Beer tax continued to rise and a record number of pubs closed, but it wasn't all doom and gloom in the pub sector in 2009. As the year draws to a close take a look back with BigHospitality at the major events of this year.
Axe the tax campaign gains pace
The British Beer & Pub Association's campaign Axe the Beer Tax - Save the Pub, launched in November 2008, gained pace in January and February, attracting the support of 20,000 people and 113 MPs. The BBPA argued that under the Chancellor`s tax escalator plans, 40 per cent of the price of a pint would be going to the government between 2008 and 2011 when beer sales were at their lowest levels in 40 years and pledged to lobby the government on the issue, urging the Chancellor to backtrack before the next Budget.
Beer tax rises threaten jobs
As the next Budget loomed, the BBPA sent out a warning to the government that if it didn't backtrack on plans to raise beer taxes in the next Budget, 60,000 pub jobs could be lost in the next five years. It said average earnings had fallen for the first time since records began and beer sales were at their lowest level since the Depression in the 1930s. Alistair Darling ignored the pleas, however, and went ahead with raising beer tax 2 per cent.
Mandatory alcohol code opposition
The government moved forward with plans to introduce a mandatory code of conduct of the sale of alcohol by welcoming views on it from the trade and the public with the launch of a consultation in May. Under the code 'all you can drink' style promotions would be banned and pubs would have to sell wine and spirits in two measure sizes. However, as predicted there was near total opposition to the code as the consultation came to a close in August leading the government to reconsider its implementation.
Pub closures reach 52 a week
Shocking figures released by the BBPA in July showed that pub closures had risen to a record 52 a week during the first half of 2009. The government's beer tax rises and increasing red tape, plus the recession were blamed for the closures which led to 24,000 job losses over the course of a year. Those surviving tended to be food-led pubs and branded pubs and café-style bars which bucked the trend by opening at a rate of two a week.
The plastic pint glass launches
The Home Office commissioned the design of a new plastic pint glass to be used in pubs, bars and nightclubs in August in an attempt to cut the 5,500 yearly glass and bottle attacks. But the new (plastic) glass caused a backlash from the British Beer and Pub Association, who claimed the industry ‘should instead target the small minority of despicable individuals that use glass a weapon.’
Mason Arms named Michelin Pub of the Year
Michelin’s Eating Out Guide 2010 named its Pub of the Year as Mark Dodson’s The Mason Arms in Devon in September. Dodson, who spent 12 years as head chef at the three Michelin-starred Waterside Inn in Bray, was praised for the quality of his food, that imparts ‘precise, balanced flavours that show a real understanding of ingredients.’ Derek Bulmer, editor of the Michelin Guide, was so impressed by the standard of pub dining, that he cited food as the ‘saviour of the pub industry.’
Regent Inns goes into administration
Regent Inns, the operator of Walkabout, Old Orleans and Jongleurs comedy clubs, went into administration in October. Sixty sites were saved with the creation of a new company Intertain, run by Regent’s previous management, chief executive John Leslie, strategy and business development director Mike Dowell, who formerly ran Pitcher & Piano, chief operating officer Simon Kaye and chief financial officer Mike Foster, but eight sites - three Walkabouts, five Jongleurs and one Quincey - were left behind in administration. In December Intertain announced it was relaunching the 10 Jongleurs sites it took over as Highlights in January 2010. The new style venues will show regular stand-up comedy under the Famous for Comedy banner, along with live music, cabaret, sport and film.
Pubs innovate to stay in business
Innovation in the pub trade was the key to staying afloat in 2009, according to the results of a poll of British Institute of Innkeeping members. More than 90 per cent of publicans listened to advice from market analysts Horizons who told them in July to innovate or lose out to restaurants. Some publicans opened letting rooms while others offered cut price food deals and hosted themed nights. Hundreds signed up to the useyourlocal.com website which enabled them to act as a parcel drop-off and pick-up area for their community.
Premium Bars is saved from administration by Orchid Group
After suspending its shares at the end of 2008, the troubled bar and restaurant operator was hopeful of a £52m takeover bid by property investors the Reuben Brothers. But when a deal failed to materialise, Premium Bars and Restaurants fell into administration, with three of its 47 outlets closed immediately. But help was at hand when The Orchid Group, which itself went into administration in December 2008, bought 43 Prohibition, Bar Room Bar and Living Room sites, safeguarding 1500 jobs. Orchid now intends to roll out a £3m capital investment programme across the estate over the next 12 months.
Look back at the major events of 2009 in the Restaurant and Hotel sectors