Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Pubs benefit from strength of eating out market
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- Figure 1: Forecast for total UK pub industry revenues, 2011-21
- Consumers opting for quality over quantity in alcoholic drinks
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- Figure 2: Forecast for UK pub industry revenues of alcoholic drinks, 2011-21
- Pub meals benefit from move towards more food-led venues
- Pubs need to grow sales in the face of rising costs
- Brexit uncertainty and rising costs
- Consumers cutting back on alcohol
- Companies and brands
- Managed pubs boosting pub sales
- Enterprise Inns becomes Ei Group
- Greene King concentrating on conversions to five growth brands
- Weatherspoon rolls out new ordering phone app
- Mitchells and Butlers accelerates capital investment
- Punch backs takeover bid by Heineken and Patron Capital
- The consumer
- More than nine in ten Brits go to pubs/bars
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- Figure 3: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2017
- Three in ten adults cutting back on pub visits
- Weekends the most popular time for visiting
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- Figure 4: Reasons for going to pubs/bars, March 2017
- High quality food most important to pub choice
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- Figure 5: Factors most likely to influence choice of pub/bar, March 2017
- Strong demand for quiet areas in pubs
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- Figure 6: Attitudes towards pubs/bars, March 2017
- What we think
Issues and Insights
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- Increasing costs mean pubs need to find ways to grow sales just to stand still on profits
- The facts
- The implications
- Flexible use of space and zoning needed to maximise appeal of pubs
- The facts
- The implications
- Digital technology has an important role to play in driving pub visits
- The facts
- The implications
The Market – What You Need to Know
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- Pubs benefit from strength of eating out market
- Consumers opting for quality over quantity in alcoholic drinks
- Pub meals benefit from move towards more food-led venues
- Pubs need to grow sales in face of rising costs
- Managed pubs boosting total pub sales
- Brexit uncertainty but consumer confidence holding up so far
- Rising costs on the cards for pub operators in 2017
- Soft drinks levy coming in 2018
- Consumers cutting back on alcohol
- Pubs have less appeal to ageing population
Market Size and Forecast
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- Pub sector benefits from strength of eating out market
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- Figure 7: UK pub industry market size and forecast, 2011-21
- Consumers opting for quality over quantity in alcoholic drinks
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- Figure 8: Estimated UK pub industry turnover, by segment, 2012-16
- Pub meals account for nearly a third of pub sales
- Stronger sales of soft drinks through pubs/bars
- Increasing costs mean pubs need to grow sales to stand still
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- Figure 9: Forecast for total UK pub industry revenues, 2011-21
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- Figure 10: Forecast for UK pub industry revenues of alcoholic drinks, 2011-21
- Forecast methodology
Segment Performance
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- Managed pubs boosting total pub sales
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- Figure 11: Turnover of selected leading pub operators in the UK, 2011/12-2015/16
- Move away from tenanted and leased pubs
- Free houses also an important part of the market
Market Drivers
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- Brexit uncertainty for pubs sector
- Confidence holding up but income squeeze on the way
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- Figure 12: Trends in how respondents would describe their financial situation, February 2009-February 2017
- Rising costs on the cards for pub operators in 2017
- National Living Wage and National Minimum Wage
- Apprenticeship Levy
- Revaluation of business rates
- Alcohol excise duties increase by RPI inflation
- Rising inflation puts further pressure on pubs
- New Pubs Code for tied leased and tenancy agreements
- Lords call for licensing committees and late-night levies to be scrapped
- Soft drinks levy coming in 2018
- New alcohol guidelines and cutting back on alcohol
- Pubs have less appeal to ageing population
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- Figure 13: Trends in the age structure of the UK population, 2011-21
Companies and Brands – What You Need to Know
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- Shift towards more managed pubs
- Enterprise Inns becomes Ei Group
- Greene King converting pubs to growth brands
- Weatherspoon rolls out new ordering phone app
- Mitchells and Butlers accelerates capital investment
- Punch backs takeover bid by Heineken and Patron Capital
Selected Leading Companies
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- Market overview
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- Figure 14: Selected leading pub operators in the UK, by outlet numbers, 2012-16
- Ei Group Plc (formerly Enterprise Inns)
- Financial performance
