Buying a seasonal licensed outlet

What to look out for pre-purchase and advice on how to make sure you don’t throw away profits simply getting from one good summer through to the start of the next...

Many licensed properties in the south-west are seasonal businesses, which adds a different dimension to buying in this part of the world. Just because the winter months can be quieter doesn’t necessarily mean a particular business isn’t viable, but there are a number of considerations to look at before taking the plunge.

Location is of course key: if there are chimney pots surrounding the pub, the local and regular trade is likely to be better. However, a small village inn that thrives in the summer with custom from surrounding campsites and holiday parks may struggle to make ends meet in the depths of winter.

The size of the unit will also have a bearing on overheads, costs and, therefore, viability. A big operation, possibly near a beach, that booms during the summer may be an expensive property to operate during colder months. Such a dilemma should be considered carefully — sometimes it may make more economic sense to actually close for a couple of months during the quieter ‘off’ season. Will cash flow allow this?

Another point worth considering is outside trading space. Again, when the sun is shining a big 80 to 100-cover trade garden or terrace can be very lucrative (or not if the sun doesn’t shine).

However, if the business is largely dependent on this trade, then the colder winter months will be very different.

Ideally a seasonal business should not rely on one main source of income but have a better spread, making year- round trade easier.

Ultimately a seasonal business is what it is; the winter months will be harder and, therefore, most of the skill in making the business successful is in the planning and cash flow.

When buying a seasonal pub, a well-researched and accurate cash flow forecast is essential.

The essence of a successful seasonal business is not simply surviving the winter months, but making sure all the profit from the previous summer season has not been squandered on simply getting to the start of the next summer season.

Matt Bettesworth, managing director of Bettesworths, Devon