2 in 5 publicans reduced staff in first 3 months of 2013
In May this year Ignite, an independent market research company, conducted a survey of 282 publicans from across Ireland to get a better picture of the rural licensed trade. The representative findings should come with a health warning...
Print5 July 2013
Over four in five publicans have expressed dissatisfaction with the level of support from Government for Irish business and some 39% made reductions in staffing levels in the first three months of this year alone in attempting to stay open, according to a recent Ignite survey commissioned by the Vintners Federation of Ireland.
The results echo similar findings in 2011 and 2012 detailing more pub closures and more redundancies. It’s clear that VFI members feel neglected by the present administration in their fight for survival.
Recent Revenue Commissioners’ figures indicate that another 150 pubs closed their doors last year and based on this independent survey and the trends outlined in same, the VFI believes that 2013 will see a further decline in pub population.
But the survey also showed publicans still supporting local sports teams and outdoor events to the best of their abilities, giving some indication of the impact that a ban on alcohol sponsorship of sports and outdoor events would have on grass roots sport and on local events and festivals. However this appears to be a scenario that now seems unlikely, judging by the latest reports on Government thinking on the matter of local sporting sponsorship. This local sponsorship aspect is likely to escape a legislative ban in Alex White’s proposals due before Cabinet at the time of going to press.
This (lack of a) development is just as well, perhaps, as nearly half – 49% – of VFI members sponsor local sports teams at an average investment of €1,726 per member in those local activities annually. The overall spend of VFI members is thus put at just short of €3.5 million.
However this support and investment has diminished somewhat of late with 29% of pubs withdrawing from recent arrangements, mostly due to financial constraints – a further sign of the difficulties publicans are facing and the knock-on effect on local communities, states the survey.
Here are some of the key findings of the Ignite survey conducted last month:
Government Support
65% of publicans are ‘very dissatisfied’ with the level of support from Government for Irish business with 21% being ‘somewhat dissatisfied’. Only 2% were ‘very satisfied’ or ‘somewhat satisfied’ with 12% being neither ‘satisfied’ nor ‘dissatisfied.
Employment Levels
Only 8% of publicans increased staffing levels in the first three
months of 2013 while 43% reduced the working hours of
existing staff. 69% of pubs now employ between one and five people. 15% employ six to 10 and 8% employ 11 to 15 while another 8% employ 16 or more.
Economic Overview (Q1 2013)
62% of VFI members found business to have been slow and turnover down in the January to March period with only 9% recording an increase in business/turnover compared to the 15% reporting an increase in business in the first three months of 2012.
53% recorded a drop of between 1% and 10% in turnover and 24% recorded a decrease of over 16%.
This compares with 36% reporting a downturn in business of between 1% and 10% in 2012.
Local Sponsorship and Patronage
46% said they couldn’t afford it any more and 73% feel that a ban on alcohol sponsorship would have a detrimental effect on local sports clubs and events where there’s a heavy reliance on publican support.
25% feel that a ban would have little or no impact and that a replacement would be found.
2% felt that a ban would have a positive effect and that there should be no link between sports/events and alcohol.
Minimum Unit Pricing
18% of publicans believe that the introduction (or not) of a Minimum Unit Price for alcohol will be the difference between staying open and closing while 71% of publicans surveyed believe that a MUP for alcohol would be a positive first step for the pub trade – but only part of the solution.
Some of these survey results were published around the time of the VFI’s AGM in Trim at which time VFI President Gerry Rafter commented, “Unfortunately we find ourselves in a very similar situation to this time 12 months ago with further pub closures and job losses casting a long shadow over our AGM. The Government made a lot of noise in their programme for Government about helping Irish business but as yet we have seen very little action.
“While we wait for the Government to realise the danger that over 50,000 jobs are in, I think it’s time that we started to shout about the positive contribution the Irish pub has made and continues to make to Irish society and in particular rural communities.
“We all know the positive impact in terms of jobs, facilities and offering a social hub and outlet. But what this independent research now also shows is the impact that the Irish publican has on local sports clubs and outdoor events.
“If a ban on alcohol sponsorship is to be brought in, the Irish Government will have to factor into this the impact that a loss of €3.5 million per annum will have on grass roots organisations and the societal impact of same.”
Pub Sector Demographic (25 counties excluding Dublin)
47% of pubs are in a rural/village location, 43% are in towns, 6% are in a city and 4% are in city suburbs. 40% of pubs are in Munster, 30% in Leinster (excluding Dublin), 20% in Connacht and 10% in Ulster (three counties).
“The Government made a lot of noise in their programme for Government about helping Irish business but as yet we have seen very little action”. – Gerry Rafter.
Related Articles
AB InBev UK and C&C Group agree new distribution changes →
Molson Coors reaffirms 2024 full-year guidance →
Pernod Ricard to sell its wine portfolio →
Fans 0
Followers