Credit crunch hurting majority of pubs

More than half of licensees have seen a downturn in their business because of the credit crunch.

Research by CGA Strategy found that 58 per cent of the 560 licensees questioned had seen a drop in trade. Meanwhile 35 per cent said it had stood still and seven per cent had seen an increase.

"Whether this is just down to the credit crunch or not I do not know", said Anita Adams, licensee of the Golden Slipper in York.

"We are suffering from an accumulation of a lot of things of which that is one. The decline has been going on for quite some time and the credit crunch is just another thing we have to deal with."

More than 54 per cent of licensees said customers were going out less, whilst 32 per cent said they were going out the same, but drinking less.

The survey also revealed the trends which were helping businesses ride out the storm - targeting their offering at specific demographics, investing to accommodate smokers and improving food and family offering.

"Since the so-called summer ended we have seen a drop off, which may be to do with the credit crunch", said Henry Brooks, bar manager of the Laughing Fish in Uckfield, West Sussex. "But we have had a better summer than last year, because we had a refurbishment, got in a new chef and word of mouth has brought us new customers. You have to try to change and offer something different."

Phil Tate, head of insight at CGA Strategy, said the credit crunch has combined with the increase in the cost of raw materials, the smoking ban, duty increases and the lure of supermarket deals to cause a "fundamental decline in footfall."