UK pub turnover will hit a five-year high in 2006 according to a new report, but the future looks much tougher with the forthcoming smoking ban set to dent performance.

The latest UK Public Houses Market Development Report predicts a tough time ahead for wet-led boozers as England and Wales joins Scotland in banning smoking in pubs next summer.

While total turnover at the UK’s 60,331 pubs is set to hit £16.2b this year, according to report publisher Market & Business Development (MBD)the growth in unit numbers in the pervious years will be reversed post ban.

MBD predicts that the smoking ban will cause a 6% decline in UK pub numbers to 56 966 by 2011, with wet-led operators suffering most as traditionally heavy drinking smokers go elsewhere.

However, businesses that are food-led are set to prosper, with MBD predicting turnover from meals (at 2006 prices) will hit £3.68b by 2011, up 7% on 2006.

By 2011 it is expected that over half (55%) of all UK pubs will be tenanted or leased, as opposed to managed.

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By Chris Druce

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