ALMR: festive food fared well

Increased food sales brought some welcome festive cheer to pub operators across Britain, with volumes up by an average of 3.6% over the period.

But liquor sales were

down by the same margin with community pubs suffering worst, according to a survey carried out by the Association of Licensed Multiple Retailers (ALMR).

The poll of 31 member companies, representing 2,467 pubs, confirms earlier trade reports of a generally lean Christmas and New Year.

The message from the survey revealed drinks sales were down almost across the board, although mid-size and mid-market companies bucked the trend. But almost three quarters of respondents reported a growth in food business, some by as much as 17%.

Operators taking part in the survey were almost unanimous in blaming customer confidence as a key factor affecting festive trading. Other economic reasons - including the cost of petrol, mortgage increases, stealth taxes and fear of January credit-card bills - were also cited.

"This has translated into planned spending being sustained whereas impromptu, casual spending was markedly lower and everywhere there was less lavishness - house wine rather than grand cru, standard not premium," the ALMR said.

The smoking ban featured in 38.5% of answers, but operators almost unanimously blamed customer confidence as the main contributor to their performance.

The association warns the figures have to be read against last year's trade when Christmas and New Year fell on favourable days for the pub trade which resulted in a longer party period and good trading results.

Over the past three years the main festivity days fell over the weekend but from 2007 onwards the key dates are in midweek.

"In good times this would not be so disastrous but this survey compares tough trading circumstances against really exceptional ones so like-for-likes appear much worse.

"The eternal truths remain - that well-invested pubs with food fared well and those who got their act together and focused on Christmas and the New Year came out better overall," the report adds.

Pub operators predict poor start to 2008

Pub operators are predicting a largely gloomy first quarter of the year with a number expecting a "suicidal" start to 2008.

But almost half of the 39 ALMR member companies questioned said they

were hopeful of better

long-term prospects for

the year.

Operators representing some 5,000 pubs were asked to assess their confidence using a chart ranging from ecstatic at the top end to suicidal at the bottom.

Confidence for the

first quarter ranged from 17.5% suicidal, 57.5% gloomy, 15% hopeful, 10% optimistic and none ecstatic.

Responses for 2008 as a whole revealed 5% were suicidal, 24% gloomy, 48% hopeful, 20% optimistic and 3% ecstatic.