The shock rise in PPL fees ­ hundreds of pounds extra even f

Related tags Price rises Minimum wage

How many price rises does that make it this year? Ten at least. Beer, business rates, lease duty, council tax, climate levy, waste recycling, minimum...

How many price rises does that make it this year? Ten at least. Beer, business rates, lease duty, council tax, climate levy, waste recycling, minimum wage, gas, electricity, water, plus probably many more you can painfully recall. And all of them well above inflation.

Put that against your sales "increases" this year, if you've had any that is, and the chances are you're worse off than you were this time last year.

When you measure it against the hours licensees running their own pubs put in, and the admin duties they perform for the Exchequer, it's a sorry state of affairs. As we pointed out a few weeks ago, many thousands of husband-and-wife teams will be earning substantially less than the minimum wage. And this under a Government that claimed to understand small businesses.

It's enough to make people think of leaving the trade, if only they knew where to go. Some will perhaps decide it's better to get a job as managers in a managed pub. Better pay, less hassle.

For those sticking with it, their only option is to pass on the rises to customers. But how do you do that in such a competitive world? Off-trade prices get lower every week, pub-goers are watching their pennies, and the chain pub prices are frighteningly sharp.

There are no easy answers. It all comes down to improving what your pub offers your customers, whether it be friendlier bar service, better quality dispense, better marketing promotion to the community, nicer decor, classier food and extra activities. These are no longer "nice to do's"; they're essential to survival in the leisure jungle.

The one thing you can't do is look to the Government for any help. Even with an election approaching, there's no chance of a cut in beer duty or any other juicy tax breaks. Chancellor Gordon Brown needs the money far too much (and will probably be back for more once Labour's returned).

It's a problem for the pubcos, too. There's little chance of rent rises against that background.

Related topics Professional Services & Utilities

Property of the week

Follow us

Pub Trade Guides

View more