As consumer confidence plummets, we face a cultural reckoning over British pubs
In the months ahead, people across the country will be tightening their belts and doing all they can to maintain their quality of life despite rising costs all around them. So it wasn’t completely surprising when yesterday, PwC’s new consumer sentiment survey reported the steepest decline in consumer confidence since their tracking began, 14 years ago. While not completely shocking, this will still come as a blow to many in our sector. These are pub and restaurant owners keen to get their businesses fully back on their feet after a tumultuous two years as they also battle with their own with rising energy costs and uncertainty in their supply chains.
It is clear that we are not only experiencing a cost of living crisis but a cost of doing business crisis. It’s happening now- but the ramifications will be felt far beyond the next few years.
Understandably, consumer spending expectations are moving towards more essential areas, at the expense of discretionary items, according to PwC. In simple terms, the data suggests the next few months will see people enjoy fewer luxuries, and will take a hard look at what can be sacrificed week on week. Of course this will look different for different people, but as a proud pub-going nation, a small luxury many of us hold dear is a pint or two at our favourite local pub. During the pandemic we already saw consumers buying more beer in supermarkets, even at points when pubs were allowed to open, and with many people feeling like “going out” is likely to be one of the most obvious luxuries to cut back on, the impact of this on pubs is likely to continue.
And so with the potential of reducing customer numbers, altered consumer habits and rising overheads, pubs are going to be struggling to keep their doors open. In the past two years alone over 800 pubs have shut their doors for good, and the coming months look as though they could be just as, if not more, testing than the past two years as the lifeline of financial support from the government is stripped back.
In the longer-term this poses a serious economic threat, but a social and cultural one too. Pubs truly are the heart of our communities, they are a place to catch up with friends and family, to enjoy our favourite teams win (or lose!), and as well as being a cornerstone of our country’s heritage and are a draw for tourists from across the world. One in three adults said their mental wellbeing had been negatively impacted by the closure of pubs and other hospitality settings during the pandemic. Pubs are undoubtedly a key part of community infrastructure and provide a lifeline for people experiencing loneliness or isolation, something that post-pandemic few will want to take for granted. In addition, many of our beloved local pubs and breweries have histories that are deeply rooted in the villages, towns and cities we call home, histories that, if lost will be incredibly difficult to rebuild or recreate.
Hospitality can and should be a driver for economic growth and prosperity across all regions and play a key part in the government’s levelling up agenda, but it won’t be able to without proper support. For pubs, bringing Alcohol Duty Reforms forward would make a huge difference, as would lowering business rates and reviewing VAT, but however the government decides to act, it’s crucial that it does it sooner rather than later, not only to support our economy, but our heritage for years to come.