Record numbers of pubs closing

Mar 9 2008 by Staff Reporter, Wales On Sunday

PUB landlords have been warned that a “perfect storm” is threatening to blow their businesses away over the next three months.

Just weeks before the first anniversary of the ban on smoking in public places in Wales, one of the country’s leading brewers predicts an epidemic of pub closures is around the corner.

Philip Lay, retail director of the pub chain and brewer Brains, forecasts the end for many back-street boozers.

This week, figures released by the British Beer and Pub Association revealed that 27 pubs per week had been closing throughout the UK over the past year.

And Mr Lay said Wales was ready to feel the pinch because of a number of economic factors, including the smoking ban.

“We are going to see an increase in pub closures over the next three months as the different winds of the economy come to bear,” he said.

“We are having a tough year. In the more straightforward community areas, it’s a lot tougher.

“Trade is up to 20 per cent down in some parts of the South Wales Valleys. But there’s been an average five per cent decline.

“I absolutely connect this with the smoking ban.”

He said more smaller pubs would go bust as the effect of the ban combined with higher energy and food costs, the credit crunch and a renewed fear about the dangers of binge-drinking took hold.

“There are pub closures and businesses that are finding life much tougher,” said Mr Lay.

“The economy is tough and the weather last year was awful. We couldn’t have had a worse set of conditions. In the industry, it’s been called the perfect storm.”

Mr Lay said pubs and clubs who were able to serve food or splash out on a smoking shelter were better off.

“The bottom line is if you’ve got the opportunity to move into new areas, you can ride the storm. If it depends on the drinks market alone, it’s very challenging for everybody.”

Aneurin Jones, president of the Licensed Victuallers’ Association Wales and landlord of the Dolbadarn Hotel, Llanberis, North Wales, believed politicians had no appetite to help pubs and clubs because they were being identified as the source of binge drinkers and antisocial behaviour.

He added: “Pubs are closing faster in Wales than the rest of Britain; that’s the report we are having from our members.

“It’s particularly bad in the Valleys and North Wales, although we are geared up for the tourist trade here.

“There are a lot of factors such as high rent, people buying cheap alcohol from supermarkets and the smoking ban, which has hit hard.

“Turnover isn’t getting any higher, but our costs are going up all the time.

“Eventually, there won’t be any pubs left.”

John Price, chairman of Rhondda Cynon Taf Licensed Victuallers’ Association, said 11 pubs and clubs had closed in the region in the past six months alone, with more facing serious financial problems.

Those suffering most were back-street boozers with nowhere to build smoking shelters.

Mr Price, landlord of the Bush Hotel in Clydach Vale, Rhondda, said: “Before the end of the year, I estimate another 12 to 14 per cent of pubs in Rhondda Cynon Taf will close.”

Some pubs had resorted to only opening from Thursday to Sunday because it cost more to stay open than they made from customers, he added.

“I don’t open until 7pm every night,” said Mr Price. “It’s just not worth it. For example, I took £80 last night and it cost me £120 to open.

“It costs me £500 a month from my own pocket to keep the pub open.

“I was doing well last year and I’ve got a place where people can have a cigarette. Other places haven’t got anywhere.

“Before the ban was introduced, we were told the 30 per cent of smokers we would lose would be replaced by non-smokers. They never materialised.

“Christmas and New Year were terrible; the worst-ever in the Valleys. That’s directly down to smoking being banned.

“We’ve had some atrocious weather lately and I’ve got a lot of senior citizen customers. They can’t stand outside in the cold.”

In Welshpool, one couple who claim to be losing £1,000 a week, are hitting back with a campaign to introduce separate smoking rooms in pubs. Elaine Wright, 49, and Paul ‘Ali’Johnson, 46, who run The Pinewood Tavern, say they have collected 400 signatures on a petition in in two weeks.

Ali said: “The law doesn’t seem very clear, because a hotel can have smoking rooms.

“We are on a main street and have nowhere for people to smoke. Sometimes there are more outside the pub than inside.”