It’s three years since pubs in England were finally allowed to re-open for business following Covid lockdowns, but three years on, the sector is still feeling strained.
Research from small business insurance provider Simply Business found that almost two-thirds (63%) of small business owners say that rising taxes, interest rates, and inflation are eating into profit margins. The British Beer and Pub Association recently reported that 1,000 pubs have closed since 2021, at a rate of 500 closures per year.
Beccy Keddie, owner of The Swan with Two Nicks, Bedford, said: “It’s definitely not been easy. We still aren’t back to pre-Covid earnings. It feels like people don’t have the same appetite for going out since lockdown.
“I can understand that — given the current pressures — but we love to welcome our customers and provide a place for them to socialise. We’re doing everything we can to make our pub a cost-efficient option, but we have to balance our books by introducing some cost increases.
“On average our bills are between £2,000 to £2,500 a month. For a small village pub that is unbelievably high, but there isn’t any way we can reduce this. Business is generally great, but with all the increased outgoings — brewery bills especially — on top of VAT, I do think that we will find the coming months difficult.
“Running a pub doesn’t feel the same, but we are hopeful for the future of the business, and we want to see more people come to enjoy spending time in our gorgeous village pub.”
Dan Brown, owner of Yupp Beer, in Newark, said: “We’re not seeing nearly enough support from the government. Until they can offer enough relief for pubs or reduce the offers to supermarkets, the habits of drinking at home rather than pubs which was formed during lockdown will continue to exist in much higher numbers than they ever did before.
“But overall we have a good business which is trading at expected levels. We are seeing a regular, gradual increase in sales, so are forecasting a decent 2024 overall.”
Bea Montoya, UK chief operating officer at Simply Business, said: “Back in 2021, our research showed that pubs had lost an average of £40,000 each as a result of the pandemic restrictions. True to the determination which is so characteristic of this sector, many remained optimistic about their recovery and their future.
“Despite this optimism, the reality of the last three years has presented a real challenge — that is evident in the drastic contraction in the number of pubs in the UK. Following an often confusing phased return to business, our favourite pubs were hit with a cost of living crisis, rapidly rising interest and inflation rates, an unprecedented rise in the cost of energy, and declining consumer spending as people chose their living room over their local.
“The effect of these challenges can’t be understated. We know that behind each of these small businesses is a small business owner, each with families, livelihoods, and dreams. Small businesses are the lifeblood of our local communities, and with over 5 million of them in the UK, together they contribute trillions of pounds to the economy.
“We would encourage people to, where ever possible, sample the variety and originality that only an independent business can offer — and we know that our publicans would be delighted to welcome them.”
