England’s unexpected run in the World Cup also contributed to a rise in the number of consumers spending time in beer gardens across the UK. The sector witnessed a shift in the performance of wet-led pubs, with many of these businesses outperforming restaurants by introducing new offerings such as, craft beers and alternative gin selections.
Business rates have been a concern for the sector, with this being a contributing factor in the demise of some UK pubs and bars. However, as stated in the Autumn Budget, the government plans to cut business rate bills by a third for businesses with a rateable value of £51,000 and under, enabling operators to continue to thrive. A freeze on beer, cider and spirits duty will further support pubs and bars in maintaining a profitable trade.
Despite the number of UK pubs declining since 1989, those that remain are more viable and sustainable businesses. Potential buyers remain active within a demanding sector, with 2019 presenting a positive outlook for new and existing operators alike, all of whom will need to review the needs of their consumers to effectively maximise profits and keep up-to-date with an ever-changing market.
Christie Finance is highly experienced in assisting clients to acquire, refinance or develop a pub or bar. We understand how lenders will assess a funding application based upon sector specific pressures.
If you would like to find our more, contact us on 0344 412 4944.
Written by Lawrence Roberts
, Finance Consultant.