The relaxation of lockdown measures announced by First Minister Nicola Sturgeon on Tuesday will do little to help the vast majority of Scotland’s pubs, the Scottish Licensed Trade Association has said.
In response to the announcement the SLTA reiterated its disappointment that Scotland’s bars, restaurants and cafés will still not be able to serve alcohol indoors until the licensed hospitality industry begins to reopens to some extent later next month.
SLTA managing director Colin Wilkinson said that while his organisation welcomed the announcement by First Minister Nicola Sturgeon to lift restrictions on travelling around Scotland and allow people to meet up in larger groups outdoors from Friday, it will do nothing to help the vast majority of licensed trade businesses.
“We appreciate the baby steps and the continuing need for caution but for most opening on April 26 will simply be unviable and that’s without taking into account the unpredictable Scottish weather,” he said.
“Even many businesses with suitable facilities to serve people customers outdoors have decided to wait until May 17 when the industry will be able to open until 10.30pm indoors with alcohol permitted and, for outdoors, until 10pm.
“We are now urging the Scottish Government to consider loosening these restrictions to give our industry a fighting chance. England has reopened its hospitality industry so let’s fall into line with our colleagues south of the border.”
According to a recent industry report, only 22.9 per cent of licensed premises in Scotland have designated outdoors areas and many of these are small areas with only a few tables.
Mr Wilkinson added: “By our reckoning it will not be viable for about two-thirds of the licensed trade to reopen on April 26.”
He said that while eligible businesses may be entitled to one-off cash “restart grants” from local councils, Covid restrictions will continue into June and beyond, leading businesses further into debt.
Wilkinson added: “The typical small hospitality business has taken on between £60,000 and £90,000 in bank debt and deferred bills as of February this year just to survive Covid – and the debt is rising with every week of low or no income.”
Pub goers and beer drinkers from across the country are urging MSPs to support a new law being debated this week which would help pub licensees earn a decent living – and increase the choice of local and independent beers on offer in our locals.
The proposed new law – the Tied Pubs (Scotland) Bill which has been put forward by Labour MSP Neil Bibby – would introduce a Pubs Code to govern the relationship between tied pub tenants and pub-owning businesses, with an Adjudicator to enforce the rules.
It is designed to prevent national pub-owning businesses from taking more than is fair or sustainable from the profits of their tied tenants who lease pubs from them.
Tied pubs see licensees rent the premises from a pub-owning company, with landlords required to buy beer and other supplies from that company.
The Scottish Parliament’s Economy, Energy and Fair Work Committee is debating Stage 2 of the Tied Pubs (Scotland) Bill this week.
As well as helping publicans earn a decent living, the Bill would also allow them more choice over which beers they stock, instead of having to buy a restricted range of stock at increasingly high prices from the pub-owning company.
Consumer group CAMRA, the Campaign for Real Ale, is backing the new law, with its branches across the country urging MSPs to pass the legislation without delay to help protect and improve community pubs by allowing tied licensees to earn a decent living and increasing choice of local, independent beers on offer at the bar.
Commenting CAMRA Scotland’s Director Joe Crawford said: “Pub goers and beer drinkers across Scotland are urging MSPs to vote in favour of the Tied Pubs Bill, to make sure that those running tied pubs are treated fairly, can earn a decent living and build back better after the COVID-19 crisis.
“As well as helping licensees, this new law could also see more beers on offer from small, local and independent breweries which will help increase choice for consumers at our locals.
“It’s not fair that large pub-owning businesses can restrict landlords to buying certain beers from them at above-market value and prevent them from support small, local breweries by offering these beers on tap.
“That’s why we are urging MSPs to support the interests of consumers, community pubs and hard-working tied pub tenants over the large pub-owning businesses by voting in favour of the Tied Pubs Bill this week.”
The decision by the Pubs Code Adjudicator for England & Wales to fine Edinburgh-based Heineken UK’s pub arm, Star Pubs and Bars, £2 million for serious and repeated breaches of the Pubs Code should be a wake-up call for the Scottish Government.
