What will 2019 deliver for pubs and bars operating in the UK?
For many pubs and bars operating in the UK, the summer of 2018 delivered a substantial increase in trade and profits, largely influenced by soaring temperatures recorded across the country throughout June and July. 2018 was the hottest summer on record for the UK since 2006.
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.