Abstract
The introduction of the smoking ban, spiralling raw material, energy and employment costs, terrible summer weather and the continued erosion of the beer market have piled troubles on pubs in recent years. While these threats continue to erode margins, the greatest concern for industry executives is the prospect of a slowdown in consumer spending.
Pubs are undergoing something of a metamorphosis: the smoking ban has created a change of atmosphere and customer profile with more women, families and older generations now eating and drinking in such establishments. However, customers are less regular and declining in numbers by around 2.5% since 2003. Cheap supermarket prices have led people to drink more at home. Some pubs have not been able to adapt and move with the times and are closing at a rate of 27 a week. Pub food has been the saviour for many and represents an increasing 29% of pub sales; in the last five years this has grown from 23%. Revenue from food is predicted to grow by 3% annually for the next few years.
This report looks at the hypothesis: "Why hasn' t food saved the traditional British pub?" It provides consumer behaviour and attitudinal data towards eating in pubs and what influences their choices, trade comment on what changes are being made to keep up with changing customer needs and insight into the future trends and issues facing the industry.
Key report themes:
- Will consumers continue to spend their stretched incomes on eating out in pubs?
- With rising costs, will pub catering continue to deliver sufficient margins to keep food on the agenda?
- What impact has the smoking ban had on pubs?
- Is there a need for pubs to diversify?
- How have changing consumer trends affected pubs?
- How important is food in terms of pub revenue?
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