The Changing Role of Australian Pubs

More than $2 billion worth of pubs changed hands last year. As big companies try to make money from community spirit, can local pubs survive?

It's a quiet Friday afternoon in the NSW Riverina town of Grong Grong.

The Royal Hotel is open for lunch on a Friday because a group of old friends are in town for their 50-year school reunion.

Former schoolmates are swapping stories about sneaking into The Grongy as teenagers.

One woman recalls her boyfriend used to work at The Grongy.

If the local police came in, the teenagers would slip out the back.

The Grongy looks different from how the women remember it in the 1970s.

The walls are lined with white wooden panelling to give it a Hamptons feel.

The women are glad the designated ladies' area is gone.

A different kind of pub is preparing for the lunchtime rush in Melbourne.

The Lincoln is a similar age to The Grongy and has an elegant Art Deco renovation.

Publican Iain Ling is setting up for a regular's party later in the day.

Ling has been working to help brewery or winemaking mates whose businesses have been damaged by bushfires.

Ling wanted to help his friends in need.

Is the pub a community heart or an investment asset?

Two pubs in different states serve different crowds but bring people together.

Pubs are important to Australian history and identity.

COVID taught us that we need to be around people.

Research shows that pubs are important to Victorians' social lives and wellbeing.

Large corporations are buying up pubs and changing the way they operate.

Some pub groups are backed by private equity and foreign capital.

The sense of belonging and community in pubs is worth investing in.

In 2025, pub sales were very high.

The Beach Road Hotel in Byron Bay was sold for $140 million.

The trend of pub sales continued into 2026.

Australian Venue Co has acquired several pubs and venues.

The flurry of purchasing may change the pub landscape.

Independent operators may struggle to compete with big groups.

Money is central to the changes in the pub industry.

Large groups make money from poker machines and can outbid smaller operators.

Some smaller operators refuse to install pokies for moral reasons.

Big players have more purchasing power and can streamline their systems.

Scale is a key driver for big pub groups.

Lower costs can mean lower prices for customers.

Manpower is also an advantage for big groups.

But scale comes with trade-offs.

James Smith warns that big groups can lead to a homogenisation of pubs.

Independent venues may lose their unique character.

Craft beer brands have been bought up by bigger breweries.

At The Grongy, the owners handle almost everything.

It's a lot of work, but the community atmosphere is important.

Regular pub-goers report that their favourite venues lose their soul when big groups take over.

One customer felt like they could have been anywhere in a pub taken over by a hospitality giant.

The pub didn't feel memorable or special.

A local in Moree lamented that they no longer feel a connection to any of the pubs in their town.

The focus is now on food and pokies rather than community.

The classic pub has been part of Australian social fabric since the early 1800s.

There are just under 7,000 pubs, taverns, and bars around the country.

Pubs have changed and adapted alongside society.

The decline of the six o'clock swill and the ban on women in front bars are examples of these changes.

Pubs expanded into fancy bistros and introduced external entertainment.

Historians recall that several pressures threatened the existence of old-school pubs.

Many old pubs were demolished to make way for high-rise buildings.

Heritage groups and labour organisations banded together to save pubs.

The Espy in Melbourne and the Edinburgh Castle in Adelaide are examples of rescued pubs.

Former South Australian premier Don Dunstan was a champion of pub preservation.

The current challenges of consolidation may be just another chapter in the Aussie pub's history.

One woman who has seen decades of transformation is Sydney publican Maureen Thornett.

Thornett has transformed her pub to be welcoming to women and families.

She supports small-scale and independent producers.

Thornett refuses to compromise on her standards.

She goes out of her way to support local projects and enterprises.

The Australian pub landscape still has room for all kinds of venues.

There's enough space for different types of pubs.

One group of pub-goers may want upscale food and independent liquor.

Another group may want cheap schooners and affordable meals.

External forces threaten the pub landscape.

Much more can be done to support the Australian pub landscape.

Staffing is a challenge for solo operators like Maureen Thornett.

Brian Evans at The Grongy is fearful about rising costs.

The Grongy was saved from disappearing when locals raised $1 million to buy it.

No amount of community spirit can save a pub if costs become too high.

Iain Ling reckons he has a solution to help pubs.

He argues that pubs should not be taxed.

Pubs are an essential part of the community.

Maureen Thornett is optimistic about the future of small, family-run pubs.

She thinks there will always be demand for pubs like The Royal Oak.

At The Grongy, the women are reminiscing about the days when pubs formed the backbone of their social life.

The conversation drifts to the disappearance of local footy teams and Bachelor and Spinster balls.

Whether corporate pub culture can replicate organic forms of entertainment and community remains an open question.

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Credits: Words by Alexandra Carleton, Illustrations by Kylie Silvester, Editing by Catherine Taylor.

Related topics: Australia, Business, Economics and Finance, Businesses, Carlton, Community Organisations, Grong Grong, Pubs, Taverns and Bars, Small Businesses.

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