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Pubs struggling in current market

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Many British pubs are struggling to cope with the difficult economic conditions currently afflicting the UK and the lack of consumer confidence and spending money impacting on their bottom line, according to a new report from insolvency trade body R3.

The organisation claimed that 34 per cent of the nation's pubs and bars are currently deemed at risk of failure over the coming 12 months, meaning cost-conscious firms could be even keener on picking up cheap catering equipment when fitting out their kitchens.

This is compared to a cross-industry average of 23 per cent of businesses at risk, indicating that the current economic turmoil could be having an especially detrimental effect on the hospitality industry.

Punch Taverns, one of the industry's biggest national players, recently revealed that it is currently in a difficult financial situation.

R3 president Lee Manning said: "The recession has gone on far longer than could have been predicted and it is getting harder for people to find the money to spend on discretionary items."

He added that London - typically seen as a strong growth area for leisure and hospitality firms, with consumers tending to have more disposable income on average than those elsewhere in the country - has one of the highest rates of failure for pub and bar firms, largely because of the many choices available to drinkers in the capital.

"London is full of bars and pubs, many of which are offering incentives and discounts to try and get people through the door, but for some even this will not be enough," added Mr Manning.

This is a more pessimistic assessment of the situation than the one offered recently by the Coffer Peach Business Tracker, which revealed that London is performing better than its UK counterparts.

Like-for-like sales in the capital increased by five per cent over the month of August, the study found.ADNFCR-16001031-ID-801460680-ADNFCR


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