How Will Brexit Affect Pubs?

What Does Brexit Mean For Pubs

During the build-up to the EU referendum, pubs and small business owners were largely in favour of leave. It was thought that by being free of the EU, pubs would be released from ‘red tape’ slowing down the mechanics of commerce. Wetherspoons owner Tim Martin was quoted as saying that the EU was bad for humanity.

He added: “The power has been put in the hands of unelected people in Europe. The Greeks and the Spanish and so on have seen it more than we have where they don’t even have control over their own budget or over their own interest rates, which are the key controls a democratic country has.”

On the 24th of June we learned that the British people voted 52% in favour of Brexit. Now that the dust has settled, what does the future hold for landlords, pubs and punters?

EU Regulations

Red TapeDuring the campaigns, the Brexit camp claimed that cutting red tape would free up business owners to work better and smarter. When it comes to pubs, this only affects those that serve food. The EU Food Information to Consumers Regulation, which came into force in December 2014, requires food-serving businesses to provide information about 14 common allergens that may be in their food. Consumers may see this as common sense, but some pubs see it as red tape nannyism from Europe.

Other than that, the EU has no real control over pubs. Many other EU directives have been made into domestic legislation and licensing regimes in the UK have never been required to be reformed by the EU.

So, you may not have to put so much allergy advice on your menus, but you still have to pour exactly 25ml and 35ml for single measures, with double measures of 50ml or 70ml.

The Pound

Brexit And PubsIn the wake of Brexit, the Pound began to tumble. And tumble. To depths not seen in 30 years. A low Pound might be good for bringing in buyers from external markets, but it plays hell with our expendable income. Like it or not, a low pound means it doesn’t go as far, so customers may well start looking for cheaper alternatives than pubs to spend their time in. Look to adding value to your pubs with themed nights, karaoke or fruit machines, TVs or pool tables to make them feel like they’regetting value for money.

Employment

Now that Brexit has been decided, the fate of thousands of immigrant workers in the UK hangs in the balance. Over the next two years, we’ll get a clearer picture as to their fate, but it is possible that we could lose a sizable chunk of staff up and down the country.

The state of pubs in the UK has seen better days, but it has also survived worse. We’re confident the UK will be able to navigate the tricky months ahead to better days. And if things look tough, you can always grab yourself a pint. For more information on making your venue more engaging to your customers contact our expert team today.

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