Worries that pubs face a vanilla future

THE Great British pub risks a bland future in moves by the big chains to hoover up after the ‘lost’ pubs of the Covid-19 pandemic, one South West hospitality expert has warned.

The latest report by consultants CGA and business advisory firm AlixPartners finds that Great Britain lost 6,000 pubs in 2020 as landlords battled against repeated lockdowns and service restrictions. This week, JD Wetherspoon secured £94 million in an equity raise which will part fund “the acquisition of new properties, which are likely to be available at favourable prices, as a result of the pandemic”.

It is looking at property in central London, which has been hit by the tourist downturn and the loss of city office workers.

In a note to investors for the proposed placing of ordinary shares, Wetherspoon said: “It may be possible to achieve a higher-than-average return on capital on properties acquired in the next few years, based on the company’s past experience,” Wetherspoon said.

And former Greene King boss Rooney Anand is leading a new venture under the Redcat Pub Company name to spend £200 million on acquiring smaller pubs and bars, according to Sky News.

But such a move will reduce the diversity in the pub scene with the loss of freehouse pubs and their unique sense of identity.

Bristol-based Steve Ashworth, a tax director with expertise in food, drink and hospitality for PKF Francis Clark, said: “It is clear that somebody somewhere has recognised that there is life in the old pub yet but do we really want those pubs to become a roll-out series of vanilla pubs?

“I do have mixed feelings because on the other hand, the sale of these small pubs could be the last chance these landlords have to make some money.

“It is such a shame for some of these pubs. Go down any sidestreet or street corner in any city and you will find a pub that has been serving people for hundreds of years. A pub is the lifeblood of that area – it provides far more than just alcohol and somewhere to drink it.”