Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Independent Pubs - UK - July 2009

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?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Main issues
        • Definition
          • Abbreviations
          • Future Opportunities

            • Strength in numbers?
              • Putting people in the picture
              • Market in Brief

                • Independents suffer… but not as much as some
                  • Figure 1: Trends in indexed sales of total pub market and independent pub market, 2004-09
                • Outlet numbers resume gentle decline
                  • Economy and rising overheads key concerns for independents
                    • Business model ensures independents can compete on price
                      • Keeping a point of differentiation is key to survival
                        • Masters of their own destiny enjoy being in control
                        • Internal Market Environment

                          • Key points
                            • Ownership structure of pub industry set to shift?
                              • Figure 2: Structure of the pub industry, by ownership type, 2004 and 2008
                              • Figure 3: Leading pub operators, by total outlet numbers, September 2008
                            • Independents well placed to weather storm of pub closures
                              • Figure 4: Net pub closures in the UK, 2005-08
                            • Changing alcohol consumption patterns force pubs to shift focus
                              • Figure 5: Trends in the pattern of beer consumption, 2004-09
                              • Figure 6: Trends in beer sales, by channel, 2004-09
                            • Cheap supermarket alcohol impacts on pubs in several ways
                              • Figure 7: Trends in prices of on- and off-trade alcohol versus all items and food, 2004-09
                              • Figure 8: Average price paid for a pint of draught lager in UK, 1990-2008
                              • Figure 9: Trends in real ale and lager prices in pubs, 2008 and 2009
                            • Alcohol duty increases hit independents where it hurts
                              • Figure 10: Trends in combined excise duty receipts for different types of alcoholic drink, 2001/02-2008/09
                              • Figure 11: Recent trends in alcohol duties, 2004-09
                            • Cost pressures
                              • Utilities worries sap independent publicans’ energy levels
                                • Figure 12: Trends in the price of gas and electricity* for non-domestic customers, 2004-09
                              • Staff costs move inexorably upwards
                                • Costlier food eats into profit margins
                                  • Figure 13: Trends in the price of food, 2004-09
                                • Sky dishes out further pain for licensees
                                  • Business rates
                                    • Smoking ban impact no worse for independents than others
                                      • Relaxation of opening hours gives greater flexibility
                                        • Figure 14: 24-hour licences, 2007 and 2008
                                    • Broader Market Environment

                                      • Key points
                                        • Home is where the heart is?
                                          • Figure 15: Agreement with lifestyle statements, 2004-08
                                        • Consumers are more family-focused
                                          • Figure 16: Leisure habits, 2004-08
                                        • Onset of recession changes consumer attitudes towards spending
                                          • Figure 17: Attitudes towards money and personal finance, 2004-08
                                        • Disposable incomes and spending under pressure
                                          • Figure 18: Trends in personal disposable income and consumer expenditure, 2004-14
                                        • Adapting to changing demographics
                                          • Figure 19: Structure of the UK 18+ population, by age, 2004-14
                                        • Growth in affluent groups set to help independents
                                          • Figure 20: Changes in socio-economic group among the UK 18+ population, 2004-09 and 2009-14
                                      • Competitive Context

                                        • Key points
                                          • A pub market under threat from many angles…
                                            • Figure 21: UK pub industry market size trends, 2004-09
                                          • … but still popular with consumers
                                          • Strengths and Weaknesses in the Market

                                              • Strengths
                                                • Buying/sourcing flexibility
                                                  • Wide range of beers
                                                    • Freedom on promotions
                                                      • No rent to pay to leaseholder
                                                        • Stock speciality/locally-sourced products
                                                          • Weaknesses
                                                            • Cannot get discounts of larger multiple rivals
                                                              • Responsible for finding and sourcing product
                                                                • Core product in decline
                                                                  • Declining distribution channel
                                                                  • Who’s Innovating?

                                                                    • Key points
                                                                      • Ditching the safety net of known brands
                                                                        • Grow your own – literally
                                                                          • Bartering for a meal or drink
                                                                            • No such thing as a free lunch – or is there?
                                                                            • What are the Plus Points of Being Independent?

                                                                              • Key points
                                                                                • How important is freedom from the tie?
                                                                                  • Swings and roundabouts
                                                                                    • Job roles
                                                                                    • What Are Independent Pub Operators’ Most Pressing Concerns?

