Big pub chains ‘losing their grip’ on the pub industry

By Emily Sutherland contact

- Last updated on GMT

Related tags: Pub chains, Alcoholic beverage

Growth at small pub chains is outstripping that at larger pub companies
Growth at small pub chains is outstripping that at larger pub companies
Smaller pub companies are growing at twice the rate of the large chains and have seen their turnover grow by almost 30% in the last five years according to findings from Ortus Secured Finance.

By contrast, turnover at major pub chains has grown by just 13% going from £12.4 billion to £14.1 billion in the same period.

Site disposals from pub chains looking to reduce their debts have allowed smaller pub groups to snap up prime sites, Ortus found, and smaller operators are also better placed to deal with rapidly changing consumer demands.

CEO Richard Beenstock said: ““Smaller pub companies that are able to secure finance are now taking advantage of disruption amongst the larger pub chains. Some of the big pub operators are having to sell off their pubs at very reasonable prices.”

“The introduction of the Market Rent Option as an alternative to the beer tie is also loosening the grip of the big operators on the pub industry giving more power to smaller entrepreneurial pub businesses and agile groups who are quicker to respond to changing consumer tastes for niche drinks brands.

"Many have been able to transform the pubs sold by the big chains back into profitable enterprises. If the small chains and independents get their offering right they can add significantly to their turnover and more importantly profit by shifting customers from mass market brands to local favourites.”

Related topics: Other operators

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