Prices must be slashed if pubs are to survive

Date Published: 05-Jan-2011

In a week that saw the closure of two major Galway city pubs and a nightclub, there are grim warnings that dozens more across the county will go to the wall if a major rescue package is not put in place immediately.

And a former President of the Vintners Federation of Ireland says that the price of the pint would need to be reduced to around €2.50 – in order to compete with the thriving off licence trade – if pubs are to survive into the future.

But publicans have been lambasted for the prices they charge for drink in the current recession with a member of the Consumers Association of Ireland saying that “the chickens have come home to roost”.

Michael Kilcoyne of the Consumers Association said that publicans had orchestrated their own problems by charging inflated prices for drink and it was a bit insincere to be blaming the off licence trade for their woes.

There was shock across the industry when three premises in Galway city along with an off licence, owned by Tuam native John Grealish, shut their doors with the loss of around 85 jobs. It also proved that Galway city pubs are not immune to the dramatic downturn in the pub trade.

It has now been claimed that the only way to compete with the cut price alcohol being offered by off licences and supermarkets is to reduce pub prices considerably.

Former VFI President Paul O’Grady said that no Government was going to tackle the below cost selling which the supermarkets were engaged in and the only way to address the crisis was for pubs to strike back by cutting prices.

“It requires a three pronged approach. The Government, our suppliers and the publicans themselves need to reduce their take from the drink we serve across the counter. What we are looking at is a return to a €2.50 pint”, Mr. O’Grady insisted. He added that rents and commercial rates also had to be tackled.

See full story in this week’s Connacht Tribune.