Home   Kent   News   Article

Pubs in Kent: Can they survive amid cost-of-living squeeze as 7,000 across UK close over last 10 years

When we were all under lockdown, the thought of eventually being able to once again go to the pub with family and friends was a shimmering light at the end of what seemed, for a while at least, like a never-ending tunnel.

But as things have returned to near normal since the turmoil of the pandemic, for many in the pub industry, calling time for good is increasingly becoming the only sound financial option open to them.

We all enjoy going to the pub - but if we can't afford to go, many more far an uncertain future
We all enjoy going to the pub - but if we can't afford to go, many more far an uncertain future

According to a report this week from real estate advisors the Altus Group, some 7,000 pubs across England and Wales have closed over the last decade – which include 15 in the South East over the last six months alone.

It's a sobering figure for what so many continue to see as the glue that so often binds a community together.

And the situation is likely to only get worse courtesy of the current cost-of-living squeeze.

While the likes of Faversham-based Shepherd Neame CEO Jonathan Neame may be confident we will ring fence our spending on socialising, many take the glass half-empty approach and think the opposite is more likely.

Soaring energy and supply chain costs are draining the slim profit margins pubs had once relied on.

The necessity to put up prices is unavoidable – but it comes just as consumers are tightening their belts and fearing a winter of budgetary discontent as the energy price cap soars just as we all want to put our heating back on.

Robert Hayton, UK president at Altus Group, explained: “Whilst pubs proved remarkably resilient during the pandemic, they’re now facing new headwinds grappling with the cost of doing business crisis through soaring energy costs, inflationary pressures and tax rises.”

A survey conducted by the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality in recent days underlined the challenges hospitality outlets currently face.

It revealed just 37% are currently turning a profit, a situation compounded by the much discussed labour shortages which mean many are under-staffed or even having to close on quieter days of the week.

The industry organisations behind the research said: "These figures are extremely worrying and demonstrate the critical situation hospitality businesses across the country are currently in.

Shepherd Neame's CEO Jonathan Neame believes our spend on drinking out will not be cut - others are not so confident
Shepherd Neame's CEO Jonathan Neame believes our spend on drinking out will not be cut - others are not so confident

"Given the chance, our industry has huge growth potential and the ability to play a critical role in the levelling up of communities in every single part of the UK, but instead we are still struggling to get back on our feet properly after a turbulent two years.

“In the past few weeks inflation has hit record levels and costs on key ingredients and utilities has rocketed, whilst consumer confidence has plummeted resulting in fewer customers in our venues.

"We are weathering a perfect storm, but we can’t hold on forever, we need relief as soon as possible before the cost of doing business forces venues to close for good.”

Trying to turn a profit in the pub trade had been a challenge for some time – even in the pre-Covid era.

According to the Office for National Statistics, some 140 bars and pubs in Kent and Medway closed between 2010 and 2019, with all of our districts seeing venues calling it quits.

Prior to the pandemic, the arrival of the likes of Wetherspoon has heaped competition onto the back of many already struggling outlets
Prior to the pandemic, the arrival of the likes of Wetherspoon has heaped competition onto the back of many already struggling outlets

A number of factors contributed to the closures: from rising tax on beer making many opt to buy cheaper supermarket alternatives, to the desire for many to live healthier lifestyles.

Offices being increasingly sited outside town centres had an impact, not to mention competition from the likes of Wetherspoon which ushered in cheap pints and heaped pressure on many well-established outlets.

And then, of course, there's the issue of soaring property prices proving too tempting to some not to take advantage of by selling up.

Already challenged, pubs were then dealt enormous financial blows during the pandemic – despite help from the government to keep them afloat.

And those scars of being forced to close for most of 2020 and a large chunk of 2021 – not to mention fears over the Omicron variant hitting last Christmas' trade hard – left many walking a fine tightrope between breaking even and suffering damaging losses. For many it was too much.

The Dancing Dog Saloon closed after 20 years citing increasing financial pressures. Picture: Simon Hildrew
The Dancing Dog Saloon closed after 20 years citing increasing financial pressures. Picture: Simon Hildrew

In April, the Dancing Dog Saloon between Bobbing and Iwade, near Sittingbourne, found itself with little choice but to close after 20 years of trading.

Owner Shaun Egan explained: "Our last straw was the pandemic. We were putting our own money into the establishment way before that, but with rising costs we decided that we just couldn't go on."

Alex Smitherman was the owner of the Canopy Bar in Maidstone's Royal Star Arcade.

He was forced to close the restaurant and bar after a "turbulent time" during which it had been "fighting to stay afloat". It closed for good at the end of last month.

He explained: "It has been a mixture of things: the cost of living is just spiralling out of control, with prices going up and people's disposable income going down."

Rodney's Sports Bar in Herne Bay town centre closed during the pandemic – and never reopened. Like so many others occupying prime sites, it is set to be turned into housing.

Kate Nicholls, CEO of UKHospitality
Kate Nicholls, CEO of UKHospitality

Kate Nicholls is CEO of UKHospitality which represents 100,000 hospitality venues across the UK.

She explains: “The pandemic intensified the distress that many business owners were facing and, in many cases, business support was not enough to keep them afloat.

"While these are pub closures, there has been similar, sometimes worse, levels of closure across restaurants, nightclubs and broader hospitality.

“The current economic crisis increases the chances of further decline, with soaring costs in energy, food and drink, a higher VAT rate, falling consumer confidence and an acute labour shortage.

"For businesses struggling to repay Covid-related debt this could simply be too much."

The Four Candles' ales are all brewed in its cellar - making it a hit with real ale fans
The Four Candles' ales are all brewed in its cellar - making it a hit with real ale fans

It is not all, however, doom and gloom.

Take a look at many high streets and the rise of the micropub is ushering a different proposition into town centres.

Not in need of the sprawling properties and car parks many pubs have traditionally occupied, the once 'new kid on the block' is now becoming established as an option.

They may not be offering cheaper beer (although often specialising in the currently on-trend craft ales), but they do operate on a shoestring with cheap rent of small former retails units, limited staff and limited overheads.

TVs are rare and music less so – by stripping away the frills they offer an old-school approach which has proved increasingly popular.

Quite how our collective spending habits change over the coming six months will determine if they survive any better than their well-established big brothers.

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More