How do I check a pub’s draught system and kitchen before buying?
Ask who owns the draught lines, taps and coolers, since a supplier often does. Check the line-cleaning records, the walk-in and glass-washer, and the kitchen line and hood, then list every equipment agreement and ask which ones need the supplier’s consent when the pub is sold.
Some belong to the owner. Others are supplied under agreements with breweries or distributors. This page covers equipment only. Before relying on any of it, find out what you would own after closing, what you would merely use and what would cost money to fix.
Who owns the draught system
Ask for a list of the lines, taps, towers, kegs and coolers, and ask who owns each part. In many pubs a supplier installs and keeps the system, often with an agreement attached. Ask for a copy of each agreement, read the term and the exit conditions, and give them to your lawyer, since a sale may need the supplier’s approval.
Cleaning records and condition
Draught lines are cleaned on a schedule, and the records show whether that really happens. Ask who does it, how often and where the logs are kept. Look at the taps and drip trays, ask about pour problems and foam, and have the cooler and cold room checked by a technician if you can.
Walk-in, glass-washer and kitchen line
Check the walk-in for seals and temperature, the glass-washer for age and service, and the kitchen line, fryers, grill and hood for wear. Ask for repair invoices and note what has been replaced recently. For the food side, see the restaurant due diligence guide.
Equipment agreements and consent
Make a list of every lease, loan and supplier agreement for equipment, with its term and renewal. Ask which need consent on a sale and who must approve. Ask your lawyer how any consent should be handled as a condition of closing.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideHow to buy a liquor store or licensed bar in Saskatchewan: licences, ownership rules and what transfers
- GuideBuying a restaurant in Canada
- GuideBuying a café or coffee shop in Canada
- Expert answerHow can I check whether a food franchise is profitable before I buy it?
- Expert answerShould I buy a franchise or an independent business?
- GuideFood franchise opportunities in Canada: what franchisors publish
- Expert answerHow can I tell if a bar is profitable before I buy it?
- Expert answerWhat should I check before buying a sports bar?
- Expert answerHow do I check a dry cleaner’s presses and machines before buying?
- Expert answerWhat is different about buying a nightclub instead of a pub?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Canadian Food Inspection AgencyGovernmentFact sheet: Preventive food safety controls
- 04Canadian Food Inspection AgencyGovernmentThe Food Safety Enhancement Program approach to a preventive control plan
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