Publicans demonstrate the power of positive thinking

By Rob Willock

- Last updated on GMT

Related tags Pub market report Economics

Licensees are displaying resilience in the face of adversity, says Rob Willock
Licensees are displaying resilience in the face of adversity, says Rob Willock
The PMA’s annual Pub Market Report highlights some promising trends. Respondents to the survey cited increasingly flexible tenancy/lease contracts as one reason to be cheerful, alongside opportunities from events and occasions, food sales and hot beverages.

Nearly half of licensees are clinging to these scraps of good news to persuade themselves that they will be able to increase turnover in the year ahead.

It’s common in business surveys conducted during tough times for operators to suggest that their market as a whole will contract, but that their own business will be immune from the difficult trading conditions.

The tone of the Pub Market Report results is undoubtedly optimistic. But it also appears realistic, with 45% of respondents reporting an increase in turnover in 2011. This is a stunning result at a time when consumers’ real incomes fell by 3.5%.

Publicans are fighting hard in an effort to win a bigger share of a smaller amount of disposable income.

Increasing sales is one thing; turning it into profit is quite another against a backdrop of increasing energy costs, business rates, wages and rent.

And these are factors largely outside the control of the pub operator — though I would point readers to the PMA Powersaver scheme, which helps licensees to get the best deals on electricity and gas bills: for more details, see below or visit http://ppsaver.udswitch.co.uk​.

Only 36% of survey respondents managed to achieve an increase in profits in 2011.

But unlike operators in some sectors I could mention, licensees seem not to allow themselves to slip into victimhood, blaming everyone else for their woes. OK, the supermarkets come in for some criticism from survey respondents, but they deserve it!

It’s fair to say licensees are a resilient and innovative bunch, continually adapting to market changes, societal trends, government legislation and price inflation.

That they remain cheerful and positive about their prospects is great testament to their craft, adaptability and knowledge that their offering remains central to the lives and loves of the Great British public.

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