Landlord tells of hard times behind the bar Will last orders soon be called on our favourite Cheshire pubs?

A mid Cheshire landlord has unveiled the dark reality of the current state of the pub industry in the area.

Mike French is the current tenant of the Fox and Hounds Inn, near Middlewich and has been in the pub for 11 years.

As recently as four years ago he was making a profit.

Now he is struggling to keep afloat, and he is not the only landlord who is finding it difficult.

In the past year, mid Cheshire has seen pubs closing at regular intervals, with some shutting overnight with no warning.

Mike believes the introduction of Pubco's - groups which manage the pubs and put a landlord in charge - has resulted in profit margins nose diving.

His pub, located on the busy A54, is operated by Punch Taverns.

Mike, 61, said: "If you are running a managed pub - like Wetherspoon's for example - you can earn anywhere between £25,000 and £40,000 a year depending on the location.

"A lot of people have found they would rather be in that sort of public house. Some of the people running those pubs only work 45 hours a week - I work 83 hours a week."

Mike said that even though he feels the Pubco's are squeezing every last drop out of tenants, they cannot be blamed.

"It's not all their fault though, at the end of the day they have got to give shareholders value for money," he added.

"But it is hard on us when they put the rents up and the beer prices up, which we then have to pass on to the customer.

"They don't care though as they are run from the City of London. They say only two per cent of their pubs are vacant but that doesn't include the hundreds that are up for sale."

Mike says in recent months there has been an increase in the number of news reports in the drinks industry publications highlighting the plight of pubs in the country.

He added he had tried to organise pubs in the area to form a co-operative with the aim of increasing their purchasing power to reduce costs, but his appeals fell largely on deaf ears.

"I tried to organise 24 pubs so we could set up a co-operative. We could have shared things such as butchers and energy suppliers, but I had three apologies from people who couldn't come to the the meeting and just two people turned up."

A combination of the increase in utility bills, business rates, and more significantly rent have been major factors in the struggles of pubs across Cheshire.

Electricty and gas costs Mike £875 a month.

The problem has been compounded by less money coming in over the bar. Last year he saw nearly a 10 per cent fall in his turnover and he feels there have been a number of reasons for this.

The introduction of the smoking ban he feels has hit him and his fellow publicans hard.

In November Mike, and his wife Jane, had to invest thousands of pounds of their own money to keep the pub afloat.

He said: "The introduction of the smoking ban hit us. We also sold a large amount of cigarettes and the loss in sales revenue from them has been a blow."

"The price of beer is so high that I make most of my profit out of wines and soft drinks.

"I struggle to look at the last three years' accounts because they are so bad."

He added that a 22 gallon supply of Carling lager set him back £218 when he bought it though Punch Taverns - but costs only £136 at the wholesalers.

But because of the tenancy agreement with Punch Tavern's, Mike is not allowed to buy his beer wholesale and must get his supply from Punch.

Rob Hayward, chief executive of the British Beer and Pub Association, said that many communities face a future without a village pub.

According to the BBPA, beer sales are at their lowest levels since the 1930s.

He said: "Britain's pubs are grappling with spiralling costs, sinking sales, fragile customer confidence and the impact of the smoking ban."

Rob added that pubs are closing at their fastest rate for years - last year almost 1,409 closed, almost seven times more than in the previous year.

"These figures show the stark reality of the pub trade today, in contrast to the hype surrounding the myth of 24 hour drinking' and extended opening hours.

"Pub closures at this rate are threatening our social fabric and community history. What we need to stop the decline is support from the Government and the general public," he said.

●What do you think about the situation that tenants like Mike has to face? Let us know at northwichguardian.co.uk/forums.