A project about pub closures

1. ESW Project 1
Time ladies and gentlemen please
By Andrew arntzen
“One Saturday morning, a husband takes breakfast in
bed to his wife, kisses her goodbye then heads off. He
calls in the newsagents for 20 Woodbine then to the
bookies and places a 50p bet each way on a couple of
horses then to the pub. No kids no nagging wife, an
afternoon of bliss with the boys, alas no more!”
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2. ESW Project 1
Introduction
Since the introduction of the no smoking ban in 2004 most pubs have seen a
drop in profit. Also over the past 3 years the duty on beer has risen by 35%.
Landlords are also finding it hard to pay back loans taken out to buy the
business, because they are tied to the breweries and are charged up to 45%
more for their beer than it is on the open market.
Price Comparisons
The D iffere nc e s in P rice s
(per 1 1 ga llo n k eg )
£160.00
£140.00 A verage C ost of
£120.00 B eer
£100.00
P ercentage add on
£80.00
in Tied P ubs
£60.00
£40.00 Total C ost
£20.00
£0.00
T otal C ost
A verage
P ercentage
T ied P ubs
C ost of
add on in
B eer
H o w prices are calcu lated
During the last recession most licensees saw beer sales at their lowest point
since the 1930s, down by at least £650 million in 2009.
Between 2004 when the no smoking ban was introduced and 2010, 5327
pubs closed their doors for the final time.
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3. ESW Project 1
Pub Closures
Below is a timeline of the rate of closures of pubs within 6 years
2004 8 per week
2005 8 per week
2006 8 per week
2007 27 per week
2008 38 per week
2009 26 per week
2010 28 per week
.
Most of the pubs which are still open or have survived the threat of closure
because off the no smoking ban, have turned to selling pub food. However
with the big pub chains also doing the same thing you then get a price war,
which is good for the customer, but is bad once again for the private
licensees.
As a private licensees you buy in enough stock to last the business a few
days or maybe 1 week, but the big pub organizations can afford to buy in
bulk, thus paying much less and are able to give the customer better value for
money.
Also we have the supermarket chains selling beer for around:
Beverage Quantity Supermarket Price
Medium strength larger 440ml can 38p
Cider 1ltr 40p
Wine 750ml £2.03
Whiskey 700ml £8.00
Vodka 1ltr £10.71
Prices shown are based on Home Office info 2010
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4. ESW Project 1
Overheads that have contributed to closures
Also facing the licensees who have bought their leases from various pub
groups, is the ever crippling increases on rent.
You also have to find money for utility bills, wages bills and of course
business tax, not to mention the upkeep of the building which in some cases
is your responsibility.
What a lot of publicans are doing now is making their establishments more
family orientated, adding things like play areas in the beer garden and making
the inside more child friendly. What they are then finding is they are then
straddled with increases on their public liability insurance policies.
As a former Publican, I have experience of Sky Television adding to the many
problems facing the publican. By hiking their monthly viewing charges for
their sports channels they added £1000 a month to my overheads. They
charge more than £1.000 per month in some areas; they work these charges
out by the ratable value of the premises and how many customers are able to
enter the premises under fire regulation guidelines.
The average cost for a private household is between £50 - £60 per month for
the full package of Sky Channels including sports.
The outcome then is not to have Sky Sports. The problem then is if you don’t,
you won’t have any customers who enjoy a good football match, while
spending quite a lot of money on beer. You can then take a chance and
show it illegally, and if caught, you could be liable to a fine of up to
£20,000, if you do not sign up to a package there on the spot. I myself have
unfortunately experienced this, not the fine but being caught. Failure to have
the correct Sky package may lead to the prosecution of licensees’.
Other expenses are a PRS license (Performing Rights Society) which
enables you to play recorded music, cds, tapes ECT, also if you want live
music you need another license the list is endless.
What most individual pub groups are doing now, is talking a cut of any profit
which are made from vending machines. These maybe the cigarette
machines or juke boxes landlords have installed in their pub.
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5. ESW Project 1
Conclusion
The bottom line is if you think that owning or running a pub is as good as it
sounds think again its hard work, long hours, and very poor wages.
So the outcome from all this is, we have derelict buildings decaying and
making eyesores in villages, towns and cities, which will then be used for
unsavory activities, or they will be made into flats which increases population.
With nowhere to go to socialize, this could increase crime and other illegal
activities. So the next time you go out for a drink to your local, remember all
the hard work the landlord and staff put in for little pay and long hours, for
your enjoyment.
Sources
www.beerandpub.com
http://www.bbc.co.uk/news/uk-politics-12212240
o Home Office listings on prices on beverages used
www.uk.com
www.timesonline.co.uk
www.news.sky.com
www.thislondon.co.uk
http://www.flickr.com/photos/55935853@N00/3873320277
o Image “Red Lion, Mayfair W1” By Ewan Munro
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