Buyers swayed by food opportunities

Pub buyers are more interested in food potential than barrelage returns, according to agents.

As the smoking ban ap-proaches, newcomers to the trade are basing purchasing decisions on an outlet's food potential rather than wet sales.

Brownill Vickers & Platts agent Martin Nicholson said that more and more people registering with the company are interested in pubs with separate dining areas or large restaurants.

"Generally, we find that food-led pubs do sell quicker than others coming onto the market," said Nicholson.

Chartered surveyor Fleu-rets has revealed that it gets weekly inquiries from potential food pub operators. Chris Irving from the company's Bristol office said: "We see large numbers of people looking to take on a pub and transform its fortunes via the introduction of food."

Irving went on to warn that turning a pub into a food-led operation isn't easy.

"Many would-be operators dream of running a gastro-style venture without considering the building, its location and current customer base."

GA-Select's Graham All-man used to be chef and operations director for the Midlands branch of Bass. He said that planning an exit strategy is important.

"Food is on most people's tick lists. Pub companies, in particular, are looking for other sources of income.

"The problem is the skills shortage. Licensees lacking experience may make a hash of food. This makes it harder to achieve a decent price when it comes to selling."

Allman sold a freehold in the Forest of Dean, Glou-cestershire for £295,000 three years ago. The owners revamped the food offering and boosted trade from 20% to 50% of sales. The pub has just gone back on the market for £495,000.

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