Key facts
- Pubs, bars, restaurants, and hotels in Scotland are losing business due to the boom in weight-loss drugs.
- 16% of 300 surveyed businesses reported a decline in visits because of the drugs.
- 22% of businesses said customers have become more discerning due to fat-loss treatments.
- 58% of surveyed firms reported their business was in decline.
- 71% expect to break even or be profitable, up from 63% in the winter survey.
- 97% of businesses surveyed reported an increase in costs.
Pubs, bars, restaurants, and hotels across Scotland are experiencing a downturn in business attributed to the increasing popularity of weight-loss drugs, according to a new report by the Scottish Licensed Trade Association (SLTA). The SLTA's Summer On-Trade Market Insight Report surveyed 300 businesses and found that 16% reported a decrease in customer visits directly linked to these medications. An additional 22% noted that their patrons have become more discerning as a result of fat-loss treatments.
Despite these challenges, the report highlighted some positive forecasts, with 71% of firms expecting to break even or be profitable, an increase from 63% in the previous winter survey. Looking ahead to the remainder of 2026, 61% of outlets anticipate growth or stability, and the number considering closure has decreased by 9%.
However, the overall economic outlook remains difficult, with 58% of surveyed businesses reporting a decline in their operations. While the World Cup provided a temporary sales boost, broader economic uncertainty and weak consumer confidence persist. Scottish businesses also face the distinct burden of higher commercial rates and energy charges compared to other parts of the UK.
Colin Wilkinson, SLTA managing director, emphasized the need for government action, urging both the Scottish and UK Parliaments to prioritize rates reform and a reduction in VAT for the licensed hospitality sector. He called for governments to "walk the walk" on growing the economy and suggested the UK Government emulate Ireland's approach by lowering VAT for hospitality firms. Wilkinson also requested the Scottish Government to expedite its review of commercial rating methodologies for licensed venues.
Ninety-seven percent of businesses surveyed reported an increase in their operating costs, with 57% indicating significant cost rises above inflation. The SLTA also raised concerns about the future talent pipeline and advocated for increased support for apprenticeship schemes.