Costs and Covid cause drop in pub numbers

THERE are fewer pubs in Wales and England than ever before, according to analysis that sheds light on the ruinous impact of the coronavirus pandemic and soaring business costs.

The total number of pubs dropped below 40,000 during the first half of 2022, a loss of more than 7,000 since a decade ago.

Pubs that have disappeared from communities have been demolished or converted into other buildings like homes and offices, the research from real estate advisers Altus Group says.

The hospitality sector has faced immense challenges in recent years as it recovered from the pandemic. But the researchers suggest that while pubs managed to battle through Covid-19, they are now facing a fresh challenge thanks to record-high inflation and an energy crisis.

Altus Group’s UK president Robert Hayton said: “Whilst pubs proved remarkably resilient during the pandemic, they’re now facing new headwinds, grappling with the cost-of-doing-business crisis through soaring energy costs, inflationary pressures and tax rises.”

Two hundred pubs vanished from English and Welsh communities from the end of 2021 up to the end of June, taking the total number down to 39,973 pubs.

The West Midlands saw the biggest drop of 28 in half a year, followed by London and the East of England, which both lost 24.

Pubs in the overall count are those that must pay business rates, including those vacant and being offered to let.

According to research from the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality, only 37% of hospitality businesses are turning a profit. Rising costs of energy, goods and labour were identified as the biggest factors behind falling profits. The industry has called on the UK Government to provide more support.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “When pubs are forced to close it’s a huge loss to the local community, and these numbers paint a devastating picture of how pubs are being lost in villages, towns and cities across the country.

“As a sector, we have just weathered the hardest two years in memory, and we now face the challenge of extreme rising costs, with only one in three hospitality businesses currently profitable.

“It’s essential that we receive relief to ease these pressures or we really do risk losing more pubs year on year.”

In the past week, pub bosses have warned of the impact of rail strikes on sales for hospitality firms, adding to the existing problems of price increases and waning consumer demand.