Independent Pubs - UK - June 2007

Table of Contents

• Issues in the Market
• Main issues
• Definitions
• Abbreviations
• Market in Brief
• Independents hold their own in a competitive marketplace
  • Figure 1: Turnover of independent pubs, 2002-07
• Smoking ban the biggest concern
• Red tape a big headache
• Availability and cost main barriers to market entry
• Owners optimistic about future and benefits of specialising
• Internal Market Environment
• Key points
• Legislation
• Smoking bans
• Other red tape
• Cheap supermarket alcohol
• Changing structure of pub ownership
• Competition from multiple outlets
  • Figure 2: Leading pub operators, by total outlet numbers, September 2006
• Growing importance of food
  • Figure 3: The pub catering market, 2001-06
• Broader Market Environment
• Key points
• The strength of the economy
  • Figure 4: Trends in personal disposable income and consumer expenditure, 2002-12
• Trends in the age structure of the population
  • Figure 5: Trends in the age structure of the UK population, by gender, 2002-12
• Trends in the socio-economic structure of the population
  • Figure 6: Forecast adult population trends, by socio-economic group, 2002-12
• Competitive Context
• Key points
• Leisure expenditure
  • Figure 7: Consumer expenditure on selected leisure goods and activities, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Total control over the business
• Flexibility on purchasing of supplies
• Ability to tailor marketing and promotions to the local market
• Opportunity to differentiate through specialisation
• Control over opening hours
• Weaknesses
• No back-up from central head office
• Limited funding available for investment
• Lack of buying power when dealing with major brewers
• Market Size and Forecast
• Key points
• Overall market performance
  • Figure 8: UK pub market, key statistics*, 2002-07
• Independent pub market performance
  • Figure 9: UK independent pub market, key statistics, 2002-07
• Present market performance
• Future market performance
• Factors incorporated in the forecast
• Industry Structure
• Key points
• Independent pubs by region
  • Figure 10: Independent pub outlet numbers by television region, 2003-06
  • Figure 11: Percentage change in number of independent pubs by region, 2003-06
• The Consumer
• Key points
• Attitudes towards drinking, smoking and pubs
  • Figure 12: Agreement with selected lifestyle statements, by socio-economic group, 2006
• How many people visit pubs and for what?
  • Figure 13: Trends in visiting pubs/bars, 2002-06
  • Figure 14: Frequency of visiting pubs/bars for a drink only, 2002-06
  • Figure 15: Frequency of visiting pubs/bars for a meal, 2002-06
• Competition from other restaurants
  • Figure 16: Types of restaurants visited in the last three months, 2006