MA freehouse survey
Even with the woes of the Licensing Act firmly in the past, freehouses are bracing themselves for another tough year.
While 32% say profits in the last tax year were better than the year before, a similar number (31%) only managed to match what they had achieved in 2005. Worryingly, 32% say the last year has been worse in profit terms, and, predicting what lies ahead, 29% believe this trend will continue.
As the uncertainty over the smoking ban looms large, free traders' expectations for the future is fairly mixed. On the one hand, among country pubs, there is a sense that the ban will have no impact on trade, and in some cases, that it will grow.
However, community freehouses feel far less settled, fearing the worst outcome from the smoke ban and, on average, making the least profit. Given that confidence is lower in community pubs, it's hardly surprising that these licensees are the most likely to leave their outlets in the next three years, with many planning to switch to a different profession. It's clear that many country pubs are thriving, thanks mostly to a heavy reliance on food that, on average, brings in 43% of their turnover.
In general, town-centre pubs are also optimistic about the coming months, with 43% saying they expect profits to be higher in this tax year than in the previous one.
Across the sector, in line with the pub trade as a whole, beer sales continue to suffer, which could explain why attracting more families is seen as the second-biggest priority for freehouses in the year ahead, after developing food.
Who we asked
We polled 492 freetrade pubs during June 2006 using an in-paper survey and also via our website, morningadvertiser.co.uk, to enable us to compile our in-depth reader survey.
l 44% of respondents defined their pubs as country pubs, 36% called them community pubs and 18% said they were town/city-centre pubs.
l On average, respondents had been in their current pub for just over nine years, with nearly half having been there for up to five years.
l The average length of respondents' time in the industry is 16 to 17 years, with 17% having worked in the trade for up to five years, and 2% for less than one year.
l 12% run additional pubs. This rises to 35% for town-centre licensees, who run 1.8 other pubs, on average.
