Free trade invests to resist tougher trading

Freehouse operators are bracing themselves for a drop in profits with nearly one-third predicting figures will fall in the next year.

According to the Morning Advertiser's largest-ever poll, with 492 free-trade respondents, 30% of town-centre pubs, 33% of country pubs and 25% of community outlets expect trade to get tougher, and hit their profits.

In a bid to counter the anticipated drop in business, levels of investment across the sector are at an all-time high as 86% have made some improvement to their pub, significantly up on 77% in 2005.

The fourth Morning Advertiser Freehouse Survey, sponsored by Waverley-TBS, also reveals that almost a quarter of free traders have been forced to cut back on staff because of increases to the national minimum wage.

Across the sector, 22% have reduced the number of staff they employ, with 5% saying they do not have any staff at all.

Continuing the trend of last year's survey, food is the priority for pubs wanting to develop in the coming year, with 40% putting it at the top of their list.

Country pubs lead the way on food, with 92% selling it, which has caused 19% - the highest number of pubs in the sector - to go smoke-free before the ban.

Among town pubs, 16% have also already banned smoking, in comparison to just 7% of community outlets.

Community pubs express the most fear about the ban and 63% expect trade to fall, compared to 45% of town pubs and 28% of country outlets.

Confusion over the precise terms of the ban mean 49% of freehouses have yet to make any preparations, with a figure of 48% for town-centre pubs.

In outlets that have made preparations before the legislation kicks in next year, general improvements to the garden or outside area are the most common improvements, followed by buying outdoor heaters.

More than half of the freehouses polled by the MA have extended hours, but an overwhelming 73% believe it has made no difference to trade.