                                                                                      • Key points
                                                                                        • The economic downturn
                                                                                          • Operational concerns
                                                                                            • Alcohol duties
                                                                                              • Business rates
                                                                                                • Food inflation
                                                                                                  • Staff costs
                                                                                                    • Sky TV
                                                                                                      • Utilities
                                                                                                      • How do Independent Pubs View Competition from Supermarkets?

                                                                                                        • Key points
                                                                                                          • Competition from the off-trade
                                                                                                            • Binge drinking
                                                                                                              • In- versus out-of-home drinking
                                                                                                                • Vive la difference!
                                                                                                                • How do Independent Pubs View Competition from Other Types of Pub?

                                                                                                                  • Key points
                                                                                                                    • Competition from managed pub groups
                                                                                                                      • Price positions
                                                                                                                      • Independent Pubs and Food

                                                                                                                        • Key points
                                                                                                                          • Wet-led woes…
                                                                                                                            • … while food can fortify sales
                                                                                                                              • Figure 22: Pub catering market, 2003-13
                                                                                                                            • Consumers more aware of importance of provenance and healthy eating
                                                                                                                              • Balancing consumer intentions and consumer’s actual purchasing habits
                                                                                                                                • Menu flexibility
                                                                                                                                  • Tapping into the breakfast catering trend?
                                                                                                                                  • How Have they Responded to Recessionary Pressures?

                                                                                                                                    • Key points
                                                                                                                                      • Price-led promotions
                                                                                                                                        • Events and theme nights
                                                                                                                                          • Trading on community spirit
                                                                                                                                            • Marketing budgets and advertising campaigns
                                                                                                                                              • Growing role of internet marketing
                                                                                                                                              • How Has Consumer Behaviour Changed in the Past Year?

                                                                                                                                                • Key points
                                                                                                                                                  • Has the type of consumers coming into independent pubs changed recently?
                                                                                                                                                    • The impact of recessionary forces
                                                                                                                                                      • Lunchtime trade suffering the most
                                                                                                                                                        • Evening trade is holding up better but consumer habits are changing
                                                                                                                                                          • Discretionary expenditure being curbed
                                                                                                                                                            • The winners…
                                                                                                                                                              • … and losers
                                                                                                                                                                • Drink Local!
                                                                                                                                                                • Independent Pubs and Customer Relations

                                                                                                                                                                  • Key point
                                                                                                                                                                    • Traditional CRM techniques
                                                                                                                                                                      • Increasing role of the internet
                                                                                                                                                                      • Other Issues

                                                                                                                                                                        • Key points
                                                                                                                                                                          • How has the smoking ban impacted on independent pubs?
                                                                                                                                                                            • To what extent are independents looking to diversify?
                                                                                                                                                                              • How much support do independents receive from outside organisations?
                                                                                                                                                                              • Market Size and Forecast

                                                                                                                                                                                • Key points
                                                                                                                                                                                  • Independent sector withstands pressures better than most
                                                                                                                                                                                    • Figure 23: UK independent pub market, key statistics, 2004-14
                                                                                                                                                                                  • Present market performance
                                                                                                                                                                                    • Future market performance
                                                                                                                                                                                    • What do People Visit Pubs For and How Often?

                                                                                                                                                                                      • Key points
                                                                                                                                                                                        • Pub visiting turns down in 2008
                                                                                                                                                                                          • Figure 24: Pub visiting trends, 2004-08
                                                                                                                                                                                        • Drink and a meal visitors defined by affluence
                                                                                                                                                                                          • Drinkers tend to be younger and male…
                                                                                                                                                                                            • … while diners are more likely to be female and third agers
                                                                                                                                                                                              • Visiting frequency falls off, particularly for evening trade
                                                                                                                                                                                                • Figure 25: Pub visiting trends, by frequency, 2004-08
                                                                                                                                                                                              • Daytime drinkers skewed towards men, older and less affluent
                                                                                                                                                                                                • Evening drinkers biased towards younger singles
                                                                                                                                                                                                  • Daytime diners polarised
                                                                                                                                                                                                    • Evening diners also skewed to younger singles
                                                                                                                                                                                                    • How Much and to Whom Does Sport in Pubs/Bars Appeal?

