Independent deals driving pub market activity, according to Christie & Co’s Pubs & Restaurants: 2023 Mid-Year Review

According to the report, the UK pub sector remained resilient in H1 2023 due to the sector’s solid headline performance. There was strong interest for quality assets, with the expectation that as some of the pressures and headwinds begin to ease, normal conditions will return.

Key market insights revealed in the report include:

• 80% of transactional activity was driven by the independent market
• From a historic low level of stock at the start of the year, instructions picked up by 19%
• There was an increased demand for leasehold pubs (6% increase in leasehold deals compared to the same period in 2022)
• Cash is king, making up 86% of all offers accepted
• Consequently, the average time to complete a deal from ‘offer accepted’ to ‘completion’ has reduced by 22%

The report notes that Christie & Co has also been very active in the franchising market, assisting several key market players, including Sushi Shop, Chozen Noodles and Carl’s Jr, with both franchisee searches and franchisor disposals. The wider restaurant market remains tough, particularly for leasehold opportunities, with high street and leisure parks worst hit.

Looking ahead, Christie & Co maintains a positive outlook for the UK pub & restaurant markets in the second half of 2023, having observed the sector’s ability to withstand headwinds time and time again over the past few years.

Additionally, many pub co’s will be required to refinance in the coming months, which may unlock the market and create more deal opportunities. Private equity players have been keeping their powder dry for these opportunities so we may start to see some larger deals later in the year.

Stephen Owens, Managing Director of Pubs & Restaurants comments, “Whilst the pub and restaurant sector has been forced to deal with cost headwinds and rising interest rates, headline trading performance has held up reasonably well, which has helped to retain buyer appetite. Buyers are also taking advantage of more properties coming to the market, with strong activity levels in the leasehold market in particular. The lack of significant distress has helped to keep pricing reasonably strong, although rising interest rates has tempered this to some degree. We are optimistic that we will start to see more deal opportunities over the coming months once market conditions improve.”

To read the full ‘Pubs & Restaurants: 2023 Mid-Year Review’, CLICK HERE.

For further information on this press release and interview requests, contact:

Bronte Hughes, Corporate Communications Manager
P: +44 (0) 7721 420 656 or E: bronte.hughes@christie.co