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Pubs and restaurants losing business because of weight-loss drugs, report says
The Scottish Licensed Trade Association said 16% of 300 venues reported fewer visits as 97% faced higher costs.
The Scottish Licensed Trade Association Summer On-Trade Market Insight Report links rising GLP-1 drug popularity to declining hospitality visits, with 16% of surveyed businesses reporting reduced customer traffic because of the treatments.
Rising costs remain a persistent challenge for the industry, with 97% of outlets reporting year-on-year increases and 57% stating costs have risen significantly above inflation, compounding pressures on business profitability.
Beyond drug impacts, 22% of members report customers have become more "discerning", while others noted guests sharing main courses or ordering from children's menus to manage spending amid cost pressures.
More than 370,000 people signed the VATsTheProblem petition calling for a 10% VAT rate aligned with Europe, as hospitality businesses urged Prime Minister Andy Burnham to cut VAT to support the sector.
Trading forecasts for 2026 appear more positive than previous surveys, with 61% of outlets expecting growth or stability and the number considering closure dropping by 9% compared to the winter survey.