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Pub Catering - UK - May 2015

Published By :

Mintel

Published Date : May 2015

Category :

Hotels & Restaurants

No. of Pages : 97 Pages

The expansion of casual dining and ethnic food venues and the new threat posed by coffee shops trialling evening menus should act as a clarion call to pubs to ensure they can compete when it comes to modern dining trends.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Figure 1: Pub catering market size and forecast, 2009-19
Forecast
Market factors
Increase in real income should benefit pub catering
Threat from casual dining and coffee chains
Pubs face rising and declining costs
Companies, brands and innovation
Greene King swoops to buy Spirit Pub Company
There’s a Beer for That campaign focuses on food
Operators continue to push into reward and loyalty cards
Whitbread strikes a number of character licensing deals
Operators explore seafood and rotisserie for points of difference
The consumer
Pubs are used for drinking in more frequently than for eating in
Figure 2: Frequency of visiting a pub/bar for a drink or to eat in, March 2015
The proportion of those eating in pubs once a fortnight or more falls
Figure 3: Frequency of visiting a pub/bar for a meal, 2010 and 2012-15
Just one in four pub/bar users order hot drinks
Figure 4: What consumers do at pubs, March 2015
Just 37% see pubs as good for a special meal
Figure 5: Attitudes towards pub catering, March 2015
Strong interest in homemade dishes
Figure 6: Pub menu enticements, March 2015
What we think

Issues and Insights

More work required by pubs to woo hot drinks users
The facts
The implications
Operators must make pubs feel more special to benefit from rising real incomes
The facts
The implications
Food festivals/themed evenings offer a way to boost frequency
The facts
The implications

Trend Application

Locavore
Let’s Make a Deal
Minimize Me

Market Drivers

Key points
Fewer consumers spending extra money on dining out
Figure 7: Trends in share of consumers who choose to spend their extra* money on dining out, November 2009-March 2015
The rising minimum wage
New allergen regulations introduced
Campaign for reduction in VAT on pub food
Falling price of crude oil should take pressure off margins
Declining alcohol consumption means food must work harder for operators
Government changes to business rates administration are looming
Expansion of casual dining concepts and coffee shops increases the competition for pubs

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Key points
Whitbread gets behind character licensing
Pubs champion rotisserie
Selected operators forge associations with seafood
Pubs offer ‘food-on-the-go’ food to commuters
KP Snacks pushes O’Donnells hand-cooked crisps to UK pubs
Jimmy’s Products launches bar-top Tabasco-branded popcorn warmer

Market Size and Forecast

Key points
Food’s share of total pub sales is expected to continue growing
Figure 8: Pub catering market size and forecast, 2009-19
Pubs face a threat from the expansion of ethnic restaurants and casual dining venues
Pubs face a new threat from coffee shops
Value growth likely to be tempered by slower inflation going forward
Forecast
Figure 9: Pub catering market size and forecast, 2009-19
Forecast methodology

Market Share

Key points
Enterprise Inns dominates the market
Figure 10: Selected leading pub operators, by outlet numbers, 2012-15
Greene King swoops for Spirit Pub Company
Enterprise decelerates rate of property disposals
Mitchells & Butlers makes outlet gains through Orchid acquisition
JD Wetherspoon seeks market share in the Republic of Ireland
And also gives a push to breakfasts…
Smaller operators boost size

Companies and Products

Greene King
Recent activity
Financial data
Figure 11: Key financial data for Greene King Plc, 2010-14
Figure 12: Revenue, by segment, for Greene King Plc, 2012-14
Recent marketing, promotions and media
Menu developments
JD Wetherspoon
Recent activity
Financial data
Figure 13: Key financial data for JD Wetherspoon PLC, 2010-14
Recent marketing, promotions and media
Menu developments
Mitchells & Butlers (M&B)
Recent activity
Financial developments
Figure 14: Key financial data for Mitchells and Butlers Plc, 2010-14
Recent marketing, promotions and media
Menu developments
Spirit Pub Company
Recent activity
Financial data
Figure 15: Key financial data for Spirit Pub Company, 2010-14
Figure 16: Spirit Pub Company revenue, by segment, 2012-14
Recent marketing, promotions and media
Menu developments
Stonegate Pub Company
Recent activity
Financial data
Figure 17: Key financial data for Stonegate Pub Company, 2011-13
Recent marketing, promotions and media
Menu developments
Whitbread
Recent activity
Financial activity
Figure 18: Key financial data for Whitbread Plc, 2010-15
Recent marketing, promotions and media
Menu developments
Geronimo Inns
Financial activity
Figure 19: Key financial data for Geronimo Inns, 2010-14
Recent activity
Recent marketing, promotions and media

