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Pub Visiting - UK - May 2017

Published By :

Mintel

Published Date : May 2017

Category :

Advertising and Marketing

No. of Pages : N/A

Continuing to grow sales will be particularly important to pub operators in order just to stand still in terms of profits, given increased operating costs in 2017. Household budgets also look likely to be squeezed during 2017 by rising inflation, impacting on discretionary spending in pubs. This will all make it difficult for pubs to increase sales and maintain profitability without raising prices in some areas.

Table of Content

OVERVIEW
What you need to know
Covered in this Report

EXECUTIVE SUMMARY
The market
Pubs benefit from strength of eating out market
Figure 1: Forecast for total UK pub industry revenues, 2011-21
Consumers opting for quality over quantity in alcoholic drinks
Figure 2: Forecast for UK pub industry revenues of alcoholic drinks, 2011-21
Pub meals benefit from move towards more food-led venues
Pubs need to grow sales in the face of rising costs
Brexit uncertainty and rising costs
Consumers cutting back on alcohol
Companies and brands
Managed pubs boosting pub sales
Enterprise Inns becomes Ei Group
Greene King concentrating on conversions to five growth brands
Weatherspoon rolls out new ordering phone app
Mitchells and Butlers accelerates capital investment
Punch backs takeover bid by Heineken and Patron Capital
The consumer
More than nine in ten Brits go to pubs/bars
Figure 3: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2017
Three in ten adults cutting back on pub visits
Weekends the most popular time for visiting
Figure 4: Reasons for going to pubs/bars, March 2017
High quality food most important to pub choice
Figure 5: Factors most likely to influence choice of pub/bar, March 2017
Strong demand for quiet areas in pubs
Figure 6: Attitudes towards pubs/bars, March 2017
What we think

ISSUES AND INSIGHTS
Increasing costs mean pubs need to find ways to grow sales just to stand still on profits
The facts
The implications
Flexible use of space and zoning needed to maximise appeal of pubs
The facts
The implications
Digital technology has an important role to play in driving pub visits
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Pubs benefit from strength of eating out market
Consumers opting for quality over quantity in alcoholic drinks
Pub meals benefit from move towards more food-led venues
Pubs need to grow sales in face of rising costs
Managed pubs boosting total pub sales
Brexit uncertainty but consumer confidence holding up so far
Rising costs on the cards for pub operators in 2017
Soft drinks levy coming in 2018
Consumers cutting back on alcohol
Pubs have less appeal to ageing population

MARKET SIZE AND FORECAST
Pub sector benefits from strength of eating out market
Figure 7: UK pub industry market size and forecast, 2011-21
Consumers opting for quality over quantity in alcoholic drinks
Figure 8: Estimated UK pub industry turnover, by segment, 2012-16
Pub meals account for nearly a third of pub sales
Stronger sales of soft drinks through pubs/bars
Increasing costs mean pubs need to grow sales to stand still
Figure 9: Forecast for total UK pub industry revenues, 2011-21
Figure 10: Forecast for UK pub industry revenues of alcoholic drinks, 2011-21
Forecast methodology

SEGMENT PERFORMANCE
Managed pubs boosting total pub sales
Figure 11: Turnover of selected leading pub operators in the UK, 2011/12-2015/16
Move away from tenanted and leased pubs
Free houses also an important part of the market

MARKET DRIVERS
Brexit uncertainty for pubs sector
Confidence holding up but income squeeze on the way
Figure 12: Trends in how respondents would describe their financial situation, February 2009-February 2017
Rising costs on the cards for pub operators in 2017
National Living Wage and National Minimum Wage
Apprenticeship Levy
Revaluation of business rates
Alcohol excise duties increase by RPI inflation
Rising inflation puts further pressure on pubs
New Pubs Code for tied leased and tenancy agreements
Lords call for licensing committees and late-night levies to be scrapped
Soft drinks levy coming in 2018
New alcohol guidelines and cutting back on alcohol
Pubs have less appeal to ageing population
Figure 13: Trends in the age structure of the UK population, 2011-21

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Shift towards more managed pubs
Enterprise Inns becomes Ei Group
Greene King converting pubs to growth brands
Weatherspoon rolls out new ordering phone app
Mitchells and Butlers accelerates capital investment
Punch backs takeover bid by Heineken and Patron Capital

