Victorians are making hay in the sunshine of eased restrictions as opportunities emerge and the countdown to Christmas begins in earnest.
This week brought the highly anticipated move to one patron per two square metres and no cap on numbers, plus the return of vertical drinking. QR codes remain mandatory but masks are optional.
With the festive season just around the corner and warmer weather on the way, Victorian pub owners are starting to find rapidly increasing trade and function bookings.
“If we’re not making money in these last weeks before Christmas then we’re not having a go!” suggested a Melbourne operator.
But despite the enthusiasm of publicans and the public, feedback from many reflects a serious staff shortage, with some venues simply unable to open every day as a result. The problem is thought to emanate from a lack of willingness by employees to get back to work, exacerbated by the absence of backpackers and staff on working visas.
Pandemic conditions have put further downward pressure on Victoria’s tightly-held freehold market, forcing the continued trend of operators looking for opportunities into bricks and mortar.
Bobbie Peels – the popularised reincarnation of the old Sir Robert Peel Hotel – is a recently refurbished two-storey pub offering the essential cosy public bar, commercial kitchen, dining areas and beer garden, function space and original hotel rooms, with a late night licence.
It occupies a prime city lot of 346sqm between universities, hospitals and Queen Victoria Markets, amid major urban gentrification and development. The property’s mixed-use zoning also provides potential for a higher density residential development.
State government initiatives to revitalise hospitality has resulted in the activation of outdoor dining on the street (Queensberry), and the rear laneway may yet see the same.
The pub freehold came to market this week through CBRE Hotels’ Mathew George, who notes the expected price of circa $3.5 million equates to around $10k per square metre – when the nearby Central Club Hotel saw a price of $26k per sqm in 2017.
Bobbie Peels is currently leased for five years, but stands as a land bank or ‘wait and see’ opportunity for buyers in the re-emerging sector.
“Initial discussions with the tenant suggest this could suit an owner-operator in due course,” says George.
Based in Melbourne, George remarks it is “fantastic” to see the change that has come to life in the pub game in recent weeks.
“Victorians have all done an amazing job and we’re so glad to see the industry we love start getting back to normal again.
“To think where we’ve all come from, from about 12 weeks ago to now, recording 40 days straight with no new cases is just incredible.”
