Connect with us

Hi, what are you looking for?

Want to Buy a Pub in Australia
Want to Buy a Pub in Australia

Business

Want to Buy a Pub in Australia? Here’s 3 Questions to Steer you in the Right Direction.

Pubs are a staple of Australian culture. Steak, Burgers, Wedges or a good old-fashioned drinking session with mates, Australians love their pubs!

Whether you’re looking to start your own business, wanting to buy a pub for sale or just want to find the perfect place for an evening with friends, buying a pub in Australia can be overwhelming.

We will provide 6 tips that will make searching for your new pub easier and more enjoyable.

1.   Is it freehold or leasehold?

In most cases, pubs are on leasehold. It is important to ensure that the pub you buy has a long-term lease from the current owner; otherwise, when your lease ends they may find new tenants or sell the premises. You need to make sure you are paying for the business and a good lease term.

If leasehold, read the lease agreement carefully, if freehold ensures you get a building inspection.

2.   How’s the Kitchen and Accommodation?

When you’re buying a pub or restaurant for sale, another thing to consider is the kitchen.

If it’s not in good shape or has some issues with it, then think about how much money and time will need to be put into fixing up that part of your new business.

Buying an existing business can get tricky if there are things like appliances that don’t work properly already built-in but do have the potential for further use.

A pub with accommodation is a good investment because it can provide a good option for clients and an extra income for the business. People often look at a pub or motel for sale with a liquor license.

Accommodation attached to a pub is more common in regional Australia. It was very popular during the 1970s and 1980s when the majority of pubs were built to include rooms for rent upstairs.

Ensuring good occupancy rates is important as it comes with its own unique set of expenses such as cleaning, replacing bed linen, laundry services, bathroom renovations, etc.

Is everything else in place? If not, then take the additional expenses into account.

3.   Is it Profitable?

When buying a business, the biggest indicator whether it is a good investment is how financially stable it is. You will want to perform due diligence on the pub you are looking to buy and ask a series of questions such as:

  • What is the net profit to the owner?
  • How long will it take me to earn back my investment (ROI)?
  • What is the year-on-year growth of the business?
  • What is the profit to loss ratio?
  • Will I have added expenses if I rebrand or do a fit-out?
  • Does the pub have any outstanding debts?

Ensuring you have a professional to assist you during the due diligence is very important, especially when making a big investment and buying a pub.

Have a drink and a meal

One of the best ways to truly know if this is the right pub for you is to take a look behind the scenes. You need to find out how much work would be involved in running your own business and whether it’s worth all of that effort.

This means taking a good look around when you’re there as a patron. How are the staff? Are they happy? Is service efficient? Are there any key people who keep the pub running efficiently. Getting a well-informed picture of the business you are looking to buy is important .

Wrapping Up

Now that we’ve covered all the basics of pub buying in Australia, its important to remember that every business is different. You should always consult with professionals when buying a pub. These include a conveyancer, business broker, business advisor and accountant.

We hope you enjoyed reading our article on how to buy a pub with these 7 tips for success.

You May Also Like

Digital Logic Circuits

Excess-3 to BCD converter In this post on code conversions, we are going to see Excess-3 to BCD converter using k map technique.  K-map If you...

Digital Logic Circuits

BCD to Excess-3 converter In this post on a code converter, we are going to see BCD to Excess-3 converter using the k-mapping technique....

Basics

The Scientific Calculator is an advanced version of an ordinary calculator which helps us to solve complex arithmetic problems. The Normal Calculator consists of...

Latest

Business

Expanding any business comes with a set of challenges. You have to keep many factors in mind. Some are standard ones like management and...

Life Style

Ups and downs are part of life. Though stressful moments make it hard to stay happy, adopting some simple lifestyle habits can really work...

Fashion

Hatton Garden is a popular location for shopping and hanging out. It is a go-to place for many if they want to buy watches,...

Home Improvement

The wingback bed is the main piece of furniture in the bedroom, around it the rest of the furniture and decoration are structured. In...

Automobile

Your original floor mats aren’t going to cut it. As you hop in and out of your truck or take your car for a...

CBD

Smoking has become sophisticated as there are new ways that you can get your marijuana or tobacco into your system being invented every new...