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Pub Visiting - UK - May 2016

Published By :

Mintel

Published Date : May 2016

Category :

Lifestyle

No. of Pages : N/A

Many publicans have evolved their venues and placed a greater emphasis on food in order to remain profitable. That ‘high-quality food’ is the factor which is most likely to entice people to try a new pub underlines how an appealing menu can help to pubs to broaden their customer base.

Overview

What you need to know
Covered in this Report

Executive Summary

The market
The pub industry turnover passes £23 billion in 2015
Figure 1: Forecast for total UK pub industry revenues, 2010-20
Figure 2: Forecast for UK pub industry revenues of alcoholic drinks, 2010-20
The managed segment of the market is thriving
UK consumers cutting back on alcohol
The pub industry continues to shrink
Publicans under pressure from further cost pressures
Population changes will have an impact
Companies and brands
Pubs look to stand out
Little advertisement in the category
The consumer
Almost nine in 10 Brits go to pubs/bars
Figure 3: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2016
A quarter of adults are cutting back on pub visits
Socialising is the main reason for visiting pubs/bars
Figure 4: Reasons for going to pubs/bars, March 2016
High-quality food is the main draw to try a new venue
Dining space is a draw for many pub-goers
Figure 5: Preferences regarding selected attributes of pubs/bars, March 2016
What we think

Issues and Insights

New National Living Wage puts pressure on pubs
The facts
The implications
Pubs should look to embrace technology more
The facts
The implications
Balancing food and drink opportunities
The facts
The implications

The Market – What You Need to Know

The pub industry turnover passes £23 billion in 2015
The managed segment of the market is thriving
UK consumers cutting back on alcohol
The pub industry continues to shrink
Publicans under pressure from further cost pressures
Population changes will have an impact

Market Size and Forecasts

The pub industry turnover passes £23 billion in 2015
Figure 6: UK pub industry market size and forecast, 2010-20
Tenanted/leased segment struggles
Alcoholic drinks struggle
Figure 7: Estimated UK pub industry turnover, by segment, 2012-15
Food forges ahead
Forecasts
Figure 8: Forecast for total UK pub industry revenues, 2010-20
Figure 9: Forecast for UK pub industry revenues of alcoholic drinks, 2010-20

Segment Performance

The managed segment of the market is thriving…
Figure 10: Turnover of selected leading pub operators in the UK, 2011/12-2014/15
…while the tenanted/leased segment struggles
Leading players sell off sites
Freehold/independent pubs could thrive

Market Drivers

UK consumers cutting back on alcohol
New guidelines on alcohol intake
Alcoholic drink prices have risen dramatically
Figure 11: UK excise duty rates for selected alcoholic drinks, 2004-16
Business rates put pressure on landlords
Figure 12: Average rateable value of pubs in England and Wales, 2005 and 2014
Councils allowed to set licence fees locally
Pub closures remain commonplace
Steps to protect pubs
Pubs as ACVs
The Community Pub programme
New Clause 2
Possibility of Brexit poses uncertainty for pubs
Utilities and live sport costs add pressures on publicans
A dip in energy prices in 2015
Figure 13: Utility prices paid by non-domestic consumers (including the Climate Change Levy), 2007-15
Figure 14: Average fuel prices at the pump for unleaded standard and diesel, 2007-16
Sports TV subscriptions
The National Living Wage has not been unanimously welcomed
Late-night legislation remains a controversial subject
Additional late-night schemes and initiatives
Local Alcohol Action Areas
Best Bar None
Purple Flag
Business Improvement Districts
National Pubwatch
Population changes present challenges and opportunities
Growth of over-55s on the cards
Decline of 18-24s set to pose a challenge
Significant growth expected among C2DEs
The weather can also influence pub visits
Figure 15: Hours of sunshine in the UK, by month, 2011-15

Key Players – What You Need to Know

Managed segment on the rise
Little advertisement in the category
Mixed performance among the leading operators

