The British pub industry is showing signs of more positive performance, but recent figures still show pubs are closing at an alarming rate – so could hired pub gaming machines be the answer?
According to a report from Altus Group, nearly 1,000 UK pubs called last orders for the final time in 2018.
That works out to around 76 per month, which is only 55% of the long-term average of 138 closures per month in the first seven years of the decade.
However, the British Beer & Pub Association’s chief executive Brigid Simmonds says pubs are still being taxed out of business.
“Too many pubs are still closing because of huge tax pressures from elsewhere, especially from eye-wateringly high beer duty and VAT, so we cannot be complacent,” she said.
“On a typical pint we pay 46 pence in beer duty and cutting this is one of the best ways to help pubs. Pubs pay on average £140,000 in tax each year.”
A possible way for some venues to increase revenues – and crucially, profits too – is to install more hired pub gaming machines including pool tables, fruit machines, quiz machines and jukeboxes.
How do hired pub gaming machines help?
When you install hired pub gaming machines like quiz machines and fruit machines, you diversify your revenue streams while also giving customers more reasons to stay on your premises.
Although there are still taxes to pay, such as Machine Games Duty on pub gaming machines that pay out cash prizes, this is calculated as a percentage of the net profits after deducting any prizes paid out – so pub fruit machines, quiz machines and other cash games remain profitable.
Manco Automatics are able to provide gaming machines on a profit share basis, which reduces the upfront costs even further when you choose to install them on your premises.
There are also plenty of coin-op machines for pubs that do not pay cash prizes, for example pool tables and jukeboxes, all of which add entertainment and customer retention, as well as bringing in cash revenues.
Finally, our pull tab machines are a great way to add a gaming machine to private members clubs, with a variety of different machine sizes and ticket stakes.
The industry may not yet be out of the woods, but circumstances do appear to be improving. By diversifying your income-generating revenue streams with one or more pub gaming machines, you can add to your profits and sail into calmer waters ahead.