Pub boss says Newcastle is no longer a ‘party city’ as hospitality industry struggles

A Newcastle pub owner who has been in the trade for decades claims the city’s once-proud reputation as a party city is now long gone.

Joe Smith, who runs The Mayfair Pub & Kitchen near The Gate as well as The Merchant’s Tavern on the riverside at St Peter’s Wharf, says that while his venues expect to enjoy a good Christmas, the city’s whole hospitality scene basically survives due to one busy day in the week and that it needs a real boost to start afresh.

He says: “Without the Saturday, Newcastle doesn’t have a hospitality industry.” He claims it is in need of far more support from Newcastle City Council and that the city is “resting on its laurels”, still seeing itself as the party capital it once was – but that was 30 years ago.

“It doesn’t keep up with the times,” he says. “We’re not as good as we think we are.”

Joe, who is in his mid-sixties, has worked in the trade for around 46 years – also in previous operations director and manager roles at the likes of the Greene King chain and Cameron’s Brewery – and he is passionate about it. But he says he is scared for the future of the local hospitality industry as a whole.

He knows many of those working at its “coal face” and says they and the council need to talk. Joe is keen to see more support, at the same level he says as is being seen from local authorities in cities such as Leeds and Manchester which are working with the hospitality sector to try to increase mid-week trade, and even locally in Durham and Sunderland with investment in its Keel Square. He himself is currently opening another Mayfair in Doncaster.

Joe has been running his city pubs for about four years and has seen them through the pandemic and now the cost of living crisis, which this time last year saw him decide to close the riverside pub three days a week due to escalating costs and rocketing energy bills. Now both pubs close on a Monday and Tuesday, with Wednesday possibly following suit.

The Christmas period, however, will be an exception, then after New Year it will be back to closed doors during the early part of the week. “The way it’s looking this year, Christmas is going to be as good as it’s been for a number of years,” says Joe.

The Merchant Tavern has lots of Christmas bookings and The Mayfair – which is named after Newcastle’s former nightclub and opened in 2019 – is also a popular pub with Newcastle United fans and has been making the most of match day trade, with the team’s success and associated feelgood factor proving a huge boost.

But it’s not easy. “People don’t have that much money,” says Joe. And the cost of living crisis is not over yet. “It isn’t coming down; it’s just not going up.”

Costs that have risen won’t reduce, he says. “Utility bills have doubled in the last couple of years; prices of food and drink are 25-30% higher.”

Pints at The Mayfair start around £3.85, although they go up to around £5.60, and he says hiking up drinks prices isn’t the answer. “If you put beer up from £4 to £5 a pint, people will just buy one pint less.”

Besides the new Mayfair in Doncaster, Joe has further expansion plans and has been approached by a local authority from another city to explore opening a similar venue there. He also adds: “If I had good support I would love to open another bar in Newcastle.”

After Covid, when there were lots of people coming to the city, “it was like Benidorm” says Joe but he feels it is now stagnant amongst the competition and in need of investment.

The city scene is vulnerable, he says. “You just have to go around town and look at how many pubs are closed Monday to Wednesday.”

He thinks new operators, and the best operators, are needed to up the game and that the ‘cumulative impact zone’ has had its day.

Cumulative impact policies, intended to limit growth of licensed premises to avoid creating problem areas, might have been “the right thing to do at one time”, says Joe, “but that time has gone”. Instead he thinks it can support ‘lousy’ operators, who get by on that Saturday trade and “that’s all they’ll do”, rather than trying to build mid-week trade back up.

Joe says we need to see the opportunities to boost business and start nurturing the industry again.

A spokesperson for Newcastle City Council said: “We are absolutely committed to supporting business growth and new businesses in the city. As with all traders, we regularly engage with Mr Smith and are due to meet him next week to discuss his possible new business ventures.

“We are here to help all businesses by providing advice and support and ensure the city continues to be a vibrant place to invest. A variety of new premises have opened in recent months and new applications are always coming forward to develop the city’s hospitality sector.

“We recently introduced a new Statement of Licensing Policy, which was subject to an extensive consultation where businesses were encouraged to share their views. The policy supports and encourages new applications as long as operators can demonstrate they can effectively uphold licensing objectives and avoid any adverse impact on the city.

“Discussions were held with businesses about the new policy over a three-month period.” It added: “The hospitality sector is a key part of our local economy and we are proud to have such a diverse range of restaurants and bars which residents and visitors can enjoy.”