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Description

Description

“Millennials are particularly likely to view pubs as all-round leisure experiences and are receptive to new and more unusual forms of entertainment. The difficulty for landlords will be to cater for these more open-minded pub-goers while also meeting the needs of more traditional patrons who tend to see the pub as a more relaxed venue.”

– Emma Clifford, Associate Director - Food & Drink

This report examines the following issues:

  • Drinks companies are rebuilding their pub estates
  • Rising wages put a further squeeze on profit margins
  • The importance of cask and pub/brewer collaboration
  • Pubs can act as entertainment venues

What's included

What's included

Table of contents

Table of contents

  1. 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

                                                                                                                                                                                                                    About the report

                                                                                                                                                                                                                    This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                                                                                    • The Consumer

                                                                                                                                                                                                                      What They Want. Why They Want It.

                                                                                                                                                                                                                    • The Competitors

                                                                                                                                                                                                                      Who’s Winning. How To Stay Ahead.

                                                                                                                                                                                                                    • The Market

                                                                                                                                                                                                                      Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                                                                                    • The Innovations

                                                                                                                                                                                                                      New Ideas. New Products. New Potential.

                                                                                                                                                                                                                    • The Opportunities

                                                                                                                                                                                                                      Where The White Space Is. How To Make It Yours.

                                                                                                                                                                                                                    • The Trends

                                                                                                                                                                                                                      What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                                                                                    Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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