Cateresearch reports that Pub insolvency rates are down a third from the height of the recession but Government spending cuts and a slowdown in consumer spending could tip more businesses over the edge, a survey has warned.
According to research from consultancy firm PricewaterhouseCoopers (PwC), the insolvency rate in the pub sector peaked in the last quarter of 2009, when 88 pubs businesses failed.
The research, which examined pub companies rather than individual operators, found that the rate of insolvency dropped by 32% in the second quarter of 2010. However, it warned the level of failure was still "comparatively high", up nearly 10% compared with 2008.
David Chubb, a partner at PwC, said that while pub company insolvency rates had fallen, trading remained difficult.
"The insolvency stats do not fully illustrate the extent of the problems in the sector as much underlying restructuring activity continues. Even without entering insolvency, creditors may still experience pain," he said.
Meanwhile restaurant company insolvencies are up 30% compared with two years ago, with the second quarter of 2010 up 5% on the first three months of the year.
"While the propensity to dine out is still very much a part of UK culture, the pursuit of value for money by the consumer has led to even high-end restaurants in London laying on fixed menus and other offers usually seen in casual dining," Chubb said.
Showing posts with label UK Pub Industry. Show all posts
Showing posts with label UK Pub Industry. Show all posts
Monday, July 12, 2010
Thursday, June 24, 2010
UK Pubs Celebrate England World Cup Success
World Cup dreams kept alive as trade looks forward to bumper weekend reports the Publican
Pubs are celebrating with relief after Jermain Defoe’s goal against Slovenia rescued the trade from a disastrous World Cup.
Such was the suspected ease of England’s qualifying group – which also contained football minnows the USA and Algeria – that many pubs had budgeted for increased takings from at least four World Cup matches.
However, after two limp draws before yesterday’s decisive fixture it was looking as if England could fall at the first hurdle.
Failure to get past the group stage would have been devastating for thousands of pubs, many of which have built their summer around a successful campaign.
Defoe’s winning goal was worth millions to the trade as it set up a second round clash with Germany that will boost trade for many pubs on Sunday lunchtime and evening.
Ian Payne, chairman of Town & City Pub Company, which owns brands such as Yates’s and Litten Tree, said the Slovenia game was worth £425,000 for the business.And Mark Daniels, licensee of the Tharp Arms in Chippenham, Newmarket, said the victory could potentially see takings trebled on Sunday.
Pubs are celebrating with relief after Jermain Defoe’s goal against Slovenia rescued the trade from a disastrous World Cup.
Such was the suspected ease of England’s qualifying group – which also contained football minnows the USA and Algeria – that many pubs had budgeted for increased takings from at least four World Cup matches.
However, after two limp draws before yesterday’s decisive fixture it was looking as if England could fall at the first hurdle.
Failure to get past the group stage would have been devastating for thousands of pubs, many of which have built their summer around a successful campaign.
Defoe’s winning goal was worth millions to the trade as it set up a second round clash with Germany that will boost trade for many pubs on Sunday lunchtime and evening.
Ian Payne, chairman of Town & City Pub Company, which owns brands such as Yates’s and Litten Tree, said the Slovenia game was worth £425,000 for the business.And Mark Daniels, licensee of the Tharp Arms in Chippenham, Newmarket, said the victory could potentially see takings trebled on Sunday.
Thursday, March 11, 2010
Record profits for JD Wetherspoons
JD Wetherspoon has reported record first half profits of £36.2m, a 41.4 per cent rise on last year, reports The Big Hospitality.
Profit was up 17.5 per cent on a pre-exceptional basis at the 746-strong managed pub chain which also successfully carried out a refinancing deal and reintroduced a dividend.
Turnover for the 26 weeks to 24 January was up 4.1 per cent to £488.1m including sales from 17 new pubs. Like-for-like sales increased marginally by 0.1 per cent with total sales.
Wetherspoon plans to open 50 pubs this year. It will issue a dividend of 12p a share for the financial year ending 25 July.
“Sales and profits in the six months under review were at record levels, notwithstanding the immense pressure on the pub business from government legislation, thanks, above all, to the great efforts of all of our staff,” said chairman Tim Martin.
“Trading in the six weeks to 7 March 2010 continues on a similar trend to last year, with like-for-like sales down 0.4 per cent and total sales increasing by 3.9 per cent.
"As a result of our sales, profits and free cash flow, together with our continued efforts to improve every area of the business, I remain confident of our future prospects.”
Profit was up 17.5 per cent on a pre-exceptional basis at the 746-strong managed pub chain which also successfully carried out a refinancing deal and reintroduced a dividend.
Turnover for the 26 weeks to 24 January was up 4.1 per cent to £488.1m including sales from 17 new pubs. Like-for-like sales increased marginally by 0.1 per cent with total sales.
Wetherspoon plans to open 50 pubs this year. It will issue a dividend of 12p a share for the financial year ending 25 July.
“Sales and profits in the six months under review were at record levels, notwithstanding the immense pressure on the pub business from government legislation, thanks, above all, to the great efforts of all of our staff,” said chairman Tim Martin.
“Trading in the six weeks to 7 March 2010 continues on a similar trend to last year, with like-for-like sales down 0.4 per cent and total sales increasing by 3.9 per cent.
"As a result of our sales, profits and free cash flow, together with our continued efforts to improve every area of the business, I remain confident of our future prospects.”
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