After two turbulent years in the pandemic, pubs across Gedling borough are facing a new challenge in the ongoing battle for survival. Lockdown closures, strict social distancing rules and having to shut their doors over Christmas.
Now, just as life was beginning to get back to normal, the cost of living crisis has now begun to bite. People across the borough are being squeezed by soaring gas and electricity prices, while the cost of goods and fuel are also rapidly rising.
For pubs which have made it to the other side of Covid, it comes as a fresh double blow for their businesses. Their own costs are rising while customers have less money to spend.
A recently released report by hospitality experts CGA has shown that in the last 12 months, 4,593 licenced premises across the UK shut their doors in the year to March 2023. This equates to an astonishing 12.6 closures per day or 4.3% of the licenced sector in the 12 months.
Beccy Webster has been landlady of The Gedling Inn since 2019 and says customers’ spending habits have definitely changed since the pandemic.
Beccy said “We are an independent business at The Gedling Inn and have faced lots of challenges due to the hard times this country faces at the minute
“Gas and electricity prices are through the roof and this has been the major problem for a small business like mine. I have seen an increase of nearly 40% which for larger premises like mine is hard to swallow.
“Wholesale prices of food and drink are continuing to rise daily and we have struggled not to pass these on to customers but in reality to keep the pub open and my team in their jobs it is a constant battle to make sure we are getting the right products at the right prices.
“I personally think since covid, customers’ habits have changed too. People drink and eat more at home now or don’t stay out as long, although money is tight all round”
Beccy said it was sad to see such a decline in pubs as it’s a tradition of our country to have “locals”.
“I hope that during the summer people come out to support the hospitality industry and enjoy a lovely drink or meal in their local community,” she said.
New research has shown the future local pubs is affected by whether they are an independent business or a managed group. The independent sector has shrunk by 14.1% during the three years of the pandemic, while the managed sector contracted by only a 1/4 of that figure at 3.3%.
CGA’s Karl Chessell said: “Each of the 4,593 closures over the last 12 months represents a sad loss of jobs and the permanent withdrawal of a community asset.
“It is at least encouraging that losses have slowed in the first few months, a welcome indicator that demand for hospitality remains strong. However, the recent cut in government support on energy bills, alongside a hike in minimum wage rates and the ongoing tax burden, now leaves thousands more fragile venues at risk of closure.
“Hospitality has shown how, with the right backing, it can generate jobs and fire the economy, but sustained help is needed to tide the sector through the current crisis.”
Graeme Smith, AlixPartners’ managing director, added: “While the number of pubs, restaurants and other licensed venues continues to contract in UK hospitality, there is some positivity in this latest analysis of the market, given that the overall cadence, or rate of decline, has slowed significantly.
“Tellingly, this latest study underlines the growing divide between larger and smaller operators, reflecting the varied ability to withstand the continued headwinds the sector faces. The closure rate of independent businesses – the lifeblood and entrepreneurial driving force of the sector – continues to vastly outstrip the better-funded corporates and the branded operators.
“It highlights the need for government support to be extended, especially on energy costs, if small (often family-owned) businesses are to survive. On a 12-month view, the number of closures is still very significant. A statistic homing into view is that by the end of the year, the total number of licensed venues is likely to fall below 100,000 for the first time in many decades. It reflects approximately 13,000 closures since March 2020, and the many thousands of pubs that have shut in the decades prior.”
The Gedling Inn can be found on 50 Main Street, Gedling, has a large beer garden, occasional live music, an affordable range of quality food, and an amazing afternoon tea and has been at the heart of Gedling life for many years.
Further details can be found on the Gedling Inn Facebook page HERE
Great pub for food
I really hope the outside part of this one closes down. I live next door and none of the neighbours get any peace or get into their gardens any more. The customers are mostly okay but you wouldn’t believe the stuff we’ve seen in their car park!