New year hangover for struggling pubs
INDUSTRY insiders fear pubs in Plymouth are facing a dismal 2009, many set to close their doors in the coming months after recouping some losses over the festive period.
While supermarkets announced rocketing booze sales in the lead-up to the New Year, a pub 'troubleshooter' has warned that the traditional local could face an uncertain year ahead.
Stefan Williams, who runs Southern Image Licensing Consultants, a company aimed at saving pubs on the brink of disaster, told The Herald that January and February could be "knockout time" for many landlords.
Although many pubs are in a good position to survive the economic downturn, Mr Williams said dozens had been operating with heavy losses for months.
With almost two decades of experience in rescuing pubs from collapse, he fears some have remained open over the busy Christmas and New Year period to simply recoup some losses – before calling time at the bar for good.
"We have about 30-odd pubs for sale in Plymouth alone," said Mr Williams. "About 37 or 38 are closing every week in the UK now.
"If a struggling landlord has got any sense, Christmas is a way of recouping something to get out with. I wouldn't chuck my keys back before then – It would be January when I would recoup then get out.
"January and February will be knockout time, I'm afraid."
But while Mr Williams predicts a gloomy future for the pubs industry, the credit crunch failed to dampen the spirits of Christmas and New Year revellers, as supermarkets reported a rise in alcohol sales on last year.
Despite some predicting the worst Christmas for retailers in 20 years, Tesco Extra in Roborough said it sold ten per cent more booze than in the lead-up to New Year 2008, citing price cuts on wine and champagne as the key to its success.
Ryan Smithson, beer, wines and spirits manager at the store said: "The credit crunch has not had an effect on the shoppers' spending; prices are cheaper than last year."
Meanwhile Asda said food and drink sales helped its stores serve 1.3million more customers nationwide than over Christmas 2007.
But Mr Williams argues that supermarkets' falling booze prices are one of the biggest problems pubs are facing, as they simply cannot compete.
He added: "The smoking ban was the trigger. But there are people on £5.73 an hour and they are expected to pay £3 for a pint. You can't blame them for staying away from pubs.
"If you could close your pub and walk away then fine, but you still have to pay your business rates; this is why people are selling up.
"One well-known pub in Plymouth is reopening soon. But they're opening it to get back some of their losses while it's been closed.
"A couple of hundred pounds feels like £10,000 to landlords at the moment.
"This is one of the hardest professions to be in at the moment and we're getting no help as an industry."
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by Trudie, Plymouth
Sunday, January 04 2009, 5:14PM
“In the past the council has allowed too many pubs to open, so now they can just close again, no big deal. I also prefer to buy cheaper wine in supermarkets and drink with friends at home, you can have fun, hear what people are saying to you, even play games without being stabbed, glassed, drugged or mugged. You do not have to go out to have a good time!!”
by Jan, Plymouth
Sunday, January 04 2009, 2:37PM
“Snivelling Pete - I totally agree with you. The pubs should realise that it is they who have to do things to attract more customers. The pubs offering high quality grub will no doubt prosper whereas the scruffy dives that were ones the haunt of the hardened drinkers/smokers will suffer and quite frankly, do we care? I think not.”
by scrooge, plymouth
Sunday, January 04 2009, 12:54PM
“personally I don't care about the pubs closing down. I rarely go out- don't see the point really, plus the fact it does cost so much. I'd rather socialise in my own home, away from the perverts and scum bag violent types, I choose to be with my friends and make the use of my own beer fridge! something that I am not sure about though is I understand that the government are planning on preventing cheap booze at both pubs and shops - is this correct? I can see there being lots of duty-free bargain hunters crossing the channel instead!”
by Snivelling Pete, Ford Park
Sunday, January 04 2009, 11:58AM
“if smoking were re-introduced in pubs the large numbers of non-smokers who have started returning to and staying longer in pubs will drift away again. The effect would not even be neutral let alone the salvation. pubs need to be attractive venues.”
by Jan, Plymouth
Sunday, January 04 2009, 11:01AM
“I can't believe that people are still arguing about the smoking ban. It is a fact that smokers are in the minority and why should non-smokers have to go home stinking of stale tobacco and more imporantly, endanger their own health through the addiction of those who do not value their health. My Aunt who was a non-smoker died of lung cancer because my Uncle insisted on smoking (heavily) in the house. If smokers want to ruin their health, they can't be expect to be allowed to affect others who value their health.”
by garr`, marton
Sunday, January 04 2009, 2:55AM
“£3 a pint (stella artois) in many bars now is not unusual.my new years resolution! get friends round at weekends,buy at supermarkets,stay at home.many bars had their own house rules,remember the "sorry wrong shoes,wrong pants,wrong shirt,etc" ha ha, so good to see these places bleating,now they can`t drag enough people in! if anyone else remembers these "wrong this,or that establishments" it`s payback time! cheers!”
by Jo, Plymouth
Saturday, January 03 2009, 4:33PM
“I think pubs should be allowed if they have the space to provide a smoking room for those patrons who enjoy a smoke with their drink. The government should not be allowed to dictate what these landlords can and can't do. I think in view of the fact businesses are collapsing all around the government should allow this loophole to help out landlords and avoid many from going under.
I am not a smoker myself but can see no reason why the government has to dictate on everything we can and can't do.
The publicans must have a strong arguement against this ban with the number of pubs closing down.
Gordon says he is all for helping businesses then let us see some action!.”
by uncle monty, crow crag
Saturday, January 03 2009, 4:12PM
“Darren. The Lees of this world do insist on smoking, why should they not? And that is precisely why pubs are going out of business.
Whilst not the primary reason, the smoking ban tipped the balance, and its been downhill ever since. Couple the ban with expensive drinks, entrance fees, lack of entertainment, violence, poor/expensive transport, and a recession, and people will decide to stay at home.
And why shouldnt they? We have no duty to carry on as our fathers did. The world is a changing place, and for a good, cheap, violence free evening, the best place is at home.
Similar logic dictates that the High Street will be a thing of the past. It is easier, cheaper, safer to shop online.
The world moves on, so should business.”
by Davy, Plymouth America Plymouth
Saturday, January 03 2009, 3:08PM
“Pubs MUST adapt and adopt change and be smart in a business. The easy days have gone - be creative, give back and do something different.
I've been there and done that in a few pubs with Bass and Ansells.
:) It's easy...”
by Darren, Pennycomequick
Saturday, January 03 2009, 2:56PM
“lee, if you insist on smoking then it would be best if you did that at home.”