Feeling The Budget Blues
Spring Budget 2017 – What it means for pubs & bars
After the Spring budget there have been numerous articles about the financial situation of pubs and how the government has not gone far enough to help small businesses.
Their figures state that 90% of pubs will benefit from a £1000 windfall through a business rates cut, but large pub companies are restricted under EU law by what relief they already get which means 3000 to 4000 pubs could miss out on this discount.
There are also already around 12,000 pubs getting rates relief as they are classed as small businesses so it’s not quite the golden egg it’s made out to be.
The rise in beer duty to 3.9% is estimated to cost pubs £47m with the business rates relief saving £25m so the figures do not stack up in favour of the pub.
The BPPA, and many local MP’s are behind publicans in pushing the government to do more to help so make sure you write to your local MP about the issue.
JD Wetherspoons, who have many pubs that will not qualify for any business rates reduction announced recently their plan to slash 7.5% of their menu’s in a move to illustrate to the government the effect of a VAT reduction in the hospitality industry. They have joined forces with the Association of licensed multiple retailers and the British beer and pub association.
Pubs currently pay a third of their turnover on tax whilst supermarkets only pay a fifth.
You can read more on the BBPA website about the Tax Equality day http://www.beerandpub.com/news/bbpa-voices-support-for-tax-equality-day
There is no doubt that there are tough economic factors to deal with so publicans need to maximise every sale to keep the tills ringing
- Upselling. Make sure your team are trained to upsell to customers to increase revenue with larger measures, premium drinks, snacks and food offerings
- Quality. Offer the best you can whether it’s the perfect pint or a seriously good burger. People will come back for a decent offering.
- Events. Be part of the community and offer something for everyone to attract customers in and spending money.
- Think Frugal. Monitor waste like your life depends on it, well your livelihood does
- Track Trends. Monitor what your customers are buying, what drink & food trends are coming through and where your best margins are to tie it all together with events.
You can also take a look through our blogs as we have written a number of articles recently which have lots of ideas on event’s that will bring in extra customers as well as different ways to maximise your yield.