Despite the current economic uncertainty, food-led pub brands have risen by 19.1% in the last year, with more than one new site opening a day, claimed industry experts CGA Peach and AlixPartners’ Market Growth Monitor report.
CGA Peach vice-president Peter Martin said: “Within the pub market there's has been growth in branded food-led concepts, many of which have been converted from community pub sites.”
Research shows that the number of food-led pubs brands has risen by 45.7% in the past five years, while pubs and bars have decreased by 18.1% in that period.
Rise in food-led pubs
The report also indicated that many unbranded pubs are now owned by major pub groups, such as Mitchells & Butlers as well as Greene King.
Martin added: “The collapse of suburban and rural drinking pubs is a thread that the media likes to follow, but the success of pub restaurants is a hugely positive one that tends to be overlooked.”
Opportunities ‘across the spectrum’
AlixPartners managing director Paul Hemming said: “The changing face of the British pub has helped to create an opportunity for operators across the pub spectrum, be it the larger pubcos converting suboptimal wet-led units to food, or the new wave of premium concepts such as White Brasserie Company, Hippo Inns and Seafood Pub Company.
“The success suggest the pub is an increasingly attractive home for restaurant operators, often engendering markedly higher customer satisfaction ratings relative to restaurants.”
Uncertain economic market
However, the report indicated that, despite the economic climate, the pub sector is performing well compared to other leisure sectors.
Martin added: “Competition in the managed-chain-restaurant and food-pub markets remains fierce and the sector continues to grow in numbers — particularly in our major cities.
“It is also worth noting that sites being opened tend to be much larger than the establishments being closed — leading to a net increase in trading space.”
You can find out more information about the report here.