Independent pubs in decline says report
Independent pubs are finding it increasingly difficult to compete against branded outlets and many are in danger of going under, according to a new report.
The survey into independent pubs and bars was conducted by market research company Mintel and discovered that over the past five years there has been a "substantial decline" in the number of independent outlets in the UK, while the turnover of the trade as a whole increased.
Increased competition from pub chains, the foot-and-mouth crisis and the delay in licensing reform, were all identified in the survey as possible reasons for the decline in independent pubs.
The report found there were 26,000 independent pubs in Britain, which represented about 30 per cent of the total. It defined an independent pub as "one which is not part of a chain which is either tied to a particular brewer or owned by a large pub retailing company".
Mintel questioned independent pub owners and carried out in-depth interviews concerning their businesses and how they thought the future would affect them.
The pressure of competing with large pub companies was found to be taking its toll on independent licensees. Many said they wanted it to be made more obvious when pubs were owned by pub companies to give customers a more informed choice.
"We need to help people distinguish between the corporates and the independents and to play up the value of independents," one city bar owner told Mintel.
The survey concluded that one of the toughest areas for competition was pricing. Independent licensees have less buying power than a brewery or pubco and so cannot get the discounts offered to large companies such as JD Wetherspoon.
However, many independent operators said they focused on quality rather than on price cuts.
"People are prepared to pay a bit more if what they are getting is the top notch thing," one licensee said.
While independents were found to be coping with issues like price wars, staffing trouble and working long hours, the foot-and-mouth crisis has hit them hard. Mintel estimates that for many rural pubs the disease will be the "proverbial 'straw that broke the camel's back'" and so predicts that 2001 and 2002 will see numbers drop even further.
Despite the difficulties felt by independent licensees the report concluded that the decline will eventually slow down. It said: "By 2005 Mintel is forecasting the remaining independents will be the leanest and fittest and, consequently, that there will be stabilisation in the sector."
