Pubs' recession struggles revealed in Publican Market Report

The true extent of the desperate difficulties pubs are facing to stay in business are revealed in this year's Publican Market Report​.

As recession grips the country, licensees up and down the land are finding it harder and harder to make a profit. Latest figures show that more than 50 pubs are closing a week and, of those that remain open, profits are either down or down a lot at 57 per cent.

Those struggling the most appear to be lessees and tenants with two out of three (65 per cent) saying trade is down.

This could indicate why many of the 517 respondees to the survey are keen to see the beer tie either abolished (53 per cent) or reformed (35 per cent). More than half of those quizzed would pay more rent to be free of tie.

But there could be an indication that the problems facing the trade are beginning to bottom out, with three quarters (74 per cent) of licensees believing trade will either get better or stay the same over the next year.

Huw Davies licensee at Enterprise Inns pub the Sherston Inn in Wells, Somerset, and Punch Taverns pub the Riverside Inn in Cheddar said the last 12 months had been a challenge.

"We have had to manage the businesses an awful lot tighter than we did 12 months ago.

"We are spending more time reviewing our business practices, it is tougher but you can still make a profit," he said.

To help combat the effects of the recession, pubs have been forced to drop training and cut staff hours. However, the average number of employees at pubs remains the same as last year with eight.

A measure licensees are keen to see introduced to potentially boost their trade is minimum pricing. A total of 74 per cent want a fixed unit price - such as the 50p called for in The Publican's​ Make it the Minimum campaign - to help bring supermarket prices closer to pubs.

CAMRA chief executive Mike Benner said he was "not surprised" by the level of support.

"People realise there is a problem. It is an effective way of reducing the gap between the on and off-trade.

"We see this as a way of stopping loss-leaders rather than being used directly as a control measure."

Meanwhile, average beer prices range from a low of £2.52 in Scotland to a high of £2.90 in the south east.

And licensees have revealed the brands they would most like to stock in our Licensees' Choice survey, with Carling, Stella Artois, London Pride, Black Sheep and Strongbow among the favourites.

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