That’s the message from CAMRA, the Campaign for Real Ale, which is calling on the Scottish Government and all parties in the Scottish Parliament to give their backing to the Tied Pubs (Scotland) Bill being put forward by Neil Bibby MSP.
Licensees in Scotland are currently exempt from regulations that are in place across the rest of Great Britain which stop large pub companies from taking more than is fair or sustainable from pub profits by forcing licensees to buy their beer from them rather than on the open market.
It means whilst Heineken’s pubs arm Star Pubs and Bars were found to be making pub tenants sell “unreasonable levels” of the company’s beer and cider brands, the Pubs Code Adjudicator can only stand up for publicans and fine pub companies for unfair practices south of the border because no legislation exists in Scotland.
The proposed Scottish Tied Pubs legislation is due to be debated and voted on by MSPs next month and would give tied pub tenants protections in law from unfair practices from pub-owning businesses.
Commenting, CAMRA Chief Executive Tom Stainer said: “This announcement from the Pubs Code Adjudicator is a good and deserved outcome for Star’s tied pub tenants – but disappointingly only for those in England and Wales.
“It isn’t fair that Star’s tenants in Scotland don’t have the same protections in law from any unfair practices like pub companies taking more than is fair or sustainable from tied licensees’ profits – or making it harder to sell a range of locally-brewed products.
“The fact that the Adjudicator for England and Wales has felt the need to use their financial penalty powers clearly shows that pub companies need to be regulated, in law. We are appealing to MSPs from all parties to support Neil Bibby’s Pubs Code Bill, which calls for a powerful pubs code to govern the relationship between pub companies and their tenants to ensure licensees are treated fairly.
“The pub sector as we know it is currently under threat due to the ongoing Coronavirus crisis. Pub companies operating across Scotland need to be supporting their tied tenants through this, treating them fairly and making sure they can earn a decent living. One way the Scottish Parliament can help is by voting in favour of the Tied Pubs Bill next month.”
Scotland’s pubs and bars face unprecedented challenges with fears up to 12.5k jobs could be lost
The Scottish Licensed Trade Association has released a snapshot survey of the challenges facing Scotland’s pubs and bars, sponsored by KPMG UK. The survey contains key insights into the significant impacts of the COVID crisis on Scotland’s pubs and bars.
The survey which represents over 10% of Scotland’s On-trade premises, highlights that 45% of business owners do not expect a return to any sort of normal trading until a vaccine is found.
The survey also revealed that up to 25% of the 50,000 jobs in the sector could be lost and coupled with the introduction of reduced opening hours for many businesses and a subsequent reduction in working hours for staff, all jobs in the sector are effectively under threat.
Colin Wilkinson, Managing Director of the SLTA, said: “Our snapshot survey covers all types of licensed premises and is an indicator of the key issues facing the wide range of small to large businesses which trade within the wider hospitality sector.
“Our survey is based upon quantitative research from over 600 outlets covering the length and breadth of the country and is supported by major food and drink chains, independent pubs, bars and hotels in Scotland’s hospitality sector.
“The impact of COVID has been more severe for Scotland’s pubs and bars than virtually any other sector, and we now face the stark reality that up to 12,500 jobs could be lost as nearly 90% of premises report that their revenue is down versus last year, with 38% reporting revenue decreases of over 50%.
“Our own survey reinforces a recent survey by the University of Edinburgh on behalf of the tourism industry, which shows the devastating impact on employment in pubs, bars and the wider hospitality sector.
He went on: “Our sector has worked very hard to prepare for reopening and to ensure customers enjoy a safe environment. The average pub or bar spent £2,500 on training and social distancing measures, and this equates to a £15m investment across the entire sector.
“Also, many pubs and bars have adapted by making increased use of digital technology and offering restaurant quality food and cocktails for home delivery. However, with many people working from home, and local restrictions, one of Scotland’s major employment sectors faces unparalleled difficulties and the current business climate is leading to a real threat of permanent business closures and job losses.’’
