Pubs and restaurants are feeling the pinch as consumer spending slows and Britons adopt more puritan lifestyles. Shares in Punch Taverns hit a three-year low after people drank less over Christmas and Enterprise Inns boss Ted Tuppen added to the gloom when he said the industry has to recognise that people going to pubs have less money too spend.
The value of the FTSE 350 leisure and travel sector has fallen by a third since its peak last May. According to The Observer, there are too many pubs, with alcohol sales falling and beer volumes down nearly 10% in October and November.
Rumours are growing again of a tie-up between Mitchells & Butlers and Punch, while a break-up of Jongleurs-to-Walkabout group Regent Inns is also being mooted.
The Observer 20/01//08 (Business) page 7
