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."