Pub turnover up 23% thanks to young licensees

By Mark Wingett

- Last updated on GMT

The Grafton's award-winning duo Joel Czopor and Susie Clarke are examples of successful young operators
The Grafton's award-winning duo Joel Czopor and Susie Clarke are examples of successful young operators

Related tags: Public house

There are encouraging signs of growth for the UK pub industry which has seen a rise in turnover and injection of new owners in the past three years, according to new data from Barclays

It said that average pub turnover had increased by almost a quarter (23%) in the three years since March 2012, as existing businesses benefited from strong levels of consumer spending.

The study also found that 42% of pub businesses were established in the last three years, while a quarter (26%) have been running for 10 years or more.

It said that recent growth has been driven by younger operators entering the trade, with the number of pub owners aged 25 to 34 increasing by a quarter (25%) in the last three years and now accounting for 15% of total pubs on average.

It also found that over one in five (22%) pubs are solely owned by a female landlady. Women also form a significant proportion of the young up-and-coming pub owners contributing to the industry boom, with a third of operators under the age of 35 being female.

Optimism

Adam Rowse, head of business banking at Barclays said: “It’s been long-reported that this is an industry met by challenges for pub owners, however our research shows that this has not deterred the next generation of pub innovators from setting up shop. It’s great to see optimism for growth within the sector.

“Beyond the headlines of pub closures, turnover growth and rise of new businesses is encouraging. There also a large number of establishments that have managed to sustain and grow their businesses in the last decade, including those that have renewed their business plans in response to changing customer appetites - the rise in those catering with pub food for example has enabled diversification."

Related topics: Other operators

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8 comments

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Is it Wrong

Posted by Robert Feal-Martinez,

To speculate (invest) to accumalate. If the business owner has faith in the future of their business should they be discouraged from investing, albeit via support from their bank.

If it were clearly organisations like Virgin would never exist. Church Hall to billionaire

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Loan data stats correct !!

Posted by David Morgan,Morgan & Clarke,Chartered Surveyors,

Ran this little gem past one of my contacts in the upper reaches of Barclays.What was not made clear was that the increase in sales related to the performance of their customers taking out acquisition finance in the last three years,not the industry as a whole.

fairly simple really,the businesses on the backs of which the loans were made,were more often than not supply tied run down or under performing pubs.So hardly surprising that there was a marked increase in new broom sweeps clean (generally) free of tie total sales.

PMA...The killer statistic was the fact that 42% of pub businesses were established in the last three years,erm,that refers to the CHURN,which is pretty sad.

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The long-term eonomic plan . . .

Posted by david,

. . . seems to be nothing more than to hoodwink people into thinking everything is on the up!

Banks needs borrowers. The licensed trade has always been fertile territory, except for a few years while the banks' greater need was taxpayers' bailouts to recover their balance sheets after the previous orgy of lending.

Expect the commission-earners to be posting this tripe from Barclays on their websites.

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