Last Orders Please

With all the doom and gloom that currently stagnates in the economic puddle, it’s not an uncommon sight to see people staring into the bottom of their pint glass.

However, with many pubs across the United Kingdom calling last orders and selling up, the British public may soon be deprived of one of the small comforts they have.

Yes that’s right, due to the current economic plight pubs are shutting down and a frighteningly rapid pace! It was reported in the business section of The Guardian, last Sunday that “In 2007 there was a net loss of about 1,400 pubs while the figure for this year is expected to reach more than 2,000”.

One of these pubs is my local “The Eldon” on Eldon Street, Plungington. It has been closed for at least three months now and the ‘For Sale’ sign is still looming outside of it. I rang up to enquire about the asking price, I was told a quote of £6,500. This seems a small amount at first, but when you take into account that you would have to pay £7,000 for inventory (which is stock), £2,000 for glassware, plus utility bills as well as other purchases that may be needed, for instance new furniture…the cost quickly escalates. So to purchase the pub I would need at least £20,000, which I think is a steep amount and an unworthy investment.

I deem it unworthy and so do many others. The two thousand pubs up for sale aren’t being purchased. This doesn’t surprise me as potential buyers don’t want to buy because can see the reason’s behind seller’s wanting to sell.

It’s not just the economy in disarray that is the singular reason for the British public opting not to go their local. Off-licenses’ with their cheap alcohol prices and drink offers have resulted in many people deciding to drink in the comfort of their own homes. The smoking ban too may have contributed, as well as the stricter drink driving laws.

An article today on the BBC news website about the increasing pub closures in Ireland, summed up the reasoning behind this nicely:

“Not just in Ireland, but in parts of the UK, there is an increasing tendency to drink at home rather than in a bar.
As the credit crunch saying goes: "Staying in is the new going out."
You can still smoke at home, supermarket alcohol is cheaper and if you can't afford a taxi, there is always the couch.”

The article was an interesting read and I’d advise everyone to read it, the link for it is http://news.bbc.co.uk/1/hi/world/europe/7658139.stm.

When banks start shutting down, it is frightening, but when pubs start closing it is even more frightening! Well for some maybe….

This clip from "Only fools and horses" typifies one of the traits a local pub in the sense that there is always a lot of laughter.

Business Improvement District On Its Way?

It was reported yesterday in the Lancashire Evening Post (LEP) that there are plans for a Business Improvement District. If given the go-ahead it would approximately propel £1.5 million into the city centre. Several institutions have got behind the proposals, with the University of Central Lancashire being one of these. However, some organisations including Marks and Spencer have yet to pledge their support. The vote is to take place at the end of next month. For the project to be approved over 50% of the landowners and businesses have to agree to the proposals.

This made me stop and think, where is the catch? Why would businesses want to collectively put their money into a pot to improve Preston town centre? Well the simple theory is that for businesses it is short term pay for long term gain. By improving the local area this will result in businesses making more capitol.

As we all know we are currently in a time of hardship, well economically at least! This is due to the credit crunch and the stock market being in disarray. I am only speculating but are businesses keen for a Business Improvement District because people are spending less? After all this is resulting in their profits being lower than usual. By backing the proposals they know that it is going to benefit them, as it will enhance sale figures. Are they doing it for themselves, or are they doing it to improve Preston town centre?

In fact, what does need to be improved in Preston town centre? Personally, nothing instantaneously springs to mind. If indeed the project is given the go-ahead I for one will be keeping a close eye on what the money is spent on.

References:

Lancashire Evening Post, Tuesday 30th September 2008, LEP Business Week page 1.
http://www.chamber.org.uk/pics/Business%20Improvement%20Districts%20Information.doc

Additional Information

The blog will have a local focus on my adopted town of Preston, so I will be blogging about business news in the North West area, with Preston being the core area of my concern.