Tuesday, 20 April 2010
Why are our Pubs Closing Down?
Changing to what I think is a serious cultural matter, I am alarmed at reports that I hear of pub closures throughout the UK. Public houses have been a part of our heritage for generations, and it is deeply distressing to see pubs which I have known all my life being closed down. Why is this happening? All answers welcome.
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In no particular order, the causes of problems for pubs include:
ReplyDeleteBeer taxes rising by more than the rate of inflation.
Pub companies overcharging their tenants for rent and supplies (particularly drinks).
Falling beer sales overall (except for real ale ~ just).
Cut-price drink in supermarkets.
Sophisticated home entertainment systems.
Changes in drinking habits, with young people increasingly going to their own bars and clubs, and less to what some of them call “old men’s” pubs.
More choices of places to drink, such as bars, restaurants, hotels and clubs.
The recession, leaving people with less cash and either unemployed or worried they might be.
Rising costs for brewers (e.g. raw materials) and pubs (e.g. utility bills).
The smoking ban.
Tougher drink-drive enforcement.
I put most of the blame on high beer taxes, greedy pub companies who screw their tenants into the ground, and cheap alcohol in supermarket often sold below cost as a loss leader.
oh my lord, as an licencee, i feel my rant could crash the system.
ReplyDeleteJay - feel free to rant. You are very welcome to do so!
ReplyDeleteAnother reason is licensees giving up their tenancies because the terms of their leases sometimes make it impossible to earn a living from running a pub. I was speaking to a licensee who, despite running a popular pub, is still massively in debt because of the mark-ups imposed on beer (available wholesale for a half to two thirds of the price the Pub Co charges) and unjustified rent increases. If you buy beer cheaper from a wholesaler, the PubCo will take your pub off you. The control and overpricing supplies by Pub Cos is like the old company store system, and should have no place in a country that claims to have a free market economy.
ReplyDeleteNev,Jay, I find this deplorable.Are there any positive steps we can take to help the situation?
ReplyDeleteWell, there is a general election coming up, and the CAMRA website has a link to lobby all your candidates for Parliament. Either copy and paste this into a browser:
ReplyDeletehttp://campaign.publicaffairsbriefing.co.uk/home.aspx?cid=2be1237f-cfc3-49b9-9cad-26d7c5107a9b
or go to my Rednev blog (the link is above right), and then scroll down and click the link on the right under the words "General Election ~ Save The Pub!"
Of course the other thing people can do is support their local pubs. Use it or lose it, as the saying goes.
ReplyDeleteThere is no money in "Wet Sales" anymore, the only way you can make a Pub pay is if you own the building and run a free house and serve good food. It would also be good to provide overnight accomodation to supplement sales.
ReplyDeleteWell Geoff, I'm doing my best!! I'm using it & losing it!!!
ReplyDeleteMy license went up to £1,000 a couple of years ago from £200.
ReplyDelete