Z4 wrote:1) Lots of reasons that I have explained time and time again but for the benefit of new members.........supermarkets offering better deals is one of them. Maybe, just maybe, the smoke thing hasn't helped but it is certainly not the one reason.
Nothing dramatic happened to the British economy in July 2007 and yet it was in this month that the rot set in for all the pub companies. The industry has been suffering from higher taxes and cheap off license sales for years but none of this can explain the massive acceleration in pub closures and bankruptcies since the smoking ban. The headlines in the financial pages of the newspapers tell their own story:
'Pubs giant slumps as smoke ban saps sales' The Evening Standard (November 2007)
'Pub beer flattened by smoking ban' The Guardian (January 2008)
'Smoking ban begins to bite into brewers' profits' LDP Business (February 2008)
'Wetherspoon chokes on smoking ban' The Herald (March 2008)
The financial analysts Goldman Sachs - hardly a "pro smoking organisation'' - recently stated that the smoking ban has reduced average pub profits by 10%. Scottish & Newcastle, the UK's largest brewery estimated a 8% fall in beer sales in January and since then beers sales in the UK have fallen to their lowest level since the Great Depression. But most devastating to the ASH version of events are the statistics for pub closures which accelerated dramatically in 2007. The trade journal The Morning Advertiser blamed this squarely on "the savage impact of the smoking ban and spiralling costs" and the figures require little comment:
2005: 2 a week
2006: 4 a week
2007: 27 a week
This seven-fold increase in pub closures is unprecedented in recent British history and although the smoking ban is not the industry's only enemy, the evidence that it has been severely damaged by the smoke-free legislation is now indisputable.
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