Tuesday, 12 October 2010

Punch Taverns set to sell 1300 pubs - Which other operators will follow suit?

Punch Taverns has made the bold move of selling off the parts of its business that are no longer profitable. In the face of difficult trading conditions and falling profitability across the group, the board have taken the necessary steps needed to get their business back into good shape.

But Plimsoll has asked the questions - Which other operators need to follow suit and how many pubs will be lost as a result. The Plimsoll Analysis has picked out the following findings that point to the depth of the issues facing pub operators in Britain today:

- The average profit margin is down to just 0.4%
- 372 operators have posted a loss for at least 2 years running
- 265 companies have seen the value fall by over 30% in the last year

With so many pubs and their operating companies in difficulty it seems inevitable that the speed with which to good old British pub is disappearing will increase in 2011. The question is - which pub will be next?


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