British Pubs Are Going Out of Business on a Daily Basis, Due to a Variety of Economic Factors, but Is There Anything That Can Be Done to Stop This Happening?
Not too many years ago, in many parts of the United Kingdom, it appeared that there was a pub at the end of nearly every street, but more recently, changes in people’s social behaviour, frequent increases to taxes on alcohol and improved awareness of the effects of excessive alcohol consumption have begun to cause big problems in the industry.
A recent report by the British Beer & Pub Association suggests that around the UK, around 25 pubs are going out of business every week, and although this figure is down from 40 per week twelve months ago, it is nevertheless a worrying trend. The average pub has around ten members of staff, so 250 workers a week in the industry are threatened with unemployment, as well as the knock-on effect on the brewing industry if the need for their stock reduces as a result of the closures. It is calculated that the pub and beer industry provides employment for round about one million people in the United Kingdom and if closures continue at this rate, then yet more jobs are at risk.
As referenced above, an increasing number of people (particularly in the prevailing economic climate) are choosing to stay at home rather than go out and sit in the pub, and with the (comparatively) cheaper prices charged for alcoholic drinks in supermarkets, it’s no surprise. For the price charged for a single glass of wine in a bar, it’s quite possible to buy a whole bottle of the same tipple in a supermarket.
The health campaign for ever higher prices for alcohol is an topic which polarises opinions. On the one hand, if problems caused by alcohol are such a drain on public resources, then it could be debated that this is a logical move, but it will then penalise the large majority of people who basically like a pint of beer or a couple of glasses of wine with their dinner occasionally. And, although there may be confirmation published somewhere, I’ve yet to find any data which says that the extra revenue raised from alcohol taxes is channelled specifically to the NHS to help them finance treatment.
And unfortunately, although very well intended, investing a lot of money on adult created advertising campaigns aimed at preventing youngsters from drinking too much is more likely to be interpreted as preaching than offering genuine and sensible advice. It’s a shame but it seems that alcohol will continue to be a temptation for most British youngsters and highlighting for them the impact of being drunk won’t succeed any better than broadcasting adverts for Laser eye surgery to point out what they might require in the future if they spend too many hours on computers and games consoles now and cause problems for their eyes.
For landlords who lease and manage a pub through with a brewery or pub management business, further financial difficulties can arise as the lease will usually demand that some or all of the drinks for the pub must be purchased from the parent company, and it appears that frequently the prices charged are much higher than other wholesale outlets, meaning that the landlord has to advertise the drinks at a higher price, making the pub less competitive and potentially losing regulars to other local pubs which can source their drinks at a lower cost. Extra competition comes from the huge pub chains who can arrange large discounts on products for their complete network and who speed up their bar operations with computerised tills and Laser eye barcode readers.
Interestingly, the areas which are suffering the greatest number of pub closures are London and the North West of England, both areas of the country with high population levels where it could be expected that there would be constant demand, however it could also be argued that areas with a large population will be badly hit with job losses in a recession and this could go some way towards explaining the reasons for the ongoing level of closures. It would be intriguing to find out if these regions have witnessed a drop in other non-essential expenditure – have sales of new cars reduced, is there less demand for cosmetic surgery or Laser eye treatment, are fewer people arranging trips to the cinema or theatre?
It is a sad sight to see a previously thriving and well frequented pub shut down and being sold. It is even more of a shame that the vast majority will be purchased by developers who will either raze them to the ground and build on the site, or strip out the interior of the property and convert it into flats, offices or shops. Where you used to socialise with your friends for the evening, you could now be living, working, going shopping, making an appointment for the dentist or having your Laser eye surgery done – not really the same, is it?
Tags: leisure industry, food and drink, business