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Pub Catering - UK - May 2016

Published By :

Mintel

Published Date : May 2016

Category :

Hotels & Restaurants

No. of Pages : N/A

The pub catering market is highly competitive, as evidenced by the continuing decline in pub numbers. Pubs also compete with a range of other eating out establishments, so food needs to compare favourably with restaurants if they are to increase the frequency of visits. Food is a core part of pubs’ sales mix and all-day food sales continue to provide growth opportunities. This includes a strong breakfast/brunch offer, afternoon teas and more light snacks to maximise revenues.

Table of Content

Introduction

What you need to know
Definition

Executive Summary

Further growth in pub catering sales expected
Figure 1: Best- and worst-case forecast for pub catering market, 2010-20
Real wage growth but not a lot of money left for dining out
Competition in the eating out market
Potential for encouraging more frequent pub visits
Figure 2: Frequency of visiting a pub/bar to eat or drink, by time of day, March 2016
Maximising all-day food sales at pubs
Interest in more daily specials and locally-sourced ingredients
Figure 3: Factors that would encourage people to choose one pub/bar over another, March 2016
Preference for traditional British dishes
Figure 4: Food and menu preferences when going to a pub/bar for something to eat, March 2016
Strong interest in personalisation and food tasting
Figure 5: Interest in introduction of different features at pubs/bars where people eat, March 2016
Websites and social media influencing choice
Figure 6: Consumer behaviour and interaction with pubs/bars, March 2016
What we think

Issues and Insights

Pubs must focus on an all-day food offer and celebrations to maximise revenues
Facts
Implications
More build-your-own dishes and daily specials can increase the appeal of pub menus
Facts
Implications
Personalised loyalty rewards offered by digital schemes will help build engagement
Facts
Implications

The Market – What You Need to Know

Sales of food through pubs increases by 2%
More all-day food offers should boost growth
Real wage growth means more money for dining out
But most people still have little spare cash
Intense competition in eating out market
Population growth to boost pub catering sales
Need to encourage more visits by 25-44-year-olds

Market Size and Forecast

Pub catering sales grow to £7.2 billion
Figure 7: Pub catering market size and forecast, 2010-20
All-day food offer will help drive growth
Figure 8: Best- and worst-case forecast for pub catering market, 2010-20

Market Drivers

A third of people spend extra money on dining out
Figure 9: Trends in share of consumers who choose to spend their extra* money on dining out, November 2009-April 2016
Most people have limited budgets for eating out at pubs
Figure 10: Trends in how respondents would describe their financial situation, February 2009-March 2015
Introduction of national living wage will add to pub costs
Taxation burden of the pubs sector
Declining alcohol consumption puts increased focus on food sales
Competition from cafés and restaurants
Population growth to benefit pub catering sales
Figure 11: Trends in the age structure of the UK population, 2010-20
2016 summer of events can help to increase pub food sales

Key Players – What You Need to Know

Spirit Pub Company boosts Greene King’s pub food share
Pub chains increasingly catering for all-day demand
More menu options for children and vegetarians
Digital marketing initiatives looking to increase engagement
Good value and service drive visits to JD Wetherspoon
Harvester seen as a trusted, family-friendly brand
Beefeater Grill needs to increase customer engagement

Companies and Recent Developments

Greene King
Structure
Brands
Positioning
Recent activity
Financial data
Figure 12: Key financial data for Greene King Plc, 2011-15
Figure 13: Greene King PLC revenue, by segment, 2012-15*
Recent marketing, promotions and media
Menu developments
JD Wetherspoon
Recent activity
Financial data
Figure 14: Key financial data for JD Wetherspoon PLC, 2012-15
Recent marketing, promotions and media
Menu developments
Mitchells & Butlers (M&B)
Brands
Strategy
Recent activity
Financial developments
Figure 15: Key financial data for Mitchells and Butlers Plc, 2012-15
Recent marketing, promotions and media
Menu developments
Stonegate Pub Company
Brands
Recent activity
Financial data
Figure 16: Key financial data for Stonegate Pub Company, 2011-14
Recent marketing, promotions and media
Menu developments
Whitbread
Brands
Recent activity
Financial activity
Figure 17: Key financial data for Whitbread Plc, 2011-15
Recent marketing, promotions and media
Menu development

