Business

Great food & music drive profit growth for Laundy Hotels

Danielle and Shane Richardson from Laundy Hotels have revealed how the group’s food and entertainment offering are driving growth.

The husband and wife run the Sydney operations of the 90-strong Laundy Hotels group, which is the largest private pub owner in Australia. The group’s prominent Sydney venues include the newly refurbished Watsons Bay Hotel on Sydney Harbour, Northies at Cronulla and the hatted Log Cabin in Penrith. 

They sat down with CBRE Talking Property podcast host Kathryn House and Adam Nadile from CBRE Hotels’ Valuation & Advisory Services team to explore the evolution of pubs from traditional watering holes to sophisticated hospitality hubs and the strategies that are shaping the sector. 

Danielle told Talking Property that when the couple entered the pub business, taking over the Red Lion Hotel in Rozelle in 2019, there was a seismic change underway in the food and beverage sector.

“Hospitality was stepping up and it was stepping up really quickly,” she said. “So we felt that it all came down to not just opening the doors of a pub and running them efficiently. There is very much a role to connect with what your consumers are looking for. And putting that lens on over a pub operation is really, really important. And we do it now with every single pub.

“So for the Lord Nelson, it’s an English-style pub. Our menu fits that offer. Our drinks very much fit the offer of what consumers are looking for when they come into our pub. We’re focusing on Sunday roast because of the traditional English roast and how important that is and featuring that.”

Danielle said food was a core focus in every one of the group’s hotels, ranging from traditional pub fare to more elevated dining.

In 2024, Laundy Hotels restaurant Sinclair’s at The Log Cabin Hotel, Penrith, was awarded its first hat in the Sydney Morning Herald’s Good Food Guide, just 12 months after opening. It recently retained its hat in the 2025 edition.

“We got the hat, that was such a big achievement for our staff and it was a journey that we took and we did it very intentionally,” she said.

“We source all local produce. There was a real story behind Sinclair’s and why we went about what we did with the chef’s table. How do we interact with that community? And they really bought into it, and it’s a beautiful restaurant and the team are very passionate about it.”

However, Danielle said the management team never lose sight of their traditional customers.

“While traditional pub grub is never going away, our schnitzels, our steaks, our base offer is absolutely still the priority for when people come into our pubs because that’s what they want when they get in there,” she said.

“However, we are very, very strong on the quality of that. So it’s about stepping up our offer in food and making sure that the schnitzel, we crumb it by hand. I actually had a girlfriend, we were at dinner on Friday night at the Red Lion. She’s like, this is one of the best chicken schnitzels. And I’m like, oh, yeah. She goes, where do you buy it from? I’m like, no, no. We hand crumb it. She’s like, what? And I’m like, yes, it’s one of our things.

“It’s really, really important that we have great food that is accessible to the local community and the families to come and enjoy within our beautiful pubs.” 

Shane said entertainment was also a strong focus for the group, with recent vibrancy reforms making a huge difference to the night-time economy.

“With the help of the NSW Government at the moment, they’re doing a fantastic job on really trying to provide Sydney and NSW to be a place that doesn’t just have a daytime economy, but is a world-class city that offers people great entertainment and a great place to visit. 

“I think we went through a period where we just didn’t want people to socialise and were putting more and more restrictions into our industry.

“What’s now happening and the rebirth of live music is fantastic. We’ve just had a weekend of some outstanding live music across our portfolio. Danielle and I need a few days off after having to be at so many of our pubs over the weekend. 

“We recently had dueling pianos play at Northies Hotel in Cronulla, which was super fun and we had a great mix of younger people and older people who just love coming along and getting entertained.”

Other key podcast takeaways include: 

Investment trends: The second half of 2025 saw a surge in pub transactions, with the top 10 deals totaling around $580 million, driven by strong investor appetite and lender confidence.  

Operational challenges & scale benefits: High entry costs, rising operational expenses, and increasing regulation pose challenges, but economies of scale allow large groups to maintain efficiency and profitability.  

Food, beverage & experience as differentiators: Quality dining and curated experiences are now critical to success, with pubs competing directly with restaurants and event spaces to attract customers. 

Future outlook: Despite regulatory and labour challenges, the outlook for the next 12–24 months remains optimistic, with strong demand, vibrancy reforms, and opportunities in regional markets continuing to shape the sector’s performance. 

Listen to the Talking Property podcast here: Raising the Bar: Australia’s Pub Sector Evolution.

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Categories: Business