SELECTED LEADING COMPANIES
Market overview
Figure 14: Selected leading pub operators in the UK, by outlet numbers, 2012-16
Ei Group Plc (formerly Enterprise Inns)
Financial performance
Figure 15: Key financial data for Enterprise Inns Plc, 2012-16
Figure 16: Enterprise Inns Plc turnover, by segment, 2012-16
Selected recent activity and innovation
Greene King Plc
Financial performance
Figure 17: Key financial data for Greene King Plc, 2012-16*
Figure 18: Greene King Plc revenue, by segment, 2012-16*
Figure 19: Segmental information for Greene King and Spirit Pub Company, 2016
Selected recent activity and innovation
JD Wetherspoon Plc
Financial performance
Figure 20: Key financial data for JD Wetherspoon Plc, 2012-16
Selected recent activity and innovation
Mitchells & Butlers Plc
Financial performance
Figure 21: Key financial data for Mitchells & Butlers Plc, 2012-16
Selected recent activity and innovation
Punch Taverns
Financial performance
Figure 22: Key financial data for Punch Taverns Plc, 2012-16
Figure 23: Punch Taverns Plc revenue, by segment, 2012-16
Selected recent activity and innovation

THE CONSUMER – WHAT YOU NEED TO KNOW
More than nine in ten Brits visit pubs/bars
Majority of people visit pubs to eat infrequently
Three in ten adults cutting back on pub visits
Weekends the most popular time for visiting
Entertainment can also help generate footfall
High quality food most important
Customer service can make a difference
Strong demand for quiet areas in pubs
Digital and social media important communication tools

FREQUENCY OF VISITING PUBS/BARS
More than nine in ten Brits go to pubs/bars
Figure 24: Visiting pubs/bars to eat or drink in, by time of day, March 2017
Majority of people only visit pubs/bars to eat infrequently
Younger age groups are core pub diners
Over-55s visit more during the day
Figure 25: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2017
More frequent drinking in pubs shows younger, male bias
Figure 26: Drink-led visits to pubs/bars more than once a month during the day and in the evening, by gender and age, March 2017

CHANGES TO PUB VISITING AND AVERAGE SPEND PER VISIT
Three in ten adults cutting back on pub visits
Figure 27: Changes in frequency of visiting pubs/bars compared to 12 months ago, March 2017
18-24s and top income households most likely to have upped visits
Spending per visit shows less change
18-24s most likely to have upped pub/bar spend
Figure 28: Changes in average spending per pub visit compared to 12 months ago, March 2017

REASONS FOR VISITING PUBS/BARS
Weekends are the most popular time for visiting
Figure 29: Reasons for going to pubs/bars, March 2017
Pubs’ role as social space endures
Meals and special occasions a bigger reason for women to visit pubs
Entertainment can help generate footfall on quieter days
New menus and promotions can help trigger visits

FACTORS INFLUENCING CHOICE OF PUB/BAR
High quality food most important
Figure 30: Factors most likely to influence choice of pub/bar, March 2017
Price matters to more than half
Friendly and quick service can make a difference
Outdoor facilities add to the appeal of pubs
Drinks offer less important than food menu

ATTITUDES TOWARDS PUBS/BARS
Strong demand for quiet areas in pubs
Figure 31: Attitudes towards pubs/bars, March 2017
Table service can improve the pub experience
Digital and social media are important communication tools
Many patrons research pubs before visiting
More than a quarter like to follow pubs on social media
Figure 32: Attitudes towards pubs/bars’ online presence and social media, by age, March 2017
More than a third interested in calorie counts on drinks menus

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

APPENDIX – MARKET SIZE AND FORECASTS
Figure 33: UK pub industry revenue, by segment, 2011-21
Figure 34: Best- and worst-case forecasts for the UK pub market, 2016-21
Figure 35: Best- and worst-case forecasts for UK pub industry revenues of alcoholic drinks, 2016-21
Figure 36: Forecast for UK pub industry catering (meals) revenues, 2011-21
Figure 37: Forecast for UK pub industry soft drinks revenues, 2011-21
Figure 38: Forecast for UK pub industry revenues of other items*, 2011-21
Forecast methodology

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