Up to 50 pubs are closing every month across England and Wales, as inflation, soaring energy bills and the cost-of-living crisis continue to smash the hospitality sector.
Data shared by Altus Group (TSX:AIF) via The Telegraph laid bare the grim figures, which showed an accelerated rate of pub closures during the summer.
Between the end of June and September, a total of 150 pubs were either demolished or turned into homes and offices - close to the 200 pubs which shut in the whole previous six months.
There are currently 39,800 pubs in operation, according to the data, though further closures are all but guaranteed, particularly in Wales and the northwest.
There could be even more bad news for the sector in 2023, given that the 50% retail, hospitality and leisure rates relief programme is due to end on March 31.
Speaking to The Telegraph, Robert Hayton of Altus was critical of chancellor Kwasi Kearteng's failure to extend support in last month's controversial mini-budget, stating: "It beggars belief that a self-proclaimed low-tax government could allow pubs to lose their business rates discount next April.”
Furthermore, a weakening British pound could spell disaster for the import-heavy alcoholic drinks sector.
The shift in consumer trends away from pubs and back to the living room is laid bare in the poor performance of the UK’s top publicly traded pub companies.
JD Wetherspoon is down 50% year to date while Mitchells & Butlers has dropped nearly 60% in the time period.
Conversely, Diageo, which generates significant revenues through off-trade streams (i.e. retail outlets) has managed to keep losses under 11% YTD.