5,700 licences surrendered as bar closures increase 13%

The number of bars, restaurants, pubs and clubs giving up their alcohol licences has increased by 13% in the past year amid growing competition from supermarkets and large pub chains, a new study revealed today.

Research by information firm Sweet & Maxwell showed that 5,700 licences were surrendered in the last 12 months, up from 5,100 the previous year and more than double the figure for 2007.

A separate study by accountancy firm Wilkins Kennedy found that more than one bar or pub went bust every day last year following "intense" competition and the combined impact of the smoking ban and rising alcohol duties.

Anthony Cork, of Wilkins Kennedy, said: "These numbers show the extent to which the industry is struggling. Bars and restaurants are being squeezed from several directions and a growing number are being forced to close.

"Bars, pubs and nightclubs are being undercut by supermarket alcohol deals which encourage people to drink at home rather than go out. Supermarkets have also been heavily promoting dine at home meal deals, which has hit the restaurant trade.

"This comes on top of competition from large pub chains that are able to sell beer cheaper than smaller establishments can buy it from the breweries.

"Smaller, local pubs are losing their most price-sensitive customers like pensioners and students, which is impacting their daytime trade."