According to the report, only the strongest pub operators are able to compete with restaurants due to fickle and demanding customers, who are expecting higher levels of service and quality at an increasingly competitive price.
Panmure Gordon said: “Striking the balance between the optimal level of food and drink is difficult for pub operators, but some have performed better than others. Young’s and Fuller’s have reported robust like-for-like sales, but Enterprise and M&B have been the largest underperformers, mainly due to a lack of investment.”
“We believe casual dining chains are increasing the expectations of consumers by offering premium quality, fresh ingredients and quick service at a comparable price point to pubs. Pub operators must make their menus innovative in order to attract new customers.”
The blurred line between cafes, restaurants and fast-food outlets and pubs combined with the demand for all-day dining has also led to increased competition within the industry.
However, it was not all bad news for the UK’s pub industry with rising consumer confidence and increased levels of disposable income meaning the industry’s economic outcome is looking increasingly bright.
Restaurateur Chris Galvin said earlier this month he wasn’t surprised pubs are closing given the poor standard of food many serve.