Questions to ask when buying a pub

a) Financial Performance

• What is the pub’s annual turnover and net profit?
• Can you provide the last three years’ financial records?
• Are there any outstanding debts or liabilities?
• How is the business performing compared to industry benchmarks?

b) Operating Hours

• What are the current opening and closing hours?
• Are there any restrictions on operating hours due to licensing or local regulations?

c) Staffing

• How many staff members are employed, and what are their roles?
• Are there any employment contracts or pending disputes?
• Will the staff stay on after the sale?

Internal Linking: Learn more about whether you need to keep staff after buying a business.

a) Licensing Details

• What licenses does the pub currently hold (e.g., alcohol, food, entertainment)?
• Are the licenses transferable to a new owner?
• Are there any conditions or restrictions tied to the licenses?

b) Compliance

• Has the pub faced any compliance or licensing violations?
• Are there any ongoing legal disputes or investigations?

c) Lease or Ownership

Internal Linking: Read about selling a business without a lease to understand lease implications.

a) Location

• What is the pub’s target market (e.g., locals, tourists, students)?
• Are there competing pubs or businesses nearby?
• How is the local demographic changing?

b) Property Condition

• When was the building last renovated or repaired?
• Are there any structural issues or maintenance needs?
• Is the kitchen and equipment in good working order?

c) Additional Features

• Does the pub have a beer garden, parking, or accommodation?
• Are there function rooms or event spaces that generate additional income?

a) Main Income Sources

• What percentage of revenue comes from food, drinks, and events?
• Is there an opportunity to expand the food menu or introduce new drink offerings?

b) Events and Promotions

• Does the pub host regular events, such as quiz nights or live music?
• Are there any partnerships with local organizations or breweries?

c) Opportunities for Growth

• Has the current owner explored expanding into delivery services or online reservations?
• Are there untapped revenue streams, such as catering or franchising?

Internal Linking: Explore franchise options for more ideas on expanding your business portfolio.

a) Purchase Price

• What is included in the sale price (e.g., fixtures, stock, goodwill)?
• Is the price negotiable?

b) Ongoing Costs

• What are the monthly operating costs, including rent, utilities, and staff wages?
• Are there seasonal variations in operating costs or revenue?

c) Hidden Costs

• Are there any deferred maintenance costs?
• Are there additional fees for transferring licenses or leases?

Internal Linking: Read about the hidden costs of buying a business to avoid surprises.

a) Seller’s Motivation

• Why is the current owner selling the pub?
• Are there any challenges the current owner has struggled with?

b) Transition Plan

• Will the seller provide training or support during the transition?
• Are there any supplier or distributor relationships the new owner will need to maintain?

a) Tax Obligations

• What taxes will I need to pay when buying the pub (e.g., Stamp Duty)?
• Are there any outstanding tax liabilities?

b) Broker Fees

• Is the sale being handled by a broker?
• What is the broker’s fee, and who is responsible for paying it?

a) Conduct Due Diligence

Review all financial records, property conditions, and legal documents.

b) Seek Professional Advice

Hire a solicitor, accountant, or business advisor to guide you through the process.

c) Negotiate Terms

Work with the seller or broker to negotiate a deal that meets your needs.