Food pubs reap the rewards of increased demand

Licensees selling established food-led freehouses could reap the financial rewards - if they avoid offers from large pub companies, according to a leading property agent.

Graham Allman, director of corporate business at licensed property agent Guy Simmonds, said there is big money up for grabs in the food-led pub market with demand for those businesses at an all time high.

But he urged licensees not to be charmed by pub companies making offers for food-led pubs before they have been valued.

Mr Allman said he had many clients who had been approached by agents saying they had pubcos who want to buy their pubs without having visited the pub or even looking at its accounts.

"It's an all too common practice these days," Mr Allman said. "And sometimes results in a business being sold well below its true valuation."

By avoiding early offers from pub companies, Mr Allman said, licensees are raking in the money as potential buyers fight over the pubs.

He said many of the pubs he had sold recently had received offers above the asking price with some getting offers before the sales details had even been printed.

"The demand for freehold and leasehold freehouses is high among corporate and private purchasers," he said. "Buyers are moving in quickly to gain the advantage in what has become a strong sellers' market."

And because publicans are getting several attractive offers for their pubs they can pick and choose who they sell to.

"We are getting into the position where vendors chose preferred buyers because they are in a stronger position or simply because they like them better than another," Mr Allman said.

On the move…​

• The Cat and Mutton in London Fields, east London, has reopened after six months closure. New owners Kevin Cooper and Lee Strickland intend to offer a seasonal menu and traditional English roasts every Sunday.
• Former chef at the Fire Station and UKTV regular Paul Bloxham is selling his dining pub the Cabinet at Reed in Hertfordshire. Mr Bloxham is on the hunt for a bigger pub to showcase his Michelin-Star winning food.
• Mitchells bar and brasserie in Tattenhall, Cheshire, (pictured)​ has been bought by Les Brennan and Chris Ward who are intending to build on the bar's reputation for food. The bar is currently only open four days a week and the new owners want to make it a seven day a week operation.
• Wayne Mendes and Anthony Lockett have travelled from the USA to buy the Izaak Walton, a well-established food pub in Cresswell, Stoke on Trent.