Tenants shed staff as recession bites
Tenants have been forced to shed more staff in the past year as licensees increasingly say the recession has hit harder than expected.
That's the down-beat finding of an exclusive survey of 432 tenants by CGA, revealed at the Morning Advertiser's Tenanted Trade Summit on Tuesday. Meanwhile, pubcos and business development managers are seen in a more positive light than last year (see box).
The survey shows 58% of tenants have cut back on staff as a result of the downturn, compared to 31% in a similar survey last year. Of those tenants who shed staff, 87% lost one or two people. Last year 95% lost that many. Eleven per cent got rid of three or four people, compared to 5% in 2009. One in 50 tenants has lost five or more employees — none did last year.
Opening hours are also being scaled back, with 17% reducing hours, compared to 14% last year.
It links to a gloomy assessment of trading over the past year, with 46% saying it has been worse than expected — 34% held this view in 2009. Nearly three in four tenants (73%) say trade has decreased this year, with 28% citing a decline of 20% or more.
But the picture isn't universally negative, with 8% saying trade has risen at least 10%. Meanwhile, tenants have hit back by diversifying to attract customers.
There's been a rise in pubs hosting pub sports (13% to 46%), live music or other entertainment (32% to 46%), and special events or links to food (74% to 79%). The proportion staging other events, particularly football screenings and quiz nights, surged from 3% to 34%.
The survey points to changes in how pubs advertise, with a doubling of on-line usage to 9%. The use of blackboards, posters and flyers fell from 92% to 75% — this could also be linked to crackdowns by councils.
Seven out of 10 tenants invested money in their pub in the past year. The sums are relatively low — 46% spent under £5,000, and 26% under £2,000 — suggesting low-level "sparkles" rather than major refurbs.
The survey highlights a "stubborn" minority who aren't making the effort to attract customers. The proportion that don't monitor rival pubs has actually risen from 34% to 40%.
Meanwhile, supermarkets are increasingly seen as the biggest threat to business. This year 19% cited them as the major problem; no more than 11% did in 2009.
Almost half (48%) of tenants say cask ale, "the licensees' pet", is faring better than any other drinks category. Fewer tenants are saying the same about wine, spirits or world premium lagers.
Elsewhere, 46% said food turnover has increased, up from 44% last year.