After Covid, now inflation and the energy crisis are killing them

They are one of the icons of the United Kingdom. an essential part of its privacy; Certainly, One of the pillars that support the mental health of the country. refer to bars, that darker, relaxed and ornate version of Spanish bars. From afar, you might think that running one of these places is a good business. but not.

The Covid pandemic has changed many things, many habits and everywhere. The number of pubs has decreased alarmingly in England and Wales (Scotland has its own stats) due to the coronavirus. Today there are 7000 less than ten years ago.

Less business (fewer customers) and higher costs. According to English media, in the first half of 2022, he appeared The number of bars is already less than 40,000.

“When pubs are forced to close, the community suffers a heavy loss”

Between 2020 and 2021, the hospitality sector witnessed the closure of many establishments because The epidemic caused a huge drop in customers. But according to research by real estate consultancy Altus Group, those who managed to beat Covid are now facing A new challenge due to the energy crisis and rising inflation.

Waitress serving a pint at a bar.
Europe Press

More expenses, fewer customers

Immediately, Only 37% of hospitality companies make profits, according to the British Beer and Pub Association (BBPA), the British Hospitality Institute, and the British Hospitality Company. The increase in the cost of energy, products and labor are the main factors that explain this scenario. The sector is asking for help from the Boris Johnson government, he says Journalist Ann Wise in Article published by many British media.

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“When bars have to close, the community suffers a huge loss and these numbers come out A devastating picture of how bars are lost in towns and cities across the country,” explains Emma McClarkin, Executive Director of the BBPA. It is imperative that we get help to relieve this pressure or else we risk losing more bars year after year,” she says.

“They are now facing new headwinds due to rising energy costs, inflationary pressure and higher taxes.”

in England and Wales, From the end of 2021 until the end of June, about two hundred people disappeared bars. Most are in the West Midlands (28 in just half a year), followed by London (24 fewer) and eastern England (24 more), according to BP . means.

A customer protests at the entrance to a pub in London against the ban on smoking in public places.  (EFE).
A pub client, on file.

The total number includes pubs that must pay a commercial fee, including empty pubs and those for rent. Those who disappeared It has been demolished or converted into buildings offices or homes.

“Although bars have shown remarkable resilience during the pandemic now Facing new headwinds from rising energy costsinflationary pressure and tax increases”, says Robert Hayton, Altus Group UK Chairman.

And in such a delicate situation, everything turns out. For example, sales have also been lost in recent weeks due to the railway workers’ strike. So says Cliff Watson, co-founder of City Pub Group in London In June, you may have lost up to 25% of sales usual. Because of the strike, people came out less.

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