Beer tie blamed for squeeze on pub turnover

26-Jul-2018 - Last updated on 26-Jul-2018 at 08:43 GMT

Turnover squeeze: 26% of respondents who have seen their turnover fall over the past year blamed the beer tie

The beer tie has seen a surge in licensees naming it as the biggest factor negatively affecting their turnover over the past 12 months, according to data published in MCA’s Pub Market Report.

According to MCA's report, 26% of respondents who have seen their turnover fall over the past year blamed the beer tie – a 16pp increase compared to the results of the 2017 MCA Licensee Survey, which is conducted alongside sister-title Morning Advertiser.

The economic climate came in at number two, with 21% stating it was putting the greatest pressure on turnover (down 5pp), while supermarket pricing was the choice for 13% (down 8pp).

Other factors, which licensees felt was contributing to lower turnover, were increased competition for leisure spend (8%), competition from other pubs (8%), beer prices (8%) and rising business rates (5%).

For wet-led pubs the impact of the beer tie went from being the biggest factor for 10% in 2017, to 30% in 2018, while for food-led pubs the percentage increased from 9% to 18%.

The biggest factor that licensees felt had the most positive impact on turnover was improved/continued customer service (21%), however the most important factor in 2017 – an improved food offer – fell in importance from 22% to 7% (down 17pp).

The +200-page Pub Market Report offers critical insight into the long-term success of the pub sector, by taking a detailed look into its growth drivers and inhibitors. It includes detailed analysis and market sizing, consumer insight, a breakdown of the competitive landscape and focus on leading and emerging brands/operators.

To find out more or to order a copy of the report, please contact radhvevrf@zpn-vafvtug.pbz