Brand Research

What you need to know
Brand map
Figure 18: Attitudes towards and usage of selected brands, March 2016
Key brand metrics
Figure 19: Key metrics for selected brands, March 2016
Brand attitudes: JD Wetherspoon deemed the best value pub brand
Figure 20: Attitudes, by brand, March 2016
Brand personality: Beefeater Grill needs to engage more to boost image
Figure 21: Brand personality – Macro image, March 2016
Toby Carvery and Harvester have strong family associations
Figure 22: Brand personality – Micro image, March 2016
Brand analysis
JD Wetherspoon the most visited pub chain
Figure 23: User profile of JD Wetherspoon, March 2016
Toby Carvery has reputation for consistent quality
Figure 24: User profile of Toby Carvery, March 2016
Hungry Horse has strong association with being a fun brand
Figure 25: User profile of Hungry Horse, March 2016
Harvester seen as a trusted and friendly family brand
Figure 26: User profile of Harvester, March 2016
Slug & Lettuce less accessible than other brands
Figure 27: User profile of Slug and Lettuce, March 2016
Beefeater Grill has lowest levels of satisfaction
Figure 28: User profile of Beefeater Grill, March 2016

The Consumer – What You Need to Know

Room to increase frequency of eating out at pubs
Pubs looking to maximise all-day food sales
Strong demand for more daily specials and local produce
Loyalty scheme rewards can help drive repeat visits
Stronger preference for traditional British dishes at pubs
Offering a mix of healthy and more indulgent dishes
Table service preferred but also role for technology
Personalisation of dishes and food tasting popular
Online menus and reviews a big influence on choice

Frequency of Visiting Pubs/Bars

More people visit pubs to eat in than drink in
Figure 29: Visiting a pub/bar to eat or drink, by time of day, March 2016
Room to encourage more frequent eating in pubs
Figure 30: Frequency of visiting a pub/bar to eat or drink, by time of day, March 2016
Town/city pub menus need to appeal to younger population
Figure 31: Visiting a pub/bar to eat at least once a week, by age and type of location where person lives, March 2016

Mealtimes and Occasions for Eating in Pubs/Bars

Evening trade most important to pub catering sales
Figure 32: Mealtimes at which people visit a pub/bar for something to eat, March 2016
Pubs look to gain share of breakfast trade
Afternoon tea can also boost sales outside main meal times
Six in ten visit pubs for special occasions
Figure 33: Occasions people typically visit a pub/bar for something to eat, March 2016
Themed nights and food festivals can give reasons to visit

Factors Influencing Choice of Pub for Eating

Strong demand for more daily specials and locally-sourced ingredients
Daily specials can imply freshness
Tapping the Locavore trend
Meat-free meals appeal beyond vegetarians
Figure 34: Factors that would encourage people to choose one pub/bar over another when eating, March 2016
Themed events can add something different to pub catering
Themed nights appeal to one in five
Time-limited nature of special event menus offers a prompt
Men want festivals, women go for special menus
Customer loyalty schemes offer ways to engage
Only one in four people has healthy finances
Loyalty schemes enable targeted promotions
Children’s menus make a difference to family dining

Pub Eating Preferences

Traditional British dishes preferred to modern fare
Figure 35: Food and menu preferences when going to a pub/bar for something to eat, March 2016
Seasonal menus add variety to the pub food offer
Menu needs to feature both healthy and more indulgent dishes
More prefer table service than ordering and paying at the bar
Set-price menus appeal to over-65s
Figure 36: Type of menu and service preferences when going to a pub/bar for something to eat, March 2016

Interest in Features of Pub Catering

Customisation proves popular
Trying new dishes would appeal to one in three
Figure 37: Diners’ interest in new features at pubs/bars, March 2016
Loyalty schemes can build relevance by tracking orders
Technology can help to improve customer service
A quarter of diners are interested in pre-ordering
Electronic ordering welcomed by many

Consumer Behaviour and Interaction with Pubs/Bars

Menus on websites and good online reviews important
E-mail promotions enjoy widespread use
Figure 38: Consumer behaviour and interaction with pubs/bars, March 2016
Building pub catering sales using social media
Good customer service essential to pub food trade
Pubs competing with coffee shops for hot drink sales

Appendix – Data Sources, Abbreviations and Supporting Information

Abbreviations
Fan chart forecast

Appendix – The Market

Figure 39: Best- and worst-case forecast of total UK pub catering sales, 2010-20

List of Table

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