7 Tips to Buying a Pub in Australia
Tips Buyings a Pub in Australia
Pubs are seen as quintessentially Australian. They symbolise the laid-back, friendly, and welcoming nature that Australians pride themselves on. The pub culture is an integral part of the Australian way of life, especially in country towns.
Whether gathering for birthday dinners, sporting events or a good old-fashioned drinking sessions with mates, Australians love their pubs!
Many Australian pubs have a rich history and are often located in historic buildings. The architecture and decor of older pubs are a reminder of the towns development and cultural heritage. When you look at the pubs for sale you will need to consider the age of the building and maintenance costs. Depending if you are buying leasehold or freehold, its important to understand the building as much as the business.
In Australia you can find a pub in just about any town.
Assess These 7 Areas of the Pub You Are Buying
1. Is it Freehold or Leasehold?
In most cases, pubs are leasehold.
This means you pay a lease to operate your business within the space. Most commercial leases for pubs follow a 5x5x5 or 10x10x10 structure. This means an initial lease term of five or ten years, with two additional renewal options of the same duration. These long-term leases provide security and allow pub owners to establish and grow their business without the immediate risk of relocation. However, they also come with financial obligations, including annual rent increases and potential outgoings.
When reviewing a lease agreement, consider:
- Rental costs and annual increases – Ensure that rent remains viable based on projected revenue.
- Lease renewal options – Long-term renewal clauses provide stability.
- Restrictions or obligations – Some landlords may have conditions on renovations, menu changes, or operating hours.
- Outgoings and additional costs – Understand all financial obligations beyond rent.
It is important to ensure that the pub you buy has a long-term lease from the current owner; otherwise, when your lease ends they may find a new tenant or sell the premises. You need to make sure you are paying for the business and a good lease term. Always read the lease agreement carefully. A lease has a big impact on the business including its cash flow, how you can operate it, and the changes you can make.
If you are buying a freehold pub and premises, ensure you get a building inspection and are aware of any council zoning changes. A freehold purchase will allow you full control over the future development and operations of the business.
2. Check the Kitchen
When you're buying a pub or restaurant for sale, another thing to consider is the kitchen.
If it's not in good shape or has some issues with it, then think about how much money and time will need to be put into fixing up that part of your new business. If you are buying leasehold, this may be something you may want to negotiate with the landlord before buying the business.
Pubs traditionally sell 'pub food' which includes burgers, steaks, schnitzels, fries etc. Though there has been a growing trend in pubs offering more varied dining options such as Chinese, Thai and high-end steak and ribs . It depends on the clientele, size and location of the business.
Zengal Hospitality acquired the Quiet Man Irish Pub in the Melbourne suburb of Kensington in late 2024, with hopes to modernise the Irish pub concept and bring it to the modern era, with a different take on the menu. James Gallagher, new owner of the pub has been stated as saying "We want to modernise the Irish pub concept in general. I think that in Australia, across the board, you typically kind of old, dark rooms for Irish pubs, but we’re going to bring the young vibrance of the Irish people."
“There’s a lot more people traveling now than there ever was, you know, you know, the taste of Ireland has changed over the years. You know, they don’t typically want the traditional Irish, they want the modern kind of Irish street eats and things like that as well.”
3. Does it have Accommodation?
A pub with accommodation is a good investment because it can provide a good option for clients and an extra income for the business. People often look at a pub or motel for sale with a liquor license.
Accommodation attached to a pub is more common in regional Australia. It was very popular during the 1970s and 1980s when the majority of pubs were built to include rooms for rent upstairs. The unfortunate part of many of these establishments is they are due for renovations, which can be costly. So you will need to review on a case-by-case basis and chat with the landlord about any future renovation plans.
Ensuring good occupancy rates is important as it comes with its own unique set of expenses such as cleaning, replacing bed linen, laundry services, marketing, online booking systems etc.
Is everything in good condition? If not, then take the additional expenses into account.
4. Check with the Council
Are there any local developments in progress that could affect the pub such as a major road change or a new shopping centre?
A number of regional towns in Australia have experienced a decline due to the diversion of a major highway that bypasses the town. Look at the 5-10 year plan for the region with the local council.
A lot of pubs that are for sale rely on the tourists or being popular amongst locals to survive. You want to make sure that no new pub or restaurant precinct is being built nearby.
The location of a pub can significantly impact its success. Consider factors such as foot traffic, accessibility, competition, and demographic trends.
5. Read Online Reviews
Does the pub have a good reputation? Are you able to improve its image?
One of the most important parts of buying a pub is finding one that meets your needs and has great reviews.
Reading online reviews can help you determine if an establishment will be able to meet your requirements or not. Look on Google, Facebook and industry-related websites such as TripAdvisor. Frequent complaints about poor service, overpriced drinks, or an unclean environment could indicate operational issues. Conversely, consistently positive reviews suggest a well-managed and popular venue.
