Operators from across the sector told The Morning Advertiser (The MA) while trade has been stable in recent weeks, margins were tight and profit was almost unachievable in the face of tax hikes and rising operational costs.
“Turnover has been generally good, achieving budgets and exceeding last year. Bottom line profit has been more difficult and is not going to get easier [to achieve]”, Oak Taverns managing director Simon Collinson said.
However, events have played a key role in driving footfall, the managing director added, as well as an increase in smaller gatherings.
“Events are playing a bigger role rather than relying on regular trade just popping in for a pint. We are seeing more groups and small meetings happening more often while young people are seeking traditional pubs for an authentic experience.”
Unaffordable treat
This has meant local and heritage cask beers, like Boddington’s, alongside premium lager, are continuing to perform well, Collinson explained.
Though he warned the pressure from Government legislation is making having a drink with friends in the on-trade an “unaffordable treat” for consumers.
“This Government has continued to attack our sector through tax increases and policy changes. Trying to navigate through the pressures of wage increases, National Insurance rises, duty increases, rates hikes, inheritance tax changes, employment rights changes and more will impact all pubs massively”, Collinson continued.
Despite the ongoing economic headwinds, owner of the Tamworth Tap in Staffordshire, George Greenaway, told The MA the sector’s united voice had had a positive impact, resulting in the Government announcing a U-turn on business rates hikes earlier this week.
“Trade is steady and in line with expectations for this time of year”, Greenaway said.
“We have galvanised a loyal local base but also benefit from beer tourists after winning Best Pub for Beer at the 2024 Great British Pub Awards and being a CAMRA National Pub of the Year finalist this year.
Biggest challenges
“The biggest challenges for pubs at the moment are inflated costs from the Government…there is a lot of solidarity in the sector at the moment though, manifesting in suggestions of action, strikes and protests against Government policy.”
Echoing Collinson, Greenaway said the Tamworth Tap was focused on boosting trade through events this month, adapting its products and staffing levels to reflect seasonal changes and national events.
Meanwhile, managing director of the Three Hills at Bartlow, Emma Harrison said support from loyal locals had kept trade at the Cambridgeshire pub resilient.
However, behind the scenes, she said community pubs are grappling with pressures that “increasingly threaten” their survival.
Consumers are also continuing to keep an eye on the purse strings, Harrison added, noting an increase in earlier visits and lower spend.
She told The MA: “Visitor numbers are falling as customers grow more anxious about money. At the same time, pubs are being hit by relentless increases in costs and taxes in what is already a high-labour, low-margin industry.”
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