They point to the withdrawal of the Government's stimulus payments to explain the slump at the bar, in counter meals, takeaway liquor and in the amount fed into poker machines.

A survey of hundreds of pubs around the country shows that over the Christmas period sales of food and packaged liquor were down by 20 per cent compared with last year, while bar and gaming takings were both down by 10 per cent.

The fall echoes a 4 per cent fall in comparable sales at Woolworths' 286 hotels over the three months to December to $288 million. Revenue from Woolworths poker machines was down in the past three months, with comparable sales falling by 6.3 per cent compared with last year.

Official Queensland figures show takings from poker machines were down 10 per cent. NSW does not release similar statistics.

A Royal Bank of Scotland gambling analyst, Harry Theodore, said in a note to clients that the falls in Victoria and Queensland were due to the loss of the impact of stimulus payments which had boosted the previous year's figures.

Official and industry figures have dampened the optimism that had been returning to the industry as earnings were starting to recover. Food takings had improved as customers traded down from restaurants to more affordable counter meals.

Pubs that sold cheap schnitzels and steaks were insulated from falling sales, but those offering pricier bistro-style meals suffered.

Packaged liquor sales were hurt because of the big price differential between a schooner or glass of wine in a pub and the price of the same thing at big liquor retailers such as Woolworths-owned Dan Murphy's and the Coles-owned First Choice.

Price wars among liquor retailers meant it has been far cheaper to drink at home. Hotels in tourist locations and those with beer gardens fared better than those competing directly with restaurants.