Large pub companies were largely responsible for driving overall turnover across those companies from £8.9billion to £11.7billion from 2008 to 2016, according to hospitality loan providers Ortus Secured Finance (OSF).
Response to consumer demands for “high margin drinks” was one of the leading factors to which OSF attributed the rise, as well as the 2003 Licensing Act’s relaxation of opening hours, which allowed pubs to stay open for longer and compete with nightclubs.
‘Difficult’ for smaller pub companies
Turnover growth demonstrated that larger pubs and bars were able to easily access funding, which allowed them to adapt their products to customer tastes, the research showed.
However, OSF warned that smaller pub companies found it more challenging to gain access to more funds.
OSF managing director John Salisbury said: “There is a huge potential for smaller pubs and bars to grow, but they need to access some of the finance that is available to the big pub companies.”
“Fast access to funds is central to any pub’s desire to stay ahead of the competition."