A Deloitte survey of 1,000 consumers shortly before the implementation of the ban found that 33% of consumers expected to eat out more often, given that they would no longer have to waft away smoke from neighbouring tables.
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Licensed Retail
Deloitte works with companies in all sectors of the licensed retail industry, including pubs, clubs, restaurants, and off-licences. Our dedicated licensed retail team is able to provide a comprehensive range of advisory services, complemented by industry specific knowledge, and draw on a network of specialist expertise across the UK, Europe, the US and Asia.
Our experience includes work on many of the largest transactions in the industry in recent years, which have included Punch, Spirit, Laurel Pub Company, First Leisure, Threshers, The Restaurant Group, Hakkasan, Noble House, TGI Fridays and Wagamama. In addition, we have a strong portfolio of recurring audit and tax clients.
Research and insight
Issues and trends in the industry
- Consolidation
One of the biggest industry trends in recent years has been consolidation. Private equity buyers were attracted by the sector’s cash flow and asset backing, and the sector has experienced significant changes in ownership fuelled by low interest rates and demand for freehold commercial property. Subject to the availability of debt and equity finance, this consolidation is likely to continue, particularly as distressed sellers become forced to accept current market pricing. - Costs
Pubs have been suffering from rises in operating costs due to increased energy and utility costs, food prices, and the increase in minimum wages. This has caused the managed pub sector to contract as more pubs have been converted to the tenanted model. - Regulatory change
In the last two years, there has been a series of regulatory changes affecting the licensed retail sector. These include the ban on smoking in public places, which became law in England and Wales in 2007, changes to the licensing regime which allow 24 hour trading, government intervention to reduce binge drinking, and the impact of the national minimum wage legislation.
Deloitte Solutions
We have advised licensed retail operators and investors on:
- Business plans for start ups
- Large complex transactions; examples include MGPE’s acquisition of Laurel, Nomura’s acquisitions and disposals, and the Spirit Group’s acquisitions
- Corporate finance advisory and due diligence
- Commercial and property due diligence
- Tax advice including capital allowances, VAT and stamp duty planning
- Human capital services including tax efficient share schemes and pensions
- IT systems
- Risk management and internal audit
- Refinancing and fundraising for cross border transactions
Our clients
Our clients include pub and restaurant owners, operators and investors. We work with companies of all sizes and at all stages of their business development, ranging from larger private companies to the largest FTSE plcs in the sector.
