Press Releases
28 March 2011
Number of bars & restaurants giving up their alcohol licences doubles in just three years
- Reflection of pressures sector has been under
The number of restaurants, bars, pubs and night clubs giving up their alcohol licences has more than doubled over the last three years, says Sweet & Maxwell, the leading legal information provider.
Sweet & Maxwell, a Thomson Reuters company, says that 5,742 alcohol licences were surrendered over the last 12 month period (to April 1st 2010 – latest statistics available), up from 2,830 three years ago.
Sweet & Maxwell says that the number of surrendered licenses is a measure of the pain that analysts say the restaurant, bar and pub sector has suffered from since the recession.
Separate research by Wilkins Kennedy the Top 22 accountancy firm, found that more than one bar or pub went bust each day in 2010.
Wilkins Kennedy explains that bars, restaurants and nightclubs are under intense competitive pressure from supermarkets and big pub chains. They are also suffering from the combined impact of the smoking ban, rising alcohol duties and shrinking disposable incomes.
Anthony Cork, Restructuring & Recovery Director at Wilkins Kennedy, comments: “These numbers show the extent to which the industry is struggling. Bars and restaurants are being squeezed from several directions and a growing number are being forced to close.””
“Bars, pubs and nightclubs are being undercut by supermarket alcohol deals which encourage people to drink at home rather than go out. Supermarkets have also been heavily promoting dine at home meal deals, which has hit the restaurant trade.””
“This comes on top of competition from large pub chains that are able to sell beer cheaper than smaller establishments can buy it from the breweries. Smaller, local pubs are losing their most price-sensitive customers like pensioners and students, which is impacting their daytime trade.””
”To some extent, middle-class professionals have also had to cut down on entertainment as pay increases have lagged behind inflation, hitting their disposable income. With fewer people eating and drinking out, restaurants and pubs that were able to weather the smoking ban on the strength of their income from food are continuing to suffer.”
Notes to Editors:
Sweet & Maxwell, through its highly acclaimed online services Lawtel and Westlaw UK and its print and other digital publications, is now the leading provider of information and solutions to the legal and professional markets in the UK and Ireland.
Part of Thomson Reuters and with over 200 years of history and heritage in legal publishing, Sweet & Maxwell offers detailed and specialist knowledge, understanding, interpretation and commentary across a wide range of subjects in a variety of formats to meet customers’ needs – online, books, journals, periodicals, looseleafs and DVDs.
About Thomson Reuters:
Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world’s most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people in 93 countries. For more information, go to www.thomsonreuters.com.
Press enquiries:
Anthony Cork
Director - Restructuring & Recovery
Wilkins Kennedy
Tel: 020 7403 1877
Mob: 07880 601 962
Fay Israsena or Catherine Sirikanda
Mattison Public Relations
Tel: 020 7645 3636
Mob: 07960 768 787
