There are whispers throughout the UK of an Irish decision that could threaten the livelihood of many across the Irish Sea – the ban on smoking in public spaces. Implemented on 29 March last year, it is being held up in Britain as a shining example of modern-day drinking in a healthy atmosphere.
From the Welsh Valleys to the Scottish Highlands, there is talk of emulating the Irish by banning what a barfly in Star Wars: the Attack of the Clones attractively calls “death sticks”.
However, Irish publicans say that banning death sticks leads to dead pubs. They could have a point. Figures suggest that the smoking ban has, so far, cost the Irish hospitality industry €111m and 6,800 jobs.
Donall O’Keefe, chief executive of the Licensed Vintners Association, which represents 95% of Dublin’s publicans, says: “The impact of the ban has meant that around 2,000 full and part-time jobs have been lost in the Dublin pub trade over the past year.”
As for the impact on property, John Ryan, associate director for pubs at CBRE Gunne says there has been a “two-tiered effect” in the Dublin market, which comprises more than 7,000 pubs. “Some pubs have been severely hit, and some aren’t affected at all,” he says.
Ryan says “land-locked pubs” – those with no outside areas or located on a corner or busy high street – have seen turnover drop by as much as 15% since the ban.
Operators are finding ways to work around the ban. Under the law, 50% of designated smoking areas must be exposed to the outside. O’Keefe says, as a result, there has been significant investment by pub operators in creating areas that are as sheltered as possible. They have also turned their attention to verandas and to making the most of outside areas.
Smoking areas sell well
“Operators are striving to keep as many people on their properties are possible,” says Ryan’s colleague Paul Collins, divisional director for hotels and licensed properties at CBRE Gunne.
Smoking areas have become sought after. “When we are selling businesses, it’s key to have a private extended smoking area,” says Ryan. “It is definitely something that is on potential buyers’ shopping lists.”
These areas are now part and parcel of new-build pubs on the numerous residential schemes springing up in the Greater Dublin area. “Smoking areas are a key factor in any new pub, and it is important to have specifically designed extended areas and beer gardens in the 21st-century Dublin pub,” says Collins.
Despite these efforts, however, the value of pubs has declined. Pubs are increasingly being sold to residential developers, especially if they have car-parking space.
This is not to say that prices for pubs are hitting rock bottom. There are still some record deals being struck. During May, two Dublin pubs were purchased in multimillion euro deals – Kitty Kiernan’s in north Dublin for €4.9m and the Stag’s Head in central Dublin for €5.8m. “It reconfirms that the Dublin market is still strong,” says Collins.
Collins points out that the market has been affected by more than just the ban on smoking. “There’s been a change in lifestyles. Pricing in the off-trade has been very competitive, and this has been at the expense of the on-trade,” he says.
This last factor could give some hope for UK publicans, who have been closely watching the progress of the ban in Ireland. With a smoking ban in all places that serve food set to be introduced in the UK by 2008, they need to learn as many lessons from Ireland as possible.
