Half of Ireland's publicans recorded a drop in turnover during the past year, according to an industry survey conducted by AIB with the VFI and the LVA.
Conducted by Irish market research company Amárach, the study found that a quarter of pubs surveyed had reduced their weekday opening hours over the past year, rising to a third in rural areas. One in six pubs have also reduced their weekend opening hours in a bid to reduce costs.
According to the study, Ireland’s 7,400 pubs have combined debts of more than €2 billion, equating to €270,000 per pub.
While 37% stated that it will take five years for the industry to recover. 52% of publicans believe that their own business will improve in the next three years. Indeed, while 50% of publicans reported a drop in income in over the past year, some 30% of publicans reported a rise in turnover.
A change in drinking patterns has also resulted in 71% of drinkers coming later to the pub and staying for a shorter time. The age profile, too, has changed with only 30% of all pub-goers under 30.
The vast majority (79%) of those surveyed had also organised entertainment events in the past year in an attempt to attract more business and 35% said that they had seen turnover on food increase during the period.
Chief executive of the VFI, Padraig Cribben, said that the results of the study demonstrates "a level of polarisation in performance but also a resilience and determination on behalf of many in the sector to overcome these challenges by way of innovation, enhanced customer service and revised product offerings."
“Customers are spending less time and money in pubs while at the same time demanding a wider range of services overall," he added.
