Just a quarter of licensees making clear profit

A recent survey of licensees running independent pubs across the UK has revealed that only one in four are making a clear profit.

Findings from the British Institute of Innkeeping (BII) show that under one in two have broken even over the summer, with a further one in four making a loss.

The trade body says that positive impacts from major sporting events have been countered by lackluster summer weather, and high energy, staffing and food and drink costs.

Holy smokes

In addition to gathering information on the challenges they have faced over the summer, the BII asked about the impact of the leaked proposal to ban smoking in public places, including pub gardens.

While 7% of respondents said there would be 'little or no impact' to them if the ban came into place, the majority were worried about its effect, with 62% of them saying it would significantly impact their trade and a further 20% saying it would result in the closure of their pub. 

"Many tenacious operators have managed to increase or maintain their trading revenue by working hard to develop their offers to attract customers new and old to their pubs, also putting on events and festivals and fundraising for local causes, giving people many reasons to visit their pub," says BII CEO Steve Alton.

"There is a great love of the Great British pub, but few consumers know that their local carries a disproportionately larger tax burden than other small businesses, and in most cases than that of much larger companies. £1 in every £3 they take over the bar goes back to the treasury in tax, from the food and drink they sell, the people they employ and the properties they occupy in their communities. This is all before they pay rent or mortgage payments, wages for their teams – or for themselves. A busy pub does not always equal a profitable one in this unfair landscape."

You may also be interested in…