Time Ladies and Gentlemen Please

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A project about pub closures

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Time Ladies and Gentlemen Please

  1. 1. ESW Project 1 Time ladies and gentlemen please By Andrew arntzen“One Saturday morning, a husband takes breakfast in bed to his wife, kisses her goodbye then heads off. He calls in the newsagents for 20 Woodbine then to the bookies and places a 50p bet each way on a couple of horses then to the pub. No kids no nagging wife, an afternoon of bliss with the boys, alas no more!” 1
  2. 2. ESW Project 1IntroductionSince the introduction of the no smoking ban in 2004 most pubs have seen adrop in profit. Also over the past 3 years the duty on beer has risen by 35%.Landlords are also finding it hard to pay back loans taken out to buy thebusiness, because they are tied to the breweries and are charged up to 45%more for their beer than it is on the open market.Price Comparisons The D iffere nc e s in P rice s (per 1 1 ga llo n k eg ) £160.00 £140.00 A verage C ost of £120.00 B eer £100.00 P ercentage add on £80.00 in Tied P ubs £60.00 £40.00 Total C ost £20.00 £0.00 T otal C ost A verage P ercentage T ied P ubs C ost of add on in B eer H o w prices are calcu latedDuring the last recession most licensees saw beer sales at their lowest pointsince the 1930s, down by at least £650 million in 2009.Between 2004 when the no smoking ban was introduced and 2010, 5327pubs closed their doors for the final time. 2
  3. 3. ESW Project 1Pub ClosuresBelow is a timeline of the rate of closures of pubs within 6 years 2004 8 per week 2005 8 per week 2006 8 per week 2007 27 per week 2008 38 per week 2009 26 per week 2010 28 per week .Most of the pubs which are still open or have survived the threat of closurebecause off the no smoking ban, have turned to selling pub food. Howeverwith the big pub chains also doing the same thing you then get a price war,which is good for the customer, but is bad once again for the privatelicensees.As a private licensees you buy in enough stock to last the business a fewdays or maybe 1 week, but the big pub organizations can afford to buy inbulk, thus paying much less and are able to give the customer better value formoney.Also we have the supermarket chains selling beer for around: Beverage Quantity Supermarket Price Medium strength larger 440ml can 38p Cider 1ltr 40p Wine 750ml £2.03 Whiskey 700ml £8.00 Vodka 1ltr £10.71 Prices shown are based on Home Office info 2010 3
  4. 4. ESW Project 1Overheads that have contributed to closuresAlso facing the licensees who have bought their leases from various pubgroups, is the ever crippling increases on rent.You also have to find money for utility bills, wages bills and of coursebusiness tax, not to mention the upkeep of the building which in some casesis your responsibility.What a lot of publicans are doing now is making their establishments morefamily orientated, adding things like play areas in the beer garden and makingthe inside more child friendly. What they are then finding is they are thenstraddled with increases on their public liability insurance policies.As a former Publican, I have experience of Sky Television adding to the manyproblems facing the publican. By hiking their monthly viewing charges fortheir sports channels they added £1000 a month to my overheads. Theycharge more than £1.000 per month in some areas; they work these chargesout by the ratable value of the premises and how many customers are able toenter the premises under fire regulation guidelines.The average cost for a private household is between £50 - £60 per month forthe full package of Sky Channels including sports.The outcome then is not to have Sky Sports. The problem then is if you don’t,you won’t have any customers who enjoy a good football match, whilespending quite a lot of money on beer. You can then take a chance andshow it illegally, and if caught, you could be liable to a fine of up to£20,000, if you do not sign up to a package there on the spot. I myself haveunfortunately experienced this, not the fine but being caught. Failure to havethe correct Sky package may lead to the prosecution of licensees’.Other expenses are a PRS license (Performing Rights Society) whichenables you to play recorded music, cds, tapes ECT, also if you want livemusic you need another license the list is endless.What most individual pub groups are doing now, is talking a cut of any profitwhich are made from vending machines. These maybe the cigarettemachines or juke boxes landlords have installed in their pub. 4
  5. 5. ESW Project 1ConclusionThe bottom line is if you think that owning or running a pub is as good as itsounds think again its hard work, long hours, and very poor wages.So the outcome from all this is, we have derelict buildings decaying andmaking eyesores in villages, towns and cities, which will then be used forunsavory activities, or they will be made into flats which increases population.With nowhere to go to socialize, this could increase crime and other illegalactivities. So the next time you go out for a drink to your local, remember allthe hard work the landlord and staff put in for little pay and long hours, foryour enjoyment.Sources www.beerandpub.com http://www.bbc.co.uk/news/uk-politics-12212240 o Home Office listings on prices on beverages used www.uk.com www.timesonline.co.uk www.news.sky.com www.thislondon.co.uk http://www.flickr.com/photos/55935853@N00/3873320277 o Image “Red Lion, Mayfair W1” By Ewan Munro 5

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