TOP 5: Key themes shaping conversations between pubs and investors

After years of playing second fiddle to casual dining brands, pubs are whetting the appetite of investors.

As FEJ revealed yesterday, analysts are predicting that the ‘return of the pub’ is set to play a dominant role in the M&A market over the next few years.

Accountancy and business advisory firm BDO’s newly-published Restaurants and Bars Report suggests pubs are currently enjoying the attention from a broad and varied trade buyer pool, with large and regional brewers said to be looking to boost their distribution capability through acquisition.

Here are five key themes shaping conversations with investors, according to BDO:

1. The return of the local
Operators taking a hyper-local view are successfully creating value in local communities.

2. Independence day
Consumers want authentic pub experiences so those that can flex and tailor their offering to deliver authentic guest experiences have the edge over less nimble competitors.

3. Experiential propositions
Millennials are showing a preference for experiences over material goods as the search for ‘instagrammable moments’

4. Premiumisation
Craft beers, craft spirits and independent coffee brands provide higher growth potential and higher margins for businesses and investors

5. Accommodation
Pubs that can sweat their assets fully and take advantage of the boom in accommodation sales by converting ‘upper parts’ are not going unnoticed.

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