HUNGRY. Espresso: Rory Sutherland - Why We Must STOP Taxing Pubs
Nov 13, 2025
Rory Sutherland, a behavioural economist and advertising executive, passionately argues against taxing pubs, dubbing them essential community assets akin to leisure centres. He suggests that removing VAT could enhance their role as multifunctional spaces, drawing in customers with everyday items and modern amenities. The conversation dives into the importance of customer experience and measuring entertainment value, as Rory introduces the innovative concept of 'cost per entertainment hour' to spotlight pubs' unique offerings compared to other leisure options.
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Pubs As Social Infrastructure
- Rory Sutherland argues pubs are social assets and should be VAT-exempt like leisure centres.
- He frames pubs as secular churches and collaborative consumption that fund communal spaces.
Pub Milk And The Pavlovian Pint
- Rory notes oddities of British pubs, like not selling milk despite late hours.
- He admits walking into a pub to buy milk triggers him to stay for a pint.
Boost Footfall With Extra Services
- Rory suggests pubs add services (lockers, EV chargers) to drive footfall and incidental spend.
- He argues getting people in is the core challenge because they will usually spend once inside.