The sector welcomed the support from both the UK and Scottish Governments, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
Alistair McAlinden, head of hospitality and leisure for KPMG in Scotland, said: “It’s incredibly concerning, but not entirely surprising, to hear that so many licensed trade operators across Scotland are worried about largescale job losses and possible business failures over the next twelve months. The industry is facing a battle for survival and there will inevitably be some casualties.
“KPMG’s Economic Outlook research gives some cause for cautious optimism, forecasting that Scotland’s economy should regain lost ground in 2021, provided a vaccine programme is successful and rolled out quickly. But, for many pubs and bars, the crisis is happening right now and time is running out.
“The sector has worked tirelessly to reopen and rebuild consumer confidence. A collaborative effort and increased support from political leaders will be essential to ensure the industry survives an incredibly challenging few months ahead.
“As part of this, KPMG’s multidisciplinary team are already supporting a number of licensed trade operators as they seek to navigate their way through these financial headwinds.”
Colin Wilkinson concluded: “The SLTA, is currently celebrating our 140thanniversary, and has been the voice of the independent licensed On-trade in Scotland since 1880. Right now, our industry is fighting for its survival with many businesses on the precipice of business failure.
“The sector is a critical part of Scotland’s tourism and food and drink economies and we urge UK, Scottish and Local Governments to provide continuing support for our pubs and bars and protect the jobs that they provide directly, and the associated jobs in the wholesaling, brewing/distilling and food producing sectors.”
Key Findings
63% of businesses are employing less people now than in January (a traditional quiet month), and it is forecast this will increase to 70% less employees by Christmas.
45% of businesses do not expect a return to normal trading until a COVID vaccine is found.
85% of outlets are seeing a downturn in footfall and 89% in revenue.
38% have seen revenue drop by over 50% versus same period last year.
There is evidence that venues in rural and tourist locations are faring slightly better than in urban areas with 77% showing a revenue decline versus 89% nationally.
Retailers have spent significant sums on preparing to meet social distancing standards, with an average investment of £2,500 per outlet, which equates to £15m across Scotland’s pubs and bars.
There are major implications for employment.
Most respondents felt positive about government support provided, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
The Eat Out to Help Out scheme was well received amongst those serving food with an enthusiasm to extend.
Retailers have adapted to new ways of working and serving their customers with 43% increasing their use of digital technology and 35% offering food for takeaway.
Scots are the most likely in the UK to be drinking same or less since before lockdown was imposed
Lockdown was predicted to cause a sharp rise in alcohol consumption and binge-drinking but most UK drinkers (65%) actually drank the same, less or stopped drinking altogether during lockdown compared to previously.
In the weeks following the reopening of the hospitality sector, this trend has continued. Brits are continuing to drink in moderation, but more and more are choosing to do so at the pub.
Scotland is no exception to this trend and, though Scottish pubs only recently reopened their doors, close to a third (30%) of Scots have returned to the pub at least once.
Scots continue to drink in moderation despite the reopening of pubs
The latest YouGov survey commissioned by the Portman Group (2,296 UK adults, 12-13 August) shows that the moderate majority continues to prevail in the UK, even with the much-celebrated reopening of pubs.
92% of Scottish drinkers are drinking the same (59%), less (27.5%) or have cut alcohol out altogether (6%) since the hospitality sector reopened compared to before lockdown.
Scots are the most likely in the UK to be drinking the same, less or have stopped compared to drinkers in England (85%), Wales (88%) and Northern Ireland (89%).
Concerningly 5% of Scottish drinkers said they were drinking more since the hospitality sector reopened than before lockdown. We encourage anyone concerned about their own, or another persons’, drinking to visit Drinkaware or the NHS online for free advice and guidance.
The moderate majority of Scottish drinkers (69%) continue to drink responsibly, within the Chief Medical Officer guidelines of 14 units per week. Weekly intakes remain similar to before lockdown.
Scottish drinkers are also slightly more moderate than their English (66%) and Welsh (68%) counterparts in terms of remaining within the guidelines.
