Pubs and restaurants across the UK are reporting a drop in business, with some linking the decline to the increasing use of weight-loss drugs, according to a survey by the Scottish Licensed Trade Association (SLTA). The survey, which included 300 venues such as pubs, bars, restaurants, and hotels, found that 16% of respondents believe their customer numbers have fallen due to the popularity of these drugs. Another 22% noted that customers are more selective in where they choose to spend their money.
Weight-loss injections, known as GLP-1 receptor agonists, are used by around 1.6 million adults in the UK. These medications mimic a hormone that helps control blood sugar, appetite, and digestion. They reduce hunger and slow the digestive process, which can lead to reduced food consumption. Businesses in the hospitality sector say these drugs are changing how customers behave, potentially affecting their spending habits in restaurants and bars.
Colin Wilkinson, managing director of the SLTA, said that while the World Cup brought a temporary boost in sales, the overall economic outlook remains difficult. Many in the hospitality industry are reporting low consumer confidence due to ongoing global uncertainties. The SLTA’s summer on-trade market insight report highlights that GLP-1 drugs are one of several challenges facing the sector, along with rising costs and lower disposable income for consumers.
The survey was conducted after the Fifa World Cup and the Glasgow Commonwealth Games. Although two-thirds of businesses saw a sales increase during the World Cup, 58% said their business is still in decline. The Commonwealth Games did not lead to a sales increase for pubs and bars in Glasgow. Despite these challenges, 71% of businesses expect to break even or be profitable, up from 63% in the winter survey.
Wilkinson noted that Scottish businesses face unique issues, including higher commercial rates and energy costs compared to the rest of the UK. He called on both the Scottish and UK governments to focus on economic strategies that include early tax reforms and a reduction in VAT for the licensed hospitality sector. He suggested that the UK government should follow Ireland's lead and lower VAT for hospitality firms nationwide. A Treasury spokesperson said the chancellor is focused on providing support for families and businesses, emphasizing that tax decisions are made during formal fiscal events rather than in response to speculation.
Hospitality Sector Reports Impact from Weight-Loss Drug Trend
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