We’re out of recession, so it appears! This year has seen a downfall for pubs across the UK. Recent figures show that the ‘economy grew by 0.5% in the previous quarter’. Even though the figures state we are fine there is bound to be a struggling in the upcoming months as we move away from the double-dip.
For the past 5 years there has been a slope in the pub industry. This was due to a number of factors including the smoking ban, recession and certain government policies put in place to discriminate against pubs. Whether has also had an impact on sales, towards the end of September there was a lot of bad weather which resulted in people heading out to eat instead of in the pub to drink.
R3, the trade body for Insolvency Professionals stated that a 1/3 (34%) of pubs are at ‘risk of failure in the next 12 months. This compares with a national cross-sector average of 23% of businesses at risk.’
During the beginning of the economic decline UK pubs where closing at a rate of 52 per week during the first half of 2009. Although, the bigger, branded pubs such as JD Wetherspoon were opening at 2 per week and where succeeding, local pubs were failing.
Following the recession people are finding it harder to spend money on discretionary items as they have lower disposable income. Post-recession shows that people go to the supermarket to buy alcohol for home rather than going to the pub.