5,000 pubs under threat, warns report

12 April 2007 by
5,000 pubs under threat, warns report

As many as 5,000 pubs and bars in the UK could cease trading by 2011 through a combination of the smoking ban, a clampdown on drinks promotions and declining beer sales, experts have warned.

A new report from consultancy Pricewaterhouse-Coopers (PwC) predicts that 8.6% of the 58,000 pubs, bars and nightclubs in the UK could disappear in the next five years, with drinks-only venues the hardest hit.

Stephen Broome, licensed sector industry specialist at PwC and author of the From Beer to Eternity? report, said: "The experience from Scotland indicates that the overall impact of the smoking ban] legislation should not be overestimated, but some premises will feel the impact more than others. Drinks-only venues, and those without external spaces for smoking, are likely to be most vulnerable."

The report followed earlier research from the Campaign for Real Ale (Camra), which found that 56 pubs a month were closing permanently, 80% of them in urban locations. Camra believes 1,300 pubs nationwide are currently under threat of closure.

To head off problems, Broome recommends a short-term approach of cash generation rather than profitability for pubs, that could include promotions and price cuts where possible.

But in the week the report was published, new laws were implemented forcing Scottish pubs and bars to sell alcohol responsibly.

Under the Social Responsibility Standards for the Production and Sale of Alcoholic Drinks in Scotland, part of the Licensing (Scotland) Act 2005, responsible promotions must take into account their timing, duration and discounts. Pubs and bars must now set clear timings for their promotions and not put in place discounts that encourage excessive or rapid drinking.

Nick Bish, chief executive at the Association of Licensed Multiple Retailers, said just as the industry was getting to grips with the smoking ban and the change in licensing laws, government bodies now had alcohol sales in their sights.

"The Scottish Executive feels very vulnerable about the levels of alcohol consumption and alcohol misuse in Scotland that are somewhat more prevalent than they are elsewhere in the UK. It's taking advantage of its independence," he said.

"By and large the industry up there is buying into this and there is a very high level of willingness to get involved in corporate social responsibility. But it remains to be seen how the standards will be implemented, as one man's promotion is another man's business activity."

View more news on the smoking ban here >>

Casinos to see a fall in income when smoking ban enforced >>

By Christopher Walton

E-mail your comments to [Christopher Walton](mailto:christopher.walton@rbi.co.uk?subject=Report warns of 5,000 pubs under threat) here.

[The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking