It didn’t matter whether England won or lost the Euro 24 final to Spain on Sunday night, there was always going to be one winner – for the first time in quite a while, publicans had a good night, writes David Little, a partner in our Corporate and Commercial Law team.
As reported by the BBC, the Euros have provided a huge boost for hospitality businesses this summer, as fans packed pubs, bars and fan zones to come together and cheer on the home nations.
Even the UK government got in on the act, extending licensing hours for the final to allow pubs to stay open until 1am as England bid to bring football home.
Pub and bar revenue will see a £120m boost, according to trade group UKHospitality.
Lidl also got in on the news announcing they expected a 20% spike in BBQ meat product sales over the weekend. Asda said they had recorded a sevenfold increase in searches for England-related products.
‘TV’ was the most popular search term for Argos in July, and an extra 10 million pints were poured in the match build up, says the British Beer and Pub Association.
Sadly though, the number of pub and bar insolvencies in the UK rose by nearly a third in the past year as drinkers over the past few years have cut their spending.
Pub and bar insolvencies climbed by 30% to 784 in the year ending 30 April 2024, up from 602 insolvencies in 2022/2023, data from accountancy group UHY Hacker Young revealed.
UHY attributed the rise in solvencies to high prices for drinks in the on-trade, with consumers limiting their spend due to the cost-of-living crisis.
Peter Kubik, partner at UHY Hacker Young, said: “With money tight for many households, current alcohol prices mean more people are choosing to drink at home instead of going out. The pub and bar industry has struggled for a long time but the past two years have been particularly difficult.”
Citing data from UK alcohol charity Drinkaware, UHY noted that 26% of people aged between 16 and 24 abstain from drinking.
“The young in particular are drifting away from drinking after work or at the weekends, impacting pubs and bars,” Kubik added. “The demographic trends for pubs and bars in the long term are very concerning.”
Meanwhile, reported here sales of no- and low-alcohol ‘spirits’ have also increased by 20% since the start of Euro 2024, according to online supermarket Ocado.
I’m no meteorologist but the impact of the weather can’t be over estimated either. Who wants to enjoy a quiet pint outside in the beer garden in the rain? The new government has many challenges on its hands, but extending the opening hours of pubs for a few hours, so that fans could watch the Euro 24 finals together, was a thoughtful and sensible thing to do. The pub trade needs the government’s support to help it along.
Let’s hope that spirit continues.
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David Little is a Partner at Bishop & Sewell in our expert Corporate & Commercial team. If you would like to contact him, please quote Ref CB483 on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 16 July 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
