Air Initiative
Air Initiative

Conclusions for the UK Licensed Trade

Happy Person next to NS signThe evidence from Ireland suggests that there is significant impact on the business of Licensed premises after a smoking ban is enforced. Worryingly the impacts on business in the UK may be more significant due to the differences between the two trades. 

A Comparison of the English and Irish Pub Trades

 

Ireland

England

Impact

Tenure

Almost 100% freehold

52% tenanted or leasehold

 

17% group operated

 

31% freehold

Faster decision making for Irish licensees as all owner-operators.


More available funds for Irish licensees as all income retained by licensee

Licenses

Number of licenses fixed for almost 100 years despite rising income, population and demand - especially in Dublin

No cap on number of licenses

Very favourable trading for Irish urban licensees, especially in Dublin.

 

Retention of pubs in family ownership, high capital value and minimal borrowings.

 

Fast decision-making

Background growth

Average 5% 2001-2006*

Average 2% 2001-2006**

Strong income growth over recent years provides Irish licensees with a financial ‘cushion’

*Economic and Social Research Institute
**www.statistics.gov.uk

Considering these differences it is likely that there will be specific areas of the UK trade which are most disadvantaged.

 

Site by: Dijit new Media