Third of pubs at risk as cuts bite deeper
More than a third of pubs and bars across the West are at risk of going bust in the next 12 months, way above the rate of companies in general.
Leisure spending has been hit particularly hard by spending cuts, with drinkers opting for supermarket take-outs and a night in front of the television, rather than a night in a pub, industry experts have warned.
And even the ‘high-end’ pubs and dining bars are experiencing trouble, with customers eating out far less frequently.
That was the warning from R3, the insolvency trade body, which warned that the figure of 34 per cent of the nation’s pubs and bars defined as ‘at risk of failure’ in the next year compares to just 23 per cent across all sectors of business, although that figure is high itself.
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Lee Manning, R3 president, said: “There is a considerably higher proportion of pubs and bars at risk, when compared to the cross-sector average. The recession has gone on far longer than could have been predicted and it is getting harder for people to find the money to spend on discretionary items. Going to the pub is being replaced by buying alcohol in the supermarkets, and the strain on pubs and bars is really showing.”
Comments
by DaveF_Walcot
Wednesday, October 10 2012, 7:34PM
“They saw you coming FredofoffBath. Where was the £4+ pint?”
by FredofoffBath
Wednesday, October 10 2012, 5:16PM
“Can tell you tee total jezer i've paid over £4 in bath recently and £5.20 in london!”
by jezer
Wednesday, October 10 2012, 5:06PM
“Well it's hardly surprising with a pint of beer at over £3. I'm glad I'm now teetotal.”
by capndave
Wednesday, October 10 2012, 10:14AM
“There is an added problem in south-east England and London. The changing culture base with a growing Muslim population who of course are not users of alcohol. I presume this would also apply to other areas such as around Leicester, Bradford etc.
In the main Roger is correct, but surely you also have to add the ban on smoking and the clamp down on drink driving.
Add all this to the greed of Spirit Groups of this world and hey presto another pub bites the dust.”
by NickC00
Wednesday, October 10 2012, 9:55AM
“3 things about this struck me. The UK carries the largest tax burden on beer in Europe. The wholesale destruction of the national pub estate by the property owning pub companies whose unrealistic rent levels (wet and dry) are forcing costs up and publicans to the wall to service their ridiculous debt mountain. The irony is that supermarket companies are buying up pub sites and converting them into more supermarkets.”