Cashed-up southerners dominate Brisbane pub scene but some locals still pulling beers

Cashed-up interstate groups have a stranglehold on the Brisbane pub and bar scene edging out long-term local owners. So who really owns the city’s best-known watering holes? SEE THE LIST

Cashed-up southern-based groups have a stranglehold on the Brisbane pub and bar scene edging out long-term local owners.

Despite the coronavirus pandemic ensuring one of the toughest year on record for Brisbane’s hospitality sector, they remain in the hands of Australia’s biggest hospitality groups and smaller operators priced out of the Sydney and Melbourne markets.

FULL LIST: All 250 Brisbane pubs

Melbourne-based Australian Leisure and Hospitality Group and Australian Venue Co have some of the Queensland capital’s best known pubs in their portfolios with other smaller southern groups making their presence felt.

There are more than 250 pubs, bars, nightclubs and restaurants holding commercial hotel licenses in the Brisbane local government area, but more than 70 per cent are operated by interstate groups and individuals.

CBRE national pubs director Paul Fraser said Queensland has been an attractive option for southern investors for some time.

“The trend of migration north of capital has continues, outside of 2020, that is,” he said.

“The motivation is pretty simple. Up here is a far better value proposition than Sydney and Melbourne.

“That will continue with the way Queensland has reacted and coped with COVID compared to Sydney and Melbourne. It has made Brisbane a very attractive for southern capital.”

CBRE’s Paul Fraser and Pelethon Management Group managing director Jaz Mooney at the Grand Central Hotel.

However, Brisbane has not been immune most pubs and bars only re-emerging in the second half of the year after lockdown, albeit at a limited capacity.

The tough conditions have seen the iconic Stock Exchange Hotel recently announcing is closure while bars and restaurants such as Little Big House, Little Valley and Jamies Italian have also closed their doors.

Other big names such as The Chalk Hotel, The Flying Cock and the Grosvenor on George shut up shop for various reasons before COVID hit.

With COVID-19 putting the brakes transactions very few pubs and bars operations changed hands in Brisbane this year.

Two of the largest sales in 2020 were to interstate buyers Melbourne-based Hotel Property Investments paid about $20m for the freehold of the Acacia Ridge Hotel to the NSW-based vendor, leaving Monarch Hotel Management — also based in NSW — operating the pub.

In Fortitude Valley Sydney-based hospitality operator Tilley and Wills Hotels paid $20m for The Elephant Hotel to the John Singleton, Geoff Dixon and Mark Carnegie-backed Australian Pub Fund which was also based in Sydney.

They have renamed it The Prince Consort — its original name when it was first built.

The Elephant Hotel in Fortitude Valley which is now The Prince Consort.

However, in a recent deal for local operators the Hallmark Group has taken over the historic but troubled Lord Alfred Hotel on Caxton Street.

Queensland Hotels Association chief executive Bernie Hogan said the industry had remained fairly stable over the past three or four years in terms of operators.

“About 12 months ago, there was some interest from Sydney investors and people are always looking at buying new hotels,” said Mr Hogan.

Bernie Hogan CEO of QHA.

He said the two interstate chains were major operators in Brisbane but about 30 per cent pubs were smaller players, generally family owned hotels.

Mr Hogan said the impact of the COVID shutdown on the sector had yet to be known but he was hoping most operators could trade through.

“Things will become clearer next year,” he said.

Matt Moran’s Little Big House has closed its doors for good with the leasehold on the market

Chinese restaurant Little Valley to close

Iconic CBD pub will close, falling victim to COVID-related restrictions

Norman Hotel proprietor James Power said there would always be a place for family owned pubs in Queensland.

Mr Power, whose uncle Bernie Power took on Alan Bond with his Power Brewing in the 1980s, said that while the chains dominate the gaming side of the hotel business smaller operators tend to do better in food and hospitality.

“The big chains tend to standardise things whereas we can do a more personalised service,” Mr Power said. “We sit down every week with our team and discuss issues our social media, the menu and food. We are always innovating.”

The James Power owned Norman Hotel at Woolloongabba.

During the COVID lockdown earlier this year, the Norman — which labels itself as Brisbane's worst vegetarian restaurant — did a takeaway barbecue pack for customers.

One of the newest licenced venues on the Brisbane entertainment scene is Milton’s Warehouse 25, which opened in November to a sold-out crowd.

Operated by Cameron Lee, Warehouse 25 bills itself as a multipurpose live music venue with function spaces, courtyard, pizzeria, bar, distillery, and bottle shop. Mr Lee said he was pleased by the community reaction to the opening of the venue.

He said COVID restrictions limited patron numbers to 90 but that would increase to 230 once limitations were lifted.