There is further, new evidence of the very serious effect the new drink driving regulations are having on the licensed trade business in Scotland.
A survey by the Scottish Licensed Trade Association (SLTA) has highlighted the severe impact which this Government Policy is having on the hospitality and leisure sector, which is one of Scotland’s largest employers.
While the Chancellor’s announcement of another cut in beer duty is good news for both the industry and the consumer, it does not go far enough as to offset what is a real threat to the licensed trade in Scotland.
Major decline in sales
The SLTA recently completed a survey of over 400 outlets across all parts of the country which showed the new drink driving regulations are having a real negative impact, with 64% of all outlets surveyed showing a decline of up to 10% in like for like sales in 2015 vs 2014. Of this 29% said the decline was more than 10% with some saying the decline is 30% plus on midweek takings.
Confidence amongst licensed trade operators is at an all time low. 52% of all outlets say they expect to see the decline continue throughout 2015, and only 13% saying they expect to see any growth.
Non-alcoholic and food sales down
With less people going into pubs, there is also a negative showing on food and non-alcoholic drink sales with some outlets reporting a decline of over a third in food revenue. The biggest loss to outlets has been in alcohol sales, 72% reporting a downturn of 10% or more.
Fight is on to save the trade
56% of outlets said the biggest single threat to their business was Scottish Government Legislation. This figure was nearly 4 times higher than any other threats such as off trade pricing or local competition.
Paul Waterson Chief Executive, of the SLTA said, “These results, which mirror other earlier trade surveys, are very worrying. The fight is on to save our trade. Our members are saying that customers are now afraid to stop and have one drink at their local on the way home from work, and many who take the family out for a mid-week bite or Sunday lunch, aren’t coming in at all.”
“People worried about driving with small residual amounts of alcohol in their bloodstream after a night out is having the most significant effect on stopping people coming into our premises of an evening.“
Licensed trade needs continued support
“While the SLTA welcomes Chancellor’s announcement to cut beer duty, it simply is not enough – the licensed trade needs continued support. Drink drive legislation aside, Scotland continues to lag behind England and Wales on the issue of tied pubs. Forcing tenants in Scotland to purchase beer at elevated prices from pub company landlords is a serious concern which must be addressed as it directly correlates to higher levels of pub closures.
Pub closure rate will rise
“People can be very dismissive of the impact of individual pub closures, but this isn’t about one or two outlets employing 5 or 6 people. Last year, before the change to the drink driving regulations, we had 5 or 6 closures every week, with 30 or 40 job losses, over a year this runs into thousands. That closure rate looks like it will rise this year. The tied pubs issue also has a profound effect on pub closures with tenanted pubs being 62 times more likely to close than those in the free trade.
“We are now asking Government officials in Holyrood and Westminster to meet with us, and come up with practical solutions to alleviate the impact on our sector and the high number of potential job losses.”
About SLTA
Established in 1880 The Scottish Licensed Trade Association represents independent Licensed Trade establishments and is the only Scottish body to represent all sectors of the Licensed Trade, including Pubs, Hotels, Restaurants, Off-sales and Late Night Premises.
The Association’s main aims are Trade Protection, Trade Development and Trade Liaison including the promotion and encouragement of training for all those involved in the Licensed Trade and the active development and promotion of good practice in the interests of members and customers.
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