Is the pub finished?
There was a time when the pub was the most important spot on the Australian landscape.
All that has changed. The very existence of the Australian pub is now threatened by a combination of changing demographics, the cost of living and a slow but steady fall in alcohol consumption.
First, Australia’s reputation as a nation of boozers and beer drinkers is coming to an end.
Australians are drinking less beer.
Beer was the Australian staple 30 years ago. Back in 1990, it made up 60 per cent of all alcohol sold. Today it's only 40 per cent.
Research firm IbisWorld forecast has looked into the pub industry and has come to the conclusion that lower alcohol consumption will have an impact on pubs.
"This poses a problem for many hospitality establishments since a large portion of income is generated through sales of liquor to be consumed on-premises," IBIS World said in its 2016 report.
"Over the past five years, traditional pubs have faced significant pressure due to changing consumer preferences. Old-fashioned pubs are increasingly making way for trendy bars and popular nightclubs.
"The declining demand is putting pressure on some urban pubs and clubs, small bars are continuing to pop up throughout the nation's capital cities."
According to IbisWorld, the pub and bar market is "mature" so it will have modest growth a little over 1 per cent.
Not exactly a boom industry.
Which explains the changes we are now seeing in the pubs.
Two examples are the Exchange Hotel and the Town Hall Hotel in Balmain. They are two of the area's oldest pubs.
They were recently sold and part of the Exchange will be turned into a call centre.
At the same time, a number of pubs and clubs have closed in Glebe and Newtown.
Darcy Byrne, a candidate for the new position of Inner West Council mayor, says the industry has to act.
"You know when a hotel is less profitable than a call centre there's a real problem in the industry and you need to intervene," Byrne told news.com.au.
by Leon Gettler, June 9th 2017
