Time could be called on half of pubs

Half of pubs are in danger of closing, it has emerged.

Vision-net, a business information provider, stress tested 945 pubs and found that 49% are in danger of collapse.

After randomly stress testing 2,482 pubs, hotels and restaurants, it found that 494 of the 990 restaurants and 263 of the 547 hotels were at a high risk of failure.

The investigation captured 36% of businesses trading as pubs, hotels and restaurants — all part of the hospitality sector that has accounted for 6% of closures and 6.5% of start-ups so far this year.

Vision-net managing director, Christine Cullen, said pubs and restaurants had been hit hard.

Falling numbers of diners and drinkers, coupled with rising prices and poor consumer confidence were all taking their toll on the sector, she said.

According to the Revenue Commissioners, 150 pubs closed last year.

Vintners Federation of Ireland chief executive, Padraig Cribben, said Vision-net’s assessment, while a bit extreme, was not too far off the mark.

Mr Cribben said he remained optimistic and was hoping that a good summer would boost trade.

“Even a good summer would help lift the mood of the people and that might encourage them to spend a little bit more,” he said.

Around 50,000 people are employed in the pub trade, with 38 jobs being lost every week.

At the VFI’s annual general meeting last month publicans accused the Government of stalling on the introduction of regulations controlling the sale, promotion and supply of alcohol.

“We have been told over the last two years by this Government that they are going to address the issue of below-cost selling of alcohol. It’s time we saw the colour of their thinking,” said Mr Cribben.

The VFI warned that the drinks industry would continue to be lost until there was a minimum price for alcohol, a move that would prevent below-cost selling by supermarkets.

Mr Cribben said it was looking increasingly unlikely that the regulations would be introduced before the Dáil recess.

“We are disappointed and annoyed that the Government has not delivered on its commitment.”

According to the VFI, the drinks industry has lost 6,000 jobs since 2009 and 1,300 pubs have shut since 2005. With around 4,200 members, it is particularly concerned that the value of the pub as a large employer outside Dublin was often overlooked.

Meanwhile, Transport Minister Leo Varadkar said he is supportive of the vast majority of Minister of State Alex White’s proposals to ban alcohol companies from sponsoring major sports events.

Speaking on RTÉ’s The Week in Politics, he said that Ireland has a problem with binge drinking and cheap alcohol.

He described the issue of alcohol and sponsorship as “complicated” and he would be in favour of putting the current code of conduct for advertising on a statutory basis.