Independent pubs appear to be in the middle when it comes to performance of the varying pub business models: managed pub groups have benefitted during the recession from their significant buying power and ability to offer extremely competitive pricing, tenanted/leased venues have been significantly hampered by their supply ties which has left many uncompetitive on pricing for consumers. Although independent venues do not have the financial or knowledge backing of the big managed pub groups, they have benefitted during the recession from the greater operational flexibility they enjoy and the fact that their cost base is lower and more controllable than that of many of their rivals, especially tenanted/leased pubs.

The most pressing concern for independent licensees, besides the current weakness of the economy and consumer confidence, is the fact that their overheads are increasing rapidly at a time when their turnover is declining. Additionally, they do not like the fact that they have little control over these cost increases, which as independents usually in absolute control of their businesses is something that they are not used to.

This report assesses the current status of the market and how independents are dealing with the impact of the current recession. It considers the hypothesis that independents are actually better placed than most other types of pub to withstand recessionary pressures. Mintel last reported on this market in July 2007.

Main issues

How valuable is the operational flexibility that independent pubs have compared to tenants/lessees of pub companies and breweries?

Are independents able to compete effectively with other outlets on price?

What has been the effect of the economic downturn on independent outlets?

How have legislative issues and the smoking ban impacted the pub market?

How are pub companies dealing with sharply increased overheads?