What makes a healthy Pub/Bar business?
Wet sales (beer, wine, spirits) typically run 35–45% COGS. Gaming revenue (where applicable) runs at 60–80% gross margin. Food usually 32–40% COGS.
Liquor and gaming licences carry significant value — sometimes more than the going concern itself. Treat them as separate assets.
Patron capacity, parking and DA conditions can change post-purchase. Always pull a council records search.
2× – 3.5× SDE (Seller's Discretionary Earnings). Gaming-licensed venues attract premium multiples (3.5–5× SDE) due to licence scarcity.
- • Liquor licence under review or with conditions pending
- • Gaming machine entitlements not freehold-tied
- • Lockout / trading hour reductions flagged by council
- • Single large customer (sports club, function group) > 20% of revenue
- • Freehold included or long lease (10+ years)
- • Gaming entitlement transferable
- • Diversified revenue across bar/food/gaming/functions
- 1. What's the liquor licence type, conditions and renewal date?
- 2. Are gaming machine entitlements transferring with the venue?
- 3. What's the trading hours approval and any current complaints?
- 4. Can I see RSA and RCG training records?