Trade down at half of pubs in first year of smoking ban
26 June, 2008
But respondents in Publican survey say credit crunch is to blame
Exclusive research has revealed that more than half of licensees have seen trade drop since the smoking ban was introduced throughout the UK.
July 1 is the anniversary of the ban being introduced in England and to mark the occasion The Publican commissioned CGA Strategy to quiz 1,500 licensees about their experiences over the last 12 months.
The exhaustive survey of a cross section of the industry reveals the real picture of the smoking ban on pubs.
Results show that while 52 per cent of licensees have reported a drop in trade in that time the majority pinpoint the credit crunch - rather than the smoking ban - as being the main reason for such a bleak year.
Meanwhile 38 per cent of respondents said sales remained the same and only 10 per cent said business was up.
A fifth of those who saw trade drop reported a fall of up to 30 per cent.
“No-one wants to stand outside in the cold and the rain,” said one licensee who has seen sales plummet.
The smoking legislation was second out of the reasons for a fall in trade, followed by budget hikes on alcohol tax, the rising cost of raw materials and last summer’s poor weather.
Of these, many had seen a drop off in business during the week and relied on weekends to carry them through.
Councils were also blamed for refusing permission for outdoor facilities.
For the minority that have seen sales increase, food was attributed as the main reason. The research also found that pubs that have stepped up their food offer have seen dry sales overtake wet.
Families also appear to be playing a part in helping some licensees weather the storm. One respondent said: “What we have lost in smokers we have gained in families.”
And despite the doom and gloom, the licensees polled were looking forward to a good summer and some have already seen trade pick up due to better weather.
Nick Bish, chief executive of the Association of Licensed Multiple Retailers (ALMR), said although the results were expected it is important for the trade to “promote the positive”. But he warned: “The things we have to look out for are issues such as noise and litter and also the anti-smoking brigade looking to push the ban out into the open air.”
Readers' comments
My passion for our pub heritage comes from the other side of the bar. The comments here generally make for pretty depressing reading and its not even me bearing the financial pain. But there were some positives in the article too weren't there? As a regular customer and a lover of pub walks, I noticed the comment about pubs that have stepped up their food offer have seen dry sales overtake wet. Plus in some cases at least, families have replaced smokers. These findings are not a surprise to me and reinforce my belief that there remains a largely untapped market that could benefit many of our pubs with rural ones standing to gain the most. My question is simple …why aren’t more of you trying to attract some of this country's 8 million regular walkers to your pubs? This market includes not just families and the silver pound but an increasing numbers of 20s and 30s walking groups. And guess what… the great thing about a pub walk is that it leads hungry and thirsty customers straight to your door! You could launch a competition for your customers to see who can create the best walk ending at your pub. You'd have to offer a prize or two of course, maybe a meal for 2 or 4, and maybe a free glass of wine with their meal for everyone who entered a pub walk into the competition. You could ask customers to cast their votes (so they would probably try at least one) and you could organise a group/family ramble along the winning route (again ending at your pub ready for refreshment). You could make it fun, tell your local paper too and maybe that ramble could even be a photo opportunity for them. OK, I'm biased I know - I’m one of those 8 million regular walkers and I’m passionate about pub walks. I believe any pub without a pub walk is ignoring not only a huge potential customer group but also a fantastic free marketing opportunity. In fact I’d like every pub across the country to have at least one pub walk and, with walking being the most popular outdoor activity, I know I’m not alone. So cards on the table… I'm creating a national on-line database of pub walks to help support our great pub tradition and I have created a free step by step guide for publicans who would like to know how they can tap into this market. If you want to try something positive and would like your free copy please go to www.myfavouritepubwalks.com/publican. Remember there are 8 million of us out there and we have money to spend …
I do not believe the smoking ban is responsible for a drop in pub income. I believe the main reason is the sky high and ever rising price of drinks. Most of the reasons for these are outside the control of the tenant. Which include rising rents, tenants forced to buy stock from their land lord, rates increases, increase cost of gas and electricity etc. Add to this the pressure faced by most house hold budgets and the price of drink in supermarkets, these are the real reasons. What can be done. 1. Reduce the tax on drinks. 2. Reduce rents on pubs. 3. Free tenants to source their own stock. 4. Make it atractive to go to pubs by putting on entertainment etc. If these three things are not done urgently then many pubs will go to the wall, killing the goose that lays the golden egg for pub leasing companys.
