Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Products covered in this Report
- COVID-19: Market context
- Economic and other assumptions
Executive Summary
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- The market
- Pubs finally given the green light to re-open
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- Figure 1: Consumers' comfort level eating out of home, July 16-22, 2020
- Government support to help the recovery of food-led pubs/bars
- COVID-19 has given takeaway/home delivery services new sense of urgency
- The impact of COVID-19 on pub catering
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- Figure 2: Expected impact of COVID-19 on pub catering, in short, medium and long term, 17 July 2020
- Companies and brands
- Some operators grew sales despite reduced outlet numbers in 2019
- Slowing down of outlet expansion in the short term
- COVID-19 has forced pub sector to embrace technology
- The consumer
- The rise of breakfast, brunch and snacking occasions
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- Figure 3: Pub meal occasions, 2018-2020
- More can be done to promote house-made snacks
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- Figure 4: Types of snacks eaten in pubs, March 5-18 2020
- Millennials leading the charge toward moderation
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- Figure 5: Types of drinks consumed with a meal/snack in pubs, March 5-18 2020
- Healthy pubs chime with younger consumers
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- Figure 6: Behaviours related to drinks in pubs/bars, March 5-18 2020
- Value for money differs between younger and older consumers
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- Figure 7: Most popular menu options when visiting a pub/bar to eat, March 5-18 2020
- Reduce meat-free prices to gain traction
- Date nights for parents offer an opportunity
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- Figure 8: Attitudes towards pubs/bars, March 5-18, 2020
- Desire to support local, but unwilling to pay more
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- Figure 9: Qualities of an ideal pub/bar, March 5-18 2020
- What we think
The Impact of COVID-19 on Pub Catering
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- The market
- Pubs finally given the green light to re-open
- Government support to help the recovery of food-led pubs/bars
- COVID-19 has given takeaway/home delivery services new sense of urgency
- The consumer
- Pub menus will be forced to react to greater focus on health and wellbeing
- More will turn to “pub grub” delivery
- Desire to support local, but unwilling to pay more
- Improving value proposition to win back financially-strapped consumers
- Companies and brands
- COVID-19 crisis will spur on further mergers and acquisitions
- Investing in food franchising may help wet-led pubs/bars stay afloat during COVID-19
- Slowing down of outlet expansion in the short term
- COVID-19 has forced pub sector to embrace technology
- COVID-19: Market context
Issues and Insights
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- Understanding TeePartialism and flexitarian lifestyles
- The facts
- The implications
- Help consumers reduce stress
- The facts
- The implications
- The good-better-best pricing strategy
- The facts
- The implications
The Market – What You Need to Know
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- Pubs finally given the green light to re-open
- Government support to help the recovery of food-led pubs/bars
- Low-/no-alcohol matters
- Plastic waste in the pandemic
Market Drivers
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- Pubs finally given the green light to re-open
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- Figure 10: Consumers' comfort level eating out of home, July 16-22, 2020
- Pub catering recovered swiftly in last recession
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- Figure 11: Pub catering market size and forecast, 2007-12
- Unprecedented government support
- Bank loans
- Guidelines
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- Figure 12: JD Wetherspoon’s safety guidelines, July 4 2020
- Meal vouchers and VAT cut
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- Figure 13: Eat Out to Help Out scheme: promotional materials
- Slowing down of outlet expansion
- Low-/no-alcohol matters
- Plastic waste in the pandemic
Companies and Brands – What You Need to Know
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- Some operators grew sales despite reduced outlet numbers in 2019
- COVID-19 crisis will spur on further mergers and acquisitions
- COVID-19 has forced pub sector to embrace technology
- “Pub grub” delivery during COVID-19
Performance of Selected Leading Companies
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- Some operators grew sales despite reduced outlet numbers in 2019
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- Figure 14: Turnover of selected leading managed pub operators in the UK, 2014/15-2018/19
- Figure 15: Turnover of selected tenanted/leased operators in the UK, 2014/15-2018/19
- Major mergers and acquisitions started before COVID-19
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- Figure 16: Selected leading pub operators in the UK, by outlet numbers, 2014-19
Launch Activity and Innovation
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- New customer experiences
- Snacks and drink pairings
