Managed pubs losing food share

The managed pub sector is losing its share of consumer spending on eating out according to new figures.

Market analyst FMCG, which tracks managed pub menus through its ongoing Menurama survey, and consumer eating habits through the Quickbite survey, says pubs share of the eating out market has fallen from around 16 per cent over four years to 11 per cent.

The figures track eating out in the key pre-Christmas eating period.

The percentage of males eating out who ate in a pub in the lead-up to Christmas has almost halved over the four years.

While the figures do not track food sales through tenanted, leased and freehouse pubs, which account for the majority of pubs, FMCG director David Humphreys believes a similar pattern is likely.

He said: "Menurama shows that annual eating out inflation in pubs was running at six per cent for a two-course meal, and tenanted pubs, which do not have the purchasing power of the managed pub food chains, tend to offer higher priced menus."

However, one reason for a sharp decline in food sales through managed pubs may be that there are fewer to chose from. Figures from the British Beer & Pub Association (BBPA) show a reduction in managed houses from 11,700 to 10,200 between October 2003 and November 2006.

Since then, Punch Taverns has reduced the Spirit Group estate, once the UK's biggest managed pub operator, by at least 700 pubs.

The latest QuickBite survey found that consumers were cutting back on meals out of the home due to money worries, with 77 per cent of the survey saying that when money gets tight eating out is one of the first things they cut back on.

Humphreys added: "Unless there is a late rally, Christmas this year will be a disappointing affair for a large number of operators in the market."