Lumina Intelligence’s UK Pub & Bar Market Report showed are increasingly turning to beer and trading up with in the category to premium craft or world beers and Guinness, which is the top growing brand.
Prioritising value has softened as economic indicators including hikes in inflation have normalised historic levels.
The report advised operators to focus on providing added value to their consumers through experiences that have a point of difference or with higher quality produce and drinks.
Furthermore, the research showed one in 10 adults visit pubs and bars on a weekly basis with older consumers continuing to drive visits.
Consumer demographic
There hasn’t been a notable rise in any age demographic visiting the on-trade and those aged over 65 continue to be the most regular guests.
However, it also found consumers were slowly reducing the number of times they visit a pub or bar each week.
This contrasted with the total eating and drinking out market, which saw frequency grow in the retail, restaurant and quick-service restaurant channels.
Socialising with friends remains the most common reason for visits and is growing – up 1.1 percentage points compared to last year.
The top growing reasons for total eating out were routine and taking a break from studying/work as consumers return to more habitual occasions.
Closure prediction
Moreover, consumers are increasingly choosing local and independent venues when they do go out.
Also in the report, it predicted closures in the pub market were likely to be steeper than pre-Covid levels.
Business rates, alcohol duty and staff wage hikes were cited as key drivers in making sites unviable for operators.
This has been exacerbated by consumer caution around spending for weaker sites with weaker peak trading not able to mitigate quieter periods.
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