Drink-drive crackdown dents sales at pub giant
SCOTLAND’S new drink-drive limit has affected sales at one of the UK’s largest pub and restaurant chains. Greene King, which owns Belhaven Pubs, announced yesterday that its sales have been lower since the rules were introduced on December 5.
The new limit of 50mg of alcohol in 100ml of blood brought Scotland into line with most of Europe, but is lower than that in England, where it remains at 80mg.
Police warned before the change was introduced that motorists could find themselves over the legal level after only one glass of wine or one pint of beer. The new limit has hit Scotland’s hospitality sector harder than the smoking ban, with some businesses reporting a drop in bar sales of up to 60 per cent.
Suffolk-based Greene King, which runs 1,900 pubs, restaurants and hotels and employs 23,000 people, said in a trading update its like-for-like sales across the UK rose by 0.4 per cent from December to April.
However, after stripping out the impact of the new Scots regulations, it said its like-for-like sales growth for the period was double at 0.8 per cent.
Chief executive Rooney Anand, said: ‘We once again traded well over key events, such as Valentine’s Day and Easter, as customers celebrated and enjoyed these occasions in our pubs.
‘The second half of this financial year, however, has been tougher than the first half, with more difficult comparatives to last year and the additional impact of new drink- driving legislation in Scotland.’
The new drink-drive limit has seen Scottish golf clubs and country pubs particularly badly affected.
A spokesman f or the Scottish Licensed Trade Association (SLTA) has described the change as a ‘form of prohibition’ and has called on ministers to take action to mitigate the financial impact.
One of the largest purchasing organisations for the hospitality trade in the UK, Beacon, said the new law had dramatically changed customers’ habits.
Beacon’s director of sales Tennant Hilditch said: ‘The first two months of the new drink- driving laws being in force have shown a real impact on the hospitality industry in Scotland. Some of our hotel, bar and golf club customers fear the downturn will be particularly bad for their peak tourist periods of spring and summer holiday.
‘Traditional lunchtime drinkers, or post-golf drinkers in the clubhouse, have been particularly affected by the new rules. We are seeing demand for smaller glasses, weaker beers.’
A recent SLTA survey found Scotland’s pubs are losing millions of pounds due to the new law, with 72 per cent of outlets seeing alcohol sales fall at least 10 per cent between December and February, and food sales also affected.
SLTA chief executive Paul Waterson said: ‘It is very concerning.’