Pubs and restaurants losing business because of weight-loss drugs, report says

Pubs and restaurants are suffering from a loss in business as a result of the boom in weight-loss drugs, a new report found.The SLTA (Scottish Licensed Trade Association) said one in eight (16%) of the 300 pubs, bars, restaurants, and hotels surveyed said visits had reduced because of the drugs.Another 22% also said their customers had become more “discerning” because of fat-loss treatments.The popularity of fat-loss drugs has risen dramatically in recent years (Peter Byrne/PA)PA ArchiveThe SLTA’s Summer On-Trade Market Insight Report said it was among a number of challenges facing the sector.A majority (58%) of firms surveyed said their business was in decline, despite two thirds saying there had been a boost from the World Cup.The report found the Commonwealth games “did nothing for sales in pubs and bars”.Some 71% expect to break even or be profitable – up from 63% in the body’s winter survey.Forecast trading for the rest of 2026 is also more positive than in the previous survey, with 61% of outlets expecting growth or stability and the number considering closing dropping by 9%.Colin Wilkinson, SLTA managing director, said: “The World Cup provided a brief sales boost, but the broader economic outlook remains challenging.“Members report weak consumer confidence as global events prolong economic uncertainty.“A new trend has also emerged with 16% of respondents saying visits have declined because of the weight-loss drugs phenomenon.”Mr Wilkinson said Scottish businesses also faced the “unique challenge” of higher commercial rates and energy charges than those elsewhere in the UK.He said: “Business profitability remains a major concern, so we urge all parties within the Scottish Parliament to place early rates reform, and within the Westminster Parliament a reduction in VAT for the licensed hospitality sector, truly at the heart of their economic strategies.Prime Minister Andy Burnham has been urged to cut VAT for hospitality businesses (Jack Taylor/PA)PA Wire“Both governments have recently stated again that one of their core priorities is growing the economy. Well, the time is now – no more just ‘talk the talk’, it’s time to ‘walk the walk’.”Read MoreHe called on the UK Government to copy Ireland and reduce VAT for hospitality firms in the UK.He added: “We also ask, again, for Scotland’s First Minister to add his support for a VAT reduction for the hospitality sector, something he dodged answering recently when asked by one of his own industry-respected party colleagues Alyn Smith MSP, if he would back the UK-wide ‘VAT’s the Problem’ campaign which is calling on the Westminster government to cut VAT to 10% for hospitality businesses.“We also ask the Scottish Government to fast-track the review of the commercial rating methodology used for the rating of licensed hospitality venues in Scotland and to engage more closely with the sector.”Some 97% of businesses surveyed reported an increase in costs, with 57% saying costs had increased significantly above inflation.There is concern about the future talent pipeline and calls for more support for apprenticeship schemes, the SLTA said.A spokesperson for the Treasury said: “The Chancellor is fully focused on his priorities, to give families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode, underpinned by a commitment to meet the fiscal rules.“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”