Long gone are the days of rough pubs, a big rump steak, and a few cold schooners at the pub. Changing consumer demand trends and changing regulations over the past 15 to 20 years have significantly impacted how the hospitality industry operates, and how they have grown to be perceived by consumers. The old fashioned pub has been refined; customers now drink less but spend more on quality food and drinks. With the Australian hospitality industry growing and evolving into a powerful network of high-end food and drink vendors, now has never been a more exciting time to diversify your offering in this market.
The Classic Establishment Is Evolving
The traditional country pub and local tavern are dwindling in numbers as many reinvent themselves through high end renovations, to look better and operate more effectively, appealing to current consumer needs. The big change experienced throughout the industry is the introduction of more boutique beer, cocktails and wine venues opening up as consumption for these products grows stronger. The classic parmigiana and chips are being upgraded with chef inspired menus.
What Has Driven The Changes?
Over the last decade, alcohol consumption per capita has been decreasing. In part, this is due to an ageing population and increased awareness towards leading a healthy lifestyle. Many patrons are choosing to drink less volume through better quality. Hence, the movement towards craft alcohol has really taken Australia by storm! Both young and older patrons are expecting a better quality of food, also.
Key Influential Factors On Individual Business Values
- Location is key, as high profile locations within city centers drive a significant advantage (high patronage numbers being the most important);
- Quality of premises is under scrutiny now more than ever. For many patrons, the venue’s fit-out is a key deciding factor;
- A strong and resilient buying group purchasing power/stock control systems will drive a better price for hospitality venues when evaluated;
- Lease terms/security of tenancy as important factors to consider during the business valuation process; among many more factors to consider.
Thinking of selling your hospitality business? Or maybe you’re looking to buy into one? The valuation and negotiation process are two of the most important elements in transitioning your business. Contact our friendly team at Verified Businesses for your own information pack or to book a consultation today. Our highly experienced team of business brokers are the Number 1 team on the Sunshine Coast in business sales. At Verified Businesses, success in business is Verified.