Table of Contents
Overview
-
- What you need to know
- Covered in this report
Executive Summary
-
- The market
- Premiumisation helps drinks sales to rise strongly in 2017
-
- Figure 1: Forecast for total UK pub industry revenues, 2012-22
- Food becomes more important in many pubs
- A changing pub landscape
- Pub closures remain commonplace
- Pub operators continue to face rising costs
- The soft drinks levy arrives
- Companies and brands
- Market overview
- Operator overview
- The consumer
- 88% of Brits visit pubs
-
- Figure 2: Visiting pubs/bars to eat or drink in, by time of day, March 2017 vs April 2018
- Friends are key for driving pub visits
- Visiting pubs with others generates the highest share of £25+ spending
- Live music is the most popular source of entertainment for pub visitors
-
- Figure 3: Pub activities and sources of entertainment, April 2018
- Clean toilets and high quality food important for the majority
- High prices and long waits are the main pub deterrents
-
- Figure 4: Factors which deter pub visits, April 2018
- What we think
Issues and Insights
-
- Drinks companies are rebuilding their pub estates
- The facts
- The implications
- Rising wages put a further squeeze on profit margins
- The facts
- The implications
- The importance of cask and pub/brewer collaboration
- The facts
- The implications
- Pubs can act as entertainment venues
- The facts
- The implications
The Market – What You Need to Know
-
- Premiumisation helps drinks sales to rise strongly in 2017
- Food becomes more important in many pubs
- A changing pub landscape
- Pub closures remain commonplace
- Pub operators continue to face rising costs
- The soft drinks levy arrives
Market Size and Forecast
-
- Increasing costs mean pubs need to grow sales to stand still
- Food and drink sales boost pub revenues
-
- Figure 5: UK pub industry market size and forecast, 2012-22
-
- Figure 6: Forecast for total UK pub industry revenues, 2012-22
- Forecast methodology
- Premiumisation helps drinks sales to rise strongly in 2017
-
- Figure 7: Estimated UK pub industry turnover, by segment, 2013-17
-
- Figure 8: Forecast of UK pub industry turnover, by segment, 2018-22
- Pub meals rising to account for nearly a third of pub sales
- Soft drink sales stumble in 2017
Market Segmentation
-
- A changing pub landscape
-
- Figure 9: Estimated composition of pub industry venue numbers, 2018
-
- Figure 10: Estimated share of revenues in the pub industry, by type of venue, 2018
- Managed pubs industry revenues
-
- Figure 11: Turnover of selected leading managed pub operators in the UK, 2012/13-2016/17
-
- Figure 12: Turnover of selected leading tenanted/leased pub operators in the UK, 2012/13-2016/17
- The tenanted/leased segment struggles
- Free houses on the up
Market Drivers
-
- Brexit uncertainty for pubs sector
- Pub closures remain commonplace
- Pub operators continue to face rising costs
- National Living Wage and National Minimum Wage
- Apprenticeship Levy
- Revaluation of business rates
- Alcohol duty continues to rise
-
- Figure 13: UK excise duty rates for beer and other alcoholic drinks, 2007-17
- Utilities and live sport costs add pressures on publicans
-
- Figure 14: Utility prices paid by non-domestic consumers (including the Climate Change Levy), 2007-17*
- Sports TV subscriptions
- New Pubs Code for tied leased and tenancy agreements
- 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
- The soft drinks levy arrives
- New alcohol guidelines and cutting back on alcohol
- Pubs have less appeal to an ageing population
-
- Figure 15: Change in age structure of the UK population, 2012-17 and 2017-22
Companies and Brands – What You Need to Know
-
- Market overview
- Ei Group focuses more on managed operations such as The Craft Union Pub Company
- Greene King’s Spirit estate boosts revenues
- JD Wetherspoon continues to grow despite a reduced estate
- Mitchells & Butlers (M&B) raises money by disposing of sites
- Punch Taverns acquired by Heineken and Patron Capital
Selected Leading Companies
-
- Market overview
-
- Figure 16: Selected leading pub operators in the UK, by outlet numbers, 2013-17
- Ei Group (formerly Enterprise Inns)
- Company overview
- Financial performance
-
