$2.2bn in sales in a year: why Aussie pubs are booming
The days of rows of overheated pokies and dark dens jammed with men with deep thirsts and poor dress sense are well and truly over as Sydney ushers in a new era of pub entertainment.
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An extension of your home? A community haven? Yes, indeed, say pub owners. Your local rubbidy dub has evolved.
Boozers that once relied on overchilled beer and overheated pokies to satisfy a customer base consisting mainly of men with deep thirsts and poor dress sense have been transformed. Providing relaxation, sanctuary and entertainment for North Shore pubs’ ever-expanding demographics is now serious business involving serious money.
In the past year and a half, crowd-pulling pubs in parts of Sydney such as the Commodore in McMahons Point, Neutral Bay’s The Oaks, Lane Cove’s The Longueville, Minskys Hotel in Cremorne and The Chelsea in Chatswood have changed hands.
And popular spots including The Buena in Mosman and the Greenwood in North Sydney have been undergoing revamps.
Although sellers, buyers and agents are reluctant to disclose prices, industry reports put the sales at: the Commodore ($29m), The Oaks (about $150m), The Longueville ($50m), Minskys ($39m) and The Chelsea ($30m).
Last year, across Australia, the total deal volume for hotel purchases was about $2.2bn, of which about half changed hands in NSW.
The agent closely involved in those five recent North Shore pub sales is the energetic and personable Ben McDonald, JLL’s executive vice president, Hotels & Hospitality Group. Discreet as a diplomat, McDonald avoids revealing prices or naming names but he does say: “The pub market really exploded coming out of Covid. Similar to other property asset classes, the boom was spurred on by lending institutions having a real appetite to provide money to spur on investments.
“Notwithstanding the headwinds created by the lockdowns, some pubs emerged reasonably well from Covid trading.
“On the North Shore, pubs are very tightly held but we have seen increased transactions because of the strength of the market.”
In terms of trends in the pub industry, McDonald says hoteliers are “evolving their business models to cater for a range of customers, for example families with young kids”.
“We’re seeing lots of children’s play areas being installed,” he says.
“It’s about appealing to the widest possible audience – for example, by offering no-alcohol drinks. At one time you may have had people who weren’t drinkers and who didn’t want to go to a pub; now there are non-alcoholic options that aren’t simply soft drinks.
“These hotels are multifaceted businesses which can attract huge audiences.”
McDonald adds: “Overall, pubs play a key role in our society.”
Glenn Piper, the new owner of the Commodore, agrees: “Venues such as this one – which has served the community for a long time – naturally become a community haven.”
The fresh-faced, beach volleyball playing Piper is planning a makeover for the hotel on Blues Point Rd.
It won’t be its first. Phoenix-like, the pub has been reborn after at least two demolitions. In 1854, the sandstone inn on the site was named “The Old Commodore” after Billy Blue, a one-time convict turned ferryman. Over the next hundred-plus years, the Commodore shapeshifted into its current tavern-style format.
Piper, whose business interests include the Harbord Hotel and North Head’s Q Station (formerly the Quarantine Station), sees the Commodore’s rich history as important.
“We’ve engaged historians who are really getting into the detail,” he says. “What comes out of that research will be part of the storytelling across the venue. The historical elements should be told through the design, the aesthetics, the food and beverage menus, all the way through to the staff uniforms.”
It’s an approach he’s also taking at the Q Station.
“I can see an opportunity to draw people to the Q Station with a story that’s begging to be told,” Piper says. “We are aligning the hospitality offering with its heritage and we’re planning refurbishments throughout.”
As for the new menus at the Commodore, expect to see an emphasis on what Piper is enthusiastic about: creative modern Australian cuisine using sustainably sourced ingredients.
“There’s definitely a move towards sustainability. Everything should be sustainably sourced. We’re also conscious of people with allergies. There needs to be a wide choice on menus.”
So, what makes a great pub? For Piper, the focus is on being welcoming.
“Pubs are a place for everyone,” says Piper, who lives on the northern beaches with his wife Alexandra and three children.
“They’re places for families and people of all ages, demographics and walks of life. People can come and use the facilities and amenities as if it’s an extension of their own home. It’s what people are looking for.
“We add a layer of programming to serve the local community, whether that’s trivia or comedy nights or live music.
“We also have to make certain that the service is bang on.
“I’m focused on iconic venues with a tradition of serving the community because then we can uncover layers and stories which can help broaden the offering and improve the service.”
Providing attentive service is a priority.
“It’s a competitive industry and, with that competition, comes the challenge of staffing. It can be hard to find good staff,” says Piper.
“The emphasis here will be on staff culture. We want it to be a place where people enjoy working within a good, supportive environment.”
A short stroll from the Commodore is the Greenwood. The former public school with its stylish sandstone walls was built in 1878 and transformed into the Greenwood in 1992. Owned by Nick Wills and business partner Simon Tilley since 2017, the pub underwent a major post-Covid refresh and continues to be rejuvenated with upgrades such as new furnishings.
“We want to be an employer of choice and it would have been hard for me to ask staff to take pride in the Greenwood and in what they were doing if I couldn’t provide a venue for them to be proud of,” says Wills, who also operates The Buena in Mosman.
“So we spent money redecorating and it really looks great.”
Family man Wills who, with wife Edwina and their three children, lives on the North Shore, has a sentimental attachment to the Greenwood.
“It holds a very special place in my heart,” he says. “I pulled my first beer here when I was at university. I was working at the Greenwood on the day it opened.”
Despite having to work challenging hours, Wills says it is important for those in the hotel business to ensure there’s a fun atmosphere:
“We do things differently here and we try to have a bit of fun, which suits the demographic of the hotel and that’s also reflected in our fit-out.”
He also believes pubs should give back to the locals. The Greenwood sponsors the North Shore AFL Club, the Knox and Barker Old Boys rugby clubs and, for a community event in August, 50 tonnes of snow made the beer garden a wintry drawcard.
In Mosman, The Buena sponsors the local junior and senior rugby clubs as well as the soccer and cricket clubs, Little Athletics and the Balmoral Nippers.
The picturesque Buena is described by Wills as “the ultimate community hotel”. Like the Greenwood, its interiors have had a significant overhaul and Wills says the focus now is on “keeping it fresh” with new landscaping, upholstery and uniforms.
An experienced hotelier and restaurateur, Wills has seen seismic shocks go through the hospitality industry, including the growing demand from his customers for non-alcoholic drinks.
“We’ve got a non-alcoholic section on our beverage menus. Whereas pubs used to be just traditional boozers, they’re now very much food-centric. Some weeks we sell more food than booze.”
A great pub, for Wills, is one where a positive culture flows throughout a venue – from the licensee to the general manager, head chef and staff and right through to the customer and the local community.
“We like to be the heartbeat of the community,” he says.
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