The growing popularity of craft beer and record prices for pints helped the top 50 bars and pubs across the UK notch a 4 per cent rise in year-on-year turnover in the 12 months to October, a new study shows.
Turnover for the 12 months up to the end of last month hit £11.7bn, meaning that the annual figure has risen by £1.6bn in the last six years, according to data from commercial lender Ortus Secured Finance.
It said that mergers and acquisitions of pubs and bars – which had helped cut costs – was the main reason for the year-on-year rise in turnover .
H igher margins on craft beer also helped pubs charge a record average of £3.58 for a pint of beer in September.
Ortus Secured Finance said a number of challenges, including the staff shortages in the wake of Britain’s vote to leave the European Union and a rise in business rates in the Government’s A utumn B udget, could hit smaller pubs.
It also said the growing convenience of food delivery services and eating in could hamper revenue for pubs and bars in the long term.
“Pubs and bars need to continue to invest in their premises to ensure they still attract large numbers of customers,” said Jon Salisbury, managing director at Ortus Secured Finance.
“While larger pub companies often have access to the financing they need to make strategic acquisitions – as well as make considerable capital investments in their premises – this can be more of a struggle for pub companies at the smaller end of the market , ” he said.
