The Complete Pub Picture is our look at the big trends influencing the freehouse, tenanted and leasehold and managed sectors of the trade. Throughout August, based on our largest-ever survey of 2,000 readers, plus exclusive data from MA sister title Martin Information, we'll give you an unrivalled insight into the state of the industry. The series kicks off this week with a look at the freehouse market. Over the next seven pages, Rosie Davenport reports on the hopes and fears of independent pubs in the coming year
Fear over increased competition and a downturn in trade has prompted freehouses to reappraise their offering in the last year with a significant number paring back on mainstays like food to focus on Sky and improving core elements of their operation.
The MA's third yearly poll of freetraders shows that across all levels of the business licensees have been pro-actively implementing changes to make their pubs more profitable, from switching supplier to revamping wine lists and taking on brewery loans.
The majority of these decisions seem to stem from the fact that independents appear to be less confident about trade in the year ahead, with 13% saying they expect trade to decline, compared to 7% who felt the same in 2004.
The drive to create leaner and meaner businesses has seen the number of pubs tied to beer suppliers through a discount or brewery loan increase from 10% in 2004 to 18%.
More pubs seem to be doing their own stocktaking (45% this year versus 39% in 2004) and fewer licensees are using business advisors down 6% to 17% of respondents in 2005.
The future influence of the licensing Act is viewed as a major opportunity, albeit a bureaucratic headache.
But even with the anticipated positive impact longer hours could have on trade, overall the picture seems to be one of caution as the 61% majority of licensees who saw their turnover increase this year focus on maintaining that growth in a challenging marketplace.
Who we asked
We polled a total of 2,000 licensees across both the freetrade and tenancy/leasehold sectors during June 2005 to enable us to compile our Complete Pub Picture series.
Readers in both sectors (freetrade 350 and tenanted/leasehold 650) completed an in-depth questionnaire. We also asked 1,000 licensees across both sectors about their top- selling brands.
In the freehouse poll, 12% of those questioned said that they ran more than one pub.