Credit crunch or breweries? Why is the british pub trade failing?

Pubs across britain are closing every day. Since the credit crunch hit this problem has got worse. But is it just that? The ties that alot of pubs have to the companies that own them are causing strife as well.

 The high prices are affecting the trade as they put customers off. The Lord Tennyson on Raven Lane is owned by Punch Taverns and has been put up for lease this week.

The Lord Tennyson on Rasen Lane

 

Many pubs are tied and this means they must buy their beer from certain breweries s. As these breweries sell at a high price, the pubs must also put their prices up. The high prices  mean that many customers  go elsewhere  for cheaper alcohol.

 

 

 

But owners of the Lord Tennyson, Punch Taverns say that this is not the case.

 

 “We continue to invest over £1.6 million every month in financial support as well as looking at other ways to help our licensees drive trade and improve their retail proposition.”.

  See what else the people of Lincoln thought

(crowd noise by miastodzwiekow at http://www.freesound.org/usersViewSingle.php?id=1148115)

They said that the companies do not affect the businesses they own, in fact they give the pubs extra benefits from being a free hold.

 

“ It is not in our interests to our businesses fail – the success of our business is based on the success of our licensees”.

 

But many people disagree. The Horse and Groom, on Carholme Road, is owned by Enterprise and closing in November

 

“ It’s a big part of the reason we’re closing”, Says Serge, the Bar Manager. “ If they didn’t charge so much rent and tie places down for beer and wines and spirits, then it would make things a lot easier for small individual pubs”, he added.

 

Free houses are able to purchase their alcohol from where they like and can shop around for prices. Punch Taverns also say that it’s not just the current economic climate that is causing so many pubs to close, but personal reasons or refurbishments.

“ The Lord Tennyson is currently under offer. We look forward  to working with a new licensee to help them build a successful, sustainable business that is a credit to the local community”.

 

By Becky Stanworth.