Pub and bar insolvencies soar by 30%
According to national accountancy group UHY Hacker Young, the cost-of-living crisis continues to drastically affect consumer engagement.
Data from the Office of National Statistics, £4.75 remains the benchmark price for the average pint across the UK, as pub and bar insolvencies continue to rise.
UHY Hacker Young partner at Peter Kubick said: “With money tight for many households, current alcohol prices means more people are choosing to drink at home instead of going out. The pub and bar industry has struggled for a long time but the past two years have been particularly difficult.”
Cost-of-living impact
The amount of alcoholic drinks sold has become increasingly affected, with drastic numbers of non-alcoholic drinkers on the rise throughout the UK, 26% of people aged between 16 to 24 are now completely tee total, according to UHY Hacker Young. Many large chain supermarkets are also offering extensive alcohol-free options, potentially contributing to people choosing to drink at home for less, therefore affecting consumer engagement throughout pubs and bars.
The cost-of-living crisis could also be a contributing factor, limiting how much people are willing to spend on ‘non essential’ items such as alcohol or other products that may be deemed as luxuries in the current climate.
Concerning trends
Kubik added: “The young in particular are drifting away from drinking after work or at the weekends, impacting pubs and bars. The demographic trends for pubs and bars in the long term are very concerning.”
“The new Government will have to overhaul the current rate system in order to help the high street.”
“After a year of rising insolvencies, pubs and bars are hoping that the boost of the Euros will mean a stronger summer of trading. That’s only likely to be transitory, however.”
