Fight to the bitter end
Date published: 08 December 2008
CHEAP SHOP BEER AND THE CREDIT CRISIS ARE SPELLING DISASTER FOR THE LOCAL PUB
FEARS are growing over Oldham’s pub trade with more drinking holes closing down and experts warning only the strongest will survive.
The Campaign for Real Ale (Camra) is demanding measures to save the industry after warning that nationally, one in eight pubs — around 7,500 — will cease to trade over the next four years.
They blame “irresponsible” supermarket competition and the economic downturn for the crisis and have written to Chancellor Alistair Darling asking for tax cuts for pubs and minimum prices to stop supermarkets selling at a loss.
In Oldham there used to be 365 pubs, one for every day of the year, but it had dwindled to 269 by the start of this year.
The number of boarded up pubs and To Let signs across the borough has caused concern with industry insiders saying many more are struggling and could close.
Mike Robinson, membership secretary for Camra’s Rochdale, Oldham and Bury branch, said 11 pubs have closed in Oldham in the last six months.
Recently demolished are the Clayton Arms, Furtherwood Road and Greengate, Acacia Road. Boarded up are the Boundary Inn, Shaw Road, Brook Tavern, Rochdale Road and the Brown Cow, Oldham Road, Failsworth. Closed down are the Centurion Hotel, Lord Street, Church Inn, Middleton Road, Royton, Hope Hotel, Greenacres Road, Oxford Hotel, Oxford Street and Royal Hotel, Horsedge Street. The Bulls Head at Grains Bar is now a restaurant.
Mr Robinson said: “You see them boarded up around the town and it’s quite a sad sight. It’s the general economic downturn and supermarkets have such an edge on the pub trade these days that the British tradition of the pub is dwindling and it’s a very sad thing.
“It’s the worst I have known it in my working career. This is the most difficult time and it’s a number of things coming together; the credit crunch and people wanting their money up front before the customer has even been through the door.
“The classic example is JW Lees who are our foremost brewers and even they are closing pubs. In the Coldhurst and Westwood areas there are lots of buildings that used to be pubs but aren’t any more.
“You see lots ‘To Let’ as pub-owning companies are struggling to get tenants. More and more people want money out of the pub as well as the beer and it’s difficult for the licensee to make it.”
Supermarkets have been accused of selling beer cheaper than water, fuelling concerns over their role in Britain’s binge drinking problems.
A recent Competition Commission inquiry found that stores were selling alcohol at a loss to entice customers through their doors.
JW Lees owns 30 managed pubs controlled by the brewery and 140 where tenants decide how the pub is run. The number of vacant tenancies is currently double the normal rate — up from six to 12.
A spokeswoman said: “I would be lying if I said business is booming. No pub company can say it is doing well at the moment, but then no business is.
“Managed pubs are fine as people are looking for work, but on the tenant side of things we are finding things more difficult.
“Because of the way the market is at the moment, people are worried about investing now in business and a massive lifestyle change.
“But some tenants are doing good business.
“Good pubs will survive, all be it by the skin of their teeth, but bad pubs with people unwilling to change and do things differently from the past, who don’t want to attract families or put food on, won’t do so well.
“If tenants don’t become more savvy they will find it difficult. We are offering them a lot of support.
“Supermarkets have a massive impact, as big as the smoking ban. They definitely sell below cost price.
“Sometimes it’s cheaper for tenants to buy beer from a supermarket than from the brewery.”
She also blamed the current economic turmoil, saying people looking to save money will drink at home instead.
But she stressed JW Lees pubs have value-for-money offers, including the current wine and dine for £9.99 promotion, and entertainment from pub games and quizzes to singers.
“It’s always better to be more sociable and go to the pub and we are putting on entertainment and good food at good prices,” she added. “If you want a good pint of bitter you have to go to the pub.
“We are confident that JW Lees will ride through the storm. We are in a good position as we own all the pubs and have no debt.”
Diggle Hotel landlord Geoff Hibbert said times were tough with only a handful of drinkers in on weekend nights, but good home-cooked food is keeping the business going.
He added: “There are a lot less people drinking but food wise we are pretty stable.
“People are having a meal then going home for a bottle of wine or can rather than staying here for another drink.
“The smoking ban has not affected us as we did not have many smokers.
“I don’t know how pubs that don’t do food these days will survive.
“Overheads such as gas and electricity have gone up 50 to 60 per cent but my prices have gone up three to four per cent. It’s hard to claw it back.
“We are just about staying on our feet. We are lucky because of where we are. But it’s difficult trying to think of many ways to get people in.”
He added that publicity over the credit crunch had made people more cautious about spending.