The smoking ban did not hit my trade as I was already a non smoking pub. However last summers abismal weather together with this so called credit crunch has. How can we have a credit crunch the banks need to lend money to stay in business thats what they do. I can remember borrowing big in the 80s at 15o/o base rates and I was paying 3 above base. That caused all the problems of the early 90s The current base rate whilst bad is no where near where it could be so lets get a life and stop moaning about the smoking ban. It isn't going away, neither are the supermarkets. We need to give customers a reason to come into our pubs and not go to the supermarkets Good Pubs will survive bad pubs simply don't pay
I find it staggering that the pub trade continues to bury its head in the sand with regards the smoking ban. I am not in the trade, but I cherish this country's pub culture and I see the evidence of the ban's effect in every pub I go to. Of course the credit crunch has had some effect but the credit crunch did not start on July 1st 2007 and yet pubs have been under capacity since that exact date. There is nothing the industry can do about the economy but it could - if it chose - band together and do something about the smoking ban. Like most other smokers, I simply do not go to pubs anywhere near as much as I did and I am mystified by the way the industry has not only bent over and taken it from this government, but actually sought to blame its problems on something else. The pub industry seem, to me, like turkeys voting for Christmas. As individuals we have no voice, but we expect people whose livelihoods are stake to say something. Why won't you?
The Smoking Ban was introduced based on lies presented by ASH, CRUK and the Government as they deemed second hand smoke to be a health risk to employees even although the Health & Safety Executive could not provide evidence of this. Now read the thruth as presented by an eminent lung specialist http://www.heartland.org/Article.cfm?artId=23399 and from the voice of the people... http://www.pressdispensary.co.uk/releases/c991825.php
All the dire predictions are coming true and it's plain to see that the smoking bans were promoted via lies and false sworn statements. The giant drug companies and medically related non-profits like the Robert Wood Johnson Foundation have committed fraud and stolen your freedoms.
What customer applies for a loan from a bank to buy beer? The whole idea is absurd. The real problem is that the newspapers are spreading forecasts of house prices falling up to 20%. If people lose their jobs and can't keep up the mortgage, then they'd be forced sellers at much lower values for house prices. This is what is causing customers to tighten their belts. The media can talk a country into recession and is irresponsible. Only a communist state controls the press, but here we can see a real need for such control. Even radio programmes have intermissions with a jingle "How to beat the credit crunch" but never state what the credit crunch is. They haven't a clue. And we'll end up poorer because of the lemmings.
I guess all those >1500 pubs that closed their doors since the beginning of the smoking ban were not questioned in this survey?
No matter how it is dressed up in print, the simple fact is the smoking ban has crippled the pub trade. Just over a year ago in Canterbury there were two Wetherspoon pubs, one smoking the other non-smoking, lets have a wild guess at which was empty and which packed. The credit crunch reasoning is a non starter, it has not been around long enough to be a realistic cause for empty pubs and lets face it when you are hitting a recession people need a pint AND A CIGARETTE.
Councils are still refusing applications for 'outdoor facilities' within the boundaries of the pub, based on a potential for noise nuisance. The majority of times the decision is made by a junior in the office and doesn't even get to a planning meeting. They then recommend that the customers should nip out onto the pavement for a cigarette instead of using facilities within our boundaries, controlled by the staff and management, kept clean and tidy. What most councils don't seem to understand is that as businesses we are part of the local community as are our customers. Councils are voted in by the communities and they should be serving the whole community. How can licensees control customers on the public highway? Licensees should engae their local councillor and get them on side, they all need voting in eventually!
We used to do a good food trade but this had dropped off even before the smoking ban came into force, due to increased competition from all corners. We did not do food for over a year, other than on Sundays, but after 12 months of trying we knocked that on the head too, as we were not even breaking even. We used to get families on a regular basis, but the smoking ban has not made one iota of difference. We are a town cntre pub whose life blood is the regular drinkers, many of whom are also smokers. The main reason they are staying away - the cost! Why spend £3.25 on a pint of Stella ijn the pub when you can buy (as recently advertised) 60 bottles of the stuff from Tesco for £20???? Help is needed urgently.
We are a big food led Pub and we also have seen Trade drop by a third since the smoking ban. I also think credit crunch via media is also to blame. Where is the landlords sympathy why arent our rents being reduced, or do they want the country to be void of Country Pubs in particular.