- Pub “grub” delivery
- Virtual experiences
- Digital order and pay
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- Figure 17: PayPal app feature that allows customers to pay a merchant by scanning a QR code
- Thoughtful usage and consumption
- Repurposing ethanol
- Recyclable packaging
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- Figure 18: 100% plastic free soft punch range, by Punchy Drinks
Brand Research
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- Brand map
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- Figure 19: Attitudes towards and usage of selected brands, April 2020
- Key brand metrics
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- Figure 20: Key metrics for selected brands, April 2020
- Brand attitudes: Harvester possesses strong wellness association
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- Figure 21: Attitudes, by brand, April 2020
- Brand personality: Slug & Lettuce most exclusive
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- Figure 22: Brand personality – macro image, April 2020
- Harvester, Beefeater, Hungry Horse the most kid-friendly venues
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- Figure 23: Brand personality – micro image, April 2020
- Brand analysis
- Slug & Lettuce is considered exclusive
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- Figure 24: User profile of Slug & Lettuce, April 2020
- JD Wetherspoon is a household name
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- Figure 25: User profile of JD Wetherspoon, April 2020
- Harvester successful at attracting an affluent crowd
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- Figure 26: User profile of Harvester, April 2020
- Hungry Horse attracts Baby Boomers and Millennials
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- Figure 27: User profile of Hungry Horse, April 2020
- Beefeater needs to improve brand experience
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- Figure 28: User profile of Beefeater, April 2020
The Consumer – What You Need to Know
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- The rise of breakfast, brunch and snacking occasions
- More can be done to promote house-made snacks
- Millennials leading the charge toward moderation
- Value for money differs between younger and older consumers
- Reduce meat-free prices to gain traction
- Date nights for parents offer an opportunity
- Desire to support local, but unwilling to pay more
Pub Meal Occasions
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- The rise of breakfast, brunch and snacking occasions
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- Figure 29: Pub meal occasions, 2018-2020
- Pivot to delivery to retain usage
Popular Food Formats
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- Hot foods are comforting
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- Figure 30: Types of meals eaten in pubs, March 5-18 2020
- More can be done to promote house-made snacks
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- Figure 31: Types of snacks eaten in pubs, March 5-18 2020
Drinks Trends
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- Millennials leading the charge toward moderation
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- Figure 32: Types of drinks consumed with a meal/snack in pubs, March 5-18 2020
- Moderation will boost soft drinks sales
- Pub visitors want stress-free experiences
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- Figure 33: Behaviours related to drinks in pubs/bars, March 5-18 2020
Most Popular Menu Options
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- Value for money across age groups
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- Figure 34: Most popular menu options when visiting a pub/bar to eat, March 5-18 2020
- Tiered pricing caters to different value perceptions
Attitudes and Behaviours towards Pubs or Bars
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- Reduce meat-free prices to gain traction
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- Figure 35: Attitudes towards pubs/bars, March 5-18 2020
- City-based family-friendly pubs/bars should offer healthful choices
- Pub diners are not opposed to eating out of a packet – CHAID analysis
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- Figure 36: Pub catering – CHAID – tree output, March 5-18 2020
Pub Catering Purchase Drivers
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- Three priorities for pub dining in the wake of COVID-19
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- Figure 37: Purchase drivers when choosing a pub/bar to eat at, March 5-18 2020
- Date nights for parents offers an opportunity
- Technology helps shift towards contactless experience
- Brand communication integral to dining experience
Ideal Qualities of a Pub or Bar
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- Desire to support local goods…
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- Figure 38: Qualities of an ideal pub/bar, March 5-18 2020
- … but unwilling to pay more
- Three ways to help consumers feel less lonely
- Support the local community
- Create zones for smaller groups
- Organise live and virtual events simultaneously
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
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- Figure 39: Pub catering – CHAID – table output, March 5-18 2020
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