Pub trading drops by 3% in 2008

17 November 2008 by
Pub trading drops by 3% in 2008

Nearly 1,700 pubs will have closed during 2008, representing a 3% reduction in the year, research has revealed.

The UK Public Houses study, by research firm Market & Business Development (MBD), says there will be 55,515 pubs trading at the end of the 2008, a 1,665 drop on last year. The decrease follows a 2% fall in 2007 and a 1% drop in 2006.

The report attributes the declining trend in the number of pubs to a range of factors.

"One such factor is the trend towards drinking alcohol at home, as supermarkets sell alcohol at significantly lower prices than pubic houses," it says.

"The decline also reflects the introduction of the smoking ban in 2007, weakening consumer confidence due to the current credit crunch and also the rising costs for public houses, such as the increasing cost of labour."

Looking ahead, MBD believes the number of pubs will continue to decline in the short-term, falling by 3% in 2009 and by a further 1% in 2010.

But, between 2011 and 2013, the number of pubs is anticipated to increase by a cumulative 3% to 55,120 in the latter year. Nevertheless, this still represents a decline of 1% compared with 2008.

MBD also expects beer sales in pubs to drop by 4% over the next five years, reflecting an increased focus on health by consumers; further tax hikes on alcohol; increasing popularity of wine and cider; and supermarket pricing.

Pubs close at a rate of five a day, says research>>

Pubs must battle back as sales fall and costs rise>>

Food sales haven't compensated for the smoking ban>>

Government urged to stem rate of pub closures>>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking