For many the thought of running their own pub is a dream. It used to be said that a license to serve alcohol was the same thing as a license to print money. Times have changed though, and the licensed trade in Britain is facing hitherto undreamed of difficulties.
So what are the challenges facing the pub trade these days – and can a pub still be a good investment?
In theory the economic downturn should have been good news for pubs as unemployment and worry encourage people to drink more. Unfortunately for landlords there has been no let up in the endless tax increases on beer, spirits and other drinks, putting the cot of a night in boozer beyond more of their customers than ever before.
The smoking ban has also had an impact on the bottom lines of licensed premises. Pub owners who have not managed to provide a sheltered place for their patrons to light up have seen their patrons abandon them and stay at home with cheap supermarket booze and ashtrays on hand.
For all the difficulties that there undoubtedly are there is definitely still good money to be made by those who are able to understand and work with the coming trends. That said it is important that you adapt in the right way. During the ’90s at seemed as though nothing could halt the rise of the ‘gastro-pub’. Landlords up and down the land rushed to bring in pricey menus, and many found there was scant appetite for the change among either their loyal customers or anyone else.
Knowing what your customers want is important. A recent survey from YouGov targeting pub goers in Scotland found that what they wanted was wine and sofas. Cynics might say that what they are talking about is really a night at home, but if you are thinking about moving into the pub business you would probably do well to pay heed and budget for some leather sofas and the services of a reliable oenologist.
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