Thursday, June 26, 2008

Ban hits pub operators: half see profits dip 6%

Ban hits pub operators: half see profits dip 6%

Written by: John Harrington
The damaging impact of the smoking ban one year on is laid bare in a survey of Association of Licensed Multiple Retailers (ALMR) members, exclusively for the MA.

The survey of 14 companies — operating more than 1,300 pubs between them — found 36% saw sales fall more than 6% since the ban. Half said profits have fallen more than 6%.

Wet sales and AWP income has been hit the worst as many traditional beer-drinking, machine-playing customers stay away.

A total of 43% of operators said wet sales fell more than 6%, while 36% saw a decline of 1% to 5%.

More than two thirds — 71% — of companies saw machine income fall 6% or more.

“The Government needs to realise that pubs are having a difficult time after the smoking ban,” said ALMR chief executive Nick Bish.

But there is some positive news from the survey, with 29% of firms saying food sales are up more than 6% since the ban.

Bish added: “Food-led pubs are stable or showing marginal improvement as people stay longer, and the family trade has probably gone up.”

In addition, 57% said staff find working in a smoke-free environment “a major benefit”.

The survey shows the level of investment made for the ban.

More than one third (36%) spent £2,001 to £5,000 per site on shelters and other improvements, 29% spent more than £5,000. A smaller proportion, 14%, spent £1,001 to £2,000. The same proportion spent nothing, and 7% spent less than £1,000.
http://www.morningadvertiser.co.uk

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