A sad fact has been published on various news outlets, stating that 25 pubs a week are closing in Britain, with the government coming under fire from not doing enough to protect landlords. The group, Campaign For Real Ale produced this figure last year, saying that pubs shutting had seen a drastic increase in only a few months, with landlords saying the increase is fueled by cheap beer in supermarkets.

Pubs changing their models

This unfortunate trend is forcing landlords to call time on their pubs due to their costly rents and beer prices. In order to stop this, pub owners have had to turn themselves into the crossover between pub and restaurant with nearly 80% of public houses offering food, often under the name of ‘gastro pub’.

Statistics also show that with the increase of food in pubs there has been a decrease of sales of beer, which still poses a threat to the public house industry. In fact, only 13.02 million barrels were sold in Britain’s pubs last year – which actually supersedes the lowest recorded figure of 12.9 million in 2002/3. However there are improvements in the industry with sales of wine and soft drinks boosting, in accordance with food, as a better accompaniment.

With so many pubs closing and more threatened, The Insurance Octopus has looked at a model outlined by the department for Business, Innovation & Skills (DBIS) to estimate the number of pubs might close and the potential impact on employment levels in the industry as a whole.  There are options to implement including a guest beer proposal and a free-of-tie rent agreement.

Key projections

Projections show that having guest beer and an optimised free-of-tie rent agreement show lower pub closures and employment. Without guest beer, 3,800 pubs are predicted to close compared to 1,500 with guest beer. The full document is available to read at www.gov.uk and will give you full information of the implementations to be set in place by the government in concurrence with pub organisations and show a resoundingly positive model for the future of the UK’s public houses.

The Insurance Octopus gives full support to pubs as we can tailor insurance to your own needs, increasing and decreasing levels of cover, as you require for your business. Call us on 0161 968 2060 or email us at [email protected].