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The Christie + Co Business outlook for Pubs, Restaurants and Leisure

On 15/01/14 by Brigid Simmonds (Chief Executive)

Christie + Co held their annual Business Outlook event last night to launch their 2014 review. Frances Edmonds hosted a question and answer session with David Rugg, their Chairman, and Chris Day, the Managing Director. The clear direction was that the summer of 2012 with the Olympics and the Diamond Jubilee saw the bottom of the curve in terms of economic activity, but since then as Frances put it with a para phrasing of Baroness Thatcher "There are not so many problems; only opportunities"

Neil Morgan (who acted as my host) provides some very positive data for pubs which is well timed with another Parliamentary Opposition Debate on pub companies soon approaching. So, a few facts to digest; the number of pubs sold to remain as pubs reached 67%; a 5% increase on 2012. Experienced operators and entrepreneurs are back. London remains in its own bubble trading wise with food as a driver, along with cask ale. It is interesting that Simon Chaplin who heads up the restaurant side wrote that some restaurants may chose "to diversify their offering in order to compete with ....the pub sector whose proposition has improved exponentially over the last decade."

On pub companies the report states: "The beer tie is going through a natural evolution...and pub companies understand there is more to be gained by managing the tenant relationship better and encouraging new tenants into the sector."

In terms of market predictions for 2014, Christies see a slowdown in tenanted disposals as pub companies become satisfied with their estates. The trend seeing more sold pubs remaining as pubs will continue upwards. The average price of pub year on year has moved from a 20.1% decline in 2009 to a 3.3 % increase in 2013... Christies remain "confident that the pub sector is in as healthy as position as it has been for many a long year."

You can read the report in full here.


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