,\u201d he says.<\/p>\n\n\n\n

    <\/ol>\n\n\n\n

    \u201cYou will need to consider potential costs of wet products (beer, wine, spirits) and dry products (nuts, crisps) products, as well as associated fees such as business rates, accountants’ fees and leasing third party items.\u201d<\/p>\n\n\n\n

    2. Take your time with decision making<\/strong><\/p>\n\n\n\n

    According to Marsh, prospective landlords shouldn\u2019t rush into a decision. \u201cIs the pub just what you are looking for or will it need investment to suit your style of trading? If so, how much? Take lots of photos on your first visit and, if the property is of interest, arrange a second viewing. This is a process not to be hurried.\u201d<\/p>\n\n\n\n

    3. Remember to put things in writing<\/strong><\/p>\n\n\n\n

    Making an offer is a formal process, so people need to take it seriously. \u201cWhen making an offer, it must always be in writing either by letter, email or fax,\u201d Marsh advises. \u201cInclude proof of funding, your timescales and any conditions you want to apply, such as subject to survey or subject to planning being granted.\u201d<\/p>\n\n\n\n

    4. Take professional advice<\/strong><\/p>\n\n\n\n

    Engaging property and legal professionals isn\u2019t just sensible; in many instances it will be critical to a deal going through. \u201cIf you\u2019re purchasing the property using finance, you will be required to get a valuation carried out on the property for loan security,\u201d according to Marsh. \u201cYou will need a solicitor to carry out the legal paperwork for the transaction, preferably someone used to dealing with public house transactions. Your agent will be able to recommend a solicitor with the necessary experience.\u201d<\/p>\n\n\n\n

    Pubs currently on the market<\/strong><\/strong><\/p>\n\n\n\n

    Woodmancote, Woodmancote Lane, Emsworth PO10 8RD<\/a> \u2013 marketed by Fleurets<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Image provided courtesy of Fleurets<\/a><\/p>\n\n\n\n

    Price: \u00a3895,000<\/p>\n\n\n\n

    Woodmancote is located in the affluent West Sussex village of Emsworth and features extensive bar and dining areas suitable for weddings, private parties and functions, as well as a patio, car park and large private roof garden.<\/p>\n\n\n\n

    The property is a detached two storey public house of traditional construction. Elevations are of brick, white painted in part beneath a predominantly pitched tiled roof with felt flat roofs above the side extensions and a number of stores to the rear.<\/p>\n\n\n\n

    The Sir Richard Steele, Haverstock Hill, London<\/a> \u2013 marketed by AG&G<\/p>\n\n\n\n

    \"\"
    default<\/figcaption><\/figure>\n\n\n\n

    Image provided courtesy of AG&G<\/a><\/p>\n\n\n\n

    Offers in Region of \u00a34,400,000<\/p>\n\n\n\n

    Located in a high value residential area close to both Camden Town and Belsize Park, The Sir Richard Steele is a large, well-presented end of terrace late Victorian public house.<\/p>\n\n\n\n

    The three storey building has seen significant internal investment in recent years, with the upper floors converted into four self-contained luxury flats. In addition to the main bar, the pub area also features a function room with capacity for 120 guests.<\/p>\n\n\n\n

    The local area has seen significant residential value growth in recent years fuelled by its proximity to Camden and central London, with easy transport links to both.<\/p>\n\n\n\n

    Font, 115-117 Manchester Road, Chorlton, M21 9PG<\/a> \u2013 marketed by Christie & Co<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Image provided courtesy of Christie & Co<\/a><\/p>\n\n\n\n

    Offers over \u00a375,000<\/p>\n\n\n\n

    The property is a double fronted ground floor lock-up premises of brick construction with full height retractable folding doors to the outdoor seating area with bin store to rear.<\/p>\n\n\n\n

    It occupies a prominent and highly regarded location, some 4 miles south of Manchester city centre, on Manchester Road in the affluent south Manchester suburb of Chorlton Cum Hardy.<\/p>\n\n\n\n

    Prince of Wales, 150-151 Drury Lane, London, WC2B 5TD<\/a> – marketed by Savills<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Image provided courtesy of Savills<\/a><\/p>\n\n\n\n

    Offers in Excess of \u00a38,000,000<\/p>\n\n\n\n

    Located in the heart of London\u2019s West End, Covent Garden is renowned as being at the centre of the capital\u2019s tourism and entertainment scene, attracting in excess of 44 million visitors per year. <\/p>\n\n\n\n

    The district is renowned for its culture with over twenty thriving theatres including the Royal Opera House and Theatre Royal Drury Lane, as well as numerous museums such as the London Transport Museum.<\/p>\n\n\n\n

    The Prince of Wales occupies a prominent corner position at the intersection between Drury Lane and Great Queen Street, with occupiers nearby including the De Vere Grand Connaught Hotel, the Gillian Lynne Theatre and the Freemason\u2019s Hall.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The pub is, of course, a British institution. In many places, the local pub forms the backbone of community life, providing a place to meet and socialise.  For some, however, pubs are also sources of employment. Indeed, they can offer the chance to be your own boss. However, taking on a pub isn\u2019t for everyone. […]<\/p>\n","protected":false,"text":"The pub is, of course, a British institution. In many places, the local pub forms the backbone of community life, providing a place to meet and socialise.  For some, however, pubs are also sources of employment. Indeed, they can offer the chance to be your own boss. However, taking on a pub isn\u2019t for everyone. […]"},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"article_type":[4],"class_list":["post-839","post","type-post","status-publish","format-standard","hentry","category-inform","type-article"],"acf":[],"yoast_head":"\nThinking of buying a pub: some top tips from industry experts | Commercial Property News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rightmove.co.uk\/commercial-property\/news\/thinking-of-buying-a-pub-some-top-tips-from-industry-experts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Thinking of buying a pub: some top tips from industry experts | Commercial Property News\" \/>\n<meta property=\"og:description\" content=\"The pub is, of course, a British institution. 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