Average pub delivers £1.3m of economic and social value

From raising money for charity to supporting local suppliers, we all know that pubs have a significant impact on the communities around them. 

However, a new research project carried out by Northumbria University has put a figure on precisely how much of a social impact pubs have on their local community. 

The project, which was commissioned by and focussed on the Punch pub chain of 1250 venues, found that the average pub delivers up to £1.3m of economic and social value back into its local community. 

Local network

The research focused on both the local and nationwide impact. A total of 207 publicans took part, but the university researchers also used internal company financial data and external data from providers, including the Office for National Statistics. 

One of the top impacts is the number of local people employed directly. On average, each pub employs 10 team members (part time and full time) but also 1.5 seasonal employees each year. This equates to £150k in wages for local people per pub per year.

They found that a typical Punch Pub spends around £56,000 annually with local suppliers (£468 per week). The largest beneficiaries are the entertainment sector (£155) followed by butchers (£94). Bakers, grocers and florists also benefit. 

A further £116,000 is spent every year in the wider supply chain, the report details. 

National impact

The researchers used a multiplier to then look at the impact nationally. They found that the chain supports 13,000 roles and this is a £300 million total wage contribution. The estimated total economic output across the whole chain is between £1.16-1.69 billion per year. 

But the impact goes beyond wages and profits. Punch Pubs generate over £4m for charities across the UK every year, says the report, which is an estimated £3,200 per pub per year. In total, staff teams at each pub committed 45-75 hours to supporting good causes, of which around half was voluntary.

“The role that pubs play in their local communities extends far beyond the economic impact”, the report explains. “Pubs raise millions every year for good causes, provide spaces to bring people together for clubs and conversation, and help to combat the global health concerns around loneliness and social isolation.”

In total, the report estimates that for every £1 spent in UK hospitality venues, 58p goes to local suppliers and a further £1.30 goes back into the economy as an induced impact. 

More engagement, more revenue

The report also noted that the more publicans engage with their local community, the more their business thrives, firmly cementing the idea that a pub can be the centre of a community. 

Pubs that have “higher Community Engagement Index scores achieve significantly greater annual sales, and statistical modelling confirms a clear, positive association between engagement and turnover”.

The takeaway – keep your punters happy and place yourself at the heart of things, and people will be loyal and keep coming back. And, while things remain tough for the hospitality industry as a whole, this social value is, as the report concludes, “something of a secret weapon”.

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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