Coronavirus wipes £14bn off pub market value
However, it predicted the market will bounce back and recover £9bn in lost revenue next year, driven by a bounce back in consumer confidence alongside innovation and creativity from the sector.
The report stated the challenge for the industry is to reassure customers around the safety measures in place.
Just one in 10 (11%) said they don’t feel comfortable going to a pub and when asked which safety measures they would like to see pubs implement for the future, the top answer was socially distanced seating (16%)
This was followed by hand sanitising stations (15%), a one-way system (11%) and contactless payment only (11%).
Takeaway demand
However, the research predicted the UK pub market will grow by 104% in 2021, reclaiming more than £9bn of value lost by the pandemic in 2020.
It also found demand for takeaway will continue after lockdown after 16% of customers purchased takeaway beer and three quarters (76%) would continue to do so if the service remains in place.
Some 14% of consumers ordered takeaway cocktails and 80% said they would continue to do so if the option was available.
Almost half (45%) of pub operators said outdoor space was the area they will invest most in over the next year – up from 18% in 2019.
Profound impact
Lumina Intelligence insights and communications director Sarah Coleman said: “Coronavirus has had a profound impact on the UK pub market, with more than half of its value set to be wiped off in 2020.
“However, we have seen creativity and innovation in abundance across the market, as operators tackle the challenges head on.
“The rapid adoption of digital solutions, the creative use of outdoor spaces and the additional focus on customer experience have highlighted the resilience of a sector that continues to face the full force of Government restrictions.
“It is this resilience and innovation that will see the sector recover £9bn worth of lost value in 2021.”
The research from the report used data from Lumina Intelligence Eating Out Panel, Channel Pulse, Operator Data Index, Menu Tracker and a bespoke survey with pub operators.