Selected Leading Companies

Market overview
Figure 16: Selected leading pub operators in the UK, by outlet numbers, 2012-15
Enterprise Inns
Company overview
Financial performance
Figure 17: Key financial data for Enterprise Inns PLC, 2012-15
Figure 18: Enterprise Inns PLC turnover, by segment, 2012-15
Selected recent activity and innovation
Greene King plc
Company overview
Financial performance
Figure 19: Key financial data for Greene King PLC, 2012-15*
Figure 20: Greene King PLC revenue, by segment, 2012-15*
Selected recent activity and innovation
JD Wetherspoon plc
Company overview
Financial performance
Figure 21: Key financial data for JD Wetherspoon PLC, 2012-15
Selected recent activity and innovation
Mitchells & Butlers plc
Company overview
Financial performance
Figure 22: Key financial data for Mitchells & Butlers PLC, 2012-15
Selected recent activity and innovation
Punch Taverns
Company overview
Financial performance
Figure 23: Key financial data for Punch Taverns PLC, 2012-15
Figure 24: Punch Taverns PLC revenue, by segment, 2012-15
Selected recent activity and innovation

The Consumer – What You Need to Know

Almost nine in 10 Brits go to pubs/bars
A quarter of adults are cutting back on pub visits
Socialising is the main reason for visiting pubs/bars
High-quality food is the main draw to try a new venue
Dining space is a draw for many pub-goers

Frequency of Visiting Pubs/Bars

Almost nine in 10 Brits go to pubs/bars
Figure 25: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2016
Men are more likely to drink in pubs/bars
Nightclubs hit by late-night pubs

Changes to Visiting Pubs/Bars

A quarter of adults are cutting back on pub visits
Figure 26: Changes in frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2016
Only 9% are going to the pub more…
Figure 27: Reasons for increased visits to pubs/bars, March 2016
…while 25% are going less often
Cost is a key barrier
Home comforts appeal to many
Pubs not seen to be falling behind
Figure 28: Reasons for fewer or no visits to pubs/bars, March 2016

Reasons for Visiting Pubs/Bars

Socialising is the main reason for visiting pubs/bars
Figure 29: Reasons for going to pubs/bars, March 2016
Pub food has become an important driver of visits
Formal dining remains rare
Sport has little appeal to pub-goers

Enticements to Try New Pubs/Bars

High-quality food is the main draw to try a new venue
Figure 30: Enticements to try new pubs/bars, March 2016
Figure 31: Enticements to try new pubs/bars, by gender, March 2016
Recommendations are influential…
Pubs’ own online presence matters
Half of patrons check pub website before visiting
Welcome offers prompt nearly half of 18-24s
Catering to screen needs
…as are external considerations
External appearance is a pub’s calling card
Figure 32: Cask Marque accreditation and Food Hygiene rating signage, 2016
Parking space matters to older patrons
Outdoor space a draw for one in five patrons

Pub/Bar Preferences

Dining space is a draw for many pub-goers
Figure 33: Preferences regarding selected attributes of pubs/bars: dining space, type and choice of pub/bar and origin of products, March 2016
Local food and drink appeals to a minority
Live sport on TV, entertainment and music prove to be divisive
Figure 34: Preferences regarding selected attributes of pubs/bars: live sport on TV, March 2016
Entertainment and music divide opinion
Lively atmosphere deters many over-55s
Figure 35: Preferences regarding selected attributes of pubs/bars: atmosphere, entertainment and music, March 2016
Children in pubs also polarises opinions
Figure 36: Preferences regarding selected attributes of pubs/bars: children in pubs/bars, March 2016

Appendix – Data Sources, Abbreviations and Supporting Information

Abbreviations
Consumer research methodology

Appendix – Market Size and Forecasts

Figure 37: UK pub industry revenue, by segment, 2010-20
Figure 38: Best- and worst-case forecasts for the UK pub market, 2015-20
Figure 39: Best- and worst-case forecasts for UK pub industry revenues of alcoholic drinks, 2015-20
Figure 40: Forecast for UK pub industry catering (meals) revenues, 2010-20
Figure 41: Forecast for UK pub industry soft drinks revenues, 2010-20
Figure 42: Forecast for UK pub industry revenues of other items*, 2010-20
Forecast methodology

List of Table

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