Trade plummets at one in five pubs

Licensees' woes have been brought into sharp focus by gloomy figures revealed in this year's Publican Market Report​.

One in five pubs responding to the survey said trade is "substantially down" on this time last year.

And a quarter of pubs reported a big drop in profitability.

The report, available with the next issue of The Publican​ (August 25), highlights the "perfect storm" of problems the trade is dealing with - including rising costs, the credit crunch, alcohol duty rises, cheap supermarket deals and the smoking ban.

The worst hit are wet-led community boozers where nearly a third of licensees said profit was down "substantially".

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said the results were due to a shift in customer habits.

"People have less pounds in their pocket at the moment, which means they are drinking less when they go out," he said. "They are also tending to go to supermarkets to get cheap booze to drink at home."

However the survey shows independent freetraders, who make up a third of the 500 respondents, are faring better than their tied neighbours with 37 per cent reporting an increase in profitability.

And the rising ill-feeling among tied licensees is laid bare by the 72 per cent of tenants who said they would pay more rent to be free-of-tie.

The pressures felt by pubs are also reflected in the rising cost of an average pint of lager, which came in at £2.62, compared to £2.51 last year.

Sky is also increasingly being given the thumbs down by hard up licensees with only 27 per cent now subscribing compared to 34 per cent last year.

However, there are glimmers of hope in the report. The real ale revolution is continuing. Nearly half (46 per cent) of licensees said sales of cask ale were up on last year.

Wine and food are also continuing to prove popular among punters in the post-smoking ban era - with nearly half seeing hot food as increasingly important.

And one in five pubs expect an increase in trade over the next 12 months.

Innovative licensees are also bucking the trend.

At the Laughing Fish, in Uckfield, East Sussex, themed food nights and monthly quizzes are keeping customers happy. "Introducing different ideas keeps the customers interested," said licensee Linda Brooks. "The secret is marketing them well in advance to create an interest."

• The Market Report will also be available to download from thepublican.com​ from next week.