According to Lumina’s latest quarterly report, consumer value in pubs and bars stood at £2.399m in the 12 weeks ending 19 February 2023, up 19% compared with the same period last year.
The report explained: “Lumina Intelligence calculate the consumer value by multiplying the total market value by the value share.
“The value share is obtained by dividing the chosen category share of occasions with the total share of occasions.”
Average consumer spend increased by 4% during this period while average penetration change grew 1 percentage point (pp).
Reduction in discretionary spending
Pubs and bars also saw a 1.3pp increased share in the occasions category, the largest year-on-year upswing.
Lunch occasions in pubs and bars saw a 2.7pp increase compared with 2022, attributed in part to the World Cup and a return to offices, while drinks-only occasions grew 87%.
However, consumer frequency saw a decline of 3%, highlighting a reduction in discretionary spending.
Affordable dishes showed continued growth during this period, with chips/wedges/fries accounting for 59% of dishes in pubs while burgers and salad accounted for 28% and 18% respectively.
Drinks wise, wine shares decreased by 2pp during this period while cider gained a 4pp share of the market.
Tough economic times
The report said: “Preferences are moving towards affordable, classic dishes.”
Eating out participation increased just 2pp year-on-year, attributed to a reduction in covid concerns “failing to drive market recovery” due to the “rising cost of living and notable rail strikes” in the period.
Additionally, the figures showed pub giant JD Wetherspoons had gained a 0.8pp share of the market vs last year, driven by lunch, dinner and drinks-only occasions.
The report said: “The venue’s affordable prices during tough economic times has led to its resilience, alongside post-covid recovery.”