Pub sales are up in the South West
One of the attractions of having your own pub is you have total freedom to choose the location. Moving into self-employment frees you from the constraints of your employer’s location dictating where you live, and so the question becomes: given a blank canvas, where would you like to live?
Such a question conjures up memories of summer holidays and the sunshine, glorious beaches, beautiful countryside. The counties of Cornwall, Devon and Dorset immediately summon up such thoughts and are proving to be an irresistible location for those searching for their ideal pub business. Bristol, Gloucestershire, Somerset and Wiltshire are enormously popular too. Demand at Guy Simmonds, is extremely high in these areas, with sales up approximately 26% compared with the same period of last year, and registrations from purchasers up approximately 45%. The caveat applies that businesses need to be correctly valued relating to turnover/profits, and leaseholds should have reasonable annual rentals applied.
Previously, there was the danger that assessment of business potential could be upset by the seasonality of tourism. But websites like www.visitbritain.org give a wealth of data about tourism numbers, spending patterns, etc. which is gold dust to trade entrepreneurs.
Similarly, the availability of internet marketing provides unlimited opportunities for a pub to show its location, setting, facilities, menu, and ambience to a world-wide audience. Things have changed since a ‘vacancy’ sign hung outside a pub!
There is a growing trend for ‘staycations’, second and third holidays, and mini-breaks — all of which give the opportunity for a pub even with just one letting bedroom to put c£500 per week on to the takings. Letting revenue produces a very high gross profit, in addition to the increased food and drink spend, generated from the ‘captive audience’.
We are seeing interest in all forms of tenure. Recent sales include the Waldegrave Arms in East Harptree, Somerset (a tied leasehold), and the Lord Nelson at Winterslow, Salisbury (a free-of-tie leasehold). Under offer is the Coombe Barton Inn (pictured) at Crackington Haven, near Bude, Cornwall. This beach-side inn and hotel produces turnover of £640,000.