If it doesn’t seem like the right place for whatever reason, then move on! You want to make sure you find something worth investing in after all this hard work.
6. Check the Financials
When buying a business, the biggest indicator whether it is a good investment is how financially stable it is. You will want to perform due diligence on the pub you are looking to buy and ask a series of questions such as:
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What is the net profit to the owner?
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How long will it take me to earn back my investment (ROI)?
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What is the year-on-year growth of the business?
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What is the profit to loss ratio?
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Will I have added expenses if I rebrand or do a fit-out?
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Does the pub have any outstanding debts?
Key financial indicators include turnover, gross profit margins, operating expenses, and profitability trends. The Australian Taxation Office (ATO) provides small business benchmarks for pubs, taverns, and bars, offering valuable insights into industry performance.
For example, the ATO reports that the average gross profit margin for pubs ranges between 64% and 75%, depending on factors such as liquor sales versus food revenue.
When assessing a pub’s financial health, compare its financials against these industry benchmarks. A business with significantly lower profit margins may indicate high overhead costs or inefficient operations.
Additionally, evaluate the breakdown of income sources—reliance on gaming revenue or seasonal fluctuations in trade could impact long-term sustainability. Reviewing historical financial data and speaking with an accountant can help identify potential risks and opportunities before making a commitment.
7. Have a Drink and a Meal
One of the best ways to truly know if this is the right pub for you is to take a look behind the scenes. You need to find out how much work would be involved in running your own business and whether it's worth all of that effort.
This means taking a good look around when you're there as a patron. How are the staff? Are they happy? Is service efficient? Are there any key people who keep the pub running efficiently? Getting a well-informed picture of the business you are looking to buy is important.
The Australian Hotels Association (AHA) has over 5,0000 members and maybe an organization you wish to be a part of. They represent members who own establishments from small country pubs to inner CBD 5 star hotels.
8 Pubs for Sale in Australia
Tavern with Brewery Facilities in WA
Price: Contact Agent
This fully managed tavern, located in a high-traffic shopping center, offers excellent long-term growth potential with 16 years remaining on its lease and a restricted tavern license for 470 patrons. With a high-quality fitout, brewery facilities, and consistent sales of $5.0M annually, it has demonstrated an EBITDA of over $900,000 and requires minimal stock.
Classic Country Pub Business in QLD
Price: $190,000 + SAV
The historic National Hotel, a 120-year-old pub located on the Mulligan Highway in Mount Molloy, offers a unique opportunity to own a well-established business with a rich history. With 10 guest rooms, a 2-bedroom live-in residence, a commercial kitchen, bar, beer garden, and a courtesy bus service, this business caters to both locals and tourists passing through the area.
High-Performing Gastropub in VIC
Price: Contact Agent
This highly profitable gastropub, located in the heart of Melbourne's city center, boasts impressive annual sales of over $4,000,000 and is licensed for 950+ patrons. With a state-of-the-art fit-out, three full-service bars, a fully equipped kitchen, and a secure long-term lease, this 1,100sqm venue offers multiple revenue streams and expansion potential, currently managed with an experienced team.
Cocktail & Craft Beer Bar in NSW
Price: $170,000
This established cocktail and craft beer bar, with a retro fit-out, caters to a loyal, affluent clientele in a prime location on the lower North Shore. With a capacity of 100 patrons, it offers a unique opportunity to expand on its solid foundation, including an on-site brewery and a vast selection of whiskeys and rums, all in a stylish, intimate atmosphere perfect for both casual patrons and private events.
Prince Alfred Rooftop & Bar in VIC
Price: Contact Agent
Located in the heart of Melbourne, the Prince Alfred Hotel & Rooftop is a high-performing gastropub known for its exceptional offerings, panoramic rooftop views, and a 3am late-night liquor license. With a stellar reputation, the venue boasts multiple revenue streams, a long lease, and ample growth potential, making it a prime investment opportunity in a sought-after area.
So Should You Buy a Pub?
It's important to remember that every business is different, and pubs will have their own unique set of cicurmstances to review. Going into business ownership can be very rewarding, but its important to do your due dilligence so you understand what you are buying. You should always consult with professionals when buying a pub. These include a conveyancer, business broker, business advisor and accountant.
Not all pubs for sale are profitable or sustainable in the long term. Be on the lookout for red flags such as declining revenue, unresolved legal issues, licensing breaches, or negative customer reviews. Conduct thorough due diligence to avoid costly mistakes.
Originally published 2018. Updated 2025.
About the author
Vanessa Lovie
CEO Bsale Australia
Vanessa is the current manager and CEO of Bsale Australia. Over the past 11 years as a business owner, she understands what it takes to grow a ...