Brand Communication and Promotion

Key points
Above-the-line advertising spend falls across selected biggest operators
Figure 20: Above-the-line expenditure of selected operators in the pub market, by 2014 expenditure, 2011-15*
Generic industry campaign promotes beer and food pairing
Mitchells & Butlers pulls back from short-term promotions
Harvester emphasises communal nature of sharing a meal
Toby Carvery goes for old-fashioned approach with Father’s Day offer
Pub operators look to woo diners with reward/loyalty and gift cards
Mitchells & Butlers hugely extends availability of its Dining Out gift card
Fayre & Square launches digi-reward card
Stonegate launches a loyalty card

Brand Research

What you need to know
Brand map
Figure 21: Attitudes towards and usage of selected brands, February 2015
Key brand metrics-
Figure 22: Key metrics for selected brands, February 2015
Brand attitudes
JD Wetherspoon has strong value image
Figure 23: Attitudes, by brand, February 2015
Brand personality
Brewers Fayre could benefit from some refreshment
All Bar One has a particularly trendy image
Figure 25: Brand personality – Micro image, February 2015
Brand analysis
Vintage Inns benefits from attributes that denote quality
Figure 26: User profile of Vintage Inns, February 2015
JD Wetherspoon’s value and wide availability fosters familiarity and usage
Figure 27: User profile of JD Wetherspoon, February 2015
All Bar One enjoys a cool and trendy image
Figure 28: User profile of All Bar One, February 2015
Brewers Fayre focuses on value and families
Figure 29: User profile of Brewers Fayre, February 2015
Hungry Horse has similar overall image to Brewers Fayre
Figure 30: User profile of Hungry Horse, February 2015
Chef & Brewer struggles to define itself
Figure 31: User profile of Chef & Brewer, February 2015

The Consumer – Frequency of Visiting a Pub/Bar to Drink or to Eat in

Key points
Pubs are used for drinking in more frequently than for eating in
Figure 32: Frequency of visiting a pub/bar for a drink or to eat in, March 2015
Pub food is becoming an increasingly important part of the sales mix
The proportion of those eating in pubs once a fortnight or more falls
Figure 33: Frequency of visiting a pub/bar for a meal, 2010 and 2012-15
Being more child-friendly should encourage food sales
Men are the heaviest users of pubs to eat in
Encouraging more frequent usage by women

The Consumer – What Consumers Do at Pubs

Key points
Improving the hot drink offer should encourage greater uptake
Figure 34: What consumers do at pubs, March 2015
Only one in four users sees the quality of hot drinks in pubs as poor
New hot drinks concepts offer better quality with minimal cost/hassle for operators
Operators seek to grow weekend eating through brunch/breakfast
whilst also encouraging mid-week dining occasions
Just 5% use pubs/bars as a place to work/study
Fewer than one in ten users asks staff for food/drink recommendations

The Consumer – Attitudes towards Pubs/Bars

Key points
Just 37% see pubs as good for a special meal
Figure 35: Attitudes towards pub catering, March 2015
Special occasions can help to build frequency amongst families
Pub/coffee shop hybrids interest a third of pub/bar users
A trio of small dishes would interest one in four as a main course
One in five interested in eating game in a pub
One in five pub/bar users think unusual serving vessels make meals feel more special

The Consumer – Menu Enticements

Key points
Strong interest in homemade dishes
Figure 36: Pub menu enticements, March 2015
Locally sourced ingredients garner higher interest than seasonal or organic
Seasonal produce
Riverford Organic establishes residence in UK’s only certified organic pub
‘Chef’s Signature’ dishes allow the chef to connect with the diner

Appendix – Market Size and Forecast

Figure 37: Best and worst-case forecasts for the UK pub catering market, by value, 2014-19

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