Just like any other business, buying and running a pub comes with its unique set of joys and pains. Before delving into the benefits of this investment, let's address some of the concerns that make prospective buyers avoid pubs.
Running an existing pub can be demanding, especially if the pub attracts enough customers, and this comes with gruelling work hours. Peak operating times are evenings, weekends and public holidays when regular workplaces are closed. In addition, you run the risk of having to deal with a tipsy, ill-behaved patron every so often. In difficult economic times, you can expect to have fewer customers, since alcohol isn't considered an essential household expense. Those who indulge may opt to hit cheap liquor stores and indulge at home.
1. Social drinking is important in Australian social culture
All things considered, pubs still make for a viable enterprise if you're looking to buy, especially if you're psychologically and financially prepared. For instance, research found that on average Australian households spent about AU$32.35 on alcohol every week. Communal alcohol consumption is a generally accepted norm in the fabric of Australian socialization. This is what attracts many into pubs after work and on weekends.
2. Pubs are excellent for people-lovers
If you love hanging out with people, a pub is a great business to own and work in, since you'll be in your element among all the crowds. Of course you can expect to make better connections in the early afternoons before after-work rush begins. The lively, jovial atmosphere can soothe your hankering for banter and conversation.
3. There are opportunities for service expansion
Most pubs today offer meals in addition to alcohol. It is therefore an excellent investment if you also have a love for culinary art. You can significantly increase your returns by serving specialty or buffet meals for patrons to enjoy along with their drinks.
4. You can purchase leasehold or freehold
If you're not 100 percent sure about your desire to own and run a pub, you can buy a leasehold pub instead of freehold. Not only is the former option ideal for those with limited capital, it is excellent if you want to test the waters: to know how well the business does in your locale and more importantly, to find out whether you're cut out for the demands of running a pub and restaurant. You can always progress to full ownership, renew the lease or give up the pub at the end of the lease period.
Leaseholds also offer a bit more support from the pub owner by way of trainings at the beginning and through the lease. However, you should carefully examine leasehold terms with a lawyer to ensure you're not forced into stringent conditions that won't make you as profitable as you could be.
Hello, my name is Tony and this is my travel and tourism blog. I was born in Perth in 1978 but I like to think that I am actually a citizen of the world. I am not a professional traveller and I do not work in the travel industry but ever since I left home at 18, I have tried to travel as frequently as possible. My first trip was to hop across to New Zealand on a plane. Next I explored Asia before eventually making my way to the USA and Europe. I decided to start this blog to encourage others to see the world.