More than a quarter of Scottish pubgoers return to their local
While many of us continue to drink at home, a great number of Scots have resumed much loved habits of gathering at their local pub. Pubs have put in place diligent social distancing measures to ensure that communities can revisit pubs while feeling safe and secure. Scots are responding well to the ‘new normal’ with almost three quarters (76%) saying social distancing has not deterred them from a return to the pub.
It’s not just drinkers who have been making the most of the pubs reopening; pubs have long been a happy and inclusive environment for all members of the community.
The recent period has seen Scots making a cautious return to many much-loved venues outside of just hospitality, including shops and beauty salons, and it seems that, despite one in eight (12%) feeling the pinch after months of furlough or even job losses, we are still setting aside time and money to return to our favourite institutions, something that has been made clear with the popularity of August’s Eat Out to Help Out scheme.
Pubs in Scotland opened their doors once again on 15 July. Despite this, close to a third (30%) of Scottish adults have made their way back to the pub, slightly higher than Northern Ireland (26%) but lower than Wales (37%) and England (42%).
Speaking about the results of the survey, John Timothy, CEO of the Portman Group, the social responsibility and regulatory body for alcohol in the UK, commented: “During the course of the COVID-19 crisis there has been a fear that many people would turn to alcohol and that misuse would increase.
“Yet Scots are showing continued moderation both at home and, happily, now back at the pub. It’s great to see people supporting their community pubs while drinking sensibly and maintaining social distancing.”
Commenting on the results in Scotland, Douglas Meikle, Head of Alcohol Policy at the Scottish Alcohol Industry Partnership, said: “It’s encouraging that so many Scots continue to drink within the CMOs’ guidelines of 14 units a week, in spite of the unprecedented nature of lockdown, with many deciding to drink less.
“As things get back to being more normal it will be important to continue that trend and encourage those who want to go back to our pubs and bars that they can do so safely”.
It is with a heavy heart that we need to inform our dear customers that the Royal McGregor will not be re-opened by the McGregor family who have operated the site for the past 20 years.
With only 18 months left on our current lease the COVID-19 pandemic could not have come at a worse time. Despite our best efforts our landlord would not agree to a lease extension which would have made continuing to trade a viable option.
We have shared so many wonderful memories with our loyal customers, family and amazing staff and will miss you all dearly. Thank you for being part of our success story, we will forever be grateful.
Please share any pictures you have either enjoying our hospitality or working with us. It would be nice to reminisce!
Edinburgh pub worker calls on hospitality staff to join a union
Commenting on the re-opening of indoors hospitality, Roz Foyer, General Secretary of the STUC has reminded employers that workers are preparing to resist detrimental changes to contracts and conditions associated with the safe return to work.
Roz Foyer said: “Indoor hospitality re-opening safely depends on changes to working conditions. But these must not be allowed to come at a cost to workers.
“Workers are the heart of hospitality, but for too long employers have been able to pass the unstable condition of the industry onto their staff.
“We will not forget the businesses who refused to furlough their staff during this pandemic, and who have treated workers callously with attempts to make them sign away their terms and conditions in order to ringfence profit or prevent unexpected costs.
“From cafes like Coias in Dennistoun to cinema chains like Cineworld, workers have come together to win their demands in the return to work period.
“If you are asked to work differently or to sign a new contract, don’t accept, delay, and work out with your colleagues whether you are happy with the proposal. Then join a union and take action.”
Matthew Waddell, 19, who returned to work at the Diggers pub yesterday, urged workers to be prepared to resist the prospect of changes to work and conditions.
He said: “The incoming economic crisis should be a call to all workers to join unions, unionise their workplaces and make sure those unions are active.
“The precarious nature of hospitality work and the effect a COVID recession will have on it makes unionisation all the more urgent.
“The Better Than Zero campaign against precarious work is on hand to give guidance and support for hospitality workers and any other workers who do not have unions.”
As pubs with beer gardens begin to throw open their doors again today, spare a thought for Leith’s Alhambra Bar. Faced with a double whammy of Covid-19 restrictions and ongoing tram works, the traditional boozer is facing a fight for it’s very survival:
