Pubs and restaurants taking a hit as GLP-1 use grows, report finds
GLP-1 use was linked to fewer customer visits by 16 per cent of 300 Scottish hospitality businesses surveyed by the Scottish Licensed Trade Association (SLTA).
The trade association surveyed pubs, bars, restaurants and hotels for its summer on-trade market insight report.
The survey found 22 per cent of businesses also said customers had become more “discerning” because of weight-loss treatments.
Colin Wilkinson, managing director of the Scottish Licensed Trade Association, 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 report identified the trend alongside other pressures affecting Scotland’s hospitality sector.
Overall, 58 per cent of businesses surveyed said they were in decline, despite two-thirds reporting a boost from the World Cup.
It also found the Commonwealth Games, recently held in Glasgow, “did nothing for sales in pubs and bars”.
However, 71 per cent of respondents expected to break even or be profitable, up from 63 per cent in the organisation’s winter survey.
Expectations for the rest of 2026 were also more positive.
Some 61 per cent of outlets expected growth or stability, while the number considering closure fell by 9 per cent.
Wilkinson said Scottish businesses also faced the “unique challenge” of higher commercial rates and energy charges than those elsewhere in the UK.
He said: “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’.”
Wilkinson called on the UK government to follow Ireland and reduce VAT for hospitality firms across the country.
He also urged First Minister John Swinney to support the UK-wide “VAT’s the Problem” campaign, which is calling on the Westminster government to cut VAT to 10 per cent for hospitality businesses.
He added: “We also ask the Scottish government to fast-track the review of the commercial rating methodology used for the rating of licensed hospitality venues in Scotland and to engage more closely with the sector.”
