Christie & Co reports continued demand and resilience in the UK pub & restaurant market amid challenging economic landscape

The report notes that, despite significant economic headwinds and operational challenges, hospitality operators are tackling uncertainty head on, and there is still solid demand in the market for new site acquisitions.

TRANSACTION ACTIVITY

The report discusses a notable increase in activity from pubcos in the first six months of the year, both looking to acquire new sites that fit their criteria and streamline their portfolios. Independent buyers are still the most active in the market, representing the buyer in 65% of deals agreed by Christie & Co this year.

Approximately 86% of pubs sold by Christie & Co this year have been for continued use, underlining the resilience and long-term viability of the sector along with good levels of buyer confidence.

The market remains polarised with strong demand for assets under £600,000 and at the prime end of the market. Demand has also moved away from food-led establishments to wet-led, which tend to offer better profit margins due to the high cost of food production.

The report reveals that demand in big cities outside of London, which had seen reasonably good operational performance and demand for assets, have seen a slight softening, while London and the South East have seen a resurgence, and lifestyle businesses in ‘honeypot’ locations remain popular.

CONSUMER PREFERENCES

The market for pubs with accommodation is proving even more robust than expected and experiencing significant growth, with operators increasingly incorporating letting rooms to attract more customers and increase revenue.

The report also discusses consumers’ growing preferences for low and no-alcohol options, as well as venues which offer unique experiences and vibrant atmospheres, forcing hospitality operators to enhance their offerings with a focus on ambiance, events, and service quality.

FINANCING AND INSURING BUSINESSES

The report features insights from Christie Finance on the funding landscape and appetite among lenders, as well as updates on the insurance market, premiums, claims and cyber cover from Christie Insurance.

Stephen Owens, Managing Director – Pubs & Restaurants at Christie & Co, said, “Our latest report highlights the sector’s enduring appeal and adaptability in the face of significant ongoing pressures. Pubs and restaurants are continuing to attract strong interest, particularly those that are well-positioned, competitively priced, and capable of diversifying income streams. We’ve seen a clear shift toward wet-led models and increasing demand for venues with accommodation, as operators look to broaden their offering and boost profitability. Independent buyers remain a driving force in the market, reinforcing confidence in the long-term opportunities in the hospitality sector as we move through 2025.”

To read the Pubs & Restaurants Market Review 2025, click here: https://www.christie.com/sectors/pubs/pubs-restaurants-market-review-2025/

For further information on this press release, contact:
Jasmine Davis, Corporate Communications Manager
P: +44 7561 115179
E: jasmine.davis@christie.com

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