THE AGENTS
Ceri Edwards
head of public relations
RTA Business Sales
Countless articles have been written about pub sales, many penned by leading industry figures offering a range of
opinions on market conditions and advice. All of which is undoubtedly researched and backed up with a library of
statistics, but the question we must ask is: what is it for?
No matter how well qualified the advice, no agent or
professional body is blessed with a crystal ball.
Ten years ago, few would have thought that we would face a total ban on smoking in public places in the UK. The effect on the licensed trade has been dramatic, with once profitable, traditional high "wet sales" houses now looking for the next generation of hot snacks to supplement their income. There are other changes too - cheap supermarket booze, low
interest rates and changes to the licensing laws.
Advice is nearly always derived from historical experience.
No-one can predict what will happen. If we could, all exponents of the vast majority of statistics - the large pub companies, for example - would always get it right. Clearly, this does not happen.
Life is all about compromise. We know what we want in an ideal world (a Ferrari, in my case) but appreciate that our
ideals are not always achievable, so we compromise (make mine a Toyota). Buying a pub is exactly the same, and the current level of sales reflects the ability of buyers to show flexibility and compromise.
Times change. We adapt appropriately, and it is important to realise that there's no death knell sounding for the
licensed trade. People buy pubs for different reasons and what they buy reflects their personal requirements. These are not always based on margins and bottom lines so there will always be a strong market. Very often buyers will
purchase with their hearts rather than with their heads
We have seen a broad range of sales across the freehold, tied and free-of-tie market. The question is why?
Why do buyers want to enter a market that appears to be facing an uphill struggle? Because buyers purchase what suits them individually and because it's in a "beautiful area" or because it has "potential".
Prospective buyers should remember that there are many good opportunities to be had. My Toyota takes me to the same place as a Ferrari - it's all about compromise.
