Clubbed to death?
1 September 2015: Two reports have been published recently which highlight the decline of the Licensed Trade.
The Association of Licensed Multiple Retailers (“ALMR”) has stated that nearly half of the Nightclubs in the UK have closed over the past ten years. Industry commentators have blamed a number of factors for this; the smoking ban, the rise in popularity of music festivals and the reluctance of Planning and Licensing Authorities to allow such venues to trade. Other reasons cited for this decline are the high drink prices charged by such venues and the emergence of online dating websites which provide an alternative means of meeting your next partner.
The Campaign for Real Ale (“CAMRA”) has highlighted that, on average, 29 pubs across the UK close each week. CAMRA claim that this is partly because pubs can be demolished or converted to other uses without planning permission and it has launched a new initiative to protect 3,000 pubs nationally by nominating them as an Asset of Community Value.
ALMR and CAMRA have identified that the sector is in decline due to a number of factors. However, in our experience, another reason for the closure of such outlets is the lack of business acumen demonstrated by some of the individuals who run them. All too often we have helped people who have been seduced by the opportunity to be mine host and have not taken advice on whether that was a wise move for them. As a result they have taken on a loss making pub or Nightclub with a full repairing lease without any real understanding of the hard work required to run such a business profitably. In a relatively short time their lack of experience and working capital conspire to make them another closure statistic.
Therefore, if you have clients, customers or contacts who are considering the acquisition of a pub or Nightclub business please make sure that they get appropriate advice beforehand to make sure that “living the dream” doesn’t become a nightmare instead. However, if you know of anyone who didn’t do this and wishes they had with hindsight, please do not hesitate to contact us and we’ll be happy to help. Details can be found by clicking on ‘The Team’ above.