When you start looking to buy a pub for sale the process can be overwhelming. There is such a wide variation in options from country pubs to city locations. Making the decision that is right for you is important.

We will provide 6 questions, you should ask that will make buying a pub for sale easier.

1. Is the Pub Freehold or Leasehold?

You want to know if you're paying a lease or buying the premises when you buy a pub for sale. In most cases, pubs are leasehold. This means you pay a lease to operate your business within the space. Most commercial leases are 5x5x5 or 10x10x10 for this type and size of premises.

It is important to ensure that the pub you buy has a long-term lease from the current owner; otherwise, when your lease ends they may find a new tenant or sell the premises.

If you are buying a freehold pub and premises, ensure you get a building inspection and are aware of any council zoning changes.

The amount you pay for the pub for sale will be affected by whether it is on a lease or is freehold. So it's important to get an understanding

2. What is the Pub’s kitchen like?

When you're buying a pub for sale or a restaurant for sale, another thing to consider is the kitchen.

Pubs traditionally sell 'pub grub’ which includes burgers, steaks, schnitzels, fries etc. Though there has been a growing trend in pubs offering more varied dining options such as Chinese, Thai and high-end steak and ribs. It depends on the clientele, size and location of the business.

You want to know if the equipment of the pub for sale is leased, has any finance owing or it is owned outright by the business. If you are interested with working in a pub consider getting your Food Safety Supervisor Certificate Victoria.

3. Did you check local developments?

The local council can help you determine if there are any major developments happening that could affect your business, especially when you're buying a pub for sale.

A number of regional towns in Australia have experienced a decline due to the diversion of a major highway that bypasses the town. Look at the 5-10 year plan for the region with the local council.

A lot of pubs for sale rely on tourists or are popular amongst locals to survive. You want to make sure that no new pub or restaurant precinct is being built nearby.

4. Does the Pub for Sale have Online Reviews?

One of the most important parts of buying a pub for sale is finding one that meets your needs and has great reviews.

Reading online reviews can help you determine if the pub for sale has a good reputation and what can be done. Look on Google, Facebook and industry-related websites such as TripAdvisor.

If it doesn’t seem like the right place for whatever reason, then move on! You want to make sure you find a pub for sale that is worth investing in after all this hard work.

5. Is the Pub for Sale Profitable?

Is the pub making a good net profit? That is what the value is typically based on. You will want to perform due diligence on the pub you are looking to buy and ask a series of questions to determine if this is the right pub for sale and if you should be paying the price the seller is asking.

Ensuring you have a professional to assist you during the due diligence is very important, especially when making a big investment and buying a pub for sale.

6. Did you experience the pubs' atmosphere?

One of the best ways to truly know if this is the right pub for you is to take a look behind the scenes. Grab a drink, get a bite to eat and see how the experience is as a customer.

Take a good look around when you're there as a patron. How are the staff? Are they happy? Is service efficient? Are there any key people who keep the pub running efficiently? Getting a well-informed picture of the business you are looking to buy is important.

Wrapping Up

Now that we’ve covered all the basics of buying a pub for sale in Australia, it's important to remember that every business is different. You should always consult with professionals when buying a pub. These include a conveyancer, business broker, business advisor and accountant.
We hope you enjoyed reading our article on how to buy a pub with these 6 important questions to ask.