Licensed trade facing a ‘perfect storm' of costs

Licensed hospitality businesses need more targeted action to help reduce their costs.

That was the call from Kate Nicholls, chief executive of the Association of Licensed Multiple Retailers (ALMR), speaking at the Pub 16 Conference.

"Licensed hospitality venues are facing a perfect storm of increasing wage costs, exorbitant businesses rates and real and significant beer price inflation," she said.

"Although we are seeing attempts at a reduction in costs, beer duty for instance, many pubs and bars have simply not been able to cut prices and pass that saving on to customers. The reality is that the token gesture of a penny cut in duty, however well-intended, will be absorbed by other costs and it is these that need addressing above all else.

"Further cuts to beer duty in this year's Budget may also have the unintended effect of widening the gap between the on-trade and supermarkets not faced with such costs but still benefitting from a duty cut. We are looking at falling levels of consumption in the on-trade and an off-licence and supermarket sector that is booming.

"If the chancellor is serious about helping pubs, bars and nightclubs, then we need meaningful reform directed at a retail level to address the issue of rising costs in the on-trade."

Pub 16 took place at London's Olympia on 9 and 10 February.

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