Tough trading dents licensees' optimism

Licensees across the UK are feeling the pinch in 2007 with nearly one in five admitting trade has been badly affected, this year's Publican Market Report​ has revealed.

Pubs responding to the exclusive survey have painted a downbeat picture, with the number seeing a strong downturn in trade more than doubling since last year ­ 14 per cent compared with six per cent in 2006.

Only a fifth believe their business will improve over the next 12 months, a drop from 26 per cent last year.

Despite the negative trading conditions, 75 per cent of licensees say they are taking advantage of flexible licensing, by opening a few extra hours a week.

However, three-quarters of these have seen no boost to their bottom line.

Licensees claim they are being bombarded by red tape and additional costs.

Just over half say their utility bills have spiralled by between 11 per cent and 30 per cent this year.

Many are being forced to up their prices to cope, with the average price of a pint of lager breaking the £2.50 mark this year, up from £2.30 to £2.51.

On the issue of binge-drinking, however, publicans are united on who is to blame: supermarkets.

Two-thirds argue that loss-leading deals by the major chains are the chief factor fuelling the problem.

Dave Talbot, licensee at the Simple Simon in Warwick, said trading had been tough over the past year. He laid the blame at the door of the off-trade and chain pubs.

"We have a local shop offering really cheap deals on beer and often see people coming out carrying bags full," he said. "Big pub retailers are also having an effect by undercutting us."

Despite the negative feeling, David Wine, licensee at the Six Bells in Felsham, Suffolk, is remaining upbeat about the future.

"It's been very difficult, with lots of factors affecting us but you have to be optimistic and make sure you evolve with the times," he said.

"People will always want to go out and have a drink."

What else does the report say?​

• Hourly pay for barstaff rose from an average of £5.39 last year to £5.67
• Licensees work more than 75 hours a week and a quarter still work more than 90 hours
• 75 per cent are trading extra hours under the Licensing Act
• 45 per cent of licensees say they have spent at least £1,000 on their outdoor area.