Pubs selling for up to 56% more, says ESRI

AVERAGE pub sales have increased by up to 56% since 1999, a report has revealed.

Nationally, 5% of pubs had an annual turnover of €1.25 million or more, Richard Dunne, chairman of Drinks industry Group of Ireland (DIGI) said yesterday.

In Dublin more than 50% of pubs are enjoying an annual turnover of between e1m and €4m-plus (3%).

And about 20% have sales of less than €400,000 while just under 35% were under €650,000.

However, Mr Dunne said the country did not need any more pubs.

“There is a licence for every 335 people in Ireland and that’s about three times the number of licences per head of population than in the United Kingdom,” he said.

The study of pubs and licensed premises, conducted just before the smoking ban was introduced, also found more than 100,000 people worked in pubs - up almost 28% in the past five years.

The sector employs 47,885 full-time staff, 42,606 part-time and 9,729 casual staff. The biggest increase has been in the full-time employee category, which has grown by 38% since 1999.

The average turnover is now just over €383,000 with more than half of the pubs surveyed having annual sales of less than €200,000.

Mr Dunne said the survey shattered the misconception that the licensed trade was dominated by a small number of ‘super pubs’ or by large pub chains. “This is very definitely a small pub industry,” said Mr Dunne.

The survey, carried out by the Economic and Social Research Institute (ESRI) and compiled by Anthony Foley from Dublin City University Business School, was based on survey returns from 710 licensed premises.

More than 70% were pubs and the remainder were hotels, sport clubs, restaurants, nightclubs and grocery stores.

Mr Dunne said the figures supported DIGI’s view that the country was more than adequately served by the number of licences in existence and there was plenty of competition within the licensed trade. “All anybody needs to do is to compare prices between pubs on the same street and it’s clear there is plenty of competition between pubs,” he said.

Donal O’Keeffe, chief executive of the licensed Vintners Association, said there was anecdotal evidence that around 25 pubs were opening up every year now the licence situation had been freed up. “There are 12,000 licences in the country and... there are between 700 and 1,000 dormant licences - licences granted to pubs or licensed premises that had since shut down. Those licences are available,” he said.

Mr O’Keeffe said obtaining planning permission for a new pub was more of a problem than the availability of licences. He said dormant licences were selling for between €140,000 and €160,000.