                                                                                                                                                                                                      • Key points
                                                                                                                                                                                                        • Appeal of TV sport in pubs dips slightly
                                                                                                                                                                                                          • Figure 26: Visiting pubs/bars or clubs to watch sport, 2006-08
                                                                                                                                                                                                        • Football still tops the list
                                                                                                                                                                                                          • Figure 27: Sports watched in pubs/bars or clubs, by frequency, 2006-08
                                                                                                                                                                                                        • Rugby’s broad appeal
                                                                                                                                                                                                          • Cricket and golf have older, male bias
                                                                                                                                                                                                          • What do People Think about Drinking and Pubs?

                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                              • Home drinking predominates
                                                                                                                                                                                                                • Figure 28: Attitudes towards drinking and pubs, 2004-08
                                                                                                                                                                                                            • Appendix – Broader Market Environment

                                                                                                                                                                                                              • Lifestyle statements, by detailed demographics
                                                                                                                                                                                                                • Figure 29: Lifestyle statements, by detailed demographics, 2008
                                                                                                                                                                                                              • Devotion of time to leisure activities (excluding television), by detailed demographics
                                                                                                                                                                                                                • Figure 30: Devotion of time to leisure activities (excluding television), by detailed demographics, 2008
                                                                                                                                                                                                              • Leisure habits, by detailed demographics
                                                                                                                                                                                                                • Figure 31: Leisure habits, by detailed demographics, 2008
                                                                                                                                                                                                              • Attitudes towards money and personal finance, by detailed demographics
                                                                                                                                                                                                                • Figure 32: Attitudes towards money and personal finance, by detailed demographics, 2008
                                                                                                                                                                                                            • Appendix – What do People Visit Pubs For and How Often?

                                                                                                                                                                                                              • Pub visiting trends, by detailed demographics
                                                                                                                                                                                                                • Figure 33: Pub visiting trends, by detailed demographics, 2008
                                                                                                                                                                                                              • Daytime drinking frequency, by detailed demographics
                                                                                                                                                                                                                • Figure 34: Daytime drinking frequency, by detailed demographics, 2008
                                                                                                                                                                                                              • Evening drinking frequency, by detailed demographics
                                                                                                                                                                                                                • Figure 35: Evening drinking frequency, by detailed demographics, 2008
                                                                                                                                                                                                              • Daytime pub meal frequency, by detailed demographics
                                                                                                                                                                                                                • Figure 36: Daytime pub meal frequency, by detailed demographics, 2008
                                                                                                                                                                                                              • Evening pub meal frequency, by detailed demographics
                                                                                                                                                                                                                • Figure 37: Evening pub meal frequency, by detailed demographics, 2008
                                                                                                                                                                                                            • Appendix – How Much and to Whom Does Sport in Puns/Bars Appeal?

                                                                                                                                                                                                              • Watching sport in pubs/clubs or bars, by detailed demographics
                                                                                                                                                                                                                • Figure 38: Watching sport in pubs/clubs or bars, by detailed demographics, 2008
                                                                                                                                                                                                              • Types of sport watched at pubs/bars/clubs, by detailed demographics
                                                                                                                                                                                                                • Figure 39: Types of sport watched at pubs/bars/clubs, by detailed demographics, 2008
                                                                                                                                                                                                            • Appendix – What do People Think About Drinking and Pubs?

                                                                                                                                                                                                                • Figure 40: Attitudes towards drinking, by detailed demographics, 2008

                                                                                                                                                                                                            Companies Covered

                                                                                                                                                                                                            • Asda Group Ltd
                                                                                                                                                                                                            • Bacardi-Martini Ltd
                                                                                                                                                                                                            • Bebo Inc
                                                                                                                                                                                                            • British Beer and Pub Association
                                                                                                                                                                                                            • British Market Research Bureau (BMRB)
                                                                                                                                                                                                            • Enterprise Inns Plc
                                                                                                                                                                                                            • Facebook, Inc.
                                                                                                                                                                                                            • Google UK
                                                                                                                                                                                                            • Guinness
                                                                                                                                                                                                            • HM Revenue & Customs
                                                                                                                                                                                                            • JD Wetherspoon
                                                                                                                                                                                                            • Mitchells & Butlers Plc
                                                                                                                                                                                                            • Office for National Statistics
                                                                                                                                                                                                            • Tesco Plc
                                                                                                                                                                                                            • Twitter, Inc.

                                                                                                                                                                                                            Independent Pubs - UK - July 2009

                                                                                                                                                                                                            £1,995.00 (Excl.Tax)