Bars are increasingly becoming community centres which have to deal with the aftermath of supermarket alcohol sales, Gardens Tavern owner Peter Innes-Jones says.
He would love to see the Castle St tavern continue with a new owner, but said the disparity between the rules for bars and those for alcohol sales in supermarkets was killing many bars.
The tavern site, with a rateable value of $1.025 million, is being offered for deadline sale, which closes on April 14.
He said young people would buy alcohol at supermarkets, drink it at home and then go to bars where many of them had no intention of buying drinks.
Bar staff would not know what people had had to drink before entering the premises and often ended up "picking up the pieces from supermarket and bottle store sales".
Mr Innes-Jones (45), who originally came from Christchurch to manage the bar in 1992 and fell in love with Dunedin, said he had enjoyed his time with "The Gardies" and did not want his comments to sound like sour grapes.
"It's just reality. Times are changing."
He acknowledged there were no easy answers to concerns about alcohol issues, but said having widely different rules for licensed and off-licence premises was not working.
He said supermarkets had shown no respect for the product and were only concerned about volume and ensuring shoppers "don't break an ankle on their way out of the shop" with their booze-laden trolley .
He said contrary to popular belief, intoxicated patrons were not good for business.
These were the people who upset other customers, broke things, and got into trouble, he said.
"There's no up-side to intoxication."
Another factor making business tough was that as flat screen televisions had become much more affordable, many people no longer went to bars to watch big events.
Commercial television rates meant it cost bars about $1500 to screen a big event.
Mr Innes-Jones said the tavern had tried to adapt to the changing times.
Its upstairs dance bar had been successful, but food sales had dropped off over the years because many patrons were hostel residents.
Over the years, there had been a lot of fun and laughter at the tavern and he could "count on two hands" those patrons he had a "tete-a- tete" with.
Some young people might display "overexuberance" while they were learning the rules, but they were easier to deal with than "people my age in suits who are convinced they know everything".
He expected neighbours might be pleased at the reduction in noise if the bar closed, but said some elderly neighbours who seemed to enjoy living in the largely student area still brought him scones for morning tea.
After 25 years in the hospitality trade, he has involvement with some other bars in the city which he expected to continue.
"I'd like to see what else is out there."
Whatever happens, he is staying in Dunedin - "I love the industry, I love the city."