Drinks trade finds work for record numbers

Employment in licensed premises throughout Ireland now stands at an all-time high of almost 78,000 - an increase of 28 per cent in the past five years, according to a new survey.

The rise has been experienced mainly at the more flexible end of the market. The Survey of Licensed Premises in Ireland 1999 shows part-time employment rose by 47.6 per cent, while casual employment increased by 62.4 per cent.

Commissioned by the Drinks Industry Group of Ireland, the study was undertaken by senior economist Dr Yvonne Scott.

It indicates current employment comprises 34,673 full-time staff, 35,279 part-time and 7,956 casual. Proprietors and relatives assisting account for 28.5 per cent of staff.

Public houses account for the greatest share of the jobs - 72 per cent or 56,000 - with the remainder working in premises such as hotels, restaurants and clubs.

The net value of drinks sales in licensed premises in the past 12 months was £2.1 billion (€2.67 billion), an increase of more than 40 per cent on the 1994 survey. Average turnover per licensed premises is £193,687, compared with £148,678 five years ago.

But although the average annual turnover per public house was estimated at £188,593, most public houses - 60 per cent - yield sales of less than £150,000.

Premises with a turnover of £1 million or more amount to only 2 per cent of the total number but they account for almost 20 per cent of sales and around 5 per cent of employment.

Independent owner or family-run businesses still dominate the industry, accounting for 88.7 per cent of premises. While the figure has declined since the 1994 survey, nearly 95 per cent of public houses are still independently owned.

There is an increasing divide within the industry. Premises in Dublin generally have higher turnover than those elsewhere. The average turnover for a Dublin pub is estimated at £719,115. It was also found that a much higher percentage of premises in the capital, especially pubs, belonged to chains in contrast with other areas.

Wages and salaries represent a significant percentage of net sales for licensed premises, accounting for more than 20 per cent of the value of sales for 22 per cent of premises. Wage costs in Dublin pubs generally form a higher percentage of total sales than elsewhere in the State.

Most licensed premises now engage in some form of activity to encourage business, according to the study. The most common method is the refurbishment of premises, followed by catering, advertising and the expansion of in-house entertainment.

The level of outlay on refurbishment of premises over the past five years is estimated at around £500 million, with public houses responsible for about two-thirds of this. Among public houses, around one-third of their share was spent in Dublin.

Over the past five years, almost a quarter of premises have increased their drink retailing space, the survey said. The scale of drink retailing space in licensed premises varies considerably, from less than 250 sq ft to more than 2,000 sq ft. More than a third of premises have drink retailing space exceeding 1,000 sq ft.

For the first time, the survey covered off-licence premises. Total net sales for this sector have been estimated at £130.2 million per annum, with 93 per cent of those surveyed reporting an increase in business over the past five years. While 13 per cent of off-licence premises have a relatively modest turnover of less than £50,000 per annum, a greater percentage of the sector - 36.1 per cent - managed to achieve net sales exceeding £500,000 over the past 12 months.