Managed pubcos drive food sales growth
Managed pub operators are reaping the benefits of investment in growing food sales across their community pub estates in anticipation of the smoking ban. New figures from AC Nielsen show an increase of 8 per cent by value in sales of main meals in managed community pubs last year. At the same time, sales of sandwiches fell by 2 per cent, as pubs sold fewer snacks and more higher value meals.
The jump suggests that publicans in the leased and tenanted market who have been waiting for the outcome of the smoking debate now face an uphill task to build a food trade.
The figures come from AC Nielsen's Pub Track food survey, which analyses EPOS sales figures from more than 7,000 pubs run by operators including Mitchells & Butlers, Whitbread, Greene King, Barracuda and Fullers.
The survey shows that in the year to December 2005, the pubs taking part sold 527m meals, an increase of 7.8 per cent year-on-year.
Dedicated food pubs - such as Spirit's Chef & Brewer and M&B's Harvester brands - inevitably saw the biggest increase in food sales, up 9.7 per cent across the year, but there was also a healthy 5.8 per cent increase in community pub food sales.
Pubcos have been working for some time to counter the expected fall-off in drinks trade after smoking is banned in pubs next year. At M&B's recent annual meeting, chairman Roger Carr said: "We have been preparing for legislation on smoking, banning it at the bar, reducing the smoking areas available and improving our food offers and the attractiveness of the outside trading areas."
The average price of a main meal was around £5 in managed community pubs last year. The Pub Track stats also show increases in sales of desserts, up 9 per cent; side dishes, up 8 per cent; and starters, up 5 per cent.
Traditional pub dishes, such as top seller steak and chips, account for 86 per cent of community pub meals and are still in growth. However, the fastest growing category is Oriental-style meals, with Thai chicken curry now sold in 9 per cent of community pubs.
Comment, by Pub Food Editor John Porter: The pub is now the most popular place to eat out for UK consumers, and the managed players have stolen a march on the tenanted and leased sector by investing heavily in food in their community estates.
However strongly publicans felt about the fairness of a blanket smoking ban, we now know it's a reality. Food won't be the saviour of every pub facing a fall in trade, but it offers a lifeline for many. There's no excuse - if you can serve a decent pint of cask beer, you can definitely knock up a burger and chips.