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- Figure 15: Key financial data for Enterprise Inns Plc, 2012-16
- Figure 16: Enterprise Inns Plc turnover, by segment, 2012-16
- Selected recent activity and innovation
- Greene King Plc
- Financial performance
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- Figure 17: Key financial data for Greene King Plc, 2012-16*
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- Figure 18: Greene King Plc revenue, by segment, 2012-16*
- Figure 19: Segmental information for Greene King and Spirit Pub Company, 2016
- Selected recent activity and innovation
- JD Wetherspoon Plc
- Financial performance
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- Figure 20: Key financial data for JD Wetherspoon Plc, 2012-16
- Selected recent activity and innovation
- Mitchells & Butlers Plc
- Financial performance
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- Figure 21: Key financial data for Mitchells & Butlers Plc, 2012-16
- Selected recent activity and innovation
- Punch Taverns
- Financial performance
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- Figure 22: Key financial data for Punch Taverns Plc, 2012-16
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- Figure 23: Punch Taverns Plc revenue, by segment, 2012-16
- Selected recent activity and innovation
The Consumer – What You Need to Know
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- More than nine in ten Brits visit pubs/bars
- Majority of people visit pubs to eat infrequently
- Three in ten adults cutting back on pub visits
- Weekends the most popular time for visiting
- Entertainment can also help generate footfall
- High quality food most important
- Customer service can make a difference
- Strong demand for quiet areas in pubs
- Digital and social media important communication tools
Frequency of Visiting Pubs/Bars
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- More than nine in ten Brits go to pubs/bars
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- Figure 24: Visiting pubs/bars to eat or drink in, by time of day, March 2017
- Majority of people only visit pubs/bars to eat infrequently
- Younger age groups are core pub diners
- Over-55s visit more during the day
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- Figure 25: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2017
- More frequent drinking in pubs shows younger, male bias
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- Figure 26: Drink-led visits to pubs/bars more than once a month during the day and in the evening, by gender and age, March 2017
Changes to Pub Visiting and Average Spend per Visit
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- Three in ten adults cutting back on pub visits
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- Figure 27: Changes in frequency of visiting pubs/bars compared to 12 months ago, March 2017
- 18-24s and top income households most likely to have upped visits
- Spending per visit shows less change
- 18-24s most likely to have upped pub/bar spend
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- Figure 28: Changes in average spending per pub visit compared to 12 months ago, March 2017
Reasons for Visiting Pubs/Bars
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- Weekends are the most popular time for visiting
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- Figure 29: Reasons for going to pubs/bars, March 2017
- Pubs’ role as social space endures
- Meals and special occasions a bigger reason for women to visit pubs
- Entertainment can help generate footfall on quieter days
- New menus and promotions can help trigger visits
Factors Influencing Choice of Pub/Bar
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- High quality food most important
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- Figure 30: Factors most likely to influence choice of pub/bar, March 2017
- Price matters to more than half
- Friendly and quick service can make a difference
- Outdoor facilities add to the appeal of pubs
- Drinks offer less important than food menu
Attitudes towards Pubs/Bars
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- Strong demand for quiet areas in pubs
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- Figure 31: Attitudes towards pubs/bars, March 2017
- Table service can improve the pub experience
- Digital and social media are important communication tools
- Many patrons research pubs before visiting
- More than a quarter like to follow pubs on social media
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- Figure 32: Attitudes towards pubs/bars’ online presence and social media, by age, March 2017
- More than a third interested in calorie counts on drinks menus
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecasts
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- Figure 33: UK pub industry revenue, by segment, 2011-21
- Figure 34: Best- and worst-case forecasts for the UK pub market, 2016-21
- Figure 35: Best- and worst-case forecasts for UK pub industry revenues of alcoholic drinks, 2016-21
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- Figure 36: Forecast for UK pub industry catering (meals) revenues, 2011-21
- Figure 37: Forecast for UK pub industry soft drinks revenues, 2011-21
- Figure 38: Forecast for UK pub industry revenues of other items*, 2011-21
- Forecast methodology
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