Buying a Pub or Bar in the UK

Many UK pubs operate under a brewery or pubco tie that restricts where you buy beer and sometimes sets rent as a percentage of turnover. A free-of-tie lease commands a premium but gives you margin control. Read the tie schedule, rent review mechanism and any capital expenditure obligations before you offer.

• Tied vs free-of-tie status and remaining tie term
• Rent as a percentage of wet sales (under 8% is competitive in many regions)
• Repair, decoration and dilapidations clauses
• Assignment and change-of-use restrictions

Healthy UK pubs typically run 60 to 75% wet sales (drinks) and 25 to 40% dry (food). A site heavy on food needs a working kitchen, skilled labour and higher capex. Verify GP on both lines separately and compare to regional benchmarks.

• Gross profit on draught beer and spirits (target 65 to 70%+ on wet)
• Food GP and wastage as a percentage of food sales
• Session length and peak trading hours from EPOS data
• Seasonality: summer gardens, Christmas trade, sports fixtures

Premises licences transfer with the business but local authorities can review conditions on change of ownership. Check any cumulative impact zone restrictions, CCTV requirements and noise abatement notices.

• Premises licence summary including hours and outdoor areas
• Personal licence holder named on the licence or plan to appoint one
• Gambling and gaming machine entitlements if applicable
• Recent environmental health and fire safety inspection outcomes

• Declining like-for-like wet sales over 12 months
• Cash sales that do not reconcile to declared turnover
• Outstanding brewery loan or fixture loans secured on the business
• Key staff leaving before completion without replacement plan
• High energy costs on older cellar cooling and kitchen equipment