The British pub industry has a rocky road ahead, according to new research carried out by the Association of Valuers of Licensed Property (AVLP).
The data reveals that governmental regulations, a lack of experts in the trade and limited funding will all contribute towards problems for pubs and bars in the next 12 months. Whilst all those questioned stated that leasehold prices will not rise in 2013 and 58 per cent believed that the market is less buoyant than it was last year, there are still major concerns.
Around 72 per cent of the sample admitted to not having a happier relationship with their landlord compared to 2010, whilst 41 per cent believed that applications for licensed property had got worse in recent years. Generally, a lack of funding was the major worry for the industry, according to the survey, followed closely by red tape regulations and the competition which supermarkets were posing. This will in turn cause wider problems such as a reduction in the availability of hospitality recruitment.
AVLP’s honorary secretary Nick Giles said: “The survey provides the trade with a very interesting insight into the market on a national basis. Clearly times remain difficult for many operators. [Lack of funding] was the same issue that dominated the comments last year and remains at the top of the list this year. Let’s hope we’re talking more positively about it in 2014.”
It was not all bad news however. Some 24 per cent stated that they were looking to purchase freeholds, which is up from 23 per cent last year, and 31 per cent were witnessing more cases of people wanting to buy leasehold properties; a rise of four per cent from 2012.
The results are based on a sample of AVLP members across the UK.
Berkeley Scott is a specialist recruitment agency providing hospitality employment solutions.