World Cup predicted to bring respite but not revival to pub trade

One in five adults watching the football World Cup 2010 will do so in the pub, according to research by PricewaterhouseCoopers (PWC).

 

Meanwhile the British Beer and Pub Association has estimated that a good run by England could be worth an extra £124m to the pub industry.

 

PWC said that of those people it surveyed who thought the World Cup would change their spending habits, 31% would go to the pub more.

 

But while almost 20% of those watching the World Cup will do so in the pub, almost 80% will watch it at home or at friends’.

 

David Chubb, partner at PWC said: “The pub trade has suffered at the hands of its own recession for several years, battered by the smoking ban and supermarket competition.

 

“The football World Cup, in combination with summer trade and the staycation, should offer pubs a boost. The weak pound will continue to attract overseas tourists, providing additional custom for the British pub. However, while the football may offer some respite, landlords should avoid pinning their hopes of a business revival on the four-week tournament.”

 

“The pub trade cannot build a recovery just off the back of the World Cup.”

 

Nearly 560 pub groups and businesses have fallen into insolvency over the last two years, insolvency rates are up 60% from January 2008 to January 2010, the company said.

 

Debt and a lack of investment into the fabric of pubs (due to the strategy to sell pubs off as alternative property) mean many landlords are relying on a good summer to get their pubs back on track.

 

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By Neil Gerrard

 

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