THE AGENTS
Louise Hooper
Senior sales negotiator, Stonesmith
With the smoking ban set to start on 1 July in England, there is considerable speculation within the licensed property market about how it will impact on licensees, their trade, and the knock-on effect when it comes to selling their businesses.
At Stonesmith, one of the first questions prospective purchasers now ask is whether an outlet has outside trade areas that can be developed appropriately, or if plans have been implemented to accommodate the forthcoming ban.
Whilst the pub market is slowing somewhat, quality operations with outside trade areas or businesses that have planned for the ban are continuing to sell.
Pubs currently on the market offering alternatives such as food and letting accommodation are not as badly affected. However, wet-led high street and town-centre operations without outside areas or catering facilities are becoming harder to sell.
After I attended a recent smoking-ban seminar, the likely impact became clearer, with clear evidence emerging from experience gained in Scotland and Ireland. It seems likely that as long as licensees are prepared, willing and able to offer suitable alternatives for their customers, the effects of the English smoking ban should be limited. Although it is likely to cause some initial unrest in the trade, in the longer term it should not cause any notable problems.
During some recent trips to Dublin and Edinburgh I noticed that the smoking bans work and are self-policing. Customers appear not to be overly concerned at having to change their habits and smoke outside, particularly if licensees provide patio heaters to accommodate them comfortably.
In any case, planning is essential, and if licensees are able to offer positive alternatives such as movie nights, quizzes, themed events or good-quality food, customers will have other reasons to visit their local, rather than just the usual pint and cigarette.
If you are a lessee for one of the larger pub companies and you feel concerned, try talking to your business development manager who will be able to offer planning support.
If you are a licensee who is unsure of what is required or if you are coming into the trade for the first time, you can visit www.smokefreeengland.co.uk for more information.
