Tenants shed staff as recession bites

By John Harrington

- Last updated on GMT

Related tags Tenants Beer Cask ale Public house Cga

Pub staff: less job security
Pub staff: less job security
Tenants have been forced to shed more staff in the past year as licensees say the recession has hit harder than expected, says a new CGA survey.

Tenants have been forced to shed more staff in the past year as licensees increasingly say the recession has hit harder than expected.

That's the down-beat finding of an exclusive survey of 432 tenants by CGA, revealed at the Morning Advertiser's Tenanted Trade Summit on Tuesday. Meanwhile, pubcos and business development managers are seen in a more positive light than last year (see box).

The survey shows 58% of tenants have cut back on staff as a result of the downturn, compared to 31% in a similar survey last year. Of those tenants who shed staff, 87% lost one or two people. Last year 95% lost that many. Eleven per cent got rid of three or four people, compared to 5% in 2009. One in 50 tenants has lost five or more employees — none did last year.

Opening hours are also being scaled back, with 17% reducing hours, compared to 14% last year.

It links to a gloomy assessment of trading over the past year, with 46% saying it has been worse than expected — 34% held this view in 2009. Nearly three in four tenants (73%) say trade has decreased this year, with 28% citing a decline of 20% or more.

But the picture isn't universally negative, with 8% saying trade has risen at least 10%. Meanwhile, tenants have hit back by diversifying to attract customers.

There's been a rise in pubs hosting pub sports (13% to 46%), live music or other entertainment (32% to 46%), and special events or links to food (74% to 79%). The proportion staging other events, particularly football screenings and quiz nights, surged from 3% to 34%.

The survey points to changes in how pubs advertise, with a doubling of on-line usage to 9%. The use of blackboards, posters and flyers fell from 92% to 75% — this could also be linked to crackdowns by councils.

Seven out of 10 tenants invested money in their pub in the past year. The sums are relatively low — 46% spent under £5,000, and 26% under £2,000 — suggesting low-level "sparkles" rather than major refurbs.

The survey highlights a "stubborn" minority who aren't making the effort to attract customers. The proportion that don't monitor rival pubs has actually risen from 34% to 40%.

Meanwhile, supermarkets are increasingly seen as the biggest threat to business. This year 19% cited them as the major problem; no more than 11% did in 2009.

Almost half (48%) of tenants say cask ale, "the licensees' pet", is faring better than any other drinks category. Fewer tenants are saying the same about wine, spirits or world premium lagers.

Elsewhere, 46% said food turnover has increased, up from 44% last year.

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