Pub trade ‘faces 4,000 closures’
By Robert Cookson
Published: November 2 2008 23:23 | Last updated: November 2 2008 23:23
In the last 4 months over 2000 pubs have gone bust, that is three more than in the two previous years. The insolvency specialist from PwC claim that the pubs beer sales are decreasing and higher bills are crushing profits. Stephen Broom a PwC hospitality and leisure director explains that the smoking ban and the aggressive market of alcohol are causing consumers to stay home and buy there alcohol from supermarkets rather than going to a bar or pub. Cains Brewery the operator of over 100 pubs in the UK show that by not selling food in pubs, which appealed more to consumers than beer, led to a fall in sales. In the last 3 months Beer sales have dropped nearly 10%, which is the largest decrease in the past ten years. To get a good picture of the whole thing, 161 million less beers were sold in July to September than last year. BBPA chief executive claims that the fall in beer sales is the result of a worsening economy; he also holds the government responsible for the closure of thousands of pubs, because the government increased the beer tax by 9%. Rob Hayward along with many British Beer & Pub Association members believe that the government is making a bad situation worse as 1.8 million less pints are sold every day in the UK.
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