How weight-loss drugs are impacting the Scottish pub trade
The Scottish Licensed Trade Association says they need better support from the Scottish Government as it navigates difficult market conditions.
Scotland’s pubs and restaurants have reported a new squeeze on business - the rise of the weight-loss drug “phenomenon”.
The SLTA (Scottish Licensed Trade Association) said one in eight (16%) of 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 SLTA’s Summer On-Trade Market Insight Report said it was among a number of challenges facing the sector.
Speaking to The Scotsman, Colin Wilkinson, managing director of the SLTA, said: “There is a great deal of interest in weight loss drugs, so we asked our operators if they believe this is having an impact on business.
“We were quite surprised that 16 per cent did come back saying they believed that, and 22 per cent stated that customers are now more discerning.
“I am hearing members noticing people having just a main course, or customers asking to order from the children’s menu, or customers sharing a meal - I’ve even heard of one sharing a bowl of soup or sharing a glass of wine.
“There has been a shift in customers’ behaviour and while we can’t say it is solely down to weight loss drugs, many believe this medication is having an impact on sales.”
He added: “Pubs and bars are the original social network so our members are talking to their customers and seeing these trends, and are having to adapt their business.
“That could be smaller portions, or people going out to eat at a different time.
“I keep hearing about how successful these drugs are for some people, so I think this is a trend that will continue.”
The association is calling on Prime Minister Andy Burnham and the Scottish Government to do more to support the sector in “challenging market conditions”.
The association’s summer on-trade market insight also highlighted a “brief” boost in sales because of the World Cup - but said the Commonwealth Games in Glasgow did “nothing” for the sector.
The survey found 58 per cent of outlets saw a decline in sales, despite 71 per cent expecting to break even or be profitable. On top of this 97 per cent say there have been year-on-year increases in costs and 57 per cent face cost increases “significantly” above inflation.
It also said the forecast for the remainder of 2026 is more positive as there has been a 9 per cent drop in pubs closing their doors and 61 per cent expect to see growth or stability.
Mr Wilkinson said: “One of our unique challenges in Scotland is a higher cost base, as hospitality businesses in Scotland face higher commercial rates and energy charges than our counterparts across the rest of the UK.
“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.
“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’.”
He said First Minister John Swinney should also publicly support a VAT reduction for the hospitality sector.
A Scottish Government spokesman said: “The deputy first minister recently announced a comprehensive review of non-domestic rates which examine improvements and reforms that can be made to the system and we commissioned an independent review of the valuation methodology for licensed hospitality properties.
“This comes on top of Scottish Government support ensuring that 96 per cent of retail, hospitality and leisure businesses in Scotland can already benefit from rates relief, and the small business bonus scheme which is the most generous of its kind in the UK.
“It is still unclear how the UK Government announcement will affect funding for Scotland’s block grant. Our own decisions on rates and reliefs will be set out in the normal way as part of the Scottish budget.”
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