The British Beer & Pub Association (BBPA) has today published the latest edition of its operating cost guide for tenants and lessees. The data is intended to help those wishing to take on a tenanted or leased pub business to be as well informed as possible about the current costs involved in running a pub. The BBPA’s guide provides valuable information for tenants and lessees on typical operating costs in the pub sector. The guide gives existing tenants and lessees the opportunity to benchmark their own business and compare their own costs against these published industry norms. Updates included in this year’s guide are: Pay-TV costs for all pub models Live music costs for all pub models A town/country model which brings the total number of pub models featured in the guide to nine The guide shows the average cost of running a leased and tenanted pub over a range of pub models based on turnover and business types. It covers a wide range of pubs, from those with little in the way of food sales, to those that are largely food-led, and takes account of the significant variations that exist in the cost base, even within those pubs that are broadly in the same category. As in previous editions, the guide’s input data and sources change each year, so the information should not be used to determine trends from year to year. The guide also makes clear that all pubs are unique and that actual costs incurred will be dependent on the different aims and styles of the business according to the location, the market and the skills of the tenant or lessee. As well as providing average costs, the guide also includes the minimum and maximum operating costs, providing a range of scenarios across different types of business. BBPA Chief Executive Brigid Simmonds OBE said: “Whether you already run a pub or are thinking of taking one on, this new report is a must-read. It includes essential information on the current costs involved in running a Great British pub and can be downloaded – free of charge – from our website.” The full guide can be downloaded from the BBPA website here.
The BBPA has today commented on the Home Affairs Committee’s report on migration, titled: “Policy options for future migration from the European Economic Area: Interim report.” Commenting on the report, Brigid Simmonds OBE, BBPA Chief Executive, said: “It is vitally important for the beer and pub sector that there is a clear focus on immigration policy and this is why we have previously welcomed the Government’s announcements on applications for settled status, as 24% of all employees across the BBPA’s membership come from abroad, of which 17% are from the EU. “The BBPA shares the concerns of the Home Affairs Committee however, regarding the lack of debate on policy options to date and that as soon as is practical after the Migration Advisory Committee reports, the Government must bring forward detailed immigration policy options for consultation. It is vital that businesses are able to access the skills and people required to support economic growth and that there is greater certainty for this. As part of this, the BBPA also supports an overhaul of the UK’s arrangements for non-EU nationals. “As recognised by the Home Affairs Committee, there is now a greater understanding by the electorate of the benefits of overseas workers in the UK and the role they play. For brewing and pubs, this means there needs to be a review of the tier system. There is a real shortage for pubs when it comes to recruiting chefs, who would not qualify for tier two status. In this regard, it has been good to see the Government’s proposals that the Youth Mobility Scheme be extended to the EU as part of the recent announcements following the Chequers Summit.”
Beer sales in the second quarter of 2018 were up 3.6% on the same period in 2017, according to the latest Beer Barometer sales data from the British Beer & Pub Association. The increase in sales of beer in Q2 2018 was driven by the off-trade (e.g. supermarkets), which saw beer sales go up by 7.7% on the same period in 2017. In comparison, the on-trade (e.g. pubs) did not see growth in beer sales in Q2 2018 – with sales of beer decreasing by 1.0% year-on-year instead. Despite this, the fall in on-trade sales in Q2 2018 was a significant improvement on Q2 beer sales from the last ten years, where the average fall in on-trade beer sales has been 3.7%. The improvement is due to the boost to pubs from good weather during Q2 2018, as well as the beginning of the FIFA World Cup and the continued positive effects of the beer duty freeze implemented by the Chancellor in November 2017. Although the FIFA World Cup is a welcome boost to pubs, it only comes around once every four years and so measures taken by the Chancellor to cut or freeze beer duty year-round are far more influential for the long-term sales of beer in pubs and pub viability. With the very real threat of a beer duty increase on the cards in the next Budget, the campaign “Long Live The Local” – from Britain’s Beer Alliance – has been launched, calling for a cut in beer tax to decrease the significant cost pressures pubs face and help give them a boost. Speaking on the Q2 Beer Barometer, Brigid Simmonds OBE, BBPA Chief Executive, said: “It’s certainly good to see that beer sales are doing better overall. There is a very real threat however that the Chancellor will increase beer tax again in the Budget later this year, which would be a huge backward step after so much progress has been made since he froze beer duty last year. We need further cuts in beer tax to help pubs and the great British brewing manufacturing industry.” David Cunningham, Programme Director of Britain’s Beer Alliance, which is behind the “Long Live The Local” campaign, said: “The ‘Long Live The Local’ campaign celebrates the vital role pubs play in people’s lives and their communities. It also highlights the range of tax pressures that pubs face and encourages pub goers to go to their local and call on politicians to cut beer tax. “Pubs face an unprecedented range of tax pressures including beer duty, which means that £1 in every £3 spent in a pub goes to the taxman. This clearly is a factor behind declining beer sales in pubs, pub closures and job losses.” UK Quarterly Beer Barometer Q2 2018