- Figure 17: Key financial data for Enterprise Inns (Ei Group) Plc, 2013-17
- Figure 18: Enterprise Inns (Ei Group) Plc turnover, by segment, 2013-17
- Selected recent activity and innovation
- Greene King
- Company overview
- Financial performance
-
- Figure 19: Key financial data for Greene King Plc, 2013-17
-
- Figure 20: Greene King Plc revenue, by segment, 2013-17*
- Selected recent activity and innovation
- JD Wetherspoon
- Company overview
- Financial performance
-
- Figure 21: Key financial data for JD Wetherspoon Plc, 2013-17
- Selected recent activity and innovation
- Mitchells & Butlers
- Company overview
- Financial performance
-
- Figure 22: Key financial data for Mitchells & Butler Plc, 2013-17
- Selected recent activity and innovation
- Punch Taverns
- Company overview
- Financial performance
-
- Figure 23: Key financial data for Punch Taverns Plc, 2013-17
- Figure 24: Punch Taverns Plc revenue, by segment, 2013-17
- Selected recent activity and innovation
The Consumer – What You Need to Know
-
- 88% of Brits visit pubs
- Friends are key for driving pub visits
- Visiting pubs with others generates the highest share of £25+ spending
- Live music is the most popular source of entertainment for pub visitors
- Clean toilets and high quality food important for the majority
- High prices and long waits are the main pub deterrents
Frequency of Visiting Pubs/Bars
-
- 88% of Brits visit pubs
-
- Figure 25: Visiting pubs/bars to eat or drink in, by time of day, March 2017 vs April 2018
- Under-55s are key pub diners
-
- Figure 26: Frequency of visiting pubs/bars/nightclubs to eat and drink in, April 2018
- Men and younger consumers are core drinkers in pubs/bars
-
- Figure 27: Visiting pubs/bars/nightclubs to drink in at different times of day, by gender and age, April 2018
Pub Visiting and Spending Habits
-
- Friends are key for driving pub visits
-
- Figure 28: People with whom pub drinkers visit pubs, April 2018
- Visits with partners and families are also important …
- … while 16% go to pubs alone
- Visiting pubs with others generates the highest share of £25+ spending
-
- Figure 29: Pub spending habits, April 2018
- Visiting with a partner can also generate significant spending
- Solo pub visits generate lower spending
Pub Entertainment
-
- Live music is the most popular source of entertainment for pub visitors
-
- Figure 30: Pub activities and sources of entertainment, April 2018
- Live sport appeals to many but can be divisive
- ‘Classic’ pub entertainment activities remain popular
- Karaoke nights hold limited appeal
- Newer types of entertainment can also resonate with many pub-goers
- 16% of pub-goers are attracted by four or more types of entertainment
-
- Figure 31: Repertoire of pub activities and sources of entertainment, April 2018
Pub Enticements
-
- Clean toilets and high quality food important for the majority
-
- Figure 32: Importance of pub features and facilities, April 2018
- Good ranges of drinks also important
-
- Figure 33: Importance of a good range of alcoholic and soft drinks, by gender and age, April 2018
- Parking spaces are also important for the majority
- Many pub-goers also like to visit with family and pets
- Traditional features are important to 48% of pub-goers
Pub Deterrents
-
- High prices and long waits are the main pub deterrents
-
- Figure 34: Factors which deter pub visits, April 2018
- Facilities such as seating are also important for many pub-goers
- Loud venues can deter many pub-goers
- Live sport remains divisive
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Best- and worst-case forecast data
-
- Figure 35: Total pub industry revenues, best- and worst-case forecast, 2017-22
- Figure 36: Alcoholic drink revenues in pubs, best- and worst-case forecast, 2017-22
- Figure 37: Catering revenues in pubs, best- and worst-case forecast, 2017-22
- Figure 38: Soft drink revenues in pubs, best- and worst-case forecast, 2017-22
- Figure 39: Other item* revenues in pubs, best- and worst-case forecast, 2017-22
-
- Figure 40: Forecast for pub alcoholic drink revenues, 2012-22
- Figure 41: Forecast for pub catering revenues, 2012-22
- Figure 42: Forecast for pub soft drink revenues, 2012-22
- Figure 43: Forecast for other item revenues, 2012-22
- Forecast methodology
Back to top