Even in a tough economic climate, pubs and bars across Britain seem to be enjoying healthy sales, with CAPEX having risen by over two-thirds over the past 12 months.
The latest Benchmarketing Report by the Association of Licensed Multiple Retailers (ALMR) has highlighted that average sales are up by 5.8 per cent in the year leading to October 2012. In particular, food-led venues and community local pubs are outperforming all other businesses, the latter of which have seen sales rise by a mammoth 7.6 per cent across the 12 months.
ALMR’s strategic affairs director Kate Nicholls stated that it would be a lot easier for investors and pub operators if the government eased regulatory pressure. Ms Nicholls said: “Taken as a whole, these findings reinforce our messages to government – we are an industry well able to generate jobs, invest in community facilities and play a full part in the Big Society. The fact that small, community operators are now out-performing the market in all these areas demonstrates in spades that we are the real engine of growth and the best barometer of business and consumer confidence.”
However, it was not all good news for operators and property owners, as expenditure continues to rise, taking huge dents into margins and growth. The average cost of running a pub has now increased for the first time in four years.
The ALMR Benchmarking survey has been carried out annually since 2007 when the global financial crisis hit. These findings will undoubtedly be good news for buyers who may be dipping their toe into hotel and leisure investment opportunities.