Pubs and restaurants say they are losing business due to weight-loss drugs

Pubs and restaurants think they are losing business as a result of the boom in weight-loss drugs, according to a new report.

The Scottish Licensed Trade Association (SLTA) surveyed 300 pubs, bars, restaurants and hotels, and found one in eight (16 per cent) believe they have fewer visits because of the drugs.

Another 22 per cent said their customers are now more “discerning”.

Weight-loss injections, also known as GLP-1 receptor agonists, are taken by around 1.6 million adults in the UK and work by mimicking the natural hormone which regulates blood sugar, appetite and digestion.

The drugs reduce food cravings and slow down how quickly food is digested, and businesses say it has changed customer habits.

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 per cent of respondents saying visits have declined because of the weight-loss drugs phenomenon.”

The SLTA’s summer on-trade market insight report said GLP-1s are among several challenges facing the hospitality sector, including continuing rising costs and visitors having less disposable income.

Conducted following the Fifa World Cup and Glasgow Commonwealth Games, 58 per cent of companies surveyed said their business was in decline, despite two-thirds saying there had been a boost from the World Cup.

The Commonwealth Games, which were recently held in Glasgow, also “did nothing for sales in pubs and bars”.

The survey found 71 per cent of businesses expect to break even or be profitable, a rise from 63 per cent in the winter survey.

Mr Wilkinson explained Scottish businesses faced the “unique challenge” of higher commercial rates and energy charges than those elsewhere in the UK.

He 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 called on the UK government to copy Ireland and reduce VAT for hospitality firms across the country.

Mr Wilkinson said he would also like to see the Westminster government cut VAT to 10 per cent for hospitality businesses.

A Treasury spokesperson 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.”