'Serious threat' to pub trade (From The Argus)

'Serious threat' to pub trade

11:42pm Tuesday 17th June 2008

• Print
• Email
• Share

Experts have warned that the pub industry is under serious threat from the smoking ban, the credit crunch and cheap supermarket alcohol.

A survey by The Argus has revealed that at least 100 Sussex pubs are on the market - where they have been languishing for months with no buyers.

A leading commercial property agent said conditions will become even worse in coming months, sending more pubs out of business.

Patrick Walker, partner at AW Gore and Co's Brighton branch, said: "The combination of smoking ban, increase in alcohol duty, inflation linked rents, the credit crunch, energy costs and a general downturn in the economy have conspired to create the perfect storm.

"There has definitely been an increase in pubs coming to the market.

"Perhaps more worryingly, there has been a massive rise in people who want to put their pubs on the market who are currently refraining from doing so, because there are simply no buyers or because there are no funds available as far as the banks are concerned.

"From a personal viewpoint, I see things getting a lot worse before they get any better and the licensed trade in general is in for a very rough ride."

The view was echoed by the Campaign for Real Ale. Its Sussex spokesman said: "We've seen a dramatic rise in the number of pubs being sold in the past six months.

"And this may not have even reached its peak yet. The smoking laws have turned people off their local and increases in duty on alcohol have reduced profit margins.

"The picture in Sussex, which is pretty dire, is being repeated right across the country. The pub industry is in real trouble because of these policies." Many pubs have been forced to reduce their selling price in recent weeks. Last week The Argus reported that the Toby Inn in Woodingdean, Brighton, had cut its selling price from £400,000 to £200,000.

The pub has been closed for two years after a violent attack on customers by a gang armed with metal poles and baseball bats.

If no buyer is found, the building could be converted into flats.

Alan Walker, landlord of the Cricketers in Broadwater, Worthing, said: "In ten years time there will be half of the small local pubs we have at the moment because they are going out of business.

"The supermarkets are the biggest factor. They can sell beer so cheaply and when there's a recession it's no wonder people go and buy their booze in shops and drink it at home.

"We accept that but there are so many other reasons why landlords are under pressure. It's a dying trade in some respects."

Have you stopped going to the pub so often? Tell us below.

• Print
• Email
• Share