Pub failures soar by 156%

Monday 3rd November 2008, 12:10PM GMT.

Pub failures soar by 156% The number of pubs going out of business has risen 156 per cent over the last two years, according to research.

In the third quarter, 64 businesses went under following the smoking ban, two wet summers, failure to qualify for Euro 2008 and the consumer downturn, auditors PricewaterhouseCoopers (PwC) said.

Pubs are also squeezed by competition from supermarkets, as cash-strapped consumers opt to drink at home.

The hospitality and leisure industry has seen a 95 per cent increase in insolvent firms since 2006, PwC found, with community pubs suffering the worst.

Hotels and restaurants have also fared badly, however, with reduced demand from consumers as both businesses and individuals cut back.

In total, some 300 hospitality and leisure companies collapsed over the last three months with further failures expected in the fourth quarter.

“There is no doubt looking at these statistics that we are now amidst a consumer slowdown,” said Stephen Broom from PwC.

“As the situation is likely to get worse in 2009, experience from previous recessions tells us that consumers will trade down seeking value for money options whilst also seeking a memorable experience.”